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THE 


IN8UKANCE  STATUTES 


OF     THE 


UNITED  STATES  AND  CANADA. 


BT 


C .     C .     HlNE, 


NEW  YORK: 

THE    HSrSXIR^NCE    MONITOR 

1876. 


^ 


i'O-^K 


PREFACE. 


The  insurauce  laws  of  five  years  ago  are  almost  obsolete,  and  in 
their  stead  new  statutes  bave  couie  upon  the  books  in  almost  every 
State  and  Territory.  The  fingers  of  a  singh'.  hand  out-umnber  the 
vStates  in  which  insurance  legislation  has  remained  unchanged, 
while  in  a  great  many  the  most  radical  alterations  have  taken  place. 
With  a  view  to  supply  the  insurance  and  legal  professions  with  a 
standard  and  reliable  edition  of  the  Insurance  Statutes  of  the  United 
States  and  Canada,  as  they  exist  at  the  opening  of  the  Centennial 
year,  this  voliune  has  been  prepared.  It  contains,  in  addition  to 
the  enactments  of  the  several  States  regarding  insurance  directly, 
the  laws  concerning  Arson  and  Incendiarism,  Embezzlement,  Fire 
Patrol  organizations,  Inquests  for  the  origin  of  tires,  and  the  general 
constitutional  and  statutory  provisions  bearing  u})on  insurance 
corporations  and  cognate  subjects;  a  grouping  such  as  has  not,  in 
the  knowledge  of  the  editor,  before  been  attempted. 

Acknowledgments  are  due  for  valued  courtesies  to  the  Library 
of  the  New  York  Law, Institute,  to  the  officials  of  the  several  States, 
and  to  numerous  agents  and  correspondents  of  the  Insurance  Moni- 
tor ;  to  Hon.  George  Wolford,  fi'om  whose  volume  of  1870,  the 
laborious  and  valuable  compilation  of  the  Massachusetts  insm*- 
ance  laws— the  only  coherent  one  extant — has  been  taken  almost 
bodily  ;  and  to  others  who  have  helped  the  work  along. 

In  a  considerable  number  of  the  States — about  twenty  of  the 
more  important  ones — complete  accuracy  has  been  sought  by 
securing  the  aid  of  the  officials  charged  with  the  execution  of  the 
insurance  laws,  who  have  given  personal  attention  to  a  revision  of 
the  compiled  statutes,  and  granted  permission  to  print  their  names 
at  the  heads  of  the  several  chapters  so  revised.  To  these  gentle- 
men the  thanks  of  the  insurance  fraternity,  as  well  as  those  of  the 
editor  are  especially  due. 

No  known  sources  of  information  have  been  neglected,  and  great 
pains  and  labor  have  been  bestowed  to  make  the  volume  complete 
and  reliable. 

C.      C.      HlNE. 

Office  of  the  Insurance  Monitor, 
New  York,  Jan.  1, 187(5. 


INDEX   TO   ALABAMA. 


TAliE 
Ar,ENT8— 

Returns  for  Taxation  (22) 12 

Responsible  for  Taxes  (22) 12 

Taxes  on  Commissions  of  (22) 12 

Licenses  (23) 12 

List  of,  for  Taxation  (241 12 

•Annnal  Statements — 

Filing  (11) 8 

Details  of  1 1 1  1 8,  9 

To  be  Sworn  to  ( 1 1 ) 9 

Arson  and  Incendiarism  (34-38) 15,10 

Assessment  tor  Fii e  Patrol  (2») 14 

Auditor — 

To  Publish  Xotice  of  Impairment  (14)  10 

To  Issue  Certificate  of  Authority  (15).  10 

Capital,  Required  (12)  9 

Certificate  of  Authority  (15)...« 10 

Charter — 

Amendment,  etc..  of   3,  8) 7 

To  be  Filed  (11) 8 

Company  Defined  (17) 11 

Constitutional  Prorlsions  (1-9) 7,  8 

Corporations- 
How  Formed  (2) 7 

Foreign  (4) 7 

Business  of  Limited  (5) 7 

Dues  from  (6) 7 

I'referred  Stock  of  (7) 7 

Charters  of  (3,  8) 7 

Rights  of  (9) 8 

Defined  (10) 8 

General  Provisions  Relating  to  ( 4 1 ) . . .  ]  7 

Deposits— 

Of  Foreign  Companies  (13) 10 

Character  of  ( 1 3) 10 

Withdrawing  (19,  21) 11 

When  not  Required  (1 U) 11 

Embezzi>eme.nt  (40) 16 

Fees  for  Licenses  (1 1,  23) 8, 12 

Fire  Insurance  Companies- 
Capital  Required  (12) 9 

Annual  Statements  (11) 8 

License  Tax  ( 1 1 ) 8 

Taxation  of  (2  2) 12 


PAGE 

Fire  Patrol— -.28-3  1 ) 13,  14 

Organization  of  (29j  14 

Powers  and  Duties  of  (28) 13 

Support  of  (29,  3  it) 14 

Foreign  Companies- 
Certificate  of  Deposit  (13) 10 

Amount  of  Deposit  (13) 10 

Fi-aud  and  False  Swearing  (39) 16 

Impairment  of  Capital  (14) 10 

Incendiarism  and  Arsou  (34  38) 15,16 

Insurance  Business— 

When  Illegal  (16) 10 

Patrol  (28-31) 13,14 

Licenses— 

Fees  for  Company  (II,  26) 8, 13 

Fees  for  Agents'  (23) 12 

Under  Former  Laws  (19) il 

Increase  of  Price  by  Counties  (25) 12 

Municipal  (-.^6) 13 

Life  Insurance  Cos.,  Taxation  of  (22) 12 

Life  Insurance  for  Married   Women   and 

Children  (32,  33) 15 

Makixe  and  Inland  Insurance  Companies — 

Capital  Required  (12) 9 

Annual  Statements  (11) 8 

License  Fees  (11) 8 

Taxation  of  (22 ) 12 

Married  Woman's  Policy  (32,  33) 15 

Oath  to  Annual  .Statement  (11) 9 

PATKOL.Fire  (28-31) 13,  14 

Penalties — 

For  Illegal  Business  (Hi) 10 

For  Non-Payment  of  Fine  (20) 11 

JEow  Collected  (20) 1 J 

For  not  Furnishing  Statement  ( 3 1  j . . .     15 
For  Arson  and  Incendiarism  (34-38,il5, 16 

For  Embezzlement  (,40)  16 

For  Fraud  and  False  Swearing  (39)..     16 

Reciprocal  Laws  (18) 11 

Securities,  Character  of  (13) 10 


INDEX  TO   ALABAMA. 


PAGE 

Service  of  Process  ( ;  8) 9 

Statement — 

Filing  Annual  (11) 8 

Details  of  Annual  (11) 8,  9 

Time  of  Filing  Annual  ( 1 1 )  8 

Oath  to  Annual  (11) 9 

By  Agents  (22) 12 

For  Fire  Patrol  (30) 14 

Penalty  tor  Refusing  (31) 15 


Taxes—  page 

State(ll,22) 8,12 

County  (25) 12 

Municipal  (2B) 13 

When  Payable  (27) 13 

Deduction  when  Made  (27) 13 

Penalty  for  Delinquent  (27) 13 

To  Suport  Kre  Patrol  (29) 14 

WIFK'SPOLICY  (32,33) 15 


INSURANCE  STATUTES  OF  ALABAMA. 


CONSTITUTIONAL  PROVISIONS  CONCERNING  CORPORA- 
TIONS. 

1 .  No  special  or  local  law  shall  be  enacted  for  the  benefit  of  in- 
dmduals  or  corporations  in  cases  which  are  or  can  be  provided  for 
by  a  general  law,  or  where  the  relief  sought  can  be  given  by  any 
court  of  this  State.  Nor  shall  the  operation  of  any  general  law  be 
suspended  by  the  General  Assembly  for  the  benefit  of  any  indi- 
\idual,  corporation,  or  association.     {Art.  4,  §  23.) 

12,  Corporations  may  be  formed  under  general  laws,  but  shall 
not  be  created  by  special  act,  except  for  municipal,  manufacturing, 
mining,  immigTation,  industrial,  and  educational  purposes,  or  for 
constructing  canals,  or  improving  navigable  rivers  and  harbors  of  this 
State,  and  in  cases  where,  in  the  judgment  of  the  General  Assembly, 
the  objects  of  the  corporation  can  not  be  attained  under  general  laws. 
All  general  laws  and  special  acts  passed  pursuant  to  this  section 
may  be  altered,  amended,  or  repealed.     {Art.  13,  §  1.) 

li.  The  General  Assembly  shall  not  remit  the  forfeiture  of  the 
charter  of  any  corporation  now  existing,  or  alter  or  amend  the  same, 
or  jjass  any  general  or  special  law  for  the  benefit  of  such  corporation 
other  than  in  execution  of  a  trust  created  by  law  or  by  contract,  ex- 
cept upon  the  condition  that  such  corporation  shall  thereafter  hold 
its  charter  subject  to  the  provisions  of  this  Constitution.  {Art. 
13,  §  3.) 

4.  No  foreign  corporation  shall  do  any  business  in  this  State 
without  having  at  least  one  known  place  of  business  and  an  author- 
ized agent  or  agents  therein,  and  such  corporation  may  be  sued  in 
any  county  where  it  does  business,  by  ser\ice  of  process  upon  an 
agent  anywhere  in  this  State.     {Art.  13,  §  4.) 

5.  No  corporation  shall  engage  in  any  business  other  than  that 
expressly  authorized  in  its  charter.     {Art.  13,  §  5.) 

6.  Dues  from  private  corporations  shall  be  secured  by  such 
means  as  may  be  prescribed  by  law,  but  in  no  case  shall  any  stock- 
holder be  inclividually  liable  otherwise  than  for  the  unpaid  stock 
owned  by  him  or  her.     {Art.  13,  §  8.) 

7.  No  corporation  shall  issue  preferred  stock  without  the  con- 
sent of  the  owners  of  two-thirds  of  the  stock  of  said  corporation. 
{Art.  13,  §  9.) 

8.  The  General  Assembly  shall  have  the  power  to  alter,  revoke, 
or  amend  any  charter  of  incorporation  now  existing,  and  revokable 
at  the  ratification  of  this  Constitution,  or  any  that  may  hereafter  be 
created,  whenever  in  their  opiilion  it  umy  be  injurious  to  the  citizens 
of  the  State,  in  such  manner,  however,  that  no  injustice  shall  be  done 
to  the  corporators.  No  law  hereafter  enacted  shall  create,  renew,  or 
extend  the  charter  of  more  than  one  corporation.     {Art.  13,  §  10.) 


8  hine's  insurance  statutes. 

9.  All  corporations  shall  have  the  right  to  sue,  and  shall  be 
subject  to  be  sued,  in  all  courts,  in  like  cases,  as  natural  persons. 
{Art.  13,  §  12.) 

1 0.  The  term  corporation,  as  used  in  this  article,  shall  be  con- 
strued to  include  all  joint  stock  companies,  or  any  associations  hav- 
ing any  of  the  powers  or  privileges  of  corporations,  not  possessed  by 
individuals  or  partnerships.     {Art.  13,  §  13.; 

FIRE,   INLAND,   AND  MARINE  INSURANCE    COMPANIES 
OF   OTHER  STATES   AND   COUNTRIES. 

1 1 .  Before  any  insurance  company  not  organized  under  or  in- 
cori)orated  by  the  laws  of  this  State  shall  transact  any  business  of 
insurance  in  this  State,  through  agents  or  otherwise,  it  shall  pay  into 
the  treasuiy  of  the  State  the  sum  of  one  hundred  dollars,  and  that 
amount  thereafter  in  the  month  of  January  annually,  for  which  the 
treasurer  shall  give  his  receipt  and  certify  said  payment  to  the 
auditor,  but  this  shall  not  be  in  lieu  of  or  affect  the  amount  required 
to  be  paid  by  such  company  for  school  purposes.  Such  company 
shall  also  file  with  the  Auditor  of  State  a  certified  copy  of  the 
charter  or  deed  of  settlement  of  the  company  (and  a  statement  of 
the  company)  on  the  31st  day  of  December  next  preceding  the  day 
on  which  it  shall  apply  for  permission  to  transact  business  in  this 
State,  exhibiting  the  following  i'acts  and  items  in  the  following  form, 
namely : 

First.  The  amount  of  the  capital  stock  of  the  company  and 
how  much  of  the  same  has  been  i)aid  up  in  cash. 

Second.  The  property  and  assets  held  by  the  company,  si)ecifying : 

1.  The  value  and  location  of  the  real  estate  held  by  such 
company. 

2.  The  amount  of  cash  on  hand  and  deposited  in  banks  to 
the  credit  of  the  company. 

3.  The  amount  in  the  hands  of  agents  and  in  course  of 
transmission. 

4.  The  amount  of  loans  secured  by  bonds  and  mortgages  or 
deeds  of  trust,  constituting  the  first  lien  on  real  estate  on  which 
there  shall  be  less  than  one  year's  interest  due  or  owing,  the 
location  and  value  of  each  piece  of  such  real  estate,  and  the 
amount  loaned  on  each  piece. 

o.  The  amount  of  loans  on  which  interest  shall  not  have 
been  paid  within  one  year  previous  to  such  statement  and  how 
secured. 

6.  The  amount  due  the  com])any  on  which  judgments  have 
been  obtained  and  the  cash  value  thereof. 

7.  The  amount  of  stocks  and  bonds  of  this  State,  or  of  the 
United  States,  or  of  any  other  stocks  or  bonds  owned  by  the 
company  or  corporation,  specifying  the  amount,  number  of 
shares,  and  par  and  market  value  of  each  kind  of  stock  or  bonds. 

8.  The  amount  of  bonds,  mortgages  or  stocks  held  as  collat- 
eral security  for  loans,  with  the  amount  loaned  on  each  kind  of 
stock  or  bond,  and  their  par  and  market  value. 

9.    The  amount  of  interest  actually  due  and  unpaid. 

10.  The  amount  of  interest  accrued  but  not  paid. 

11.  The  amount  of  all  other  assets  of  every  description,  and 
of  what  comi)osed. 


ALABA]\IA,  9 

Third.     The  liabilities  of  such  compauy,  specifying: 

1.  The  amount  of  losses  due  and  unpaid,  and  how  much 
thereof  is  to  citizens  of  this  State. 

2.  The  amount  of  claims  for  losses  resisted  by  the  company, 
and  how  much  thereof  is  to  citizens  of  this  State. 

3.  The  amount  of  claims  for  losses  incurred  during  the  year, 
including  those  claimed  and  not  due,  and  those  reported  to  the 
company  upon  which  no  action  has  been  taken,  and  how  much 
thereof  is  to  citizens  of  this  State. 

4.  The  amount  of  dividends  declared  and  due,  and  remaining 
unpaid. 

5.  The  amount  of  dividends  declared  and  not  due. 

6.  The  amount  of  money  borrowed  and  security  given  for 
the  i)ayment  thereof. 

7.  The  amount  required  for  reinsurance  of  outstanding 
policies  on  basis  of  fifty  per  cent,  of  premiums  on  unexpired 
risks. 

8.  The  amount  of  all  other  claims  against  the  company,  and 
of  what  they  consist. 

Fourth.    The  income  of  the  company  during  the  year,  specifying : 

1.  .  The  amount  of  premiums  received,  designating  the 
amount  received  in  this  State. 

2.  The  amount  of  interest  money  received. 

3.  The  amount  of  income  received  from  all  other  sources 
and  from  what  the  same  was  derived. 

Fifth.    The  expenditures  during  the  preceding  year,  si)ecifying  : 

1.  The  amount  of  losses  ])aid  during  the  year,  stating  how 
much  thereof  to  citizens  of  this  State. 

2.  The  amount  of  returned  premiums  paid  diu*ing  the  year. 

3.  The  amount  of  dividends  paid  during  the  year. 

4.  The  amount  paid  in  taxes  and  commissions  to  agents. 

5.  The  amount  of  all  other  expenditures  and  payments, 
which  statement  shall  be  subscribed  under  oath  by  the  Presi- 
dent and  Secretary,  or  other  chief  ofldcers  or  managers  of  such 
comj^any,  and  shall  be  renewed  annually  on  the  10th  day  of 
January  of  each  year  or  within  thirty  days  thereafter,  and  the 
said  Auditor  of  State  is  hereby  authorized  to  propose  such 
additional  inquiies  as  may  in  his  judgment  be  necessary  to 
elicit  a  full  exhibit  of  the  business  and  standing  of  any  insuiance 
company  as  aforesaid,  transacting  or  proposing  to  transact  the 
business  of  insurance  in  this  State.     {Laws  of  1874--5,  p.  142,  §1.) 

IS.  It  shall  not  be  lawful  for  any  insurance  company  not 
organized  under  or  incorporated  by  the  laws  of  this  State,  to 
transact  any  business  of  insurance  in  this  State,  through  agents  or 
otherwise,  unless  possessed  of  at  least  one  hundred  and  fifty 
thousand  dollars  of  actual  cash  capital,  invested  as  required  by  the 
laws  of  the  State  where  organized,  nor  until  such  company,  in  addi- 
tion to  the  other  requirements  of  this  act,  shall  have  filed  ^vith  the 
Auditor  of  State  a  Avritten  instrument,  duly  signed  and  sealed, 
whereby  it  shall  be  declared  that  service  of  process  (mesne  or  final) 
issued  in  any  suit  against  such  company  therein  pending  ti^om  any 
court  of  record,  State  or  Federal,  sitting  in  this  State,  upon  any 
agent  of  such  company  in  this  State,  made  in  the  manner  directed 
by  the  laws  of  this  State  for  the  service  of  process  upon  the  oflicers 
of  domestic  corporations,  shall  be  as  eliectual  for  the  purpose  of 
such  suit  and  to  bind  such  company  as  service  of  similar  process 


10  HINE'S   OSUEANeE   STATUTES. 

would  be  if  made  strictly  in  the  manner  directed  by  the  laws  of  the 
State  or  country  under  which  such  company  was  organized.  {Ibid, 
p.  144,  §2.) 

13.  Before  any  company,  incorporated  by  or  organized  under 
the  laws  of  any  government  foreign  to  the  United  States,  shall 
transact  any  business  of  insurance  in  this  State,  it  shall  file  with  the 
Auditor  the  ceiiificate  of  the  Comptroller  or  other  authorized  func- 
tionary of  some  other  State  or  of  the  United  States,  under  his  hand 
and  official  seal,  that  he  holds  on  deposit  and  in  trust  for  the  benefit 
of  all  the  x>olicy-holders  of  such  company  in  the  United  States 
securities  in  which  it  is  authorized  to  invest  its  capital  stock  by  the 
laws  of  the  State  in  which  such  deposit  is  made,  worth  at  least  two 
hundred  thousand  dollars,  and  which  shall  be  increased  in  case  of 
any  depreciation  in  their  value ;  Provided,  that  companies  organized 
under  the  laws  of  any  foreign  government  dei)ositing  the  amount  of 
securities  aforesaid  with  the  Treasurer  of  this  State,  who  shall 
receive  the  same  in  his  official  capacity,  and  producing  and  filing  a 
certificate  thereof  in  the  manner  provided  h\  this  section,  shall  be 
held  to  have  complied  with  the  requirements  of  this  section,  if  such 
certificate  shall  state  that  the  aforesaid  deposit  is  for  the  benefit 
and  protection  of  its  policy-holders  in  the  United  States.  {Ibid,  p. 
145,  §  3.) 

1 4.  Whenever  it  shall  appear  to  the  satisfaction  of  the  Auditor 
that  the  assets  of  any  company  are  reduced  more  than  twenty-five 
per  cent,  below  the  capital  stock  required  by  this  act  or  its  charter, 
after  reserving  fifty  per  cent,  of  the  amount  received  for  premiums 
on  all  risks  which  are  unexpired,  which  are  hereby  declared 
unearned  i)remiums,  he  shall  revoke  all  authority  to  such  company 
or  its  agents  to  do  business  in  this  State,  and  shall  cause  a  notifica- 
tion thereof  to  be  published  in  any  one  or  more  newspapers  of 
general  circulation,  and  copies  thereof  to  be  mailed  to  each  agent  in 
this  State  for  said  company,  and  the  agents  of  said  company  are, 
after  such  notice,  required  to  discontinue  the  issuing  of  any  new 
policies  or  the  renewal  of  any  previously  issued.     {Ibid,  §  4. ) 

15.  Whenever  any  insurance  company,  as  provided  for  in 
section  one,  shall  have  fully  complied  with  all  the  requirements  of 
this  act,  and  the  Auditor  is  satisfied  that  the  affairs  of  such  company 
are  in  sound  condition,  he  shaU  issue  a  certificate  of  authority  to 
such  company  authorizing  it  to  transact  the  business  of  insurance 
in  this  State,  itself  or  by  such  agents  as  it  may  ai)point,  until  the 
15th  day  of  January  then  next  ensuing,  which  certificate  shall  be 
renewed  annually  in  January  in  each  year,  on  compliance  with  the 
terms  of  this  act,  and  subject  to  the  conditions  herein.     {Ibid,  §  5.) 

16.  It  shall  not  be  lawful  for  any  person  or  persons  to  act  as 
agent  or  solicit  risks  or  make  agreement  for  the  delivery  of  policies 
of  or  in  any  way,  directly  or  indirectly,  to  transact  the  business  of 
insurance  for  and  in  behalf  of  any  company  not  organized  under  or 
inciorporated  by  the  laws  of  this  State,  untd  such  compauj'  shall 
have  fully  complied  with  all  the  requirements  of  this  act,  and  until 
such  company  shall  have  received  the  certificate  of  authority  from 
the  Auditor  authorizing  it  to  transact  the  business  of  insurance  in 
this  State,  and  whoever  shall  directly  or  indirectly  aid  in  transacting 
the  insurance  business  for  or  make  agreements  for  the  delivery  of 
the  policies  of  any  such  company,  without  such  company  having 
first  received  such  certificate  of  authority,  or  shall  continue  to  act 


ALABAMA.  11 

as  agent  or  otherwise  for  any  such  comijany,  after  the  revocation  by 
the  Auditor  of  such  certificate  of  authority,  shall  forfeit  and  pay  to 
the  State  for  each  offense,  the  sum  of  five  hundred  dollars.  [Ibid, p. 
146,  §  6.) 

17.  The  term  company  used  in  this  act,  shall  embrace  and 
include  every  company,  corporation,  association  or  partnership 
organized  for  the  purpose  of  transacting  the  business  of  insurance 
other  than  life  or  accident  insurance.     {Ibid,  §  7.) 

1  8.  Whenever  the  existing  or  future  laws  of  any  State  of  the 
United  States  shall  require  of  insurance  companies  iucori)orated  by 
or  organized  under  the  laws  of  this  State  or  of  the  agents  thereof, 
any  deposit  of  securities  in  such  State  for  the  protection  of  policy- 
holders or  otherwise,  or  any  payment  of  taxes,  fines,  penalties,  cer- 
tificates of  authority,  license  fees,  or  otherwise,  greater  than  the 
amount  required  for  similar  purposes  from  similar  companies  of 
other  States  by  the  then  existing  laws  of  this  State,  then  in  every 
such  case,  all  companies  of  such  States  establishing,  or  having  here- 
tofore established,  an  agency  or  agencies  in  this  State,  shall  be  and 
are  hereby  required  to  make  the  same  deposit  for  a  like  purpose 
with  the  Treasurer  of  this  State,  and  to  pay  into  the  Treasury  of 
this  State  for  taxes,  fines,  penalties,  license  fees,  or  otherwise,  an 
amount  equal  to  the  amount  of  such  charges  and  payments  imposed 
by  the  laws  of  such  State  upon  the  companies  of  this  State,  and  the 
agents  thereof.     {Ibid,  §  8.) 

1 1>.  All  comi)anies  which  may  have  received  license  to  transact 
business  in  this  State  prior  to  the  passage  of  this  act  shall  not  be 
obliged  to  renew  application  until  such  license  shall  expire,  and  all 
insurance  compauies  complying  with  the  pro\isions  of  this  act, 
which  may  have  made  deposits  of  bonds  under  the  provisions  of 
former  laws  of  this  State,  shall,  upon  the  certificate  of  the  Auditor 
to  the  Treasurer  of  the  State  that  they  have  fully  complied  with  the 
requirements  of  this  act,  be  entitled  to  withdraw  such  deposits,  and 
as  to  all  such  companies  no  further  deposit  of  bonds  shall  be 
required,  except  as  required  in  the  eighth  section  of  this  act.  {Ibid, 
p.  147,  §  9.) 

So.  Every  penalty  provided  for  by  this  act  shall  be  sued  for 
and  recovered  in  the  name  of  the  State  of  Alabama  by  the  solicitor 
of  the  district  in  which  such  delinquency  occurs,  and  when  sued  for 
and  collected  by  him,  shall  be  paid  into  the  State  Treasury,  less 
twenty  per  cent.,  to  be  paid  him  lor  his  services ;  and  in  case  of  the 
non-payment  of  such  penalty,  the  party  so  offending  shall  be  liable 
to  imprisonment  for  a  i^eriod  not  exceeding  six  months,  in  the 
discretion  of  any  court  having  cognizance  thereof.     {Ibid,  §  10.) 

21.  All  laws  and  parts  of  laws  conflicting  with  the  i)rovisions 
of  this  act  are  hereby  repealed,  but  no  company  against  whom  any 
suit  is  now  pending  in  this  State  for  any  claim  heretofore  accrued, 
shall  be  permitted  to  withdraw  any  deposit  made  by  it  (under 
existing  laws)  until  such  suit  is  determined  and  the  judgment,  if 
any,  be  fully  i)aid.     {Ibid,  §  11.) 


TAXATION  OF  INSUEANCE  CORPORATIONS. 

2'2.     Taxes  shall  also  be  assessed  by  assessor  in  each  county  on 
and  from  the  following  subjects,  and  at  the  following  rates,  to  wit  : 


12  hide's  insuranck  statutes. 

On  the  gross  amonut  of  premiums  (after  deducting-  therefi'om 
losses  paid  and  all  return  premiums)  received  from  their  business 
in  this  State,  during  such  tax  year,  by  any  life,  fire,  or  marine 
insurance  company,  not  chartered  by  this  State  and  doing  business 
herein,  by  agents  or  otlierwise,  at  the  rate  of  three  per  cent.;  but 
from  this  amount,  hfty  dollars  shall  be  applied  to  school  purposes. 
Each  agent,  in  this  State,  of  any  insurance  company,  organized 
under  the  laws  of  any  other  State  or  country,  and  doing  business  in 
this  State,  shall  annually,  in  the  month  of  January,  return  to  the 
assessor  of  the  county  in  which  such  agency  is  located,  a  sworn 
statement  of  the  gross  receipts  of  such  agency  for  the  year  ending 
on  the  first  day  of  that  month,  including  all  notes,  accounts,  and 
other  things  received  or  agreed  upon  as  a  compensation  for  insur- 
ance at  such  agency,  with  a  statement  of  losses  paid,  and  retui-n 
premiums,  and  the  company  shall  be  charged  with  taxes  at  the 
p^ace  of  such  ag'ency  on  the  amount  so  returned ;  and  the  agent 
shall  also  be  personally  responsible  for  such  taxes,  and  may  retain 
in  his  hands  a  sufiicient  amount  of  the  company's  assets  to  j)ay  the 
same,  unless  the  same  shall  be  paid  by  the  company  ;  and  any  agent 
or  company  refusing  or  failing  to  make  returns  within  the  times 
prescribed  by  law,  or  refusing  to  pay  the  amount  assessed  as  tax, 
shall  iorever  be  debarred  from  doing  business  in  this  State. 

On  the  gToss  amount  of  premiums  received  from  tlieir  business 
in  this  State  during  such  tax  year,  by  any  insurance  company, 
chartered  by  or  organized  under  any  of  the  laws  of  this  State,  one 
per  cent,  on  the  gross  amount  of  premiums,  less  the  expenditures, 
losses  paid,  and  return  premiums,  but  liom  this  amount  fifty  dollars 
shall  be  applied  to  public  school  purposes,  except  in  the  case  of  life 
insurance  companies,  chartered  by  or  organized  under  any  of  the 
laws  of  this  State,  one  per  cent,  on  the  gTOss  amount  of  premiums, 
less  the  expenditures,  reserved  fund,  returned  premiums,  and  losses 
paid ;  but  from  this  amount  fifty  dollars  shall  be  applied  to  public 
school  purposes. 

Upon  the  gross  commissions  received  by  insurance  agents,  as 
such  dimng  the  tax  year,  at  the  rate  of  three-fomths  of  one  per 
cent.  Provided,  That  the  actual  expenses  of  conducting  such  busi- 
ness may  be  deducted  from  such  gross  commissions  before  assess- 
ment, but  no  bad  debt  shall  be  deducted.  {Laws  of  ISl 4,-5,  ji- *^, 
part  of  ^  10.) 

2:{.    The  price  of  licenses  shall  be  as  follows ; 

For  each  agent  of  an  insurance  company,  twenty-five  dollars, 
and  for  each  sub-agent  ten  dollars,  for  each  company  represented. 
The  payment  of  this  tax  to  the  State,  evidenced  by  the  receipt  of 
any  probate  judge,  shall  exempt  from  pavmentof  this  license  in  anv 
other  county.     {Ibid,  p.  39,  part  of  §  102.') 

24.  It  shall  be  the  duty  of  the  probate  judge  to  furnish  the 
tax  assessor,  on  or  before  the  first  day  of  March  in  each  year,  a  list 
of  all  agents  for  insm-ance  companies  in  his  county,  with  the  names 
of  the  companies  they  represent.     {Ibid, p.  33,  §  84.) 

95.  The  courts  of  county  commissioners  are  hereby  author- 
ized to  add  to  the  price  of  licenses,  for  county  purposes,  such  sums 
as  they  may  designate,  not  to  exceed  fifty  per  cent.,  on  the  State 
licenses.     {Ibid, p.  41,  §  104.) 

26.  The  several  cities  and  incorporated  towns  of  this  State 
may  respectively  levy  and  collect  from  the  banks  and  banking  and 


ALABAMA.  13 

insurance  companies,  associations,  and  corporations,  chartered  or 
organized  under  the  laws  of  this  State,  located  and  doing  business 
within  their  respective  limits,  a  tax  upon  the  market  value  of  the 
capital  stock  of  each  of  such  banks  and  banking  and  insurance  com- 
panies, associations,  and  corporations,  at  the  same  rate  per  hundred 
dollars  as  may  be  levied  and  collected  by  the  State  for  State  reve- 
nue, and  no  more,  to  be  paid  by  the  said  banks  and  banking  and 
insurance  companies,  associations,  and  corporations,  in  full  of  all 
taxes,  imposts,  or  assessments  for  municipal  purposes  upon  the  said 
capital  and  business  and  upon  the  shares  of  their  said  capital  stock ; 
Provided,  Said  tax  shall  not  exceed  sixty  cents  on  the  hundred  dol- 
lars value  of  such  capital  stock,  and  said  munici{)al  corporation,  and 
each  of  them,  are  hereby  restrained  from  levying  on  or  collecting 
from  said  companies,  associations,  or  corporations,  their  capital, 
business,  or  shares,  any  larger  or  greater  tax  than  that  hereinbefore 
named,  under  any  name  or  pretence  of  tax  upon  capital,  profits,  or  in- 
come, or  business  whatever ;  Provided,  That  any  real  estate  owned 
by  said  banks,  banking  and  insurance  companies,  associations,  or 
corporations  shall  be  subject  to  the  same  rate  of  taxation  as  sim- 
ilar property  otherwise  owned  or  subject  to  taxation  for  municipal 
purposes ;  And  provided,  Said  municipal  corporations  may  demand 
and  receive  from  each  of  said  companies,  associations,  or  corpora- 
tions a  license  tax  not  exceeding  one  hundred  dollars.  {Ibid,  j». 
49,  §  1.) 

27.  All  taxes  shall  become  due  and  i^ayable  on  the  first  day 
of  October  of  each  year,  and  shall  become  delinquent  on  the  thirty- 
first  day  of  December  in  each  year,  except  in  cases  where  parties 
owing  taxes  are  about  to  remove  from  the  county.  And  on  the 
first  day  of  February  there  shall  be  added  to,  and  collected  w  ith  all 
delinquent  taxes,  a  penalty  of  three  per  cent,  on  the  amount  of 
taxes  not  then  paid,  and  a  monthly  increase  of  two  per  cent,  there- 
after; Provided,  That  on  payment  of  his  taxes  during  the  month  of 
October,  the  tax-payer  shall  be  allowed  a  deduction  of  four  per 
cent,  on  the  amount  of  his  taxes,  three  per  cent,  if  paid  during  the 
month  of  November,  and  two  per  cent,  if  paid  during  the  month  of 
December.     {Ibid,  ^.  13,  §  15.) 

FIRE   PATROL. 

28.  Boards  of  underwriters,  companies,  corporations,  associa- 
tions, underwriters,  agents,  or  persons,  shall  have  power  to  provide 
suitable  rooms  for  the  accommodation  of  a  fire  insurance  patrol, 
and  also  to  provide  a  patrol  Of  men,  and  a  competent  person  to  act 
as  superintendent,  to  discover  and  prevent  fires,  with  suitable  appa- 
ratus to  save  and  preserve  property  or  life  at  and  after  a  fire ;  and 
the  better  to  enable  them  so  to  act  with  promptness  and  efficiency, 
full  power  is  given  to  such  superintendent  and  such  patrol  to  enter 
any  building  on  fire,  or  which  may  be  exposed  to  or  in  danger  of 
taking  fire  from  other  burning  buildings,  subject  to  the  control  of 
the  chief  engineer  or  fire  marshal  of  the  city,  and  at  once  to  proceed 
to  i)rotect  and  endeavor  to  save  the  property  therein,  and  to  re- 
move such  ])ropertv,  or  anv  part  thereof,  from  the  ruins  after  a  fire. 
{Laics  of  1874-5,  p.  148,  §  1.) 

29.  In  the  month  of  January  (or  as  soon  after  as  conveniently 
I)racticable)  of  each  year  there  shall  be  held  a  meeting  of  said 


34  hink's  insurance  statutes. 

boards  of  underwriters,  companies,  corporations,  associations,  un- 
derwriters, agents,  or  persons  doing  a  fire  insurance  business  in  the 
city,  of  whicli  ten  days  previous  notice  shall  be  inserted  in  at  least 
one  daily  newspaper,  published  in  the  city  where  said  boards  of 
underwriters,  companies,  corporations,  associations,  underwriters, 
agents,  or  persons  are  established  or  doing  business,  tit  which  meet- 
ing each  insurance  comijany,  corj^oration,  association,  underwriter, 
agent,  iierson  or  ])ersons  doing  a  fire  insurance  business  in  the  city, 
shall  have  the  right  to  be  represented  at  such  meeting,  and  shall  be 
entitled  to  one  vote.  A  majority  of  the  wh^le  number  so  repre- 
sented shall  have  i)ower  to  decide  upon  the  question  of  sustaining 
the  fire  insurance  patrol,  hereinbefore  mentioned,  and  of  fixing  the 
maximum  amount  of  expenses  which  shall  be  inciu^red  therefor 
during  the  fiscal  year  next  to  ensue,  which  amount  shall  in  no  case 
exceed  two  per  centum  on  the  aggregate  of  fire  premiums  returned 
(on  cotton  excepted)  as  received,  as  jjrovided  in  section  three  of  this 
act.  And  the  whole  of  such  amount,  or  as  much  thereof  as  may  be 
necessary,  may  be  assessed  upon  all  insurance  companies,  organ- 
izations, corporations,  associations,  and  persons  who  assume  risks 
and  accept  premiums  for  fire  insurance  in  said  city,  as  hereinbefore 
mentioned,  in  proportion  to  the  several  amounts  of  premiums  re- 
turned {on  cotton  excepted)  as  received  by  each  as  hereinafter  pro- 
vided, and  such  assessment  shall  be  collectable,  by  and  in  the  name 
of  said  boards  of  underwriters,  companies,  corporations,  associa- 
tions, underwriters,  agents,  or  persons  in  any  court  of  law  in  the 
State  of  Alabama,  having  jurisdiction,  in  such  manner  and  at  such 
time  or  times  as  said  boards  of  underwriters,  companies,  cor[)ora- 
tions,  associations,  underwriters,  agents,  or  persons  may  determine. 
{Ihid,  §  2.) 

30.  To  provide  for  the  payment  of  persons  employed  under 
the  provisions  of  this  act,  and  to  maintain  suitable  rooms,  and  the 
apparatus  for  saving  life  and  property  contemi)lated,  said  boards  of 
underwriters,  companies,  corporations,  associations,  underwriters, 
agents,  or  persons  are  empowered  to  require  a  statement  to  be 
furnished  semi-annually  by  all  insurance  companies,  corporations, 
associations,  underwriters,  agents,  or  persons,  of  the  aggregate 
amount  of  fire  premiums  received  {on  cotton  excepted)  for  insuring 
property  in  the  city  where  said  boards  of  underwriters,  companies, 
corporations,  associations,  underwriters,  agents,  or  persons  are 
organized  or  established  for  and  during  the  six  mouths  next  pre- 
ceding the  first  day  of  January,  and  the  first  day  of  July  of  each 
year,  which  statement  shall  be  sworn  to  by  the  president  or  secre- 
tary of  the  corporation  or  association, 'or  by  the  agent  or  person  so 
acting  and  effecting  such  insurance  in  said  city,  and  shall  be 
handed  to  such  person  or  officer  as  may  be  selected  by  said  boards 
of  underwriters,  companies,  corporations,  associations,  underwrit- 
ers, agents,  or  persons,  within  such  time  as  hereinafter  provided  in 
section  fovir  of  this  act.     {Ibid,  p.  149,  §  3.) 

St  1 .  It  shall  be  lawful  for  such  person  or  officer  as  may  be  se- 
lected by  said  boards  of  underwriters,  companies,  corporations,  asso- 
ciations, underwriters,  agents,  or  i)ersons,  within  ten  days  after  the 
first  day  of  January  and  the  first  day  of  July,  in  each  year,  by 
written  or  printed  demand,  signed  by  him,  to  require  from  every 
insurance  comjiany,  corporation,  association,  underwriter,  agent,  or 
person  engaged  in  the  business  of  fire  insurance  m  the  city  where 


ALABAMA.  15 

said  boards  of  underwriters,  companies,  corporations,  associations, 
underwriters,  agents,  or  persons  are  organized  or  established,  the 
statement  provided  for  in  the  hist  preceding  section  of  this  act. 
Such  demand  may  be  delivered  personally  at  the  office  of  such  in- 
surance company,  corporation,  association,  underwriter,  agent,  or 
person,  and  every  oflicer  of  such  insurance  company,  corporation, 
or  association,  and  every  individual  agent,  under wTiter,  or  person 
who  shall,  for  tifteen  days  after  such  demand,  neglect  to  render  the 
account,  shall  forfeit  fifty  dollars,  for  the  use  of  such  boards  of 
underwriters,  companies,  corporations,  associations,  underwriters, 
agents,  and  persons,  and  shall  also  forfeit,  for  its  use,  twenty-five 
dollars  in  addition  for  every  day  he  shall  so  neglect  after  the  ex 
piration  of  the  said  fifteen  days,  and  such  penalty  may  be  computed 
and  recovered  up  to  the  time  of  trial  for  any  suit  for  the  recovery 
thereof,  which  jjenalty  may  be  sued  for  and  recovered,  with  costs  of 
suit,  in  any  coiu*t  of  law  within  the  .State  of  Alabama  having  .juris- 
diction, by  and  in  the  name  of  any  of  said  boards  of  underwriters, 
companies,  corporations,  associations,  underwriters,  agents,  or  per- 
sons.    {Ibid,  §  4.) 

INSURANCE  ON  LIVES  FOR  THE  BENEFIT  OF  MARRIED 
WOMEN  AND  CHILDREN. 

33.  Any  married  woman,  by  herself  and  in  her  name,  or  in  the 
name  of  any  third  person,  with  his  assent  as  her  trustee,  may  cause 
to  be  insured  for  her  sole  use  the  life  of  her  husband  for  any  definite 
period,  or  for  the  term  of  his  natural  life,  and  in  case  of  her  sur- 
viving her  husband  the  sum  or  net  amount  of  insurance  becoming 
due  and  payable  by  the  terms  of  the  insurance  shall  be  payable  to 
her,  to  and  for  her  own  use,  free  from  the  claims  of  the  representa- 
tives of  the  husband  or  any  of  his  creditors  ;  Provided,  however, 
that  in  case  the  husband  shall  have  paid  annual  premiums  above  the 
amount  of  five  hundred  dollars  (out  of  his  own  funds  or  property) 
for  such  insurance,  then  such  exemption  shall  only  apply  to  said  in- 
surance in  the  proportion  of  five  hundred  dollars  to  the  amount  of 
premiums  paid  for  such  insurance.  (Revised  Code,  1867,  |;.  672, 
§  3539,  H.) 

iiti.  In  case  of  the  death  of  the  wife  before  the  decease  of  her 
husband,  the  amount  of  the  insurance  may  be  made  payable  after 
death  to  her  children  for  their  use,  and  to  their  guardian  if  under 
age.     {Ibid,  §  3539,  I.) 

ARSON  AND  INCENDIARISM. 

34.  Any  person  who,  in  the  night  time  willfully  sets  fire  to 
or  burns  any  dwelling  house,  steamboat,  or  vessel,  in  which  there  is 
at  the  time  any  human  being  ;  or  any  prison,  house,  or  other  build- 
ing, which  is  occupied  by  a  person  lodged  therein  at  night ;  or  any 
house  adjoining  a  dwelling  house,  in  which  dwelling  house  there  is 
at  the  time  a  human  being,  is  guilty  of  arson  in  the  first  degree,  and 
must  on  con\iction  be  punished,  at  the  discretion  of  the  jmy,  by 
death,  or  by  imprisonment  in  the  penitentiary,  or  hard  labor  for  the 
county,  for  not  less  than  ten  years.  {Revised  Code,  1867,  p.  705, 
§  3697  ) 

35.  Any  person  who  willfully  sets  fire  to  or  burns  any  church. 


16  HmE's   INSURANCE   STATUTES. 

meeting  house,  court  house,  town  house,  college,  academy,  jail,  or 
other  building  erected  for  public  use  ;  or  any  banking  house,  ware- 
house, or  cotton  house,  gin  house,  store,  manufactory,  or  mill,  which, 
with  the  property  therein  contained,  is  of  the  value  of  five  hundred 
dollars  or  more  ;  or  any  barn,  stable,  shop,  or  office  of  another  i)er- 
son,  within  the  curtilage  of  any  dwelling  house,  or  other  building, 
by  the  burning  whereof  any  building  hereinbefore  specified  in  this 
section  is  burned ;  or  who  willfully  sets  fire  to  or  lnu-ns  any  in- 
habited dwelling  house,  or  any  steamboat  or  vessel,  in  which  there 
is  at  the  time  no  human  being,  is  guilty  of  arson  in  the  second 
degTee,  and  must  on  conviction  be  punished  by  imprisonment  in  the 
penitentiary,  or  hard  labor  for  the  county,  for  not  less  than  two,  nor 
more  than  ten  years.     {Ibid,  §  3698.) 

36.  Any  person  who  shall  willfully  set  fire  to  or  burn  any  car, 
train  of  cars,  car  shed,  cotton  house,  cotton  pen  containing  cotton, 
or  corn  pen  containing  corn,  shall  be  guilty  of  arson  in  the  second 
degree,  and  must,  on  con^iction,  be  punished  by  imprisonment  in 
the  penitentiary,  or  hard  labor  for  the  county,  for  not  less  than  two, 
nor  more  than  ten  years.     (Laws  of  1874-5,  p.  238,  §  1.) 

37.  Any  person  who  willfully  sets  fire  to  or  burns  any  house, 
building,  boat,  or  vessel,  or  any  bridge,  causeway,  turnpike  gate, 
or  toll  gate,  by  law  erected  or  authorized,  under  such  circum- 
stances as  do  not  constitute  arson  in  the  first  or  second  degi'ee,  is 
guilty  of  arson  in  the  third  degxee,  and  must,  on  conviction,  be  im- 
prisoned in  the  county  jail,  or  sentenced  to  hard  labor  for  the  county, 
for  not  more  than  twelve  months ;  and  may  also  be  fined  not  more 
than  two  thousand  dollars,  at  the  discretion  of  the  jury.  {Revised 
Code,  1867,  p.  705,  §  3699.) 

3  !?i.  Any  person  who  willfully  burns  a  building,  or  any  property 
which  is  at  the  time  insured  against  fire,  with  intent  to  charge  or  in- 
jure the  insurer  ;  or  who  willfully  burns,  sinks,  casts  away,  or  other- 
wise destroys  any  ship  or  vessel  with  the  intent  to  injiu-e  the  owner 
of  said  boat  or  vessel,  or  of  any  property  on  board  of  the  same,  or 
the  insurer  of  such  boat,  vessel,  or  i^roperty,  must,  on  conviction,  be 
punished  by  imprisonment  in  the  county  jail,  or  hard  labor  for  the 
county,  for  not  more  than  twelve  months  ;  and  may  also  be  fined  not 
more  than  two  thousand  dollars,  at  the  discretion  of  the  jury.  {Ibid, 
k  3700.) 

FRAUD  AJ!^D  FALSE  SWEARING. 

39,  Any  person  who,  being  the  master,  or  an  officer,  or  mariner 
of  any  vessel,  makes,  or  causes  to  be  made,  or  swears  to  any  false 
affidavit  or  protest ;  or,  being  the  owner,  or  other  person  concerned 
in  such  vessel,  or  in  any  property  laden  on  board  the  same,  procures 
any  such  false  affidavit  or  i)rotest  to  be  made,  or  exhibits  the  same, 
with  the  intent  to  injure,  deceive  or  defraud  the  insurer  of  such 
vessel  or  property,  nuist,  on  conviction,  be  imprisoned  in  the  county 
jail,  or  sentenced  to  hard  labor  for  the  county,  for  not  more  than  one 
year ;  and  may  also  be  fined  not  more  than  two  thousand  dollars,  at 
the  discretion  of  the  jury.     {Ibid,  §  3701.) 

EMBEZZLEMENT. 

40.  Any  officer,  agent,  or  clerk  of  any  incorporated  company, 
or  clerk,  agent,  servant  or  apprentice  of  any  private  person  or  jjer- 


ALABAMA.  17 

SOUS,  wlio  embezzles  or  ft-audiileiitly  converts  to  his  owni  use,  or 
fraudeutly  secretes  with  intent  to  convert  to  hiso^^^l  use,  any  money 
or  property,  which  has  come  into  his  possession  by  virtue  of  his  em- 
ployment, unist  be  punished,  on  conviction,  as  if  be  had  stolen  it, 
{Revised  Code,  18G7,2>.  708,  §  3717.) 

GENERAL   PROVISIONS   RELATING  TO   CORPORATIONS. 

41.  On  Organization  of  Corporations,  see  Laws  of  1874-5,  pp. 
133,  135 ;  on  Consolidation  of  Private  Corporations,  see  Laws  of 
1872-3,  pp.  82,  83  ;  on  Dissolution  of  Private  Corporations,  see  Law.s 
of  1874-5,  pp.  135,  137, 


INDEX  TO  ARKANSAS. 


PAGE 

A  CTUABIKS,  A  ppointment  oi  ( 1 1 ) 23 

Advertising,  Fees  for  (12) 23 

Agents — 

When  May  do  Business  (17,  20)   ..  24,  25 

How  Authorized  (20) 25 

Companies  to  Certify  (20) 25 

Annual  Statements — 

Filing  (15) 24 

Fees  forriiinj,'(12) 23 

Details  of  (15) 24 

Arson  and  Incendiarism  (26-32) 22 

Attorney-General  Duties  of  (10) 22 

Auditor — 

Powers  and  Duties  of  (7,  8-1  0)  19-23 

To  File  Charters  (10).. 20 

To  Publish  Examination  (10) 23 

When  a  Party   to  Legal   Proceedings  25 

(24) 

Capital— 

Required  (19) 25 

Reduction  of  (1 0) 22 

Certificate— 

Of  Valuation,  Filing  (10) 20 

Of  Organization ,  Filing  ( 1 3) 24 

Charter — 

Limitation  of  Unused  ( 1 ) 19 

Filing  (13) 24 

Constltutioual  Provisions  (1-5   19 

Corporations — 

Limitation  of  Unused  Charters  ( 1 ) . . . .  19 

Special  Laws  Prohibited  (2) 19 

Formed  under  Guneral  Laws  (3) 19 

Charters  may  be  Revoked,  etc   (3) 19 

Issue  o(  Stock  Limited  (4) 19 

Rights  and  Duties  of  Foreign  (5) 19 

Dissolution  of  Insurance  (10) 22 

General  Provisions  Coacerning  (34)  -  -  27 

Embezzlement  v33) 27 

Examination — 

Of  Companies  (10,  13) 23,  24 

Publication  of  Result  of  ( 1  4 ) 24 

Examiners,  Appointment  of  ( 1 0 ) 23 

Fees — 

For  Valuing  Life  Policies  (11) 23 

For  Filing  Certificate,  etc.  (12) 23 

For  Publishing  Statements  '12) 23 

Fire  Insurance  Companies — 

Reinsurance  Reserve  (10) 21 

Ceasing  Business  (10) 21 

Impairment  of  Capital  (10) 21 

Foreign  Cos.,  Annual  Statements  (15) 24 

Illegal  Business,  Penalty  for  (22) 25 


PAGE 

Impairment  of  Capital  (10) 21 

Incendiarism  and  Arson  (26-38) 22 

Insolvent  Companies  (10) 22 

Insurance — 

Bureau  Established  (6) 19 

Commissioner  Abolished  (7) 20 

Bureau,  Seal  of  (8 ) 20 

Business.  Unlawful  (14) 24 

Companies,  Tax  on  (18) 24 

Laws  Repealed  (7) 20 

Life  Insurance  for  Married  Women  and 

Children  (25) 26 

Life  Insurance  Companies — 

Ceasing  Business  (10) 21 

Impairment  of  (1 0) 21 

Examination  of  ( 1 0; 22 

Life  Policies- 
Valuation  of  (10) 20 

Certilicate  of  Valuation  of  (10) 20 

Fees  for  Valuing  (11) 23 

Marine  Insurance  Companies- 
Reinsurance  Reserve  (10). 21 

Impairment  of  ( 1 0 ) 21 

Married  Woman's  Policy  (25) 26 

Net  Receipts- 
How  Calculated  (16) 24 

Tax  on  ( 1 6) 24 

Penalties— 

For  Failure  to  Furnish  Certificate  of 

Valuation  (10) 21 

For  Neglect  to  File  Charter  (13) 24 

For  Neglect  to  File  Statement  (16)..-  24 

For  Doing  Illegal  Business  (22) 25 

For  Arson  and  Incendiarism  (26-32)  26 

For  Embezzlement  (33)  -  - 27 

Policies- 
Valuing  Life  (10) 20 

Fees  for  Valuing  Life  (11) 23 

Reinsurance  Reserve  (10) 21 

Seal  of  Insurance  Bureau  (8) 20 

Service  of  Process  (21) 25 

State    Auditor,    Powers    and    Duties    of 

(7,  8-10) 19-23 

Statements  to  be  Filed  (16) 24 

Taxes— 

On  Net  Receipts  (18) 24 

Certain  Prohibited  (18) 25 

Collection  of  (23) 25 

Valuation  of  Life  PoUcies  ( 1 0,  1 1 ) ...  20,  23 

Wife's  Policies  (25) 26 


INSURANCE  STATUTES  OF  ARKANSAS. 


Revise!  by  Hon.  W.  B.  Miller,  Auditor  of  State. 


CONSTITUTIONAL    PROVISIONS     CONCERNING    CORPO- 
RATIONS. 

1 .  All  existing  charters  or  grants  of  special  or  exclusive  privi- 
leges, under  which  a  bona  fide  organization  shall  not  have  taken 
place,  and  business  been  commenced  in  good  faith,  at  the  time  of 
the  adoption  of  this  Constitution,  shall  thereafter  have  no  validity. 
{Art.  12,  §  1.) 

^,  The  General  Assembly  shall  i^ass  no  special  act  conferring 
corporate  powers,  except  for  charitable,  educational,  penal,  or  re- 
formatory purposes,  where  the  corporations  created  are  to  be  and 
remain  under  the  patronage  and  control  of  the  State.    {Art.  12,  §  2.) 

3.  Corporations  may  be  formed  under  general  laws ;  which 
laws  may,  from  time  to  time,  be  altered  or  repealed.  The  General 
Assembly  shall  have  the  power  to  alter,  revoke  or  annul  any  charter 
of  incorporation  now  existing  and  revocable  at  the  adoption  of  this 
Constitution,  or  any  that  may  hereafter  be  created,  whenever,  in 
their  opinion,  it  may  be  injurious  to  the  citizens  of  this  State ;  in 
such  manner,  however,  that  no  injustice  shall  be  done  to  the  Cor- 
porators.    {Art.  12,  §  6.) 

4.  No  private  corporation  shall  issue  stocks  or  bonds,  except 
for  money  or  property  actually  received,  or  labor  done ;  and  all 
fictitious  increase  of  stock  or  indebtedness  shall  be  void  ;  nor  shall 
the  stock  or  bonded  indebtedness  of  any  private  corporation  be  in- 
creased, except  in  pursuance  of  general  laws  ;  nor  until  the  consent 
of  the  person  holding  the  larger  amount,  in  value,  of  stocks,  shall 
be  obtained  at  a  meeting  held  after  notice  given,  for  a  period  not 
less  than  sixty  days,  in  pursuance  of  law.     {Art.  12,  §  8.) 

5.  Foreign  corporations  may  be  authorized  to  do  business  in 
this  State,  under  such  limitations  and  restrictions  as  may  be  pre- 
scribed by  law ;  Provided,  That  no  such  corj^oration  shall  do  any 
business  in  this  State,  except  while  it  maintains  therein  one  or  more 
known  places  of  business,  and  an  authorized  agent  or  agents  in  the 
same,  upon  whom  process  may  be  served;  and,  as  to  contracts 
made  or  business  done  in  this  State,  they  shall  be  subject  to  the 
same  regulations,  limitations,  and  liabilities  as  like  corporations  of 
this  State:  and  shall  exercise  no  other  or  greater  powers,  privileges, 
or  franchises  than  may  be  exercised  by  like  coi-porations  of  this 
State  ;  nor  shall  thev  have  power  to  condemn  or  appropriate  private 
property.     {Art.  \2,\  11.) 

6.  There  is  hereby  established  a  bureau  in  the  office  of  the 
Auditor  of  State,  to  be  known  as  "The  Insiu^ance  Bureau,"  which 
shall  be  charged  with  the  execution  of  the  laws  of  the  State  in  re- 
lation to  insurance.    Act  approved  Feb.  27,  1875,  §  1.) 

7 .  That  the  office  of  Insurance  Commissioner  be  and  the  same 


20  hine's  insurance  statutes. 

is  hereby  abolished,  and  that  all  the  duties  enjoined,  and  all  the 
powers  conferred  on  said  Insurance  Commissioner  by  the  act  of 
General  Assembly  of  the  State,  entitled  "  An  act  to  establish  an  In- 
surance Biu-eau"  approved  April  25,  1873,  be  and  the  same  are 
hereby  transferred  to  the  State  Auditor.     {Ibid,  §  2.) 

8,  The  seal  of  the  Auditor's  office  shall  be  the  seal  of  the  insur- 
ance department,  and  all  reports  required  by  said  act  of  the  General 
Assembly  to  be  made  to  the  Insurance  Commissioner,  shall  be  made 
to  the  Auditor,  at  the  time,  in  like  manner,  and  under  the  same 
penalties  and  restrictions ;  all  charters,  transcripts,  annual  state- 
ments or  other  documents,  by  said  act  required  to  be  filed  shall  be 
filed  in  the  office  of  the  Auditor ;  and  the  Auditor  is  hereby  re- 
quired and  empowered  to  enforce  the  same  in  like  manner  as  the 
Insurance  Commissioner  was,  by  said  act,  empowered  to  do,  and  all 
publications,  notices  and  reports  shall  be  made  and  given,  and 
generally,  all  the  duties  required  of  the  Insurance  Commissioner, 
under  the  provisions  of  said  act  of  the  General  Assembly,  shall  be 
discharged  by  the  Auditor  in  like  manner  and  at  the  same  time  as 
therein  provided  ;  and  he  is  hereby  empowered  to  appoint  and  com 
mission  actuaries  and  examiners  to  issue,  and,  upon  cause  shown,  to 
revoke  licenses  or  permits  to  transact  business  of  insurance,  and, 
when  legal  cause  exists,  to  suspend  the  business  of  any  company  of 
this  State,  or  any  company  of  another  State,  doing  business  in  this 
State;  to  require  free  access  to  books  and  papers  belonging  to  any 
such  company  or  companies ;  to  summon  and  examine  persons 
relative  thereto ;  and,  generally,  to  do  any  and  all  things  which  the 
Insiu'ance  Commissioner  was,  by  said  act,  empowered  and  required 
to  do.     {IMd,  §  3.) 

O.  All  persons  having  in  their  possession  any  books,  papers, 
records,  securities,  furniture,  or  other  appurtenances  to  the  insur- 
ance bureau  belonging,  shall,  on  demand,  deliver  the  same  to  the 
custody  of  the  Auditor.     {Ibid,  §  4.) 


AUDITOR— DUTIES  AND   FEES. 

10.     It  shall  be  the  duty  of  the  Auditor : 

First.  To  see  that  all  the  laws  of  this  State,  respecting  insur- 
ance companies,  are  faithfully  executed,  to  file  in  his  office  every 
charter  of  a  company  now  or  hereafter  required  by  law  to  be  filed, 
and  upon  application,  to  furnish  a  certified  copy  thereof. 

Second.  He  shall,  as  soon  as  practicable  in  each  year,  calculate, 
or  cause  to  be  calculated,  the  net  value,  on  the  thirty-first  day  of 
December  of  the  previous  year,  of  all  the  policies  in  force  on  that 
day  of  every  life  insurance  company  doing  business  in  this  State 
that  shall  fail  to  furnish  him,  as  hereinafter  provided,  a  certificate 
of  the  Insurance  Commissioner  of  the  State  by  whose  authority  the 
company  was  organized,  or  in  which  it  may  elect  to  have  its  policies 
valued  in  case  the  company  is  chartered  by  the  government  of  the 
United  States,  giving  the  net  value  of  all  policies  in  force  in  the 
company  on  the  thirty -first  day  of  December  of  the  i>receding  year, 
which  calculation  of  the  net  value  of  each  poHcy  shall  be  based  upon 
the  American  Experience  Table  of  Mortality,  and  fom*  and  one-half 
per  cent,  interest  per  annum  ;  and  the  net  value  of  a  policy  at  any 
time  shall  be  taken  to  be  the  single  net  premium  which  will  at  any 
time  effect  the  insurance  less  the  value  at  that  time  of  the  future 


ARKANSAS.  21 

net  premiums  called  for  by  the  table  of  mortality  and  rate  of  inter- 
est designated  above. 

Third.  In  case  it  is  found  that  any  life  insurance  company 
doing  business  in  this  State  has  not  on  hand  the  net  value  of  all  its 
policies  in  force,  after  all  other  debts  of  the  company  and  claims 
against  it,  exclusive  of  capital  stock,  have  been  provided  for,  it  shall 
be  the  duty  of  the  Auditor  to  publish  the  fact  that  the  then  exist- 
ing condition  of  the  company  is  below  the  standard  of  safety  estab- 
lished by  this  State,  and  he  shall  require  the  company  at  once  to 
cease  doing  new  business,  and  he  shall  immediately  institute  pro- 
ceedings to  determine  what  fui"ther  shall  be  done  in  the  case  ;  and 
it  is  hereby  made  the  duty  of  the  Auditor,  after  having  determined 
as  above  the  amount  of  the  net  value  of  all  the  policies  in  force,  to 
see  that  the  company  has  that  amount  in  safe  legal  securities, 
after  all  its  other  debts  and  claims  against  it,  exclusive  of  capital 
stock,  have  been  provided  for. 

Fourth.  He  shall  accept  the  valuations  made  by  the  Insurance 
Commissioner  of  the  State  under  whose  authority  a  life  insurance 
company  was  organized,  when  such  valuations  have  been  properly 
made  on  sound  and  recognized  principles  and  legal  basis  as  above ; 
Provided^  The  Company  shall  furnish  to  the  Auditor  of  this  State  a 
certificate  from  the  Insurance  (Commissioner  of  such  State,  setting 
forth  the  value,  calculated  on  the  data  designated  above,  of  all  the 
policies  in  force  in  the  company  on  the  pre^aous  thirty-first  day  of 
December,  and  stating  that  after  all  the  other  debts  of  the  company 
and  claims  against  it  at  that  time  were  provided  for,  the  company 
had  in  safe  securities  an  amount  equal  to  the  net  value  of  all  its 
policies  in  force ;  and  that  said  company  is  entitled  to  do  business 
in  its  own  State.  And  every  life  insurance  company  doing  business 
in  this  State  during  the  year  for  which  the  statement  is  made  that 
fails  promptly  to  furnish  the  certificate  aforesaid,  shall  be  required 
to  make  full  detailed  lists  of  policies  and  securities  to  the  Insurance 
Commissioner  of  this  State,  and  shall  be  liable  for  all  charges  and 
expenses  consequent  upon  not  having  furnished  the  said  ceitificate. 

Fifth.  For  every  company  doing  fire  insurance  business  in  this 
State,  he  shall  calculate  the  reinsurance  reserve  for  unexpired  fire 
risks,  by  taking  fifty  per  centum  of  the  premiums  received  on  all 
unexpired  risks  that  have  less  than  one  year  to  run,  and  a  pro  rata 
of  aU  premiums  received  on  risks  that  have  more  than  one  year  to 
run ;  and  in  marine  and  inland  insurance  he  shall  charge  all  the 
premiums  received  on  unexpired  risks  as  a  reinsurance  reserve ; 
Provided,  That  when  the  reinsurance  reserve,  calculated  as  above, 
is  less  than  torty  per  centiun  of  all  the  premiums  received  during 
the  year,  the  reinsurance  reserve  in  this  case  shall  be  the  whole  of 
the  premiums  received  on  all  its  unexpired  risks. 

.  Sixth.  Having  charged  against  a  company  the  reinsurance  re- 
serve as  above  determined  for  fire,  marine,  and  inland  insurance, 
and  adding  thereto  all  other  debts  and  claims  against  the  company, 
he  shall,  in  case  he  finds  the  capital  stock  of  the  company  impaired 
to  the  extent  of  twenty  per  centum,  give  notice  to  the  company  to 
make  good  its  whole  caiutal  stock  within  sixty  days,  and  if  this  is 
not  done  he  shall  require  the  company  to  cease  to  do  new  business 
within  this  State,  and  shall  thereupon,  in  case  the  company  is  or- 
ganized under  the  authority  of  this  State,  immediately  institute 
legal  proceedings  as  required  m  this  act,  to  determine  what  further 
shall  be  done  in  the  case. 


22  hine's  insurance  statutes. 

Any  company  receiving  the  aforesaid  notice  of  the  Auditor  to 
make  good  its  whole  paid-up  capital  stock  within  sixty  days,  shall 
forthwith  call  upon  its  stockholders  for  such  amounts  as  will  make 
its  paid-up  capital  equal  to  the  minimum  amount  fixed  by  the  char- 
ter of  said  company.  And  in  case  any  stockholders  of  such  com- 
pany shall  neglect  or  refuse  to  pay  the  amount  so  called  for  after 
notice  personally  given,  or  by  advertisement,  in  such  time  and  man- 
ner as  the  said  Auditor  shall  approve,  it  shall  be  lawful  for  the  said 
company  to  require  the  return  of  the  original  certificate  of  stock 
held  by  said  stockholder,  and  in  lieu  thereof  to  issue  new  certificates 
for  such  number  of  shares  as  the  said  stockholder  may  be  entitled 
to  in  the  proportion  that  the  ascertained  value  of  the  funds  of  the 
said  comi)any  may  be  found  to  bear  to  the  original  capital  of  the 
said  company,  the  value  of  such  shares  for  which  new  certificates 
shall  be  issued  to  be  ascertained  under  the  direction  of  said  Audi- 
tor, and  the  company  paying  for  the  fractional  parts  of  shares  ;  and 
it  shall  be  lawful  for  the  directors  of  such  company  to  create  new 
stock  and  dispose  of  the  same,  and  to  issue  new  certificates  therefor 
to  any  amount  sufficient  to  make  up  the  original  capital  of  the  com- 
pany. Whenever  the  capital  stock  of  any  joint-stock  fire  or  marine 
insurance  company  of  this  State  becomes  imj)aired,  the  Auditor 
may,  in  his  discretion,  permit  the  said  company  to  reduce  its  capital 
stock  and  the  i)ar  value  of  its  shares  in  proportion  to  the  extent  of 
impairment;  Provided,  That  in  fixing  such  reduced  capital,  no  sum 
exceeding  twenty-five  thousand  dollars  shall  be  deducted  from  the 
assets,  and  property  on  hand,  which  shall  be  retained  as  surplus 
assets ;  And  provided,  That  no  part  of  such  assets  and  property 
shall  be  distributed  to  the  stockholders;  And  provided  further,  That 
no  new  business  shall  be  done  until  the  paid-up  capital  shall  be 
equal  to  the  amount  required  by  law  for  the  transaction  of  business. 

Seventh.  It  shall  be  the  duty  of  the  Auditor,  after  he  has  notified 
a  life  insurance  company  to  cease  doing  new  business  until  the  net 
value  of  its  policies  in  force  is  equal  to  that  called  for  by  the  stand- 
ard of  safety  established  by  the  State,  at  once  to  cause  a  rigid  ex- 
amination in  regard  to  all  affairs  of  such  comjiany.  In  case  it  shall 
appear  that  there  is  no  fraud,  or  gross  incompetency,  or  reckless- 
ness shown  to  exist  in  the  management,  he  may,  upon  publishing 
the  facts  in  the  case,  permit  such  company  to  continue  in  charge  of 
its  business  for  one  year ;  Provided,  There  is  in  his  opinion  reason 
to  believe  that  the  company  may  eventually  be  able  to  re-establish 
the  legal  net  value  of  all  its  policies  in  force.  At  the  end  of  the 
year  named  above  he  may  renew  the  permission,  in  case,  on  ex- 
amination, he  is  satisfied  that  the  company  is  likely  to  retrieve  its 
afifairs. 

Uighth.  Whenever  the  Auditor  shall  have  reason  to  believe  that 
any  insurance  company  of  this  State  is  insolvent  or  fraudulently 
conducted,  or  that  its  assets  are  not  sufficient  for  carrying  on  the 
business  of  the  same,  or  during  any  non-compliance  with  the  i^rovi- 
sions  of  this  act,  he  shall  communicate  the  fact  to  the  Attorney- 
General,  whose  duty  it  shall  then  become  to  apply  to  the  supreme 
court  or  the  (nrcuit  court,  or  in  vacation  to  any  ot  the  judges  there- 
of, for  an  order  requiring  said  company  to  show  cause  why  their 
business  should  not  be  closed;  and  the  court  or  judge,  as  the  case 
may  be,  shall  thereupon  hear  the  allegations  and  proofs  of  the  re- 
spective parties,  or  appoint  some  suitable  person  as  examiner,  to  per- 
form such  duty  and  report  upon  the  facts  to  said  court  or  judge. 


ARKANSAS.  23 

If  it  appears  to  the  satisfaction  of  said  court  or  judge  that  such 
company  is  Insolvent,  or  that  the  interests  of  the  company  so  re- 
quire, the  said  court  or  judge  shall  decree  a  dissokition  of  such  cor- 
poration, and  a  distribution  of  its  eft'ects ;  but  in  case  it  shall  appear 
to  said  court  or  judge  that  said  corporation  is  able  to  comjily  with 
the  provisions  of  this  act,  and  that  it  is  not  insolvent,  a  decree  shall 
be  entered  annulling  the  act  of  the  Auditor  in  the  premises  and 
authorizing  such  company  to  resume  business. 

Ninth.  The  Auditor  shall  publish  the  result  of  his  examination 
of  the  affairs  of  any  company,  whenever  he  deems  it  for  the  interest 
of  the  public  so  to  do,  in  one  or  more  papers  of  this  State ;  suspend 
the  entire  business  of  any  company  of  this  State,  and  the  business 
within  this  State  of  any  other  company  during  its  non-compliance 
with  any  provision  of  this  act,  or  whenever  its  assets  appear  to  him 
insufficient  to  justify  its  continuance  in  business,  by  suspending  or 
revoking  the  certificate  granted  by  him ;  rej)ort  to  the  Attorney- 
General  any  violation  of  law  relating  to  insurance  companies,  their 
officers  or  agents ;  furnish  to  the  companies  the  necessary  blank 
forms  for  the  statements  required  ;  preserve  in  a  permanent  form  a 
fidl  record  of  his  proceedings,  and  concise  statement  of  the  condi- 
tion of  each  company  or  agency  visited  or  examined  ;  at  the  request 
of  any  person,  and  on  payment  of  the  fee,  to  give  certified  copies  of 
any  record  in  his  office  when  he  deems  it  not  prejudicial  to  the  pub- 
lic interests ;  report  annually  to  the  legislature  the  receipts  and  ex- 
penses of  his  department  for  the  year,  his  official  acts,  the  condition 
of  companies  doing  business  in  this  State,  and  such  other  informa- 
tion as  will  exhibit  the  affairs  of  his  department ;  adopt  and  renew, 
from  time  to  time,  with  the  approval  of  the  Governor,  a  seal  of 
office,  an  impression  of  which  shall  be  filed  in  the  office  of  the  Sec- 
retary of  State. 

Tenth.  The  Auditor,  for  the  j)urpose  of  examination  authorized 
by  this  act,  is  hereby  empowered,  either  in  person  or  by  one  or 
more  examiners  by  him  commissioned  in  writing,  to  require  free  ac- 
cess to  all  books  and  papers  within  this  State  of  any  insurance  com- 
pany, or  the  agents  thereof,  doing  business  within  this  State ;  to 
summon  and  examine  any  person  being  within  this  State  under 
oath,  which  he  or  any  examiner  may  administer,  relative  to  the 
affairs  and  condition  of  any  company ;  for  j)robable  cause  to  visit  at 
its  principal  office,  wherever  it  may  be,  any  insurance  company  not 
of  a  State  in  which  the  substantial  provisions  of  this  act  shall  be  en- 
acted, and  doing  business  in  this  State,  for  the  purpose  of  investi- 
gating its  affairs  and  condition,  and  to  revoke  its  certificate  in  this 
State  if  it  does  not  permit  an  examination ;  to  revoke  or  modify  any 
certificate  ot  authority  when  any  conditions  prescribed  by  law  for 
granting  it  no  longer  exist.     (Ibid,  §  5.) 

1 1 .  The  Auditor  may  employ  an  actuary,  to  make  the  valua- 
tion of  life  policies,  at  the  compensation  of  not  exceeding  three  cents 
for  each  thousand  dollars  of  insurance,  to  be  paid  by  the  company 
for  which  the  valuation  is  made.     {Ibid,  §  6.) 

1 2.  There  shall  be  paid  by  every  company  to  which  this  act 
api)lies  the  following  fees,  which  shall  be  received  by  the  Audi- 
tor and  accounted  for  in  the  same  manner  as  other  fees  of  his  office 
are  by  law  required  to  be  accounted  for  :  For  filing  certified  copy 
of  charter,  fifteen  dollars  ($15);  for  filing  annual  statement  or  certi- 
ficate of  other  State  commissioner  in  lieu  thereof,  ten  dollars  ($10^  ; 
for  certificate  of  authority  to  transact  business,  two  dollars  ($2) ;  for 


24  hine's  insurance  statutes. 

publication  of  annual  statements  or  other  jjublication  required  by  , 
the  insurance  laws  of  this  btate,  or  for  official  examination  of  com- 
panies in  person  or  by  attorney  as  provided  by  law,  the  actual  ex- 
penses incurred.     (J  bid,  §  7.) 

13.  "W  ithin  ninety  days  after  the  first  Monday  of  ^lay  next,  it 
shall  be  the  duty  of  every  insiu-ance  comi^any  of  this  State  to  file 
with  the  Auditor  a  certified  copj^  of  its  charter,  together  with  a 
certificate,  stating  the  time  of  its  organization,  the  location  of  its 
principal  place  of  business,  and  the  names  and  residence  of  its  offi- 
cers ;  and  the  Auditor  shall  pro(;eed,  as  soon  as  practicable  there- 
after, to  institute  an  examination  into  its  affairs  in  accordance  with 
the  pro%isions  of  this  act.  And  any  company  failing  to  comply 
with  the  requirements  of  this  section,  shall  be  subject  to  a  fine  of 
one  hundred  dollars  for  each  month's  delay.     {Ibid,  §  8.) 

14.  It  shall  be  unlawful  for  any  person,  company,  or  corpora- 
tion, to  negotiate  or  solicit  within  this  State  any  contract  of  insur- 
ance, or  to  eftect  an  insurance  or  insiu'ances,^or  pretend  to  effect  the 
same,  or  to  receive  and  transmit  any  ofier  or  offers  of  insurance,  or 
receive  or  deliver  a  policy  or  policies  of  insuiance,  or  in  any  manner 
to  aid  in  the  transaction  of  the  business  of  insurance,  without  com- 
plying fully  with  the  provisions  of  this  act.     [Ibid,  §  9.) 

15.  Every  insurance  company,  including  individuals,  partner- 
ships, joint-stock  associations  and  corporations,  conducting  any 
branch  of  insurance  business  in  this  State,  must  transmit  to  the 
Auditor  a  statement  of  its  condition  and  business  for  the  year  end- 
ing on  the  preceding  thirty -first  day  of  December,  which  statement 
sball  be  rendered  on  the  first  day  of  January  following,  or  within 
sixty  days  thereafter,  except  that  foreign  companies  shall  transmit 
tlieir  statement  of  business,  other  than  that  done  in  the  United 
States,  prior  to  the  following  first  day  of  July,  which  statements 
must  be  in  form,  and  state  the  particulars  required  by  the  blanks 
prescribed  by  the  Auditor.     (Z&trf,  §  10.) 

1 6.  The  Auditor  may  require,  at  any  time,  statements  from  any 
company  doing  business  within  this  State,  or  from  any  of  its  offi- 
cers or  agents,  on  such  points  as  he  deems  necessary  and  proper  to 
elicit  a  full  exhibit  of  its  business  and  standing,  all  of  which  state- 
ments herein  required  must  be  verified  by  the  signature  and  oath 
of  the  president  or  vice-president,  with  those  of  the  secretary  or  ac- 
tuary. No  company  ha\dng  neglected  to  file  a  statement  required 
of  it  within  the  time  and  manner  prescribed,  shall  do  any  new  busi- 
ness after  notification  by  the  Auditor  while  such  neglect  continues. 
And  any  company  or  association  neglecting  to  make  and  transmit 
any  statement  required,  shall  forfeit  one  hundred  dollars  for  each 
day's  neglect.     {lOid,  §  11.) 

1 7.  No  person  shall  act  as  agent  or  solicitor  in  this  State  of  any 
insurance  company  of  another  State  or  foreign  government,  in  any 
manner  whatever,  relating  to  risks,  imtil  the  provisions  of  this  act 
have  been  complied  with  on  the  part  of  the  company  or  association, 
and  there  has  been  granted  to  said  company  or  association  by  the 
Auditor  a  certificate  of  authority  showing  that  the  company  or  as- 
sociation is  authorized  to  transact  business  in  this  State.  {I bid, 
§12.) 

1  8.  Every  company  doing  insurance  business  in  this  State 
shall  file  with  the  Auditor,  at  the  same  time  with  its  annual  state- 
ment a  sworn  statement  of  its  net  receipts  in  this  State  for  the  year 
ending  on  the  thirty-fii'st  day  of  December,  after  deducting  losses 


ARKANSAS.  26 

and  commissions  irom  its  gross  receipts,  and  shall  pay  into  the  State 
treasury,  on  or  before  the  first  of  March,  a  tax  of  two  and  one-half 
per  centnm  on  such  net  receipts,  and  such  tax  shall  be  iu  lieu  of  all 
other  taxes.  State,  county,  or  municipal,  on  such  receipts ;  nor  shall 
any  city,  town,  or  municipality  impose  any  license,  fee  or  privilege 
tax  upon  any  company,  or  the  agent  of  any  company,  for  the  privi- 
lege of  transacting  such  business  of  insurance.     {I  hid,  §  13.) 

19.  No  insurance  company  shall  be  authorized  to  transact  busi- 
ness of  insurance  in  this  State  until  it  shall  have  a  bona  fide  sub- 
scribed capital  of  not  less  than  one  hundred  thousand  dollars 
($100,000),  with  a  i^aid-up  capital  of  not  less  than  fifty  thousand  dol- 
lars ($50,000).    {Ibid,  §  14.) 

20.  Companies  to  which  certificates  of  authority  are  issued,  as 
provided  by  section  12,  shall,  from  time  to  time,  certify  to  the  Au- 
ditor the  names  of  the  agents  appointed  by  them  to  solicit  risks, 
issue  policies,  or  receive  applications  in  this  State ;  and  no  such 
agent  shall  transact  business  until  he  has  procured  from  the  Audi- 
tor a  certificate  showing  that  the  company  has  complied  with  tiie 
requirements  of  this  act,  and  that  the  person  named  in  said  certifi- 
cate has  been  duly  appointed  its  agent.     [Ibid,  §  15.) 

2 1 .  No  insurance  company,  not  of  this  State,  nor  its  agent,  shall 
do  business  in  this  State,  until  it  has  filed  with  the  Auditor  of  this 
State  a  written  stipulation,  duly  authenticated  by  the  company, 
agreeing  that  any  legal  process  affecting  the  company,  served  on 
the  Auditor  or  the  party  designated  by  him,  or  the  agent  specified 
by  said  company  to  receive  service  of  process  for  the  company,  shall 
have  the  same  effect  as  if  served  personally  on  the  company  within 
this  State.  And  if  such  company  should  cease  to  maiutain  such 
agent  in  this  State,  so  designated,  such  process  may  thereafter  be 
served  on  the  Auditor;  but  so  long  as  any  liability  of  the  stipulat- 
ing company  to  any  resident  of  this  State  continues,  such  stipula- 
tion can  not  be  revoked  or  modified,  except  that  a  new  one  may  be 
substituted,  so  as  to  require  or  dispense  with  service  at  the  office  of 
said  company  within  this  State,  and  that  such  service,  according  to 
this  stipulation,  shall  be  sufficient  personal  service  on  the  company. 
The  term  "  process "  includes  any  writ,  summons,  subpoena,  or 
order,  whereby  any  action,  suit  or  j)roceedings  shall  be  commenced, 
or  which  shall  be  issued  in  or  upon  any  action,  suit  or  proceeding. 
{Ibid,  §  16.) 

SS.  Any  person  or  persons,  or  corporation,  receiving  premiums 
or  forwarding  applications,  or  in  any  other  way  transacting  business 
for  any  insurance  company  or  association  not  of  this  State,  without 
having  received  authority  agTceably  to  the  provisions  of  this  act, 
shall  forfeit  and  pay  to  the  school  fund  of  the  State  the  sum  of  five 
hundred  dollars  for  each  month  or  fraction  thereof,  during  which 
such  illegal  business  was  transacted,  and  any  company  not  of  this 
State,  doing  business  without  authority,  shall  forfeit  a  like  sum  for 
every  month  or  fraction  thereof,  and  be  prohibited  from  doing  busi- 
ness in  this  State  until  such  fines  are  fully  paid.     {Ibid,  §  17.) 

23,  The  taxes  provided  iu  this  act  shall,  in  case  of  non-payment, 
after  notice  from  the  Auditor,  be  collected  as  taxes  upon  corpora- 
tions are  now  collected  by  law.     {Ibid,  §  18.) 

24.  The  Auditor  is  hereby  empowered  to  institute  suits  and 
prosecutions,  either  by  the  Attorney-General  or  such  other  attorney 
as  the  Auditor  may  designate,  for  any  violation  of  this  act,  and  the 
Auditor  shall  be  made  a  party  to  any  proceeding  instituted  lor  the 


26  hine's  insuratcce  statutes. 

purpose  of  closing  up  the  aliairs  of  any  company,  when  the  same 
shall  not  be  in  the  name  of  the  State.     {Ibid,  §  19.) 


INSURANCE  OF  LIVES  FOR  THE  BENEFIT  OF  MARRIED 

WOMEN  AND  CHILDREN. 

*J5.  It  shall  be  lawful  for  any  married  women,  by  herself  and 
in  her  name,  or  in  the  name  of  any  third  person,  with  his  assent,  as 
her  trustee,  to  cause  to  be  insured  for  her  sole  use,  the  life  of  her 
husband  for  any  definite  period  or  for  the  term  of  his  natural  life ; 
and  in  case  of  her  surviving  her  husband  the  sum  or  net  amount  of 
the  insurance  becoming  due  and  payable  by  the  terms  of  the  insur- 
ance, shall  be  payable  to  her  and  for  her  use  ;  and  in  case  of  the 
death  of  the  wife  before  the  decease  of  her  husband,  the  amount  of 
said  insurance  may  be  made  payable  to  his  or  to  her  children,  for 
their  use,  and  to  their  guardian  for  them,  if  they  shall  be  under  age, 
as  shall  be  provided  in  the  policy  on  insurance ;  and  such  sum  or 
amount  of  insurance,  so  payable,  shall  be  free  from  the  claims  of  the 
representatives  of  the  husband,  or  of  any  of  his  creditors ;  but 
such  exception  shall  not  apply  where  the  amount  of  premium  annu- 
ally paid  out  of  the  funds  or  property  of  the  husband  shall  ex- 
ceed the  sum  of  three  hundred  dollars.     (Laics  o/1873,  p.  382,  §  1.) 


ARSON  AND   INCENDIARISM. 

26.  Arson  is  the  mllful  and  malicious  burning  the  house  or 
other  tenements  of  another  person.  {Digest  of  Statutes,  1848,  p. 
334,  §L) 

37.  Every  person  who  shall  willfully  and  maliciously  burn,  or 
cause  to  be  burned,  any  dwelling  house  or  other  house,  although 
not  herein  specially  named,  shall  be  deemed  guilty  of  arson.  {Ibid, 
§3.) 

as.    If  any  person  shall  wilfully  and  maliciously  burn,  or  cause 

to  be  burned,  any  state-house,  court-house,  prison,  church,  bridge, 

or  any  other  public  building,  although  not  herein  specially  named, 

such  person,  on  conviction,  shall  be  adjudged  guilty  of  arson.     {Ibid, 

.  §  3.) 

29.  If  any  person  shall  willfully  and  maliciously  bum,  or  cause 
to  be  burned,  any  steamboat  or  other  vessel,  or  any  water-craft 
whatever,  whether  there  be  any  person  or  goods  on  board  or  not,  he 
shall  be  deemed  guilty  of  arson.     {Ibid,  §  4.) 

3C>.  If  any  jjerson  shall  willfully  set  fire  to  his  own  buildings 
or  other  property,  with  the  intent  to  burn  the  property  of  any  other 
person,  and  the  j)roperty  or  building  of  any  other  person  shall 
thereby  be  burned,  such  person  shall  be  deemed  guilty  of  arson. 
{Ibid,\r).) 

31.  Every  person  convicted  of  arson  shall  be  imprisoned  in 
the  jail  and  penitentiary  house  for  a  period  not  less  than  two  nor 
more  than  ten  years.     (Ibid,  §  6.) 

;J2.  If  any  person  shall  set  fire  to  any  building  or  tenement  of 
another,  with  intent  to  burn  the  same,  although  such  house  or  tene- 
ment may  not  be  burned,  he  shall  be  deemed  guilty  of  a  misdemean- 
or, and  on  conviction,  shall  be  fined  not  less  than  one  hundred 
dollars,  and  be  imprisoned  not  less  than  six  months.     {Ibid,  §  7.) 


ARKANSAS.  27 

EMBEZZLEMENT. 

3*1.  If  any  clerk,  apprentice,  or  servant,  of  any  private  person, 
or  of  any  copartnersUii)  (except  clerks,  apprentices,  and  servants 
within  tlie  age  of  sixteen  years),  or  any  officer,  agent,  clerk,  or  ser- 
vant of  any  incorporated  comijany,  or  any  person  employed  in  any 
such  capacity,  shall  embezzle,  or  convert  to  his  own  use,  or  shall 
take,  make  away  with,  or  secrete,  with  intent  to  embezzle,  or  con- 
vert to  his  own  use,  without  the  consent  of  his  master  or  employer, 
any  money,  goods,  or  rights  in  action,  or  any  valuable  security,  or 
eflects  whatsoever  belonging  to  any  other  person,  which  shall  have 
come  to  his  possession,  or  under  his  care  or  custody  by  virtue  of 
such  employment  or  office,  he  shall  be  deemed  guilty  of  larceny,  and 
on  conviction,  shall  be  punished  as  in  cases  of  larceny.  {Digest  of 
Statutes,  1848,  p.  339,  §  3.) 

34.  For  General  Provisions  relating  to  Corporations,  see  Laws 
of  1868-9,  pp.  180,  19(3. 


INDEX   TO    CALIFORNIA. 


PAGE 

Abandonment  in  Marine  Insurance— 

Defiued  (164) 54 

May  be  Made,  in  what  Cases  ( 1 65) .  - .     54 
May  be  Made,  at  what  Time  (167).-     54 

HowEflFected  (169) 54 

Must  be  Absolute  and  Total  (166) 54 

When  Defeated  (168) 54 

Notice    of,   may  be    Oral    or   Written 

(169) 54 

Notice  of,  to  Contain  what   (170) 54 

Can  be  Sustained  only  on  Ground  Speci- 
fied in  Notice  (171) 54 

EflFect  of  ( 1  72) 55 

Insurer  Paying  for  Total  Loss  entitled 

to  (173) 55 

Agents  of  Insured  act  for  Insurer  after 

(174) 55 

Acceptance  of,  not  Necessary  (175)  ..     55 
Acceptance  of,  not  Presumed  from  Si- 

lenee(175) 55 

Acceptance  of,  Conclusive  (1 76) 55 

Made  and  Accepted  Irrevocable  (177)    55 
To  Whom  Freightage    belongs    after 

(178) 55 

Liability  of  Insurer  refusing  to  Accept 

(179) 55 

Not  Necessary  to  recover  Actual  Loss 

(180) 55 

Not  Necessary  to  recover  Actual   Total 

Loss  (161) 53 

Terminates  Authority  of  Master  on  be- 
half of  Owner  (181) 55 

Accident  Companies- 
Assets  Kequired  (216) 61 

Annual  Statement  of  (227) 65 

Insurance,  no  Stamp  Duty  exacted  i'29)  42 

Advertising  Annual  Statements  (225) 63 

Agent — 

Insurance  by,  how  ■Effected  (82) 47 

Of  Insured  acts  for  Insurer  on  Aban  - 

donment  (174) 55 

Duty   of,    iu   Insolvency    of  Company 

(214) 60 

Notice  of  Change  of  (222) 63 

Appointmput  of  Principal  (230) 67 

Acts  of.  Binding  (230) 67 

To  collect  Kenewal  Premiums  (210), . .  60 
To  File  Duplicate  Power  of  Attorney 

(247) 71 

License  of  (24 7) 7L 

Penalty  for    acting    without    License 

(247) 71 

Penalty  for  using  False  Name  (247).-  71 

Bond  of  (237,  238) 69,70 


PACK 

Agreement — 

Not  to  transfer  Insured  Interest,  when 

Void  (92) 47 

Concerning- Litigation  1 230) 67 

Alteration — 

Of  Representation  (71) 46 

Of   Thing  covered  by  Fire  Insurance. 

increasing  Risk,  Effect  of  (193) 57 

Of  Thing  Insm-ed,  not  increasing  Risk, 

Effect  of  ( 1 94) 57 

Annual  Statements — 

When  Filed  (225 ) 63 

Details  of  (226,  227) 64,65 

Appeals  to  U.  S.  Courts  (2'10) 67 

Arson  and  Incendiarism  (249-259) 71,  73 

Articles  of  Incoi-poration  to  be  Filed  (221 )    62 
Assessments    for   Expenses    of    Insurance 

Commissioner  (220) 62 

Assets  Required  (10,  216) 38,61 

Average — 

General  Liability  for  ( 1  62,  1 90) ....  54,  56 

Particular  Liability  for  (162) 54 

Bonds— 

Of  Agents  (237) 69 

Separate   Required,  when  (238) 70 

Bottomry,  Extent  ot  Insui'able  Interest  of 

Ship  Hypothecated  by  (127) 50 

Capital— 

Of  Life.  Health,  and  Accident  Compa- 
nies (18) 40 

Impalnnentof  (214,  216) 60,61 

How  Invested  (25) 41 

Capital  Stock  (10,  18) 38,40 

OiMutualCos.  (228)  66 

Of  Livestock  Cos.  '10) 38 

Certificate  of,  to    be  Filed   (12,   21, 

221) 39,41,62 

Rate  of  Risk  to  (15) 39 

Loans  on  (14) 39 

■  Subscriptions  to  (5) 37 

Dividends  on  (8,  16,  17) 38,39 

When  to  be  Paid  Up  (1 1) 39 

Cargo — 

Seaworthiness  of  Ship  for  Purpose  of 

Insuring  (141,  145) .52 

Insurance  on,  when  Voyage  is  Broken 

(159) 53 

Carrier  has  Insurable  Interest  45) 44 

Certificates— 

Of  Proof  of  Loss,  when  Dispensed  with 

(118) 49 

What  to  he  Filed  (221,222) 62, 63 

Of  Capital  Filed  (12,  21,  221)-  -  -39,  41,  63 
Penalties  for  Delay  in  Filing  (231) 68 


INDEX. 


29 


PAGE 

Ceitificatca  (Continued) — 

Of  Authority,  Necessity  of  (2 1 0) S9 

Cf  Authority,  to  "Whom  Issued  (209) . .     59 
Of  Authority,  Kotice  of  Kevocation  of 

(235) 69 

Charter  to  be  Filed  (221) 63 

Charterer  has  Insurable  Interest  (132) 51 

(Jhai-ter  Party,  Certain  Insurable  Interest 

exists  under  (130) '. 51 

Communication —  ' 

Upon  Ins.  what  must  be  Made  (58) . .     45 
Upon    Insurance,   what   need    not    be 

Made  (59) 45 

Upon  Insurance,  of  Nature,  etc.,  of  In- 
terest not  Required,  when  (63) 45 

Upon  Insurance  on  Matters  of  Judg- 
ment Unnecessary  (65)  46 

Upon     Reinsurance,    what     Required 

(122) 50 

Upon   Marine  Insurance,  what  Requir- 
ed (133)  51 

Concealment  in  General — 

Defined  (56) 45 

Entitles  Injured  Party  to  Rescind  (57).    45 

When  Improper  (58) 45 

When  Proper  (59) 45 

Couceming  Warranty  (64) 45 

When  Material  (60) 45 

Of  Private  Judgment  allowed  (65) 46 

Concealment  in  Marine  Insurance — 

What  is  Improper  (133) 51 

Of  Belief  of  Third  Person  (134) 51 

When  Presumed  (135) 51 

Effect  of,  in  certain  Cases  (136) 51 

Constitutional  Provisions  (1-4) 37 

Contribution — 

Between  Insurers,  in  Caseof  Double  In- 
surance (120) 50 

Between  Insurers,  in  Case  of  Over  In- 
surance (108) 48 

In  Case  of  Loss  under  Marine    Insur- 
ance (191) 56 

Corporations — 

How  Dissolved  (215) 61 

When  Insolvent  (216) 61 

Constitutional   Provisions    concerning 

(1-4) 37 

General  Provisions  relating  to  (264)  .     72 
( 'ost.   Insurer   Liable    for  Certain    (1 60, 

189) 53,  56 

Defect  in  Notice  of  Loss,  how  Waived 

(116) 49 

Delay — 

Notice  of   Loss  to  be   given  without 

(114) 49 

In  giving  Notice  of  Loss,  how  Waived 

(117) 49 

Deemed  Deviation,  when  (14  9) 53 

Depositary  has  Insurable  Interest  (45) 44 

Deposits — 

When  Required  (232) 68 

Interest  on  (232) 68 

How  Receipted  for  (233) 68 

Returned,  when  (234) 68 


PAGE 

Deposits  (Continued)  — 

Examination  of  (235) 69 

Deviation  in  Marine  Insurance — 

Defined  (14!<) 53 

WhenProper  (15») 53 

When  Improper  (151) 53 

Improper  Discharges  Insurer  (152) 53 

Directors- 
Liable  for  Los-es  (9) 38 

Number  of  (24) 41 

Dividends  (8,  16,  17) 38,  39 

Double  Insurance — 

Defined  (119) 4!) 

Contribution  of  Insurers    in    Case    of 
(120) .50 

Embezzlement  (261,  263) 7a 

Enemy,  Public,  can  not  be  Insured  (40)  ...    43 

Expectation,  Failure  of,  Represented  does 

not  Avoid  Insurance  (138) 51 

False  Representation — 

When  Deemed  (74) 46 

Effect  of  (75)  46 

In  Marine  Insurance,  Effect  of  (137)--     51 
In  Marine  Insurance,  Eventually,  of  Ex- 
pectation, Effect  of  (138) 51 

False  Swearing  and  Fraud  (260) 72 

Fees — 

For  Valuing  Life  Policies  (28,  218)  42,  61 

Collected  by  Commissioner  (219) 62 

Payable  in  Gold  Coin  (2 1 9) 62 

For  Agent's  License  (247) 71 

For  Filing  Statement  of  Renewal  Pre- 
miums (210) 59 

Fire  Insurance     Companies — 

Annual  Statements  (226) 64 

Capital  Required  (216) 61 

May  Insure  what  (13) 39 

May  Invest  in  what  (14) 39 

Fraud— 

And  False  Swearing  (260) 72 

Return  of  Premiums  for  ( 1 06) 48 

Fraudulent — 

Omission     to     Communicate     certain 

Facts  Avoids  Insurance  (5  7,  64) ..    43 
Valuation    under    Marine     Insurance, 
Efifectof  (182; 55 

Freightage — 

In  Marine  Ins.  Signifies  what  (128)  42 
Who  has  Insurable  Interest  in  (1 29 ) . .  51 
Insurable    Interest    in,    when    Exists 

(130) 42 

How    Affected    by     Abandonment    of 
Ship  (178) 55 

Future- 
Representation  as    to,  when  a   Prom- 
ise ( 69) 46 

Warranty  may  Relate  to  (96") 47 

Warranty  as  to  what  Deemed  (98). . .     48 

Gexekal  Average  (See  Average). 

Gold  Coin- 
Fees  Payable  in  (2 1 9) fi-a 

The  Standard  of  Values  (241) 70 

Guarantee — 

Fund  (18,  19) 40 


30 


INDEX  TO  CALIFORNIA.. 


PAGE 

Guarantee  ("Continued)— 

Notes  (22) 41 

Notes.  Interest  on  (22) *1 

Health  Companies- 
Annual  Statements  f227> S5. 

Assets  andCapital(19,  20,  2 16).. 40,  61 

Investments  of  (25) ^'■ 

Guarantee  Fund  of  (18,  22) 40,  41 

IMPAIEMENT  of  Capital  (214,  216) 60,  61 

Incendiarism  and  Arson  (24:9-259)-- -71,  ~2 
Indemnity- 
Measure  of,  under  Marine  Ins.  (182)--     55 
Measure  of  under  Fire  Insurance  (196)    57 
Measure  of  under  Life  and  Health  Insur- 
ance (201) 57 

Insurance  a  Contract  of  (48) 44 

Information — 

To  be  given  on  Insurance  (58) 45 

To  be  given  on  Marine  Insurance  (33, 

134) 43,  51 

What  need  not  be  Given  on  Insurance 

(65) 46 

Waiver  of   Eights  to,    on    Insurance 

(62) 45 

Fraudulent  Omission  to  Communicate 

Certain,  Effect  of  (64) 45 

Kepresenting  in  Insurance  ^73) 46 

Penalty  for  Kefnsing  (212) 60 

Insolvency- 
Proceedings  in  (214,  215) 60.  61 

Losses  after  (215) 61 

What  Constitutes  (216) 61 

Insurable  Interest  in  General- 
Defined  (43) 44 

May  Consist  in  what  ( 44) 44 

Carrier  or  Depository  has  (45) 44 

Mere  Centingency  or  Expectancy  is  not 

(46) 44 

Measure  of  (4  7) 44 

Essential  to  Validity  of  Insurance  (48)    44 

Must  Exist  at  what  Time  (49) -    44 

Effect  of  Transfer  of  (50) 44 

Effect  of  Transfer  after  Loss  (51) 44 

Effect  of  Transfer  in  One    of   Several 

Things  (52; 44 

Effect    of    Transfer    between     Joint 

Owners  etc.  (54) 45 

Effect  of  Change  of,  by  Death  (53)   - .       44 
In  Life  or  Health  Insurance,  who  has 

(198) 57 

In  Marine  Insurance — 

Of  Owner  of  Ship  (126) 50 

Of  Owner  of  Ship  Covered  by  Bottomry 

Bond  (127) 50 

Of  Owner  of  Ship,  in  Freightage   129)    51 
Of  Owner  of  Sliip  in  Freightage  under 

Charter  Party  (130) 51 

Of  Owner  of  Ship,  in  Profits  (131).-.-     51 
Of  Owner,  under  Charter  Party  (132).     51 
Insurance  — 

Defined  (33) 43 

What  may  be  Subject  to  (34) 43 

Usual  Kinds  of  (36) 43 

Pwtiesto,  Defined(38) 43 


PAGE 

Insurance  (Continned) — 

Parties  to,  Who  may  be  (39,  40) 43 

By  Mortgagor  in  Favor  of  Mortgagee, 

Effect  of  (4 1) 44 

Void  if  Insured  has  no  Interest  (48).  -     44 

When  Interest  must  Exist  (49) 44 

Change  of  Interest  Suspends  (50) 44 

Change  of  Interest  after  Loss  does  not 

Suspend  (51) 44 

Change  of  Interest  in  Thing  separately 
Insured  does  not  Suspend,  as  to  Other 

Things  (52) 44 

Change  of  Interest  by  Succession  does 

not  Avoid  (53) 44 

Change   of   Interest   from    One  Joint 
Owner    etc.,   to   Another,   does   not 

Avoid  (54) 45 

Concealments  in.  Defined  (56) 45 

Concealment,    Ground   for   Rescission 

(57) 

When  Right  of  Rescission  may  be  Ex- 
ercised (78) 46 

What  must  be  Communicated  in  (58).    45 
What  need  not  be  Communicated  in 

(59) 45 

What  is  Deemed  Material  in  (60) 45 

What  Parties  to  are  Bound  to  Know 

(61) 45 

Right  to  Information  in,   how  Waived 

(62) 45 

What   Information    not  Necessary  to 

(63) 45 

Fraudulent  Concealment  of  Facts  con- 
cerning Warranty,  Avoids  (64) 45 

Parties  to,  not  Bound  to  state  Matters 

of  Opinion  (65) 46 

Representation    in,    Ural   or    Written 

(66) 46 

Representation  in,  when  Made  (67)- .-  46 
Representatonin.  how  Interpreted  (68)  46 
Representation   in,    when    Deemed    a 

Promise  (69) 46 

Representation  in,  how  affects  Policy 

(70) 4t^ 

Representation  in.  may  be  Witfidrawn. 

when  (,71) 46 

Representation    in.    Refers     to    what 

Time  (72) 46 

Representation  in,  upon  Belief  (73)- . .  46 
Representation  in,  when  Deemed  False 

(74) 46 

Representation  in.   False  Ground  for 

Rescission  (75) 46 

Representation  in,  Materiality  of,  how 

Determined  (76) 46 

Policy  of  Deliued  (79) 46 

Policy  of.  must  Specify  what  (80) 46 

Policy  of.  Whose  Interest  Covered  by 

(81) 47 

Policy  of,  may  Provide  for  Avoidance 

aOl) 48 

Policy  of,  iu  Favor  of  Agent,  etc.,  how 
Expressed  ;82; 47 


INDEX   TO   CALIFORNIA. 


31 


PAGE 

Insurance  (Continued) — 

Policy  of,  in  Favor  of  Partner,  etc., 

how  Expressed  (83) 47 

Policy  of,  when  Void  (55) 45 

Policy    of  General  Description   in,  to  47 

Whom  Applicable  (84)  47 

Policy  of,  may  be  Framed  for  Benefit  of 

Successive  Owners  (85) 47 

Policy  of,  not  Transferred  by  Transfer 

of  Thing  Insured  (86) 47 

Policy  of,  Open,  Defined  (88) 47 

Policy  of,  Valued,  Defined  (89) 47 

Policy  of.  Running,  Defined  (90) 47 

Policy  of,  Effect  of  Receipt  in  (91) 47 

Policy  of,  Agreement  not  to  Transfer 

Claim  under,  Void  (92) 47 

Policy  of,  Warranty  in,  Defined  (93)-  -  47 

Policy  of,  Form  of  Warranty  in  (94) . .  47 

Express  Warranty  to  be  in  Policy  (95)  47 

Express  Warranty,  Defined  (97) 47 

Warranty  may  Relate  to  Past,  Present, 

or  Fature  (96) 47 

Warranty  as  to  Future,  Defined  (98). .  48 
Warranty,  Performance  of,  when  Ex- 
cused (99) 48 

Warranty,  Breach  of.  Material  Ground 

for  Rescission  (100) 48 

Wai'ranty,  Breach  of  Immaterial,  does 

not  Avoid  (101) 48 

Warranty,   Breach  of,  without  Fraud, 

Effect  of  (102) 48 

Premium  of,  when  Earned  (1 03) 48 

Premium,  Return  of,  when  Due  (104).  48 
Premium,  Return  of,  when    not   Due 

(106) 48 

Premium  on,  when  Kone  All  jwed  (105)  48 

Premium  on,  in  Case  of  Over  Ins.(107)  48 

Premium  on,   Contribution  to  (10 85  48 

109) 48 

Perils,  What  Covered  by  (110) 49 

Perils,  Loss  Incurred  by  Rescue  from. 

Covered  by  (111) 49 

Perils  Excepted  from  (112) 49 

Perils  Caused  by  Willful  Act  of  Insured 

not  Covered  by  (113) 49 

Notice  of  Loss  under   Fire    must   be 

given  (114) 49 

Kotice  of  Defects  or   Delay  in,  how 

Waived  (116) 49 

Proofs  of  Loss  under,  what  must  be 

Given  (115) 49 

Proofs  of  Defects  or  Delay  in  Notice  of 

Loss,  how  Waived  (117) 49 

Proof  of  Loss  by  Certificate,  when  Ex- 
cused (118) 49 

Double,  Defined  (119) 49 

Double,  Contribution  under  (1 20) 50 

Reinsurance,  Defined  (121) 50 

Reinsurance,   What    must  be  Commu- 
nicated on  (122) 50 

Reinsurance  Presumed    to  be   against 

Liability  (123) 50 

Reinsurance,  Original  Insurer   hag  no 

Interostin  (124) 50 


PAGE 

Insurance  (Continued)— 

Of  Lotterj ,  Forbidden  (35) 43 

Penalty  for  Procuring  Dlegal  (248).. .     71 
Marine — 

Defined  (125) 50 

Insurable  Interest  under  (126) 50 

Insurable  Interest,  Owner  of  Ship  has 

(127) 50 

Insurable  Freightage,  when  (128) 50 

Expected  Freightage,  when  Insurable 

(129) 51 

Double  Contribution  under  (120) 50 

Insurable  Interest  under  Charter  Party 

when  Begins  (130) 51 

Insurable  Interest  in  Profits  (131) 51 

Insurable  Interest  of  Charterer  of  Ship 

(132) 51 

What  Must  be  Communicated  in  ( 1 3  3)  51 
What  Information  is  Material  in  (1  34)  51 
When  Persons  Insured  by,  Presumed  to 

have  Information  (135) 51 

Effect   of  Certain   Concealments  upon 

(136) 51 

Representation  Willfully  False  Avoids 

(137) 51 

Eventually  False,  does  not  Avoid  (138)  51 
Warranty  of   Seaworthiness,    Implied 

(139) 51 

Warranty  of  Seaworthiness,  when  Com- 
plied with  (141) 52 

Meaning  of  "  Seaworthy, "  in  Respect 

to  Insurance  (140,  142) 52 

Warranty  of  Seaworthiness,  Effect  of 

(142) 52 

Different  Degrees  of  Seaworthiness,  as 
Contemplated    by  Policy    of   (143,    52 

144,  145) 52 

Warranty  of  Neutrality,  Effect  of  (1  4  6)  52 
Voyage  Covered  by,  how  Determined 

(147,  148) 52 

Voyage,  Deviation  from.  Defined  (149)  53 
Voyage,  Deviation  from,  when  Proper 

(150) 53 

Voyage,  Deviation  from,  when  Improper 

(151) 53 

Voyage,  Deviation  from,Effect  of  (1  52)  53 
Loss   under,   Total  or  Partial    (153,    53 

154) 53 

Actual  or  Constr'ive  Loss  under  (156)    53 

Actual  Total  Loss  under  (156) 53 

Constructive  Total  Loss  under  (157)  53 
Actual  Loss,  when  Presumed  (15  8)--.  53 
On  Cargo,  etc.,  when  Voyage  is  Broken 

up(159) 53 

Abandonment  Unnecessary   upon  Ac- 
tual Total  Loss  (161) 53 

Loss  of  Profits,  when  Presumed  (186)    5fi 
Covers  Expenses  of  Reshipmeut  in  cer- 
tain Cases  (160) 53 

Of  Profits,  when  Recoverable  (184).-.  55 
Free  of  Particular  Average,   Effect  of 

(162) 53 

Against  Total  Loss    only,     Effect    of 
(163) C4 


32 


INDEX   TO   CALIFOENIA. 


PAGE 

lu.-^urance  (Continued") — 

Abandonment  under  (1 64) 54 

Valuation  In  Policy  of,  when  Conclusive 
(182) .-i5 

Valuation  in  Policy  of,  when  Applicable 
to  Partial  Loss  (183) 55 

Valuation   in  Policy  of.    Apportioned 
(185) 55 

Valuation  in  Policy  of,  of  Profits  (186)    56 

Measure  of  Indemnity  under  open  Pol- 
icyof(187) 56 

Measure  of  Indemnity  in  case  of  Dam- 
age(188) 56 

Measure  of  Indemnity  where  Expenses 
are  Incurred  (189) 56 

Measure  of  Indemnity  for  General  Av- 
erage (190) 56 

Measure  of  Indemnity  where  Insured 
entitled  to  Contribution  (191) 56 

Measure  of  Indemnity  in  case  of  Par- 
tial Loss  of  Ship,  etc.  (192) 56 

Fire— 

Effect   of  Alteration    in   Thing   upon 
(193,  194)  ..- 57 

How  Affected  by  Acts  of  Insured  (195)    57 

Measm-e  of  Indemnity  under  (196) 57 

Life  and  Health— 

When  may  be  Payable  (197) 57 

Who  may  be  Insured  by  ( 1 9  8 ) 57 

May  be  Transferred,  etc.,   to    Person 

having  no  Interest  (199) 57 

Notice  of  Transfer  of,  not  Necessary 

(200) 57 

Measure  of  Indemnity  under  (201). ...  57 

Policy  of,  when  Non  foifeitable  (202)  57 

Temporary  (203) 58 

Insurance  Commissioner — 

Designation  of  (204) 58 

Appointment  of  (205) 58 

Term  of  Office  of  (206) 58 

Who  is  Eligible  (207) 58 

General  Duties  of  (208) 58 

Report  of  (208) 58 

Report  of,  how  Distributed  (209) 59 

Ketaliatoiy  Action  by  (30) 42 

May  Extend  Time   for    Selling   Real 

Estate  (6) 37 

Must  Examine  Insolvents  (211) 60 

May  Publish  Result  of  Exam'n  (21 1)  60 
To  Collect  Penalty  for  refusing  Informa- 
tion (212) 60 

May  Issue  Subpoenas  (213) 60 

Pioceedings  of,  in  Insolvency   (214, 

215) 60 

Must    Publish    Notice    of  Insolvency 

i214) 60 

Not  Liable  for  Damages,  when  (215)  61 

Must  Keep  Record  (217) 61 

May  Employ  Actuary,  when  (218) 61 

Fees  to  be  Collected  by  ( 2 1 9) 62 

To   make    Assessments    for   Expenses 

(220) 62 

Must    Require     Certain     Certificates 

(221,  222) 62,  63 


PAGE 

Insurance  Commissioner  (Continued) — 
Must  Approve    name  of   Corporation, 

when  (223) C3 

To  Furnish  Blanks  (229) 67 

To   Require    Condition  from  Foreign 

Corporations  (230) 67 

To  Collect  Penalties  for  Delay  in  Filing 

Certificates  (231) 67 

To  Give  Notice  to  Foreign  Corpora- 
tions (232) 67 

To  Require  Deposits,  when  (232) 68 

To  Receipt  for  Deposts,  when  (233)  . .  68 

To  Return  Deposits,  when  (234) 68 

To  Examine  Deposits,  when  (235)  ...  69 

To  Enforce  Retaliatory  Laws  (236). . .  69 
To    Require     Agents'     Bonds   (237, 

238) 69,  70 

To  Furnish  Assessors'  Data  for  Taxa- 
tion (239) 70 

To  Require  Compliance  with  Civii  Code 

(240) ; 70 

Salary  of  (242) 70 

Salary  of  Deputy  (243) 70 

Contingent  Expenses  of  (244) 70 

Location  of  Office  of  (245) 70 

,    Official  Bond  of  (246) 70 

To  Collect  Certain  Penalties  (210)....  59 

To  Keep  List  of  A.gent3  (247) 71 

Insurance  Corporations — 

Subscription  to  Capital  Stock  (5) 37 

Purchase  and  Conveyance  of  Real  Es- 
tate (6) 37 

Policies,  how  Issued    and   by   Whom 

Signed  (7) 38 

Dividends,  of  what,   and    when    De- 
clared (8) 38 

Directors  Liable  for  Loss  on,  in  Certain 

Cases  (9) 38 

Capital  Stock  (10) 38 

Required  for  Mutual  (10) 38 

How  Dissolved  (215) 6t 

Choosing  Name  of  (223) 63 

Fire  and  Marine — 

Payment  of  Subscription  (11) 39 

Certificate  of,  of  Paid-up  Capital  Stock 

to  be  Filed  (1 2)  - .  - '- 39 

Property  which  may  be  Insured  (13)..  39 

Funds  may  be  Invested,  how  (14) 39 

Rate  of  Risk  to  Capital  (15) 39 

Amounts  to  be  Reserved  before  Making 

Dividends  (16,   17). 39 

Mutual  Life,  Health,  and  Accident — 

Capital  Stock  (18) 40 

Assets  of  Foreign  (10) 38 

Guarantee  Fund  (18) 40 

Of  what  Guarantee  Fund  shall  Consist 

(19) 40 

What  it  Constitutes  (20) 40 

Deficiency  ill  Capital  Stock  (20) 40 

Declaration  of  Fixed  Capital  to  bo  Filed 

(21) 41 

Guarantee  Notes  and  Interest,  how  Dis- 
posed of  (22) 41 

Insured  to  bo  Entitled  to  Vote  (23) ...  41 

May  Invest  in  what  Securities  (25). ..  41 


INDEX  TO   CALIFORNIA. 


PAGE 

Insurance  Corporations  (Continned)— 
Number  ol'  Directors  may  be  Altered, 

how  (.2-i) 42 

Limitation  to  Holding  of  Stock  (26)-..     42 

Premiums,  liow  Payable  (27) 42 

To  Furnish  Insurance  Commissioner 

Certain  Facts  (28) 42 

No  Stamp   Required   on   Contract    of 

Accident  Insurance  (29) 42 

Insured  (Person) — 

Defined  (38) 43 

Who  may  be  (40) 43 

Must  have  Insurable  Interest  (48) 44 

Effect    of  Change   of    Interest    upon 

Pwightsof  (50,  51,  52,  53,  54).. 44,  45 
What  must  be  Communicated  by  (58, 

64) 45 

Not  Answerable  for  Truth  of  Informa- 
tion, when  (65) 46 

Effect  of  Naming,  in  Policy  (81) 47 

Effect   of    Vague    Description    of,    in 

PoUcy  (84) 47 

Agreement  not  to  Transfer  Claim   of, 

after  Loss,  Void  (92) 47 

Statement   in    Policy    Concerning,    is 

Warranty  (98) 48 

Entitled  to  Return  of  Premium,  when 

(104,  106,  107)  48 

Entitled  to  Eetm-n  of  Premium,  when 

not  (105) 43 

Willful  Act  of,  not  Covered  by  Insur- 

ancedlS) 49 

Must  give  Notice  of  Loss  in  Fire  In- 
surance (114) 49 

What  Proof  must  be  Given  by  (1 1 5)  .    49 
Has  uo  Interest  in  Reinsurance  (124)    50 
In  Marine  Insurance — 
Presumed    to   Know    of    Loss,    when 

(135) 51 

Effectof  FalscRepresentat  onby  (137)    51 
Entitled  to  Payment  without  Abandon- 
ment, when  (161) 53 

May  Abandon,  when  (165) 54 

Agents  of,  are  Agents  of  Insurer,  after 

Abandonment  (174) 55 

Not  Obliged  to  Abandon  (180) 55 

May  Recover   Proportion   of    Profits, 

when  (184) 55 

May  Recover  Whole  Loss  from  Insurer, 

when  (190) 56 

In  Fire  Insurance— 
What  Acts  of   do   not  Avoid  Policy 

(195) 57 

Insured  (Thing)— 

Lottery  or  Lottery  Prize    can  not  be 

(35) 43 

Against,  what  may  be  (34) 43 

Effect  of  Change  of  luterest  in   (50, 

51,  52,  53,  54,  54) 44,45 

Transfer  of,  does  not  Transfer  Policy 

(86) 47 

Statement    in    Policy   Concerning,    is 

Warranty  (98) 48 

Exposure  of,  to  Peril,  Entitles  Insurer 

to  Premium  (105) 48 

3 


I-ACK 

Insured  (Thing)  (Continued)— 

Liability  of  Insurer  for  Loss  Incurred 

in  Rescue  of  (1 60) 53 

Total  Loss  of  Defined  (156) 53 

May  be  Abandoned,  when  (165) 54 

Belongs  to  Insurer  after  Abandonment 

(172) 55 

Belongs  to  In  iurer  after  Payment  for 

Total  Loss  (173) 55 

Valuation  of  (,182) 55 

In  Fire  Insurance,  Effect  of  Alteration 

in  (193,  194,  195) 57 

Interest  ia,  whea  must  Exist  (49) 44 

Insurer — 

Defined  (38) 43 

Who  may  be  (.39) 43 

Effect  of  Assent  of,  to  Transfer  of  In- 
surance to  Moi  tgagee  (42) 44 

What  must  be  Communicated  by  (58, 

59,  122,  133) 45,50,  51 

May  Rescind  for  Fraudulent  Conceal- 
ment (57) 45 

May  Rescind,  whea  (78)  46 

Breach  of  Warranty  Exonerates,  when 

(102) 48 

Entitled  to  Premium,  when  (103) 48 

Must  Return  Premium,  when  (104)  ..    48 
Must  Contribute  to  Return  of  Premium, 

when  (108) 48 

Liable  for  what  Losses  (1 10-1 13) 49 

Not  Liable  for  what  Losses  (113) 49 

Notice  of  Liss  must  be  Given  to,  under 

Fire  Insurance  (114) 49 

Notice    of    Loss,    what    Defects    in, 

Waived  by  (116) 49 

Delay,  when  Waived  by  (117) 49 

Must  Contribute  on  Double  Ins.  (1 20),    50 

Reinsurance  by  (121) 50 

J»i  Marine  Insurance— 
Exonerated   by  Certain  Concealments 

(136) 51 

May  Rescind  for  False  Representation 

(137) 51 

Not  Liable  for  Loss    after  Deviation 

(151) 53 

Liability  of,   when  Voyage  broken  up 

(159,  160) 53 

Liability  of   for  Partial  Loss    (162< 

183.   192) 53,55.56 

Abandonment  to  (164) 54 

Paying  as  for  Total  Loss,  Entitled  to 

all  that  Remains  (173) 5S 

Agents  of  Insured  Act  for.  After  Aban- 
donment (174) 55 

Mere  Silence  of,  is  not  Acceptance  of 

Abandonment  (175) 55 

Insolvency  of,   as  Affecting  other  In- 
surers (120) 50 

Of  Ship,  what  Belongs  to,  after  Aban- 
donment (178) 55 

How    Liable,    on    Refusal    to   Accept 

Abandonment  (179) 55 

Liability  on  Loss  of  Profits  (186) 5f> 

Liability  on  Damage  of  Tiling  Insured 
(188) 56 


34 


INDEX   TO   CALIFORNIA. 


PAGB 

Insurer  (Continued) — 

Liability  for  Repars  (189) 56 

Liability  for  Contribution  by  Insured 

(190) 56 

Liability  where  Insured  has  Claim  for 

Contribution  (191) 56 

Liability  for  Partial  Loss  of  Ship,  etc. 

(192) 56 

May  Rescind  for  Fraud  in   Valuation 

(182) 55 

In    Fire   Insuiance.   May   Rescind   for 

Alteration,  when  (193)   57 

In  Life  Insurance,  Notice  of  Transfer, 

etc.,  to,  Unnecessary  (200) 57 

Interest- 
On  Securities  (232) 68 

On  Guarantee  Notes  (22) 

Joint  Interest,  Change  in,  does  not  Aifeet 

Insurance  (54) 45 

Licenses — 

Necessity  of  (210) 59 

To  Agents  (247) 71 

Penalty  for    doing    Business    without 

(210,247) 59,  71 

Life  Insurance  Companies— (See  Insurance 

and  Insurance  CJorporations.) 
Life  Insurance  Companies — 

Funds  of,  how  Invested  (25) 41 

Assets  and  Capital  Required  (18,  19, 

216)  40,  61 

Guarantee  Fund  of  (1  8,  22) 40,  41 

Annual  Statements  of  (227) 65 

To  Make  Deposits,  when  (232) 68 

Liability   under  Temporary  Insurance 

(203)  58 

Live  Stock  Companies,  Capital  of  (10) 38 

Loans  on  Stock  or  Notes  (14) 39 

Loss — 

After  Insolvency  (215) 61 

Insurer  Liable  for  what  (110) 59 

Insurer  Liable  when  Incurr  d  in  Rescue 

fromPeril  (111) 49 

Insurer  Liable  when  Caused  by  Negli- 
gence (113) 49 

Insurer  uot  Liable  for,  when  Caused  by 

Peril  not  Insured  Ajjainst  (112) 49 

I  nsurernot  Liable  for,  Avhen  Caused  by 

Willful  Act  of  Insured  (113) 49 

Liability  for  (9) 38 

(Contribution  Towards,   in  Doable  In- 
surance (120) 50 

Notice  of,  under  Fire  Insurance,  must 

be  given  (114) 49 

Defects  in  Notice,  How  Waived  (116)    49 
Delay  in  Notice  of.  How  Waived  (1 1  7)    49 
Loss  under  Marine  Insurance — 

May  be  Total  or  Partial  (153) 53 

When  Partial  (154) 53 

Total,  May  be  Actual  or  Constructive 

(155) 53 

Total  Actual.  Defined  (156) 53 

Total  Constructive,  Detined  (157) 53 

Notice  of  Abandonment  not  Necessary 

on  (161) 53 


PAGE 

Loss  under  Marine  Insurance  (Continued) — 

Actual,  when  Presumed  (158) 53 

Insurance  Confined  to,  does  not  Cover 

Constructive  Loss  (163) 54 

Free  of   Particular    Average,  Defined 

(162) 54 

How    Estimated   under  Open   Policy 

(187) 56 

Lottery  Insuring  Prohibited  (35) 43 

Makino;  Insurance — (See  Insurance,) 
Marine  and  Inland  Companies- 
Annual  Statements  (226) 64 

Assets  and  Capital  of  (216) 61 

Companies  may  Insure,  what  (13) 39 

Companies  may  Invest,  in  what  (14)..     39 
Measure — 

Of  Insurable  Interest  m  Property  (47),  44 
Of  Indemnity  under  Marine  Insurance    55 

(182) 

Of   Indemnity   under  Fire    Insurance 

(196)  57 

Of  Indemnity  under  Life  and   Health 

Insurance  (201) 57 

Mortgagor — 

Ins.  by,  Payable  to  Mortgagee(41) 44 

Effect  of  Acts  of,  on  Insurance  for  Ben- 
efit of  Mortgagee  (42) 44 

Mutual  Companies — 

Assets  Required  216) 64 

Of  this  State  (228) 66 

Negligenck,  Insurer  when  Liable  for  Loss 

Through  (113) 49 

Neutral  Papers,  Implied  Warranty  of,  in 

Marine  Insurance   (146) 52 

Notes,  Loans  on  (427) 39,42 

Notice — 

Of  Loss  under  Fire  Insurance,  Must  be 

Given  (114) 49 

Of  Loss,  Defects  in ,  how  Waived,  (116)  49 
Of  Loss,  Delay  in.  how  Waived  (1 1 7),  49 
Abandonment  of  Ship  to  Insurer  Made 

by  (169) 54 

Requisites  of  Such  (170) 54 

Of  Transfer  of  Life  Insurance  Policy, 

not  Necessary,  when  (200) 57 

Of  Insolvency.  Publication  of  (214)..     60 

Of  Change  of  Agents  (222) 63 

Of  Change  of  Laws,  etc.  (222) 63 

To  Foreign  Corporations  (231) 68 

Of  Revocation  of  Certificates  (235). . .     69 
Opinion,   Information    as    to   Matters    of 

need  not  be  Given  on  Insurance  (65)    46 
Over-insurance — 

Return    of    Premium    on,    how   Made 

(107) 48 

Return  of  Premium  on.  Effected  by  Si- 
multaneous Policies  (108) 48 

Return  of  Premium  on,  by  Successive 

Policies  (109) 48 

Partner  (General)— 

Change  of  Interest  of,  does  not  Avoid 

Insurance  (54) 45 

Effect  of  Insurauoe  by  one  of  Severol 
(83) 47 


INDEX  TO   CALIFORNIA. 


35 


PAGE 

Penalty— 

For   Arson    and    Incendiarism   (249- 

259) 71,  72 

For  Embezzlement  (261-263) 72 

For  Fraud  and  False  S  w  earin  g  ( 2  6  O  t . .     72 
For   Issuing  Life  Policy  without  Evi- 
dence of  being  Issued  in  the  State, 

(31) 42 

For  Procuring  Illegal  Insurance  (248)    71 

For  Kefusing  Information  (212) 60 

For  Kefusing  to  Pay  As8essments(220)  62 
For  Appealing  to  U.  S.  Courts  (230)  .  67 
For  Delay  in  Filing  Certificates  (231).  67 
For  Agent    Acting  without     License 

(247) 71 

For  Agent  Using  False  Name  (247)  -  -  71 
For  doing  Business  without  Authority 

(210) 59 

Perils — 

Insured  Against,  what  may  be  (34) 43 

Insured  Against,  EfiFect  of  Remoteness 

and  Proximateness  of  (1 1 0) 49 

Insured   Against,    Insurer    Liable    lor 
Losses    Incurred    in      Rescue    from 

(111) 49 

Excepted  in  Insurance,  Effect  of  Loss 

by  (112) 49 

Caused  by  Willful  Act  of  Insured,  In- 
surer not  Liable  for  (1 1  3) 49 

Caused  by  Negligence,  Insurer  Liable 

for  (1 1 3) 49 

Policy — 

Defined  (79) 46 

When  Void  (55) : 45 

Must  Specify  what  (80)  47 

Representation,  how  Effects  (70) 46 

Interest  of  Person  Specified  in,  Alone 

Covered  (81) 47 

Interest  of  Principal,  how  may  be  Cov- 
ered by  (81) 47 

Interest  of  Joint  Owners,  etc.,  how  may 

be  Covered  by  (8  3) 47 

Who  can  Claim  Benefit  of  General  De- 
scription in  (84) 47 

May  be  Made  for  Benefit  of  Successive 

Owners  (85) 47 

Transfer  of    Thing  Insured  does   not 

Transfer  (86) 47 

Transfer  of,  Suspends  (86) 47 

Open,  Defined  (88) 47 

Valued,  Defiued  (89) 47 

Running,  Defined  (90) 47 

Effect  of  Receipt  in  (91) 47 

Agreement  not  to  Transfer  Claim  under, 

after  Loss,  Void  (92) 47 

Express  Warranty  must  be  in  (95) 47 

Positive  Statement  in,  is  a  Warranty 

(97,  98) 47,  48 

When  Avoided  by  Breach  of  Warranty 

(102t 48 

Of  Life,  may  Pass  by  Will,  Transfer, 

etc.  (199) 57 

Liability  on  Simultaneous  (120) 50 

Life,  when  Non-forfeitable  (202) 58 

Valuation  of  Life  (28,  218) 42,  61 


PAGE 

Policy  (Continued) — 

Fees  for  Valuing  Life  (2«*) 42 

Life,  must  Contain  Certain  Evidence 

(31) 42 

Life,  Valuation  of,  Rejected  by  other 

States  (30) 42 

How  Issued  (7) 38 

May  be  Issued,  when  (11) 39 

Holders  of  Life,  may  Vote,  when  (23).  41 

Life,  Surrender  Value  of  (32) 43 

Company  to  Cease  Issuing,  when  (214)  60 

Power— 

Of  Attorney  to  be  Filed,  when  (222).  -  63 

Of  Agent  to  File  Duplicate  (.247) 71 

Premium- 
How  Payable  (27) 42 

When  Earned  (103) 4& 

Return  of,  when  must  be  Made  (104). .  4e 

Retui-n,  when  Need  not  be  Made  (105)  48 

Return,  in  Case  of  Fraud  (106) 48 

Return,  in  Case  of  Over  Ins.  (107) 43 

Return,  Contribution  by  Simultaneous 

Insurers  (108) 4y 

Return,  Contribution  by  Successive  In- 

surers(109) 48 

Rettirn,   Amount  of,  how  Determined 

(104) 48 

Agent  to  Collect  Renewal  (210) 59 

On  Outstanding  Risks  (8) 38 

Non-payment  of,  does  not  Forfeit  Life 

Policy  (202) 57 

Rate  of,  must  be  Specified  in   Policy 

(80) 4f, 

Effect  of  Receipt  of,  in  Policy  (91) 47 

Notes  (8) 38 

Presumption— 

That  Representation  Refers  to  Time  of 

Completing  Contract  (72) 46 

That  Person  lasui  ed  has  Knowledge  of 

Prior  Loss  (135) 51 

Of  Actual  Loss  of  Ship  (158) 53 

Profits- 

Who  has  Insurable  Interest  in  (131)  .  51 

Measure  of  Indemnity  for  Loss  of  ( 1 8  4)  55 

Loss  of,  when  Presumed  (186) 56 

Proof  of  Loss — 

How  Given  (115) 49 

Objection  to,  how  Waived  (116,117)  49 
Certificate  of,  when    Dispensed    with 

(118) 49 

Publication— 

Of  Notice  of  Insolvency  (214) 60 

Of  Notice  of  Revocation  of  Certificate 

(235) 69 

Of  Annual  Statements  (225) 63 

Of  Notice  of  Withdrawal  from  Business 

(208) 58 

Punishment  of  Defaulting  Witness  (213)..  40 

Real  Estate,  Purchase  and  Conveyance 

of(6) 37 

Receipt  in  Policy  of  Ins.  Effect  of  (91).  47 

Reciprocal  Laws  (30,  2 36j 42,  69 

Reinsurance — 

Defined  (121) 50 

What  most  be  Communicated  on  (1 22)  50 


36 


INDEX    TO   CALIFORNIA. 


PAGE 

Reinsurance  (Continiied) — 

Presumed     to     be   Against    Liability 

(123) -  50 

Original   Insured    has  no  Interest   in 

(124) 50 

Representation — 

May  be  Oral  or  "Written  (66) 46 

When  may  be  Made  (67) 46 

How  Interpreted  (68^ 46 

As  to  Future,  when  Deemed  Promise 

(69) 46 

How  may  Affect  Policy  (70) 46 

When  may  be  Withdrawn  (71) 46 

To  what  Time  Deemed  to  Refer  (72) . .  46 

Concerning  Information  (73) 46 

When  Deemed  False  (74) 46 

Effect  of  Falsity  in  (75) 46 

Materiality  of,  how  Determined  (76)..  46 
Bnles  Concerning,  Govern  a  Modifica- 
tion of  Contract  (77) 46 

Marine — 

Bffectof  Falsity  in  (137) 51 

Concerning     Expectation,    Effect     of 

(138) 51 

Rescission  of  Insurance  Allowed  for — 

Concealment,  when  (5  7 j  64) 45 

False  Representation,  when  (75) 46 

Violation  of  Warranty,  etc.  (98) 48 

Fraudulent  Valuation  (1 82) 55 

Alteration  increasing  Risk  (193) 57 

Rescission,   Right  of,  when  may  be  Exer- 

cised(78) 46 

EeturD  Premium — 

Whenmade(104,  106-108) 48 

When  not  made  (105) 48 

Risks — 

Insured  Against  to  be  Stated  in  Policy 

(80) 46 

Effect  of  Altering  Thing  Covered  by 

Fire  Insurance.  Increasing  (193). . .  57 
Effect  of  Altering  Thing  Covered  by 

Fire  Insurance,  not  Increasing  (194)  57 
What,  may  be  Insured  Against  in  Ma- 
rine Insurance  (125) .  50 

Premiums  on  Outstanding  (8) 38 

Rate  of,  to  Capital  Stock  (15) 39 

Salvage,  Who  Entitled  to  (173) 55 

Seaworthiness — 

Defined  (1 40) 52 

Implied  Warranty  of  (139) 51 

At  what  Time  must  Exist  (141) 52 

What  Required  to  Constitute  (142)...  52 
Dift'ereut  Degrees  of  During  Voyage 

(143) 52 

Purpose  of  Insuring   Cargo  (145)  ..  52 

Securities— 

To  be  Deposited,  when  (2  3  2) 68 

Interest  on  (232) 68 

Estimating  Value  of  (233) 68 

Retunied,  when  (234) 68 

Annual  Examination  of  (235) 69 

Deficiency  in  (235) 6'» 

Service  of  Process  (230) 07 

Ship  Owners- 
Have  Insurable  Interest  (1 26) 50 


PAGE 

Ship  Owners  (Continued) — 

Value  of  Insurable  Interest  ot  (1 28)  . .  50 
Have   Insurable  Interest  in  Expected 

Freightage  (1 29) 51 

Statements — 

Verification  of  (224) 63 

Annual  (226,  227) 61,65 

Forms  of  (229) 67 

To  be  Filed,  when  (225) 63 

Subpoenas,  Issued  when  (213) 60 

Succession,    Change  of  Interest   by,    does 

not  Affect  Insurance  (53) 44 

Surrender  Value  of  Life  Po  icies  (32) 43 

Suspension,  ot  Policy  by  Transfer  of  Thing 

Insured  (86) 47 

Thikd   Person,   Information   of  Belief  of 

Material  in  Marine  Insurance  (1  34)  ..  51 
Time  to  which  Representation  in  Insurance 

Refers  (72) 46 

Transfer — 

Agreement  not  to  Transfer  Insured  In- 
terest, when  Void  (92) 47 

Life  Ins.  Policy  may  Pass  by  (199)...  57 
of  Thing  Insured  Does  not  Transfer 

Policy  (86) 47 

Valuation  of  Life  Policies  (28,  218).  42,  61 

Values,  Standard  of  (241) 70 

Voyage- 
Insured,  how  Determined  (147) 52 

Deviation  from.  Defined  (148) 52 

Deviation  from,  when  Proier  (150)...  53 

Deviation  from,  when  Improper  (151).  53 

Deviation  from,  Effect  of,  on  Ins.  (152)  53 
Waiver— 

Of  Communication  in  Insurance  (63). .  45 

Of  Contribution,  Eft'ect  of  (1 9 1 ) 56 

AVarranty — 

May  be  Express  or  Implied  (93) 47 

No  Form  Necessary  to  Constitute  (94)  47 
When  Express  must  be  inPolicy  (95). .  47 
May  Relate  to  Past,  Present,  and  Fu- 
ture (96) 47 

Express,  Defined  (97) 47 

As  to  Future,  Defined  (98) 48 

Fulfillment  of,  when  Excused  (99) 48 

Violation  ol,  Material,  Avoids  Policy 

(100) 48 

Violation  of.  Immaterial  does  not  Preju- 

dice(lOl) 48 

Violation  of,  without  Fraud,  Effect  of 

(102) 47 

May  be  Qualified    by  Representation, 

when  (70) 46 

Marine — 

Implied,  of  Seaworthiness  (139) 51 

Implied,  when   Complied  with  (140,  52 

141) 52 

Implied,  to  what  Extends  (142) 52 

Implied,  as  to  Different  Parts  of   Voy- 
age (143) 52 

Implied,  Delay  in  Repairinf^,  Breach  of 

(144) 52 

Express,  of  Neutrality,  etc.,  Effect  of 

(146) 62 

Witness,  Punishment  of  Defaulting  (213)  60 


INSURANCE  STATUTES  OF  CALIFORNIA. 


Revised  by  Hon.  J.  W.  Foard,  Insurance  Commissioner. 


CONSTITUTIONAL  PROVISIONS  CONCERNING  CORPORA- 
TIONS. 

1 .  Corporations  maj  be  formed  under  general  laws,  but  shall 
not  be  created  by  special  act,  excei^t  for  municipal  purposes.  All 
general  laws  and  special  acts  passed  pursuant  to  this  section  may 
be  altered  from  time  to  time,  or  repealed.     {Art  4,  §  31.) 

2.  Dues  from  corporations  shall  be  secured  by  such  individual 
liability  of  the  corporators,  and  other  means,  as  may  be  prescribed 
by  law.     {Art.  4,  §  32.) 

3.  The  term  corporations,  as  used  in  this  article,  shall  be  con- 
strued to  include  all  associations  and  joint  stock  companies  having 
any  of  the  powers  or  pri\dleges  of  corporations  not  possessed  by  in- 
dividuals or  i^artnerships.  And  all  corporations  shall  have  the 
right  to  sue,  and  shall  be  subject-  to  be  sued  in  all  courts,  in  like 
cases  as  natural  persons.     {Art.  4,  §  33.) 

4.  Each  stockholder  of  a  corjjoration,  or  joint  stock  association, 
shall  be  individually  and  personally  liable  for  his  proportion  of  all 
its  debts  and  liabilities.     {Art.  4,  §  3G.) 

INSURANCE  CORPORATIONS— GENERAL  PROVISIONS. 

3.  After  the  Secretary  of  State  issues  the  certificate  of  incor- 
poration, as  provided  in  Article  I.,  Chapter  L,  Title  I.,  of  this  j)art, 
the  directors  named  in  the  articles  of  incorporation  must  proceed 
in  the  manner  specified,  or  in  their  by-laws,  or  if  none,  then  in  such 
manner  as  they  may  by  order  adopt,  to  open  books  of  subscription 
to  the  capital  stock  then  unsubscribed,  and  to  secure  subscri]itions 
to  the  full  amount  of  the  fixed  capital ;  to  levy  assessments  and  in- 
stallments tbereon.  and  to  collect  the  same,  as  in  Chapter  IT.  ol 
Title  L  provided.     '{Civil  Code,  1872,  p.  92,  g  414.) 

6.  No  insurance  corporation  must  purchase,  hold,  or  convey 
real  estate,  except  as  hereinafter  set  forth,  to  wit : 

1.  Such  as  is  requisite  for  its  accommodation  in  the  con- 
venient transaction  of  its  business,  not  exceeding  in  value  one 
hundred  and  fifty  thousand  dollars. 

2.  Such  as  is  conveyed  to  it,  or  to  any  ])erson  for  it,  by  way 
of  mortgage  or  in  trust,  or  otherwise,  to  secure  or  provide  for 
the  payment  of  loans  previously  contracted,  or  for  moneys  due. 

3.  Such  as  is  iiurchased  at  sales  upon  deeds  of  trust  or 
judgments  obtained  or  made  for  such  loans  or  debts. 

4.  Such  as  is  conveyed  to  it  in  satisfaction  of  debts  previous- 
ly contracted  in  the  course  of  its  dealings. 


38  hine's  insurance  statutes. 

All  such  real  estate  so  acquired,  whicli  is  not  requisite  for  the 
accommodation  of  such  corporation  in  the  transaction  of  its  busi- 
ness, must  be  sold  and  disposed  of  within  five  years  after  such 
corporation  acquires  title  to  the  same.  Xo  such  real  estate  must 
be  held  for  a  longer  period  than  five  years,  unless  the  corporation 
first  procures  a  certificate  from  the  Insurance  Commissioner  that 
the  interest  of  the  corporation  will  suffer  materially  by  a  forced  sale 
of  such  real  estate,  in  which  event  the  time  for  the  sale  may  be  ex- 
tended to  such  time  as  the  Insurance  Commissioner  directs  in  the 
certificate.     {Ibid,  ^415.) 

7.  All  policies  made  by  insurance  corporations  must  be  sub- 
scribed by  the  president  or  vice-president,  or  in  case  of  the  death, 
absence,  or  disability  of  those  officers,  by  any  two  of  the  directors, 
and  countersigned  by  the  secretary  of  the  corporation.  All  such 
policies  are  as  binding  and  obligatory  upon  the  corporation  as  if 
executed  over  the  corporate  seal.     {Ibid,  p.  93,  §  416.) 

8.  The  directors  of  every  insurance  corporation,  at  such  times 
as  their  by-laws  provide,  must  make,  declare,  and  pay  to  the  stock- 
holders di%idends  of  so  much  of  the  net  profits  of  the  corporate 
business  and  interest  on  capital  invested  as  to  them  appears  advis- 
able ;  but  the  moneys  received  and  notes  taken  for  premium  on 
risks  which  are  undetermined  and  outstanding  at  the  time  of  mak- 
ing the  dividend  must  not  be  treated  as  profits,  nor  divided,  ex- 
cept as  provided  in  Chapter  II.  of  this  Title.     (Ibid,  ^  417.) 

O.  If  any  insurance  corporation  is  under  liabilities  for  losses  to 
an  amount  equal  to  its  capital  stock,  and  the  president  or  direc- 
tors, after  knowing  the  same,  make  any  new  or  further  insurance, 
the  estates  of  all  who  make  such  insurance,  or  assent  thereto,  are 
severally  and  jointly  liable  for  the  amount  of  any  loss  which  takes 
place  under  such  insurance.     {Ibid,  jo.  94,  §  418.) 

I O.  No  company,  corporation,  or  association,  except  mutual 
life,  health,  and  accident  corporations,  shall  hereafter  be  formed 
or  organized  under  the  laws  of  this  State  for  the  transaction  of 
business  in  any  kind  of  insurance,  except  on  live  stock,  without  a 
subscribed  capital  equal  to  at  least  two  hundred  thousand  dollars 
in  United  States  gold  coin  ;  twenty-five  per  cent,  whereof  must  be 
paid  in  previous  to  the  issuance  of  any  policy,  and  the  residue  by 
monthly  or  quarterly  installments,  within  twelve  months  from  the 
day  of  filing  the  certificate  of  incorporation.  No  individual,  or  per- 
son, or  cori^oration,  organized  under  the  laws  of  any  other  State 
or  country  as  a  stock  company,  must  transact  any  kind  of  insurance 
business  in  this  State,  except  on  live  stock,  unless  such  person  or 
corporation  has  a  paid  up  capital  stock  equal  to  at  least  two  hun- 
dred thousand  dollars  in  United  States  gold  coin,  and  has  available 
cash  assets,  exclusive  of  stock  notes,  equal  to  two  hundred  thou- 
sand dollars  in  such  gold  coin  over  and  above  all  liabilities  for 
losses,  reported  expenses,  taxes,  and  reinsurance  of  all  outstanding 
risks,  as  provided  in  section  six  hundred  and  two,  of  the  Political 
Code  of  this  State.  Nor  must  any  individual  or  person,  as  agent  of 
any  person  or  corporation,  organized  under  the  laws  of  any  other 
State  or  country  as  a  mutual  insurance  company,  transact  any  kind 
of  insurance  business  in  this  State,  except  on  live  stock,  unless  such 
person  or  corporation  possess  available  cash  assets  equal  to  at  least 
two  hundred  thousand  dollars  in  United  States  gold  coin,  over  and 
above  all  liabilities  for  losses  reported,  expenses,  taxes,  and  rein- 
surance of  all  outstanding  risks,  as  provided  in  section  six  hundred 


CALIFORNIA.  39 

aud  two  of  the  Political  Code  of  this  State.     {Ibidj  §  419,  as  amend- 
ed) 

FIRE  AKD  MARINE  INSURA:NCE  CORPORxiTIONS. 

1 1 .  The  entire  capital  stock  of  every  fire  or  marine  insurance 
corporation  must  be  paid  up  in  cash  within  twelve  months  from  the 
fQing  of  the  articles  of  incorporation,  and  no  policj"  of  insurance 
must  be  issued  or  risk  taken  until  twenty -five  per  cent,  of  the  whole 
capital  stock  is  paid  up.     {Ibid,  p.  95,  §  424.) 

12.  The  president  and  a  majority  of  the  directors  must,  within 
thirty  days  after  the  payment  of  the  twenty-five  per  cent,  of  th<^ 
capital  stock,  and  also  within  thirty  days  after  the  payment  of  the 
last  installment  or  assessment  of  the  capital  stock  limited  and 
fixed,  prepare,  subscribe,  and  swear  to  a  certificate  setting  forth  the 
amount  of  the  fixed  capital  and  the  amount  thereof  paid  up  at  the; 
times  respectively  in  this  section  named,  and  file  the  same  in  the 
ofiice  of  the  County  Clerk  of  the  county  where  the  principal  place 
of  business  of  the  corporation  is  located,  and  a  duplicate  thereof, 
similarly  executed,  with  the  Insurance  Commissioner.   {Ihid,  §  425.) 

1 3.  Every  corporation  formed  for  fire  or  marine  insurance,  or 
both,  may  make  insurance  on  all  insurable  interests  within  the  scope 
of  its  articles  of  incorporation,  and  may  cause  itself  to  be  rein- 
sured.    {Ibid,  §  426.) 

14.  Every  fire  and  marine  insurance  corporation  may,  hy  its 
board  of  directors,  or  as  the  by-laws  direct,  invest  its  funds  in 
loans  upon  real  or  personal  property,  or  in  the  purchase  of  stocks, 
bonds,  or  other  securities,  but  no  loan  must  be  made  on  the  stock 
of  the  corporation,  or  on  the  notes  or  obligations  of  any  of  its  stock- 
holders.    {Ibidj  §  427,  as  amended.) 

15.  Fire  and  marine  insurance  corporations  must  never  take 
on  any  one  risk,  whether  it  is  a  marine  insurance  or  an  insurance 
against  fire,  a  sum  exceeding  one-tenth  part  of  their  capital  actual- 
ly paid  in,  and  intact  at  the  time  of  taking  such  risk,  without 
reinsuring  the  excess  above  one-tenth.     {Ibid,  §  428,  as  amended.) 

16.  No  corporation  transacting  fire  or  marine  insurance  busi- 
ness under  the  laws  of  this  State  must  make  any  dividends,  except 
from  profits  remaining  on  hand  after  retaining,  unimpaired : 

1.  The  entire  subscribed  capital  stock ; 

2.  All  the  premiums  received  or  receivable  on  outstanding 
marine  or  inland  risks,  except  marine  time  risks ; 

3.  A  fund  equal  to  one-half  of  the  amount  of  all  premiums 
on  fire  risks  and  marine  time  risks  not  terminated  at  the  time 
of  making  such  di\idend ; 

4.  A  sum  sufficient  to  pay  all  losses  reported  or  in  course  of 
settlement,  and  all  liabilities  for  expenses  and  taxes.  {Hid,  p. 
96,  §  429.) 

1 7.  No  fire  or  marine  insurance  corporation,  with  a  subscribed 
capital  of  less  than  two  hundred  thousand  dollars,  must  declare 
any  dividends,  except  from  profits  remaining  on  hand  after  reserv- 
ing: 

1.  A  sum  necessary  to  form,  with  the  subscribed  capital 
stock,  the  aggregate  sum  of  two  hundred  thousand  dollars ; 

2.  AH  the  premiums  received  or  receivable  on  outstanding 
marine  or  inland  risks,  except  marine  time  risks; 

3.  A  fund  equal  to  one-half  the  amount  of  all  premiums  on 


40  hine's  insurance  statutes. 

fire  risks  and  marine  time  risks  not  terminated  at  the  time  of 
making-  such  dividend ; 

4 .  A  sum  sufficient  to  pay  all  losses  rejiorted  or  in  course  of 
settlement,  and  all  liabilities  for  expenses  and  taxes.  (Ibid, 
§  430.) 

MUTUAL   LIFE,   HEALTH,  AND    ACCIDENT   INSURANCE 

COKPOEATIONS. 

1 S.  Every  corporation  formed  for  the  purpose  of  mutual  insur- 
ance on  the  lives  or  health  of  persons,  or  against  accidents  to  persons 
for  life  or  any  fixed  period  of  time,  or  to  piu'chase  and  sell  annuities, 
must  have  a  capital  stock  of  not  less  than  one  hundred  thousand 
dollars.  It  must  not  make  any  insurance  upon  any  risk  or  transact 
ony  other  business  as  a  corporation  until  its  capital  stock  is  fully 
paid  up  in  cash,  nor  until  it  has  also  obtained  a  fund,  to  be  known 
as  a  "  Guarantee  Fund,"  of  not  less  than  two  hundred  and  fifty 
thousand  dollars,  as  is  hereinafter  provided.  If  more  than  the 
requisite  amount  is  subscribed  the  stock  must  be  distributed  pro 
rata  among  the  subscribers.  Any  subscriiDtion  may  be  rejected  by 
the  Board  of  Directors  or  the  committee  thereof,  either  as  to  the 
whole  or  any  part  thereof,  and  must  be,  so  far  as  rejected,  without 
effect.     {Ibid, p.  97,  §437.) 

19.  The  Guarantee  Fund  mentioned  in  the  preceding  section 
must  consist  of  the  promissory  notes  of  solvent  parties,  approved  by 
the  Board  of  Directors  and  by  each  other,  payable  to  the  corpora- 
tion or  its  order,  and  at  such  times,  in  such  modes,  and  in  such 
sums,  with  or  without  interest,  and  comformable  in  all  other  respects 
to  such  requirements  as  the  Board  of  Directors  prescribe;  but  the 
amount  of  the  notes  given  by  any  one  person  must  not  exceed  in 
the  whole  the  sum  of  five  thousand  dollars,  exclusive  of  interest. 
Such  notes  must  be  payable  absolutely  and  at  the  option  of  the  cor- 
poration ;  they  must  be  negotiable,  and  may  be  indorsed  and  trans- 
ferred, or  converted  into  cash,  or  otherwise  dealt  with  by  the  cor- 
poration at  its  discretion,  without  reference  to  any  contingency  of 
losses  or  expenses.  Such  notes,  or  the  proceeds  thereof,  must  remain 
with  the  corporation  as  a  fund  for  the  better  security  of  persons 
dealing  with  it,  and  constitute  the  assets  of  the  corporation,  liable 
for  all  its  debts,  obligations,  and  indebtedness  next  after  its  assets 
from  ijremiums  and  other  sources,  exclusive  of  capital  stock,  until 
the  net  earnings,  over  and  above  its  expenses,  losses,  and  liabilities, 
shall  have  accumulated  in  cash,  or  securities  in  which  the  net  earn- 
ings have  been  invested,  to  a  sum  which,  with  the  capital  stock,  is 
equal  to  the  aggregate  of  the  original  amounts  of  the  Guarantee 
Fund  and  of  the  capital  stock.     (Ibid,  §  438.) 

20.  The  sum  accumulated  as  provided  in  the  preceding  section, 
together  with  the  capital  stock,  shall  become  and  remain  the  fixed 
caj)ital  of  the  corporation,  not  subject  to  division  among  the  stock- 
holders or  parties  dealing  with  it,  or  to  be  expended  in  any  manner 
otherwise  than  may  be  required  in  payment  of  the  corporation's 
debts  and  actual  expenses,  until  the  business  of  the  corj)oratiott  is 
closed,  its  debts  paid,  and  its  outstanding  i)olicies  and  obligations 
of  every  kind  canceled  or  provided  for ;  and  if  from  any  cause  a  de- 
ficiency at  any  time  occurs  in  such  fixed  capital,  no  further  division 
of  profits  must  take  place  until  such  deficiency  has  been  made  up. 
(Ibid,  p.  98,  §  439.) 


CALIFORNIA.  41 

9 1 ,  Whenever  the  fixed  capital  of  the  corporation  is  obtained 
as  hereinbefore  provided,  the  President  of  the  corporation  and  its 
Actuary,  or  its  Secretary,  if  there  is  no  Actuary,  nuist  make  a  de- 
claration in  writing,  sworn  to  before  some  Notary  Public,  of  the 
amount  of  snch  fixed  capital,  and  ofthe  particular  kinds  of  property 
composing  the  same,  with  the  nature  and  amount  of  each  kind, 
which  must  be  filed  with  the  original  articles  of  incorporatiou,  and  a 
copy,  certified  by  the  County  Clerk,  nuist  be  published  for  at  least 
fonr  successive  weeks,  in  a  newspaper  published  in  the  county  where 
the  principal  business  of  the  corporation  is  situated.  Upon  the 
filing  of  such  declaration  the  Guarantee  Fund  is  discharged  of  its 
obligations,  and  all  notes  of  the  Fund  remaining  in  the  control  ofthe 
corporation,  and  not  affected  by  any  lien  thereon,  or  claim  of  that 
nature,  must  be  surrendered  by  it  to  the  makers  thereof,  respectively, 
or  other  parties  entitled  to  receive  the  same.     {Ibid, p.  99,  §  440.) 

33.  Until  the  Guarantee  Fund  is  discharged  from  its  obliga- 
tions, as  provided  in  the  preceding  section,  no  note  must  be  with- 
drawn from  the  Fund,  unless  another  note  of  equal  solvency  is  sub- 
stituted therefor,  with  the  approval  of  the  Board  of  Directors.  The 
corporation  must  allow  a  commission,  not  exceeding  five  per  cent, 
per  annum,  on  all  such  guarantee  notes  while  outstanding,  and  also 
interest  on  all  moneys  paid  on  such  notes  by  the  parties  liable 
thereon,  at  the  rate  of  twelve  per  cent,  per  annum,  payable  half 
yearly  until  repaid  by  the  corporation,  unless  the  current  rate  of  in- 
terest is  different  from  this  amount,  in  which  case  the  rate  payable 
may,  from  time  to  time,  at  intervals  of  not  less  than  one  year,  be  in- 
creased or  reduced  by  the  Board  of  Directors,  so  as  to  conform  to 
the  current  rate.     {Ibid,  §  441,  as  amended.) 

33.  After  the  filing  of  the  declaration  of  the  fixed  capital,  as  in 
this  Article  provided,  the  holders  of  policies  of  life  insurance  for  the 
term  of  life  on  which  the  premiums  are  not  in  default  may  vote  at 
the  election  of  Directors,  and  have  one  vote  for  each  one  thousand 
dollars  insured  by  their  policies,  respectively.     {Ibid,  p.  100,  §  442.) 

34.  The  number  of  Directors  specified  in  the  articles  of  incor- 
poration may  be  altered  from  time  to  time  during  the  existence  of 
the  corporation  by  resolution,  at  the  annual  meeting  of  a  majority 
of  those  entitled  to  vote  at  the  election  of  Directors,  but  the  number 
must  never  be  reduced  below  five.     {Ibid,  §  443.) 

3.'».  Life,  health,  and  accident  insurance  corporations  may  in- 
vest their  capital  stock  as  follows  : 

1.  In  loans  upon  unincumbered  and  improved  real  property 
within  the  State  of  California,  which  shall  be  worth  at  the 
time  of  the  investment  at  least  forty  per  cent,  more  than  the 
sum  loaned. 

2.  In  the  purchase  of  or  loans  upon  interest-bearing  bonds 
and  other  securities  of  the  United  States  and  of  the  State  of 
California. 

3.  In  the  purchase  of  or  loans  upon  interest-bearing  bonds 
of  any  of  the  other  States  of  the  Union,  or  of  any  county,  or 
incorporated  city,  or  city  and  county,  in  the  State  of  California. 

4.  In  the  purchase  of  loans  upon  any  stocks  of  cori^orations 
formed  under  the  laws  of  this  State,  except  of  mining  corpora- 
tions, which  shall  have,  at  the  time  of  the  investment,  a  value  in 
the  City  and  County  of  San  Francisco  of  not  less  than  sixty  per 
cent,  of  their  par  value,  and  shall  be  rated  as  first-class  securi- 
ties ;  but  no  loans  shall  be  made  on  any  securities  specified  in 


42  niNE'S  INSURANCE   STATUTES. 

sub-divisions  three  and  four  of  this  section,  in  any  amount 
beyond  sixty  per  cent,  of  the  market  value  of  the  securities, 
nor  shall  any  loan  be  made  on  the  stock  of  the  corporation,  or 
notes  or  other  obligations  of  its  corporators.  {Ibid,  §  444,  as 
amended.) 

26.  The  corporation  may,  by  its  by-laws,  limit  the  number  of 
shares  which  may  be  held  by  any  one  person,  and  make  such  other 
provisions  for  the  protection  of  the  stockholders  and  the  better 
security  of  those  dealing  with  it  as  to  a  majority  of  the  stockholders 
may  seem  proper,  not  inconsistent  with  the  provisions  of  this  title 
or  part.     {Ihid,  p.  101,  §  445.) 

27.  All  ijremiums  must  be  payable  wholly  in  cash,  or  one  half 
or  a  greater  proportion  in  cash,  and  the  remainder  in  promissory 
notes  bearing  interest,  as  may  be  provided  for  by  the  by-laws. 
Agreements  and  policies  of  insurance  made  by  the  corporation 
may  be  upon  the  basis  of  full  or  partial  participation  in  the  profits, 
or  without  any  participation  therein,  as  may  be  provided  by  the 
by-laws  and  agreed  between  the  parties.     {Ibid,  §  446.) 

28.  Every  life  insurance  corporation  organized  under  the  laws 
of  this  State  must,  on  or  before  the  first  day  of  February  of  each 
year,  furnish  the  Insurance  Commissioner  the  necessary  data  for  de- 
termining the  valuation  of  all  its  policies  outstanding  on  the  thirty- 
first  day  of  December  then  next  preceding.  And  every  life  insur- 
ance company  organized  under  the  laws  of  any  other  State  or 
country,  and  doing  business  in  this  State,  must,  upon  the  written 
requisition  of  the  Commissioner,  furnish  him,  at  such  time  as 
he  may  designate,  the  requisite  data  for  determining  the  valua- 
tion of  all  its  policies  then  outstanding;  such  valuations  must 
be  based  upon  the  rate  of  mortality  established  by  the  Ameri- 
can Experience  Life  Table,  and  interest  at  four  and  one  -half  per 
cent,  per  annum.  For  the  purpose  of  making  the  valuations,  the 
Insurance  Commissioner  is  authorized  to  emi)loy  a  competent 
actuary-,  whose  compensation  for  such  valuations  shall  be  three  cents 
for  each  thousand  dollars  of  insurance ;  to  he  paid  by  the  respective 
companies  whose  policies  are  thus  valued.  {Ibid,  §  447,  as  amended.) 

29.  No  stamp  is  required  nor  stamp  duty  exacted  on  any  con- 
tract of  insiu^ance  when  such  contract  insures  against  accident 
which  may  result  in  injury  or  death.     {Il)id,  §  448.) 

30.  When  the  certificate  of  the  Insurance  Commissioner  of  this 
State,  of  the  valuation  of  the  policies  of  a  life  insurance  company,  as 
provided  in  section  four  hundred  and  forty-seven  of  the  Civil  Code 
of  this  State,  issued  to  auy  company  organized  under  the  laws  of 
this  State,  shall  not  be  accepted  by  the  insurance  authorities  of  any 
other  State,  in  lieu  of  a  valuation  of  the  same,  by  the  insurance 
ofiicer  of  such  other  State,  then  every  company  organized  under  the 
laws  of  such  other  State,  doing  business  in  this  State,  shall  be  re- 
quired to  have  a  separate  valuation  of  its  policies  made  under  the 
authority  of  the  Insurance  Commissioner  of  this  State,  as  provided 
in  section  four  hundred  and  forty-seven  of  the  Civil  Code.  {Amend- 
ments to  Civil  Code,  1873-4,  p.  271,  §  449.) 

3 1 .  Every  policy  of  insurance  upon  life  issued  hereafter  Avithin 
the  limits  of  the  State  of  California,  whether  by  a  person  or  a  cor- 
poration, organized  under  the  laws  of  this  State,  or  under  those  of 
any  other  State  or  country,  or  by  the  agent  of  such  person  or  cor- 
poration, must  contain  written  evidence  that  it  was  issued  in  this 
State.    And  any  such  policy  issued  in  this  State  which  shall  not 


CALIFORNIA.  43 

contain  such  written  evidence  is,  at  the  option  of  the  holder,  null 
and  void.  And  the  person  or  corporation  issuing  such  policy,  with- 
out the  evidence  hereinbefore  required,  shall  forfeit  to  the  people  of 
the  State  of  California,  for  each  and  every  policy  so  issued,  the  sum 
of  one  hundred  dollars  in  United  States  gold  coin,  to  be  collected  by 
the  Insurance  Commissioner  as  provided  by  section  five  hundred  and 
ninety-eight  of  the  Political  Code.     {Ibid^  §  450.) 

3"2.  Whenever,  during  the  life  of  any  policy  of  insurance  here- 
after issued  in  this  State,  such  policy  shall  be,  by  the  legal  holder 
thereof,  presented  to  the  person  or  corporation  issuing  the  same,  or 
to  the  agent  of  such  person  or  corporation,  for  payment  and  cancel- 
lation, such  person  or  corporation  must,  within  sixty  days  after  such 
presentation  and  demand  of  payment,  pay  to  the  holder  of  such 
policy,  in  like  currency  to  that  of  the  policy,  a  sum  equal  to  seventy- 
five  per  cent,  of  the  then  present  value  of  such  policy,  as  ascertained 
and  determined  in  accordance  with  the  provision  of  section  four 
hundred  and  forty-seven  of  the  Civil  Code,  and  such  payment  shall 
be  a  full  and  complete  liquidation  of  such  policy.     {Ibid,  §  451.) 


IKSIJRANCE    IN    GENEEAL. 

DEFINITION   OF   INSURANCE. 

33.  Insurance  is  a  contract  whereby  one  undertakes  to  indem- 
nify anottier  against  loss,  damage,  or  liability,  arising  from  an  un- 
known or  contingent  event.     {Ibid,  p.  418,  §  2527.) 

WHAT  MAY  BE   INSURED. 

34.  Any  contingent  or  unknown  event,  whether  past  or  future, 
which  may  damnify  a  person  having  an  insurable  interest,  or  create 
a  liability  against  him,  may  be  insured  against,  subject  to  the  pro- 
visions of  this  Chapter.     {Ibid,  §  2531.) 

35.  The  preceding  section  does  not  authorize  an  insurance  for 
or  against  the  drawing  of  any  lottery,  or  for  or  against  any  chance 
or  ticket  in  a  lottery  drawing  a  prize,     {Ibid,  §  2532.) 

36.  The  most  usual  kinds  of  insurance  are : 

1.  Marine  Insurance  ', 

2.  Fire  Insurance  ; 

3.  Life  Insurance  ; 

4.  Health  Insurance  ;  and 

5.  Accident  Insurance.     {Ibid,  §  2533.) 

37.  All  kinds  of  insurance  are  subject  to  the  provisions  of  this 
Chapter.     {Ibid,  §  2534.) 

PARTIES   TO   THE   CONTRACT. 

38.  The  person  who  undertakes  to  indemnify  another  by  a 
contract  of  insurance  is  called  the  insurer,  and  the  person  indemni- 
fied is  called  the  insured.     (Ibid,  p.  419,  §  2538.) 

39.  Any  one  capable  of  making  a  contract  may  be  an  insurer, 
subject  to  the  restrictions  imposed  by  special  statutes  upon  foreign 
corporations,  non-residents,  and  others.     {Ibid,  §  2539.) 

40.  Any  one  except  a  public  enemy  may  be  insured.  {Ibid, 
§  2540.) 


44  HINE'S  INSUEAIJCE   STATUTES. 

41.  Where  a  mortgager  of  property  effects  insurance  in  liis 
own  name,  providing  that  the  loss  shall  be  payable  to  the  mort- 
gagee, or  assigns  a  policy  of  insurance  to  the  mortgagee,  the  insur- 
ance is  deemed  to  be  upon  the  interest  of  the  mortgagor,  who  does 
not  cease  to  be  a  party  to  the  original  contract,  and  any  act  of  his 
which  would  otherwise  avoid  the  insurance  will  have  the  same  effect, 
although  the  property  is  in  the  hands  of  a  mortgagee.    [Ibid,  §  2541.) 

42.  If  an  insurer  assents  to  the  transfer  of  an  insuiance  from 
a  mortgagor  to  a  mortgagee,  and,  at  the  time  of  his  assent,  imposes 
further  obligations  on  the  assignee,  mating  a  new  contract  with 
him,  the  acts  of  the  mortgagor  can  not  affect  his  rights.  {Ibid,  §  2543.) 


II^SURABLE  INTEREST. 

43.  Every  interest  in  property,  or  any  relation  thereto,  or 
liability  in  respect  thereof,  of  such  a  nature  that  a  contemplated 
peril  might  directly  damnify  the  insuied,  is  an  insurable  interest. 
{Ibid,  p.  420,  §  2546). 

44.  An  insurable  interest  in  property  may  consist  in  : 

1.  An  existing  interest ; 

2.  An  inchoate  interest  founded  on  an  existing  interest ;  or, 

3.  An  expectancy,  coupled  with  an  existing  interest  in  that 
out  of  which  the  expectancy  arises.     {Ibid,  §  2547.) 

45.  A  carrier  or  depositary  of  any  kind  has  an  insurable  in- 
terest in  a  thing  held  by  him  as  such,  to  the  extent  of  its  value. 
{Ibid,  §  2548.) 

46.  A  mere  contingent  or  expectant  interest  in  anything,  not 
founded  on  an  actual  right  to  the  thing,  nor  upon  any  valid  contract 
for  it,  is  not  insurable.     {Ibid,  §  2549.) 

47.  The  measure  of  an  insurable  interest  in  property  is  the 
extent  to  which  the  insured  might  be  damnified  by  loss  or  injury 
thereof.     {Ibid,  §  2550.) 

48 .  The  sole  object  of  insurance  is  the  indemnity  of  the  insured, 
and  if  he  has  no  insurable  interest  the  contract  is  void.  {Ibid,  p. 
421,  §  2551.) 

40.  An  interest  insured  must  exist  when  the  insurance  takes 
effect,  and  when  the  loss  occurs,  but  need  not  exist  in  the  meantime. 
{Ibid,  §  2552.) 

50.  Except  in  the  cases  specified  in  the  next  four  sections,  and 
in  the  cases  of  life,  accident,  and  health  insurance,  a  change  of  in- 
terest in  any  part  of  a  thing  insured,  unaccompanied  by  a  cor- 
responding change  of  interest  in  the  insurance,  suspends  the  in- 
surance to  an  equivalent  extent,  until  the  interest  in  the  thing  and . 
the  interest  in  the  insurance  are  vested  in  the  same  person.  {Ibid, 
§  2553.) 

51.  A  change  of  interest  in  a  thing  insured,  after  the  occur- 
rence of  an  injury  which  results  in  a  loss,  does  not  affect  the  right 
of  the  insured  to  indemnity  for  the  loss.     {Ibid,  §  2554.) 

52.  A  change  of  interest  in  one  or  more  of  several  distinct 
things,  separately  insured  by  one  policy,  does  not  avoid  the  insur- 
ance as  to  the  others.     {Ibid,  §  2555.) 

53.  A  change  of  interest,  by  will  or  succession,  on  the  death 
of  the  insured,  does  not  avoid  an  insurance ;  and  his  interest  in  the 
insurance  passes  to  the  person  taking  his  interest  in  the  thing 
insured.     {Ibidj  §  2556.) 


CALIFORNIA.  45 

54.  A  transfer  of  interest  by  one  of  several  partners,  joint 
owners,  or  owners  in  common,  who  are  jointly  insiu-ed,  to  the 
others,  does  not  avoid  an  insurance,  even  though  it  has  been  agreed 
that  the  insurance  shall  cease  upon  an  alienation  of  the  thing 
insured.     (JftiV/,  §  2557.) 

33,  Every  stipulation  in  a  policy  of  insurance  for  the  payment 
of  loss  whether  the  person  insured  has  or  has  not  any  interest 
in  the  property  insured,  or  that  the  policy  shall  be  received  as  proof 
of  such  interest ;  and  every  j)o]icy  executed  by  way  of  gaming  or 
wager  is  void.     {Ibidj  §  2558  of  amendments.) 


CONCEALMENT   AND   REPRESENTATIONS. 

30.  A  neglect  to  communicate  that  which  a  party  knows,  and 
ought  to  communicate,  is  called  a  concealment.    {Ibid,  p.  422,  §  2561.) 

57.  A  concealment,  whether  intentional  or  unintentional,  en- 
titles the  injured  party  to  rescind  a  contract  of  insurance.  {Ibid, 
§  2562.) 

5&i.  Each  party  to  a  contract  of  insurance  must  communicate 
to  the  other,  in  good  faith,  all  facts  within  his  knowledge  which  are 
or  which  he  believes  to  be  material  to  the  contract,  and  which  the 
other  has  not  the  means  of  ascertaining,  and  as  to  which  he  makes 
no  warranty.     {Ibid,  §  2563.) 

59.  i<  either  party  to  a  contract  of  insurance  is  bound  to  com- 
municate information  of  the  matters  following,  except  in  answer  to 
the  inquiries  of  the  other : 

1.  Those  which  the  other  knows  ', 

2.  Those  which,  in  the  exercise  of  ordinary  care,  the  other 
ought  to  know,  and  of  which  the  former  has  no  reason  to  sup- 
pose him  ignorant ; 

3.  Those  of  which  the  other  waives  communication  ; 

4.  Those  which  prove  or  tend  to  prove  the  existence  of  a  risk 
excluded  by  a  warranty,  and  which  are  not  otherwise  material ; 
and, 

5.  Those  which  relate  to  a  risk  excepted  from  the  policy,  and 
which  are  not  otherwise  material.     {Ibid,  §  2564.) 

60.  Materiality  is  to  be  determined  not  by  the  event,  but  solely 
by  the  probable  and  reasonable  influence  of  the  facts  upon  the  party 
to  whom  the  communication  is  due,  in  forming  his  estimate  of  the 
disadvantages  of  the  i^roposed  contract,  or  in  making  his  inquiries. 
{Ibid,  p.  423,  §  2565.) 

61.  Each  party  to  a  contract  of  insiu-ance  is  bound  to  know 
all  the  general  causes  which  are  open  to  his  inquiry,  equally  with 
that  of  the  other,  and  which  may  affect  either  the  political  or  mate- 
rial perils  contemplated,  and  all  general  usages  of  trade.  {Ibid, 
§  2566.) 

6:3.  The  right  to  information  of  material  facts  may  be  waived, 
either  by  the  terms  of  insurance  or  by  neglect  to  make  inquiries  as 
to  such  facts,  where  they  are  distinctly  implied  in  other  facts  of 
which  information  is  communicated.     {Ibid,  §  2567.) 

63.  Information  of  the  nature  or  amount  of  the  interestof  one 
insured  need  not  be  communicated  unless  in  answer  to  an  inquiry, 
except  as  prescribed  bj^  section  2587.     {Ibid,  §  2568.) 

64.  An  intentional  and  fraudulent  omission,  on  the  part  of 
one  insured,   to  communicate  information   of  matters  proving  or 


46  hike's  insurance  statutes. 

tending  to  prove  the  falsity  of  a  warranty,  entitles  the  insurer  to 
rescind,     (i  bid,  §  2569.) 

05.  Neither  party  to  a  contract  of  insurance  is  bound  to  com- 
municate, even  upon  inquiry,  information  of  his  own  judgment  upon 
the  matters  in  question.     {Ibid,  p.  424,  §  2570.) 

00.    A  representation  may  be  oral  or  written.     {Ibid,  §  2571.) 

07.  A  representation  may  be  made  at  the  same  time  with  issu- 
ing the  policy,  or  before  it.     {Ibid,  §  2572.) 

08.  The  language  of  a  representation  is  to  be  interpreted  by 
the  same  rules  as  the  language  of  contracts  in  general.  {Ibid, 
§  2573.) 

09.  A  representation  as  to  the  future  is  to  be  deemed  a  prom- 
ise, unless  it  appears  that  it  was  merely  a  statement  of  belief  or 
expectation.     {Ibid,  §  2574.) 

70.  A  representation  can  not  be  allowed  to  qualify  an  express 
provision  in  a  contract  of  insurance ;  but  it  may  qualify  an  implied 
warranty.     {Ibid,  §  2575.) 

71.  A  represeutatiou  may  be  altered  or  withdrawn  before  the 
insurance  is  eftected,  but  not  afterwards.     {Ibid,  §  2576.) 

7ii.  The  completion  of  the  contract  of  insurance  is  the  time  to 
which  a  representation  must  be  presumed  to  refer.     {Ibid,  §  2577.) 

73.  When  a  person  insured  has  no  personal  knowledge  of  a 
fact,  he  may  nevertheless  repeat  information  which  he  has  upon  the 
subject,  and  which  he  believes  to  be  true,  with  the  explanation  that 
he  does  so  on  the  information  of  others,  or  he  may  submit  the  in- 
formation, in  its  whole  extent,  to  the  insurer ;  and  in  neither  case 
is  he  responsible  for  its  trutli,  unless  it  proceeds  from  an  agent 
of  the  insured,  whose  duty  it  is  to  give  the  intelligence.  {Ibid, 
§  2578.) 

74.  A  representation  is  to  be  deemed  false  when  the  facts  fail 
to  correspond  with  its  assertions  or  stipulations.     {Ibid,  §  2579.) 

75.  If  a  representation  is  false  in  a  material  point,  whether 
aflirmative  or  promissory,  the  injured  party  is  entitled  to  rescind 
the  contract  from  the  time  when  the  representation  becomes  false. 
{Ibid,  p.  425,  §  2580.) 

7  O.  The  materiality  of  a  representation  is  determined  by  the 
same  rule  as  the  materiality  of  a  concealment.     {Ibid,  §  2581.) 

77.  The  provisions  of  this  Article  apply  as  well  to  a  modifica- 
tion of  a  contract  of  insurance  as  to  its  original  formation.  {Ibid, 
§  2582.) 

7  S ,  Whenever  a  right  to  rescind  a  contract  of  msurance  is 
given  to  the  insurer  by  any  i)rovision  of  this  Chapter,  such  right 
may  be  exercised  at  any  time  previous  to  the  commencement  of  an 
action  on  the  contract.     {Ibid,  §  2283  of  amendments.) 


THE   POLICY. 

79.  The  written  instrument,  in  which  a  contract  of  insurance 

is  set  forth,  is  caUed  a  policy  of  insurance.     {Ibid,  §  2586.) 

80.  A  policy  of  insui-ance  must  specify  : 

1.  The  parties  between  whom  the  contract  is  made ; 

2.  The  rate  of  premium  ; 

3.  The  jjroperty  or  life  insured ; 

4.  The  interest  of  the  insured  in  property  insured,  if  he  is 
not  the  absolute  owner  thereof; 


CALIFORNIA.  47 

5.  The  risks  insured  against ;  and, 

6.  Tbe  period  during  which   the  insurance  is  to  continue. 
{Ibid,  §  2587.) 

8 1 .  When  the  name  of  the  person  intended  to  be  insured  is 
specified  in  a  policy,  it  can  be  applied  only  to  his  own  proper 
interest.     [Ibid,  p.  420,  §  2588.) 

82.  When  an  insurance  is  made  by  an  agent  or  trustee,  the 
fact  that  his  principal  or  beiieficiary  is  the  person  really  insured 
may  be  indicated  by  describing  him  as  agent  or  trustee,  or  by  other 
general  words  in  the  policy.     {Ibid,  §  2580.) 

83.  To  render  an  insurance,  effected  by  one  partner  or  part 
owner,  applicable  to  the  interest  of  his  copartners,  or  of  other  part 
owners,  it  is  necessary  that  the  terms  of  the  policy  should  be  such 
as  are  applicable  to  the  joint  or  common  interest.     {Ibid,  §  2590.) 

84.  When  the  description  of  the  insured  in  a  policy  is  so 
general  that  it  may  comprehend  any  person  or  any  class  of  persons, 
he  only  can  claim  the  benefit  of  the  policy  who  can  show  that  it  was 
intended  to  include  him.     {Ibid,  §  2591.) 

85.  A  policy  may  be  so  framed  that  it  will  inure  to  the  benefit 
of  whomsoever,  during  the  continuance  of  the  risk,  may  become 
the  owner  of  the  interest  insured.     {Ibid,  §  2592.) 

86.  The  mere  transfer  of  a  thing  insured  does  not  transfer  the 
policy,  but  suspends  it  until  the  same  person  becomes  the  owner 
of  both  the  policy  and  the  thing  insured.     {Ibid,  §  2593.) 

87.  A  policy  is  either  open  or  valued.     {Ibid,  §  2594.) 

88.  An  open  policy  is  one  in  which  the  value  of  the  thing  in- 
sured is  not  agreed  upon,  but  is  left  to  be  ascertained  in  case  of 
loss.     {Ibid,  §  2595.) 

89.  A  valued  policy  is  one  which  expresses  on  its  face  an 
agreement  that  the  thing  insured  shall  be  valued  at  a  specified  sum. 
{Ibid,  p.  427,  §  2596.) 

90.  A  running  policy  is  one  which  contemplates  successive  in- 
surances, and  which  provides  that  the  object  of  the  i)olicy  may  be 
from  time  to  time  defined,  especially  as  to  the  subjects  of  insurance, 
by  additional  statements  or  indorsements.     {Ibid,  §  2597.) 

9 1 .  An  acknowledgment  in  a  policy  of  the  receipt  of  premium 
is  conclusive  evidence  of  its  payment,  so  far  as  to  make  the  policy 
binding,  notwithstanding  any  stipulation  therein  that  it  shall  not 
be  binding  until  the  premium  is  actually  paid.     {Ibid,  §  2598.) 

92.  An  agreement  made  before  a  loss,  not  to  transfer  the 
claim  of  a  person  insured  against  the  insurer  after  the  loss  has 
happened,  is  void.     {Ibid,  §  2599.) 


WARRANTIES. 

93.  A  warranty  is  either  express  or  implied.     {Ibid,  §  2603.) 

94.  No  particular  form  of  words  is  necessary  to  create  a  war- 
ranty.    {Ibid,  §  2604.) 

95.  Every  exi)ress  warranty,  made  at  or  before  the  execution 
of  a  policy,  must  be  contained  in  the  policy  itself,  or  in  another  in- 
strument signed  by  the  insured  and  refered  to  in  the  policy,  as 
making  a  part  of  it.     {Ibid,  §  2605,  as  amended.) 

96.  A  warranty  may  relate  to  the  past,  the  present,  the  fu- 
ture, or  to  any  or  all  of  these.     {Ibid,  p.  428,  §  2608.) 

97.  A  statement  in  a  policy,  of  a  matter  relating  to  the  x)er8on 


48  hine's  insurance  statutes. 

or  thing  insured,  or  to  the  risk,  as  a  fact,  is  an  express  warranty 
thereof.     {Ibid,  §  200 7.) 

98,  A  statement  in  a  policy,  which  imports  that  it  is  intended 
to  do  or  not  to  do  a  thing  which  materially  affects  the  risk,  is  a 
warranty  that  such  act  or  omission  shall  take  place.     {Ibid,  §  2608.) 

09.  When,  before  the  time  arrives  for  the  performance  of  a 
warranty  relating  to  the  future,  a  loss  insured  against  happens,  or 
performance  becomes  unlawful  at  the  place  of  the  contract,  or  im- 
possible, the  omission  to  fulfill  the  warranty  does  not  avoid  the 
policy.     {Ibid,  §  2609,  as  amended.) 

1 00.  The  violation  of  a  material  warranty,  or  other  material 
provision  of  a  policy,  on  the  part  of  either  party  thereto,  entitles 
the  other  to  rescind.     {Ibid,  §  2610.) 

101.  A  policy  may  declare  that  a  violation  of  specified  pro- 
visions thereof  shall  avoid  it,  otherwise  the  breach  of  an  immaterial 
provision  does  not  avoid  the  policy.     {Ibid,  §  2611.) 

1 03.  A  breach  of  warranty,  without  fraud,  merely  exonerates 
an  insurer  from  the  time  that  it  occurs,  or  where  it  is  broken  in 
its  inception  prevents  the  policy  from  attaching  to  the  risk.  {Ibid, 
§  2612.) 

PREMIUM. 

103.  An  insurer  is  entitled  to  payment  of  the  premium  as 
soon  as  the  thing  insured  is  exposed  to  the  peril  insured  against. 
{Ibid,  p.  429,  §  2616.) 

1 04.  A  ijerson  insured  is  entitled  to  a  return  of  premium,  as 
follows : 

1.  To  the  whole  premium,  if  no  part  of  his  interest  in  the 
thing  iusured  be  exposed  to  any  of  the  perils  insured  against. 

2.  Where  the  insurance  is  made  for  a  definite  perioil  of  time, 
and  the  insured  surrenders  his  policy,  to  such  proportion  of  the 
j)remium  as  corresponds  with  the  unexpired  time,  after  deduct- 
ing from  the  whole  premium  any  claim  ibr  loss  or  damage  under 
the  policy  which  has  previously  accrued.  {Ibid,  §  2617,  as 
amended.) 

lOd.  If  a  peril  insured  against  has  existed,  and  the  insurer 
has  been  liable  for  any  period,  however  short,  the  insured  is  not 
entitled  to  return  of  premiums,  so  far  as  that  particular  risk  is  con- 
cerned.    {Ibid,  §  2618,  as  amended.) 

lOO.  A  person  insured  is  entitled  to  a  return  of  the  premium 
when  the  contract  is  voidable,  on  account  of  the  fraud  or  misrepre- 
sentation of  the  insurer,  or  on  account  of  facts  of  the  existence  of 
which  the  insured  was  ignorant  without  his  fault  j  or  when,  by  any 
default  of  the  insured  other  than  actual  fraud,  the  in sui-er  never  in- 
curred any  liability  under  the  policj'.     {Ibid,  §  2619.) 

107.  In  case  of  an  over-insurance  by  several  insurers,  the  in- 
sured is  entitled  to  a  ratable  return  of  the  premium,  proportioned 
to  the  amount  by  which  the  aggregate  sum  insured  in  all  the  policies 
exceeds  the  insurable  value  of  the  thing  at  risk.     {Ibid.,  §  2620.) 

108.  When  an  over-insurance  is  effected  by  simultaneous 
policies,  the  insurers  contribute  to  the  premium  to  be  returned  in 
proportion  to  the  amount  insured  by  their  respective  policies.  {Ibid, 
§  2621.) 

1 09.  When  an  over-insurance  is  effected  by  successive  policies, 
those  only  contribute  to  a  return  of  the  premium  who  are  exon- 


era  ted  by  prior  insurances  from  the  ^ability  assumed  by  them,  <aud 
ia  proportion  as  the  sum  for  which  the  premium  was  paid  exceeds 
the  amount  for  which,  on  account  of  ^rior  iasurance,  thev  could  be 
made  Uable.    {Ibid,  §  2621.)  ^-=--- 

«  LOSS. 

110.  An  insurer  is  liable  for  a  loss  of  which  a  peril  insured 
against  was  the  proximate  cause,  althougli  a  peril  not  contem- 
plated by  the  contract  may  have  been  a  remote  cause  of  the  loss; 
but  he  is  not  liable  for  a  loss  of  which  the  j)eril  insured  against  was 
ouly  a  remote  cause.     {Ibid^  §  262o.) 

111.  An  insurer  is  liable  where  the  thing  insured  is  rescued 
from  a  peril  insured  against,  that  would  otherwise  have  caused  a  loss, 
if  in  the  course  of  such  rescue  the  thing  is  exposed  to  a  peril  not  in- 
sured against,  which  permanently  deprives  the  insured  of  its  ijos- 
session,  in  whole  or  in  part ;  or  where  a  loss  is  caused  by  efforts  to 
rescue  the  thing  insured  from  a  peril  insured  against.     (I  bid,  §  2627. ) 

113.  ^Tiere  a  peril  is  specially  excepted  in  a  contract  of  in- 
surance, a  loss,  which  would  not  have  occurred  but  for  such  peril,  is 
thereby  excepted,  although  the  immediate  cause  of  the  loss  was  a 
peril  which  was  not  excepted.     {Ibid,  §  2628.) 

113.  An  insurer  is  not  liable  for  a  loss  caused  by  the  willful 
act  of  the  insui'ed;  but  he  is  not  exonerated  by  the  negligence  of 
the  insured,  of  his  agents  or  others.     {Ibid, p.  431,  §  2629,  as  amended.) 

NOTICE   OF  LOSS. 

114.  In  case  of  loss  upon  an  insurance  against  fire,  an  insurer 
is  exonerated,  if  notice  thereof  be  not  given  to  him  by  some  person 
insured,  or  entitled  to  the  benefit  of  the  insurance,  without  unnec- 
essary delay.     {Ibid,  §  2633,  as  amended.) 

115.  When  preliminarj"  proof  of  loss  is  required  by  a  policy, 
the  insured  is  not  bound  to  give  such  proof  as  would  be  necessary 
in  a  court  of  justice ;  but  it  is  sufficient  for  him  to  give  the  best 
evidence  which  he  has  in  his  power  at  the  time.     {Ibid,  §  2634.) 

116.  All  defects  in  a  notice  of  loss,  or  in  preliminary  j)roof 
thereof,  which  the  insured  might  remedy,  and  which  the  insurer 
omits  to  specify  to  him,  without  unnecessary  delay,  as  grounds  of 
objection,  are  waived.     {Ibid,  §  2635.) 

117.  Delay  in  the  presentation  to  an  insurer  of  notice  or  proof 
of  loss  is  waived,  if  caused  by  any  act  of  his,  or  if  he  omits  to  make 
objection  promjrtly  and  specifically  upon  that  ground.     {Ibid,  §  2636.) 

118.  If  a  policy  requires,  by  way  of  preliminary  proof  of  loss, 
the  certificate  or  testimony  of  a  person  other  than  the  iiisured,  it  is 
sufficient  for  the  insured  to  use  reasonable  diligence  to  procure  it, 
and  in  case  of  the  refusal  of  such  person  to  give  it,  then  to  furnish 
reasonable  evidence  to  the  insurer  that  such  refusal  was  not  induced 
by  any  just  grounds  of  disbelief  in  the  facts  necessary  to  be  certi- 
fied.   (/6iV7,§2637.) 

DOUBLE   INSURANCE. 

119.  A  double  insurance  exists  where  the  same  person  is  in- 
sured by  several  insurers  separately  in  respect  to  the  same  subject 
and  interest.     {Ibid, -p.  432,  §  2641.) 

4 


50  niNE'S   IXSUKANCE   STATUTES. 

1 9  J>.  In  case  of  double  iasiira iice,  the  several  insurers  are  liable 
to  pay  losses  thereon  as  follows : 

1.  In  fire  insurance,  eacli  insurer  must  contribute  ratably  to- 
wards the  loss,  without  regard  to  the  dates  of  the  several  poli- 
cies. 

2.  In  marine  insurance,  the  liability  of  the  several  insurers 
for  a  total  loss,  whether  actual  or  constructive,  where  the 
policies  are  not  simultaneous,  is  in  the  order  of  the  dates  of 
the  several  policies;  no  liability  attaching  to  a  second  or 
other  subsequent  policy,  except  as  to  the  excess  of  the  loss 
over  the  amount  of  all  previous  policies  on  the  same  interest. 
If  two  or  more  policies  bear  date  upon  the  same  day,  they  are 
deemed  to  be  simultaneous,  and  the  liability  of  insurers  on 
simultaneous  policies  is  to  contribute  ratably  with  each  other. 
The  insolvency  of  any  of  the  insurers  does  not  affect  the  proi)or- 
tionate  liability  of  the  other  insurers.  The  liability  of  all  in- 
surers on  the  same  marine  interest  for  a  partial  or  average 
loss  is  to  contribute  ratably.    {Ibid,  §  2642,  as  ametided.) 

EEINSURANCE. 

1*21.  A  contract  of  reinsurance  is  one  by  which  an  insurer 
procures  a  third  person  to  insure  him  against  loss  or  liability  by 
reason  of  such  original  insiu'ance.     {Ibidj  §  2646.) 

133.  Where  an  insurer  obtains  reinsurance,  he  must  com- 
municate all  the  representations  of  the  original  insured,  and  also 
all  the  knowledge  and  information  he  possesses,  whether  previously 
or  subsequently  acquired,  which  are  material  to  the  risk.  {Ibid, 
§  2647.) 

133.  A  reinsurance  is  presumed  to  be  a  contract  of  indemnity 
against  liability,  and  not  merely  against  damage.     {Ibid,  §  2648.) 

1 34.  The  original  insured  has  no  interest  in  a  contract  of  re- 
insurance.    {Ibid,  p.  433,  §  2649.) 

MARINE    INSURANCE. 

135.  Marine  insurance  is  an  insurance  against  risks  connected 
with  navigation,  to  which  a  ship,  cargo,  freightage,  profits,  or  other 
insurable  interest  in  movable  property  may  be  exposed  during  a 
certain  voyage  or  a  fixed  period  of  time.     {Ibid,  §  2655.) 

INSURABLE  INTEREST. 

1 36.  The  owner  of  a  ship  has  in  all  cases  an  insurable  interest 
in  it,  even  when  it  has  been  chartered  by  one  who  covenants  to  pay 
him  its  value  in  case  of  loss.     {Ibid,  p.  434,  §  2659.) 

137.  The  insurable  interest  of  the  owner  of  a  ship  hypothe- 
cated by  bottomry  is  only  the  excess  of  its  value  over  the  amount 
secured  by  bottomry.     {Ibid,  §  2660.) 

13H.  Freightage,  in  the  sense  of  a  policy  of  marine  insur- 
ance, signifies  all  the  benefit  derived  by  the  owner,  either  from  the 
chartering  of  the  ship  or  its  employment  for  the  carriage  of  his  own 
goods  or  those  of  others.     {Ibid,  §  2661.) 


CALIFOKNIA.  51 

1  ?29.  The  owner  of  a  ship  has  an  insurable  interest  in  expected 
freightage  which  he  would  have  certainlj'  earned  but  for  the  inter- 
vention of  a  peril  insured  against.     (J/;i(/,  §2662.) 

130.  The  interest  mentioned  in  the  last  section  exists,  in  the 
case  of  a  charter  party,  when  the  ship  has  broken  ground  on  the 
chartered  voyage,  and  if  a  price  is  to  be  paid  for  the  carriage  of 
goods  when  they  are  actually  on  board,  or  there  is  some  contract  for 
putting  them  on  board,  and  both  ship  and  goods  are  ready  for  the 
specified  voyage.     [Ibid,  §  2663.) 

131.  One  who  has  an  interest  in  the  thing  fiom  which  profits 
are  expected  to  proceed,  has  an  insurable  interest  in  the  profits. 
(Ibid,  §  2664.) 

1 33.  The  charterer  of  a  ship  has  an  insurable  interest  in  it  to 
the  extent  that  he  is  liable  to  be  damnified  by  its  loss.     {Ibid,  §  2665.) 

CONCEALMENT. 

133.  In  marine  insurance  each  party  is  bound  to  communi- 
cate, in  addition  to  what  is  required  by  section  2563,  all  the  infor- 
mation which  he  possesses,  material  to  the  risk,  except  such  as  is 
mentioned  in  section  2564,  and  to  state  the  exact  and  whole  truth 
in  relation  to  all  matters  that  he  represents,  or  upon  inquiry  assumes 
to  disclose.     {Ibid,  p.  435,  §  2669.) 

1 34.  In  marine  insurance,  information  of  the  belief  or  expect 
ation  of  a  third  person,  in  reference  to  a  material  fact,  is  mate- 
rial.    {Ibid,  §  2670.) 

1 35.  A  person  insured  by  a  contract  of  marine  insurance  is 
presumed  to  have  had  knowledge,  at  the  time  of  insuring,  of  a  prior 
loss,  if  the  information  might  possibly  haA^e  reached  him  in  the 
usual  mode  of  transmission,  and  at  the  usual  rate  of  communica- 
tion.    {Ibid,  ^  2671.) 

136.  A  concealment  in  a  marine  insurance,  in  respect  to  any 
of  the  following  matters,  does  not  vitiate  the  entire  contract,  but 
merely  exonerates  the  insurer  from  a  loss  resulting  from  the  risk 
concealed : 

1.  The  national  character  of  the  insured  ; 

2.  The  liability  of  the  thing  insured  to  capture  and  detention  ; 

3.  The  liability  to  seizure  from  breach  of  foreigii  laws  of  trade  ; 

4.  The  want  of  necessary  documents ;  and 

5.  The  use  of  false  and  simulated  papers.     {Ibid,  §  2672.) 

RErKESENTATIONS. 

137.  If  a  representation,  by  a  person  insured  by  a  contract 
of  marine  insurance,  is  intentionally  false  in  any  respect,  whether 
material  or  immaterial,  the  insurer  may  rescind  the  entire  contract. 
{Ibid,  p.  436,  §  2676.) 

138.  The  eventual  falsity  of  a  representation  as  to  expectation 
does  not,  in  the  absence  of  fraud,  avoid  a  contract  of  insurance. 
Ibid,  §  2677.) 

IMPLIED   WARRANTIES. 

1 39.  In  every  marine  insurance  upon  a  ship  or  freight,  or 
freightage,  or  upon  anything  which  is  the  vsubject  of  marine  insur- 


52  hine's  insurance  statutes. 

ance,  a  warranty  is  implied  that  the  ship  is  seaworthy.    {Ibidj  §  2681, 
as  amended.) 

140,  A  ship  is  seaworthy  when  reasonably  fit  to  perform  the 
services,  and  to  encounter  the  ordinary  perils  of  the  voyage  con- 
templated by  the  parties  to  the  policy.     {Ibid,  §  2682.) 

141.  An  implied  warranty  of  seaworthiness  is  complied  with 
if  the  ship  be  seaworthy  at  the  time  of  the  commencement  of  the 
risk,  except  in  the  following*  cases: 

1.  When  the  insurance  is  made  for  a  specified  length  of  time 
the  implied  warranty  is  not  complied  with  unless  the  ship  be 
seaworthy  at  the  commencement  of  every  voyage  she  may 
undertake  during  that  time ;  and 

2.  When  the  insurance  is  upon  the  cargo,  which,  by  the 
terms  of  the  policy,  or  the  description  of  the  voyage,  or  the 
established  custom  of  the  trade,  is  to  be  transhipped  at  an 
intermediate  port,  the  implied  warranty  is  not  complied  with 
unless  each  vessel  upon  which  the  cargo  is  shipped  or  tran- 
shipped be  seaworthy  at  the  commencement  ot  its  particular 
voyage.     {Ibid,  §  2683,  as  amended.) 

14^.  A  warranty  of  seaworthiness  extends  not  only  to  the 
condition  of  the  structure  of  the  shij)  itself,  but  requires  that  it  be 
properly  laden,  and  pro^ided  with  a  competent  master,  a  sufficient 
number  of  competent  officers  and  seamen,  and  the  requisite  appur- 
tenances and  equipments,  such  as  ballast,  cables,  and  anchors, 
cordage  and  sails,  food,  water,  fuel,  and  lights,  and  other  necessary 
or  proper  stores  and  implements  for  the  vovage.  {Ibid,  p.  437, 
§  2684.) 

14S{.  Where  difterent  portions  of  the  voyage  contemplated  by 
a  policy  differ  in  respect  to  the  things  requisite  to  make  the  ship 
seaworthy  therefor,  a  warranty  of  seaworthiness  is  complied  with  if, 
at  the  commencement  of  each  portion,  the  ship  is  seaworthy  with 
reference  to  that  portion.     {Ibid,  §  2685.) 

144.  ^Vhen  a  ship  becomes  unsea worthy  during  the  voyage 
to  which  an  insurance  relates,  an  unreasonable  delay  in  repairing 
the  defect  exonerates  the  insurer  from  liability  from  any  loss  arising 
therefrom.     {Ibid,  §  2686.) 

145.  A  shij)  which  is  seaworthy  for  the  j)urpose  of  an  insur- 
ance upon  the  ship  may,  nevertheless,  by  reason  of  being  untitted 
to  receive  the  cargo,  be  unseawortliy  for  the  purpose  of  insurance 
upon  the  cargo.     {Ibid,  §  2687.) 

140.  Where  the  nationality  or  neutrality  of  a  ship  or  cargo  is 
expressly  warranted  it  is  implied  that  the  ship  will  carry  the  requi- 
site documents  to  show  such  nationality  or  neutrality,  and  that  it 
will  not  carry  anv  documents  which  cast  reasonable  suspicion  there- 
on.    {Ibid,  §  2688.) 

THE   VOYAGE   AND   DEVIATION. 

147.  When  the  voyage  contemplated  by  a  policy  is  described 
by  the  places  of  beginning  and  ending,  the  voyage  insured  is  one 
which  conforms  to  the  course  of  sailing  fixed  by  mercantile  usage 
between  those  places.     {Ibid,  p.  438,  §  2692.) 

148.  If  the  course  of  sailing  is  not  fixed  by  mercantile  usage, 
the  voyage  insiu^ed  by  a  policy  is  the  way  between  the  places  speci- 
fied which,  to  a  master  of  ordinary  skill  and  discretion,  would  seem 
the  most  natural,  direct,  and  advantageous.     {Ibid,  §  2693.) 


CALIFORNIA.  53 

14J>.  Deviation  is  a  departure  from  the  course  of  the  voyage 
insured,  mentioned  in  the  last  two  sections,  or  an  unreasonable 
delay  in  pursuing  the  voyage,  or  the  commencement  of  an  entirely 
different  voyage.     {Ibid,  §  2694.) 

150.  A  deviation  is  proper : 

1.  When  caused  by  circumstances  over  which  neither  the 
master  nor  the  owner  of  the  ship  has  any  control ; 

2.  When  necessary  to  comply  with  a  warranty,  or  to  avoid  a 
peril,  whether  insured  against  or  not; 

3.  When  made  in  good  faith,  and  upon  reasonable  grounds 
of  belief  in  its  necessity  to  avoid  a  peril ;  or, 

4.  When  made  in  good  faith,  for  the  purpose  of  saving  human 
life,  or  relieving  another  vessel  in  distress.     {Ibid,  §  2695.) 

151.  Every  deviation  not  specified  in  the  last  section  is  im- 
proper.    {Ibid,  §  2696.) 

15t2.  An  insurer  is  not  liable  for  any  loss  happening  to  a 
thing  insured  subsequently  to  an  improper  deviation.   {Ibid,  §  2697.) 


LOSS. 

153.  A  loss  may  be  either  total  or  partial.  {Ibid,  p.  439, 
§  2701.) 

154.  Every  loss  which  is  not  total  is  partial,     {Ibid,  ^  2102.) 

155.  A  total  loss  may  be  either  actual  or  constructive.  {Ibid, 
§  270;i.) 

156.  An  actual  total  loss  is  caused  by : 

1.  A  total  destruction  of  the  thing  insured ; 

2.  The  total  loss  of  the  thing  by  sinking,  or  by  being 
broken  up. 

3.  Any  damage  to  the  thing  which  renders  it  valueless  to  the 
owner  for  the  purposes  for  which  he  held  it ;  or, 

4.  Any  other  event  which  entirely  deprives  the  owner  of  the 
possession,  at  the  port  of  destination,  of  the  thing  insured. 
{Ibid,  §  2704.) 

157.  A  constructive  total  loss  is  one  which  gives  to  a  person 
insured  a  right  to  abandon,  under  section  2717.     {Ibid,  §  2705.) 

158.  An  actual  loss  may  be  presumed  from  the  continued 
absence  of  a  ship  without  being  heard  of;  and  the  leng-th  of  time 
which  is  sufficient  to  raise  this  presumption  depends  on  the  circum- 
stances of  the  case.     {Ibi(T,  §  2706.) 

159.  When  a  ship  is  prevented,  at  an  intermediate  port,  from 
completing  the  voyage,  bj'  the  perils  insured  against,  the  master 
must  make  every  exertion  to  procure,  in  the  same  or  a  contiguous 
port,  another  ship,  for  the  purpose  of  conveying  the  cargo  to  its 
destination  ;  and  the  liability  of  a  marine  insurer  thereon  continues 
after  they  are  thus  reshipped.     {Ibid,  p.  440,  §  2707,  as  amended.) 

1  (»0.  In  addition  to  the  liability  mentioned  in  the  last  section, 
a  marine  insurer  is  bound  for  damages,  expenses  of  discharging, 
storage,  reshipment,  extra  freightage,  and  all  other  expenses 
incurred  in  saving  cargo  reshipped  pursuant  to  the  last  section,  up 
to  the  amount  insured.     {Ibid,  §  2708.) 

161.  Upon  an  actual  total  loss,  a  person  insured  is  entitled  to 
payment  without  notice  of  abandonment.     {Ibid,  §  2709.) 

162.  Where  it  has  been  agreed  that  an  insurance  upon  a  par- 
ticular thing,  or  class  of  things,  shall  be  free  from  i)artieular  aver- 


54  hine's  insurance  statutes. 

age,  a  marine  insurer  is  not  liable  for  any  particular  average  loss 
uot  depriving  the  insured  of  the  possession,  at  the  port  of  destina- 
tion, of  the  whole  of  such  thing,  or  class  of  things,  even  though  it 
become  entirely  worthless;  but  he  is  liable  for  his  proportion  of  all 
general  average  loss  assessed  upon  the  thing  insured.  {Ibid,  §  2711, 
as  amended.) 

1 65.  An  insurance  confined  in  terms  to  an  actual  total  loss, 
does  not  cover  a  constructive  total  loss,  but  covers  any  loss  which 
necessarily  results  in  depriving  the  insured  of  the  possession,  at  the 
port  of  destination,  of  the  entire  thing  insured.  {Ibid,  §  2712,  as 
amended.) 

abandonment. 

1 64.  Abandonment  is  the  act  by  which,  after  a  constructive 
total  loss,  a  person  insured  by  contract  of  marine  insurance  declares 
to  the  insurer  that  he  relinquishes  to  him  his  interest  in  the  thing 
insured.     {Ibid,  p.  Ul,  ^  271Q.) 

10^.  A  person  insured  by  a  contract  of  marine  insurance  may 
abandon  the  thmg  insured,  or  any  particular  portion  thereof  sepa- 
rately valued  by  the  policy,  or  otherwise  separately  insured,  and 
recover  for  a  total  loss  thereof,  when  the  cause  of  the  loss  is  a  i)eril 
insured  against : 

1,  If  more  than  half  thereof  in  value  is  actually  lost,  or  would 
have  to  be  expended  to  recover  it  from  the  peril ; 

2,  If  it  is  injured  to  such  an  extent  as  to  reduce  its  value 
more  than  one-half ; 

3.  If  the  thing  insured,  being  a  ship,  the  contemplated  voyage 
can  not  be  lawfully  performed  without  incurring  an  expense  to 
the  insured  of  more  than  half  the  value  of  the  thing  aban- 
doned, or  without  incurring  a  risk  which  a  prudent  man  would 
not  take  under  the  circumstances  ;  or, 

4.  If  the  thing  insured,  being  cargo  or  freightage,  the  voyage 
can  not  be  performed  nor  any  other  ship  j)rocured  by  the  master, 
within  a  reasonable  time  and  with  reasonable  diligence,  to  for- 
ward the  cargo,  w  ithout  incurring  the  like  expense  or  risk.  Bul 
freightage  can  not  in  any  case  be  abandoned,  unless  the  ship  is 
also  abandoned.     {Ibid,  §  2717.) 

166.  An  abandonment  must  be  neither  partial  nor  condi- 
tional.    {Ibid,  p.  U2,^  2718.) 

167.  An  abandonment  must  be  made  within  a  reasonable 
time  after  the  information  of  the  loss,  and  after  the  commencement 
of  the  voyage,  and  before  the  party  abandoning  has  information  of 
its  completion.     {Ibid,  §  2719.) 

16s.  Where  the  information  upon  which  an  abandonment  has 
been  made  proves  incorrect,  or  the  thing  insured  was  so  far  restored 
when  the  abandonment  was  made  that  there  was  then  in  fact  no 
total  loss,  the  abandonment  becomes  ineffectual.     {Ibid,  §  2720.) 

1 69.  Abandonment  is  made  by  giving  notice  thereof  to  the 
insurer,  which  may  be  done  orally,  or  in  writing.     {Ibid,  §  2721.) 

1  70.  A  notice  of  abandonment  must  be  exi)lieit,  and  must 
specify  the  ijarticular  cause  of  the  abandonment,  but  need  state 
only  enough  to  show  that  there  is  probable  cause  therefor,  and  need 
not  be  accompanied  with  ])roof  of  interest  or  of  loss.     {Ibid.,  §  2722.) 

171.  An  abandonment  can  be  sustained  oidy  upon  the  cause 
specified  in  the  notice  thereof.     {Ibid,  §  2723.) 


*• 


CALIFORNIA.  55 

173.  An  abandoumeDt  is  equivalent  to  a  transfer  by  the 
insured  of  his  interest  to  the  insurer,  with  all   the   chances    o 
recovery  and  indemnity.     {Ibid,  §  2724:.) 

I  7S.  If  a  marine  insurer  pays  for  a  loss  as  if  it  were  an  actual 
total  loss,  he  is  entitled  to  whatever  may  remain  of  the  thing  in- 
sured, or  its  proceeds  or  salvage,  as  if  there  had  been  a  formal 
abandonment.     {Ibid,  p.  443,  §  2725.) 

174.  Upon  an  abandonment,  acts  done  in  good  faith  by  those 
who  were  agents  of  the  insured  in  respect  to  the  thing  insulted,  sub- 
sequent to  the  loss,  are  at  the  risk  of  the  insurer,  and  for  his  bene- 
fit.    {Ibid,  §  2726.) 

1 75.  An  acceptance  of  an  abandonment  is  not  necessary  to 
the  rights  of  the  insured,  and  is  not  to  be  presumed  from  the  mere 
silence  of  the  insurer,  upon  his  receiving  notice  of  abandonment. 
{Ibid,  §  2727.) 

176.  The  acceptance  of  an  abandonment,  whether  express  or 
implied,  is  conclusive  upon  the  parties,  and  admits  the  loss  and  the 
sufficiency  of  the  abandonment.     {Ibid,  §  2728.) 

177.  An  abandonment  once  made  and  accejited  is  irrevocable, 
unless  the  ground  upon  which  it  was  made  proves  to  be  unfounded. 
{Ibid,  §  2729.) 

178.  On  an  accepted  abandonment  of  a  ship,  freightage 
earned  previous  to  the  loss  belongs  to  the  insurer  thereof;  but 
freightage  subsequently  earned  belongs  to  the  insurer  of  the  ship. 
{Ibid,  §  2730.) 

1 79.  If  an  insurer  refuses  to  accept  a  valid  abandonment,  he 
is  liable  as  upon  an  actual  total  loss,  deducting  from  the  amount 
any  proceeds  of  the  thing  insured  which  may  have  come  to  the 
hands  of  the  insured.     {Ibid,  §  2731.) 

1 80.  If  a  x^erson  insured  omits  to  abandon,  he  may  neverthe- 
less recover  his  actual  loss.     {Ibid,  §  2732.) 

181.  The  power  of  the  master  of  a  ship  to  bind  its  owner,  or 
the  owners  of  the  cargo,  ceases  upon  the  abandonment  of  the  ship 
and  fi-eightage  to  insurers.     {Ibid,  p.  398,  §  2381.) 


MEASURES   OF   INDEMNITY. 

1 89.  A  valuation  in  a  policy  of  marine  insurance  is  conclusive 
between  the  parties  thereto  in  the  adjustment  of  either  a  partial  or 
total  loss,  if  the  insured  has  some  interest  at  risk,  and  there  is  no 
fraud  on  his  part ;  except  that  when  a  thing  has  been  hypothecated 
by  bottomry  or  respondentia,  before  its  insurance,  and  without  the 
knowledge  of  the  person  actually  procuring  the  insurance,  he  may 
show  the  real  value  But  a  valuation  fraudulent  in  fact  entitles  the 
insurer  to  rescind  the  contract.     {Ibid,  p.  444,  §  2736.) 

183.  A  marine  insurer  is  liable  upon  a  partial  loss  only  for 
such  proportion  of  the  amount  insured  by  him  as  the  loss  bears  to 
the  value  of  the  whole  interest  of  the  insured  in  the  propertv  in- 
sured.    {Ibid,  §  2737.) 

184.  Where  profits  are  separately  insured  in  a  contract  of 
marine  insurance,  the  insured  is  entitled  to  recover,  in  case  of  loss, 
a  proportion  of  such  profits  equivalent  to  the  proportion  which  the 
value  of  the  property  lost  bears  to  the  value  of  the  whole.  {Ibid, 
§  2738.) 

1 85.  In  case  of  a  valued  policy  of  marine  insurance  on  freight- 


56  hike's  insurance  statutes. 

age  or  cargo,  if  a  part  only  of  the  subject  is  exposed  to  risk,  the 
valuation  applies  only  in  proportion  to  such  part.     {Ibid,  §  2739.) 

186.  When  profits  are  valued  and  insured  by  a  contract  of 
marine  insurance,  a  loss  of  them  is  conclusively  presumed  from  a  loss 
of  the  i)roperty  out  of  which  they  were  expected  to  arise,  and  the 
valuation  fixes  their  amount.     {Ibid,  p.  445,  §  2740.) 

187.  In  estimating  a  loss  under  an  open  policy  of  marine  in- 
surance the  folio «^ing  rules  are  to  be  observed  : 

1.  The  value  of  a  ship  is  its  value  at  the  beginning  of  the  risk, 
including  all  articles  or  charges  which  add  to  its  permanent 
value,  or  which  are  necessary  to  prepare  it  for  the  voyage  in- 
sured; 

2.  The  value  of  cargo  is  its  actual  cost  to  the  insured,  when 
laden  on  board,  or  where  that  cost  can  not  be  ascertained,  its 
market  value  at  the  time  and  place  of  lading,  adding  the  charges 
incurred  in  purchasing  and  placing  it  on  board,  but  without 
reference  to  any  losses  incurred  in  raising  money  for  its  purchase, 
or  to  any  drawback  on  its  exportation,  or  to  the  fluctuations 
of  the  market  at  the  port  of  destination,  or  to  expenses  incurred 
on  the  way  or  on  arrival ; 

3.  The  value  of  freightage  is  the  gross  freightage,  exclusive 
of  i^rimage,  without  reference  to  the  cost  of  earning  it ;  and, 

4.  The  cost  of  insurance  is  in  each  case  to  be  added  to  the 
value  thus  estimated.     (Ibid,  §  2741.) 

188.  [f  cargo  insm-ed  against  partial  loss  arrives  at  the  port  of 
destination  in  a  damaged  condition,  the  loss  of  the  insured  is 
deemed  to  be  the  same  proportion  of  the  value  which  the  market 
price  at  that  port,  of  the  thing  so  damaged,  bears  to  the  market 
price  it  would  have  brought  if  sound.     (Ibid,  §  2742.) 

189.  A  marine  insurer  is  liable  for  all  the  expense  attendant 
upon  a  loss  which  forces  the  ship  into  port  to  be  repaired ;  and 
where  it  is  agreed  that  the  insured  may  labor  for  the  recovery  of  the 
property,  the  insurer  is  liable  for  the  expense  incurred  thereby, 
such  expense,  in  either  case,  being  in  addition  to  a  total  loss,  if  that 
afterwards  occurs.     {Hid,  §  2743.) 

190.  A  marine  insurer  is  liable  for  a  loss  falling  upon  the  in- 
sured, through  a  contribution  in  respect  to  the  thing  insiu'ed,  re- 
quired to  be  made  by  him  towards  a  general  average  loss  called  for 
by  a  peril  insured  against.     (Ibid,  p.  446,  §  2744.) 

191.  Where  a  person  insured  by  a  contract  of  marine  insur- 
ance has  a  demand  against  others  for  contribution,  he  may  claim 
the  whole  loss  from  the  insurer,  subrogating  him  to  his  own  right  to 
contribution.  But  no  such  claim  can  be  made  upon  the  insurer 
after  the  separation  of  the  interests  liable  to  contribution,  nor  when 
the  insured,  having  the  right  and  opportunity  to  enforce  contribution 
from  others,  has  neglected  or  waived  the  exercise  of  that  right. 
{Ibid,  §  2745,  as  amended.) 

1 92.  In  case  of  a  partial  loss  of  a  ship  or  its  equipments,  the 
old  materials  are  to  be  applied  towards  payment  for  the  new,  and 
whether  the  ship  is  new  or  old,  a  marine  insurer  is  liable  for  only 
two-thirds  of  the  remaining  cost  of  the  repairs,  except  that  he  must 
])ay  for  anchors  and  cannon  in  full,  and  for  sheathing  metal  at  a 
depreciation  of  only  two  and  one-half  per  cent,  for  each  month  that 
it  has  been  fastened  to  the  ship.     {Hid,  §  2746.) 


CALIFORNIA.  57 


FIRE  INSURANCE. 


193.  An  alteration  in  the  uss  or  condition  of  a  thing  insured 
from  that  to  which  it  is  limited  by  the  policy,  made  without  the 
consent  of  the  insurer,  by  means  within  the  control  of  the  insured, 
and  increasing-  the  risk,  entitles  an  insurer  to  rescind  a  contract  of 
fire  insurance.     {Ibid,  p.  447,  §  2753.) 

194.  An  alteration  in  the  use  or  condition  of  a  thing  insured 
from  that  to  which  it  is  limited  by  the  policy,  which  does  not 
increase  the  risk,  does  not  affect  a  contract  of  fire  insurance.  (Ibid, 
§  2754.) 

195.  A  contract  of  fire  insurance  is  not  affected  by  any  act  of 
the  insured  subsequent  to  the  execution  of  the  policy,  which  does 
not  violate  its  provisions,  even  though  it  increases  the  risk  and  is 
the  cause  of  a  loss.     {Ibid,  §  2755.) 

196.  If  there  is  no  valuation  in  the  policy,  the  measure  of  in- 
demnity in  an  insurance  against  fire  is  the  expense,  at  the  time  that 
the  loss  is  payable,  of  replacing  the  thing  lost  or  injui'ed  in  the  con- 
dition in  which  it  was  at  the  time  of  the  injury ;  but  the  effect  of  a 
valuation  in  a  policy  of  fire  insurance  is  the  same  as  in  a  policy  of 
marine  insurance.     {Ibid,  §  2756.) 


LIFE  AND  HEALTH  INSURANCE. 

197.  An  insurance  upon  life  may  be  made  j)ayable  on  the 
death  of  the  person,  or  on  his  surviving  a  specified  period,  or  peri- 
odically so  long  as  he  shall  live,  or  otherwise  contingently  on  the 
continuance  or  determination  of  life.     {Ibid,  §  2762.) 

198.  Every  person  has  an  insurable  interest  in  the  life  and 
health : 

1.  Of  himself; 

2.  Of  any  person  on  whom  he  dej^ends  wholly  or  in  part  for 
education  or  supi^ort : 

3.  Of  any  person  under  a  legal  obligation  to  him  for  the  pay- 
ment of  money,  or  respecting  property  or  services,  of  which 
death  or  illness  might  delay  or  prevent  the  performance;  and, 

4.  Of  any  person  upon  whose  life  any  estate  or  interest  vested 
in  him  depends.     {Ibid,  p.  448,  §  2763.) 

1 99.  A  policy  of  insurance  ui^on  life  or  healt<h  may  pass  by 
transfer,  will,  or  succession  to  any  i^erson,  whether  he  has  an  insur- 
able interest  or  not,  and  such  person  may  recover  upon  it  whatever 
the  insured  might  have  recovered.     {Ibid,  §  2764.) 

900.  Notice  to  an  insurer  of  a  transfer  or  l3equest  thereof  is 
not  necessai'y  to  preserve  the  validity  of  a  policy  of  insurance  upon 
life  or  health,  unless  thereby  expressly  required.     {Ibid,  §  2765.) 

SOI.  Unless  the  interest  of  a  person  insured  is  susceptible  of 
exact  pecuniary  measurement,  the  measure  of  indemnity  under  a 
policy  of  insurance  upon  life  or  health  is  the  sum  fixed  in  the  policy. 
{Ibid,  §  2766.) 

SOS.  No  policy  of  insurance  on  life  hereafter  issued  by  any 
company  incorporated  under  the  laws  of  this  State  shall  be  forfeited 
or  become  void  by  the  non-payment  of  premium  therecm,  any 
further  than  regards  the  right  of  the  party  insured  therein  to  have 
it  continued  in  force  beyond  a  certain  i)eriod,  to  be  determined  as 


58  hike's  insurance,  statutes. 

follows,  to  wit :  the  net  A^alne  of  the  policy  when  the  premium 
becomes  due  and  is  not  paid  shall  be  ascertained  according  to  the 
American  Experience  Life  Table  rate  of  mortality,  with  interest  at 
four  and  a  half  per  centum  per  annum,  or  the  same  interest  which 
has  been  assumed  in  finding-  the  net  value  of  the  policy,  after  de- 
ducting from  such  net  value  any  indebtedness  to  the  com]3any,  or 
notes  held  by  the  company  against  the  insured,  which  notes,  if 
given  for  premium,  shall  then  be  canceled.  Foui^-tifths  of  what  re- 
mains shall  be  considered  as  a  net  single  premium  of  temporary  in- 
surance, and  the  term  for  which  it  will  insure  shall  be  determined 
according  to  the  age  of  the  party  at  the  time  of  the  lapse  of  premi- 
um and  the  assumption  of  mortality  and  interest  aforesaid.  {Act  ap- 
proved February  2,  1872,  §  1.) 

S03.  If  the  death  of  the  party  occur  within  the  term  of  the 
temporary  iusiu-ance  covered  by  the  value  of  the  policy,  as  deter- 
mined iu  the  previous  section,  and  if  no  condition  of  the  insiu^auce 
other  than  the  payment  of  the  premium  shall  have  been  violated  by 
the  insm^ed,  the  company  shall  be  bound  to  pay  the  amount  of  the 
policy  the  same  as  if  there  had  been  no  lapse  of  premium,  anything 
in  the  policy  to  the  contrary  notwithstanding ;  Frovideil,  however, 
that  notice  of  the  claim  and  proofs  of  death  shall  be  submitted  to 
the  company  within  six  months  of  the  decease ;  and  provided^  also, 
that  the  company  shall  have  the  right  to  deduct  from  the  amount 
insured  in  the  policy  the  amount,  at  ten  per  centum  per  annum,  of 
the  premium  that  has  been  forborne  at  the  time  of  the  death. 
{Ibid,  ^2.) 

THE  ixsuea:n^ce  commissioner. 

304.  The  number  and  designation  of  the  civil  executive  offi- 
cers are  as  follows : 

(Among    others)    An    Insurance    Commissioner.     {Political 
Code,  1872,  i?.  69,  §  343.) 
2©e5.     The  following  executive  officers  are  appointed  by  the 
Governor,  with  the  consent  of  the  Senate : 

1.  The  Inspector  of  Gas  Meters;  the  Trustees  of  the  State 
Burying  Grounds. 

2.  The  Directors  of  the  Insane  Asylum ;  the  Trustees  of  the 
Asylum  for  the  Deaf,  Dumb,  and  Blind ;  the  Port  Wardens ; 
the  Insurance  Commissioner ;  the  members  of  the  State  Board 
of  Health ;  a  Vaccine  Agent. 

3.  The  Commissioner  of  Immigxation;  the  Pilot  Commission- 
ers; the  Pilots  for  each  harbor  where  there  is  not  a  Board  of 
Pilot  Commissioners  ;  the  Fish  Commissioners;  the  State  Geol- 
ogist; the  Tide  Land  Commissioners.     {Ibid,  p.  75,  §  'S6S.) 

306.  The  officers  enumerated  iu  the  first  subdivision  of  the 
last  sectiou  hold  their  offices  for  the  term  of  two  years,  those  in  the 
second  subdivision  for  the  term  of  four  years,  and  those  in  the  third 
subdi\'ision  during  the  Governor's  pleasure.     {Ibid,  §  369.) 

907.  No  person  is  eligible  to  the  office  of  Insm-ance  Commis- 
sioner or  Deputy  who  is  an  officer,  agent,  or  employee  of  an  insur- 
ance company.     {Ibid,  p.  115,  §  594.) 

208.  The  Insurance  Commissioner  must  receive  all  bonds  and 
securities  of  persons  engaged  in  the  transaction  of  insurance  busi- 
ness in  this  State,  and  file  and  safely  keep  the  same  in  his  office,  or 
deposit  them  as  provided  in  this  Article.    He  must  examine  and 


CALIFORNIA.  59 

iuspect  the  financial  condition  of  all  persons  engaged  or  who  desire 
to  engage  in  the  business  of  insurance ;  issue  a  certificate  of  au- 
thority to  transact  insurance  business  in  this  State  to  any  persons 
in  a  solvent  condition  who  have  fully  complied  with  the  laws  of 
this  State  ;  determine  the  sufficiency  and  validity  of  all  bonds,  and 
other  securities  required  to  be  given  by  persons  engaged  or  to  be 
engaged  in  insurance  business,  and  cause  the  same  to  be  renewed 
in  case  of  the  insufiicienc^"  or  invalidity  thereof ;  and  perform  all 
other  duties  imi^osed  upon  him  by  the  laws  regulating  the  business 
of  insurance  in  this  State,  and  enforce  the  execution  of  such  laws ; 
prepare  and  furnish  on  demand,  to  all  persons  engaged  in  the  insur- 
ance business,  blank  forms  for  such  statements  or  reports  as  may 
by  law  be  required  of  them  ;  make,  on  or  before  the  first  day  of 
August,  in  each  year,  a  report  to  the  Governor  of  this  State,  con- 
taining a  tabidar  statement  and  synopsis  of  the  reports  which  have 
been  filed  in  his  ofiice,  showing  generally  the  condition  of  the  insur- 
ance business  and  interests  in  this  State,  and  other  matters  con- 
cerning insurance,  and  a  detailed  statement,  verified  by  oath,  of 
the  moneys  and  fees  of  office  received  by  him,  and  for  what  pur- 
pose. And  whenever  any  insurance  company  doing  business  in  this 
State  shall  voluntarily  surrender  to  the  Insurance  Commissioner  its 
certificate  of  authority  previously  gTanted,  thereby  withdrawing 
from  business  in  the  State,  the  Commissioner  must  make  due  publi- 
cation of  such  surrender  and  withdrawal,  daily,  for  the  period  of 
one  month,  in  some  newspaper  published  in  the  City  of  San  Fran- 
cisco.    (Ibidy  §  595.) 

209.    Of  the  report  of  the  Insurance  Commissioner,  the  Com- 
missioner must  have  printed,  at  the  expense  of  his  office,  one  thou- 
sand copies,  and  must  deliver  of  the  same  as  follows : 
To  the  Governor,  twenty  copies. 
To  the  State  Librarian,  ten  copies. 
To  the  Secretary  of  State,  thirty  coijies. 
To  the  Sergeant-at-Arms  of  the  Senate,  eighty  copies. 
To  the  Sergeant-at-Arms  of  the  Assembly,  one  hundred  and 
sixty  copies. 

And  the  residue  must  be  distributed  by  the  Commissioner  in 
furtherance  of  the  interest  of  insurance.  (Ibid,  §  337  of  amend- 
ments.) 

SIO.  No  i)erson  must  transact  insurance  business  in  this 
State  without  first  procuring  from  the  Insurance  Commissioner  a 
certificate  of  authority,  as  in  this  chapter  provided,  and  all  policies 
issued  or  renewed,  and  all  insurances  taken  before  obtaining  such 
certificate  of  authority,  are  null  and  void ;  and  any  person  issuing 
or  renewing  a  policy  without  such  certificate  shall  forfeit  to  the 
people  of  tlie  State  of  California  the  sum  of  one  hundred  dollars 
for  each  policy  so  issued  or  renewed,  to  be  collected  by  the  Insm*- 
ance  Commissioner  in  the  manner  prescribed  in  section  five  hundred 
and  ninety-eight  of  this  Code.  But  any  company  or  corporation 
belonging  to  any  other  State  or  count[r]y,  having  policies  of  life  in- 
surance outstanding  in  this  State,  and  that  were  issued  in  accord- 
ance with  the  laws  of  the  State,  shall  have  the  right  to  maintain 
an  agent  in  this  State  for  the  collection  of  renewal  premiums  on 
such  i>olicies,  and  the  Commissioner  is  hereby  authorized  to  issue  to 
the  duly  appointed  agent  of  such  company  or  corporation  a  certifi- 
cate authorizing  him  to  collect  such  premiums.  But  the  company 
or  corporation  must  satisfy  the  Commissioner  that  it  is  authorized 


60  hine's  insurance  statutes. 

to  transact  insurance  business  in  the  State  to  which  it  belongs. 
The  agent  must,  on  or  before  the  tenth  day  of  January  in  each 
year,  file  with  the  Commisssoner  a  statement,  under  oath,  showing 
the  gross  amount  of  premiums  collected  by  him  during  the  year 
ending  on  the  thirty-first  day  of  December  next  preceding ;  and 
upon  filing  such  statement  he  must  pay  into  the  office  of  the  Com- 
missioner the  sura  of  twenty  dollars,  in  gold  coin  of  the  United 
States.     {Ibid,  p.  116,  §  596,  as  amended.) 

Ql  1.  The  Commissioner,  whenever  necessary,  or  whenever  he 
is  requested  by  verified  petition,  signed  by  three  persons  interested, 
either  as  stockholders,  policy-holders,  or  creditors  of  any  person 
engaged  in  insurance  business,  showing  that  such  person  is  insol- 
vent under  the  laws  of  this  State,  must  make  examination  of  the 
business  and  affairs  relating  to  the  insurance  business  of  such  per- 
son ;  and  for  such  purpose  has  free  access  to  all  the  books  and  pa- 
pers of  such  person,  and  must  thoroughly  inspect  and  examine  all 
his  affairs,  and  ascertain  his  condition  and  ability  to  fulfill  his  en- 
gagements, and  whether  he  has  complied  with  all  the  provisions  of 
law  applicable  to  his  insurance  transactions.  Such  person  and  his 
officers  and  agents  must  open  his  books  and  papers  for  the  inspec- 
tion of  the  Commissioner,  and  otherwise  facilitate  such  examina- 
tion ;  and  the  Commissioner  may  administer  oaths  and  examine  un- 
der oath  any  persons  relative  to  the  business  of  such  person  ;  and 
if  he  finds  the  books  to  have  been  carelessly  or  improperly  kept  or 
posted,  he  must  employ  sworn  experts  to  rewrite,  post,  and  balance 
the  same,  at  the  expense  of  such  person.  Such  examination  must 
be  conducted  in  the  county  where  such  person  has  his  principal 
place  of  business,  and  must  be  private,  unless  the  Commissioner 
deems,  it  necessary  to  publish  the  result  of  such  investigation,  in 
which  case  he  may  publish  the  same  in  two  of  the  public  newspa- 
pers of  this  State,  one  of  which  must  be  published  in  the  City  of 
San  Francisco.     (Ibid,  §  597.) 

31*^.  The  Commissioner  may  collect  the  sum  of  five  hundred 
dollars  from  any  person  engaged  in  the  business  of  insurance  for 
each  refusal  to  give  fidl  and  truthful  information  and  response  in 
writing  to  any  inquiry  in  writing  by  the  Commissioner  relating  to 
the  business  of  insurance  as  carried  on  by  him  ;  and  for  that  pur- 
pose suits  may  be  instituted  by  the  Commissioner,  in  the  name  of 
the  people  of  the  State  of  California,  in  any  Court  of  competent 
jurisdiction.     (/6t^,  §598.) 

313.  The  Commissioner  may  issue  subpoenas  for  witnesses  to 
attend  and  testify  before  him  on  any  subject  touching  insurance 
business  or  in  aid  of  his  duties,  which  must  be  served,  obeyed,  and 
enforced  as  provided  in  the  Code  of  Civil  Procedure  for  civil  cases, 
the  Commissioner  to  issue  attachments  and  impose  the  penalty  for 
disobedience ;  and,  in  addition,  the  defaulting  witness  may  be  pun- 
ished as  provided  in  the  Penal  Code.     {Ibid,  p.  117,  §  599.) 

314.  Whenever  the  Commissioner  ascertains  that  any  person 
engaged  in  the  insurance  business  is  insolvent  within  the  meaning 
of  this  chapter,  he  must  revoke  the  certificate  granted,  and  send 
by  mail  to  such  person,  addressed  to  him  at  his  principal  place 
of  business,  or  deliver  to  him  personally,  notice  of  such  revoca- 
tion, and  cause  notice  thereof  to  be  filed  in  his  office,  and  also 
to  be  published  daily  for  four  weeks  in  some  newspaper  published 
in  the  City  of  San  Francisco.  He  must  require  such  person,  after 
receiving  notice  of  the  revocation,  or  after  the  first  publication 


CALIFORNIA.  61 

thereof,  to  discoutinue  the  issuing  of  any  new  policies,  and  the  re- 
newal of  any  previously  issued ;  and  in  such  cases  must  require  the 
person  or  the  manager  or  agent  of  the  business  to  repair  the  capital 
thereof  within  such  period  as  he  may  designate  in  such  requisition, 
by  assessment  upon  the  stockholders  for  such  amounts  as  will  make 
the  capital  equal  to  the  amount  of  the  paid  up  capital,  exclusive  of 
assets  needed  to  pay  all  ascertained  liabilities  for  losses  reported, 
for  expenses  and  taxes,  and  exclusive  of  the  entire  premiums  re- 
ceived for  outstanding  risks.     {Ibid,  §  GOO,) 

215.  In  case  any  person,  upon  the  requisition  of  the  Commis- 
sioner, fails  to  make  up  the  deficiency  of  the  capital  in  accordance 
with  the  requirements  of  this  Chapter,  or  to  comply  in  all  respects 
with  the  laws  of  this  State,  the  Commissioner  must  communicate 
the  fact  to  the  Attorney-General,  who  must  commence  an  action  in 
the  name  of  the  people  of  this  State,  in  the  district  court  of  the 
judicial  district  where  the  person  in  question  is  located  or  has  his 
principal  office,  against  such  person,  and  apply  for  an  order  requir- 
ing cause  to  be  shown  why  the  business  should  not  be  closed ;  and 
the  Court  must  thereupon  hear  the  allegations  and  proofs  of  the 
respective  parties  as  in  other  cases.  If  it  appears  to  the  satisfac- 
tion of  the  Coui-t  that  such  person  is  insolvent,  or  that  the  interests 
of  the  public  so  require,  the  Court  must  decree  a  dissolution  of  such 
corporation,  and  a  winding  up  of  its  affairs  and  a  distribution  of 
the  effects  of  such  person  ;  but  otherwise,  the  Court  must  enter  a 
decree  annulling  the  act  of  the  Commissioner  in  the  premises,  and 
authorizing  such  i^erson  to  resume  business.  But  the  Commis- 
sioner must  not  be  held  liable  for  damages,  if  he  has  acted  in  good 
faith.  In  the  event  of  any  additional  losses  occurring  upon  new  risks 
taken  after  the  expiration  of  the  period  limited  by  the  Commissioner 
in  the  requisition,  and  before  the  deficiency  has  been  filled  up,  the 
directors  of  any  company,  corporation,  or  association  are  individu- 
ally liable  to  the  extent  thereof.     {Ibid,  p.  118,  §  601.) 

!316.  Whenever  provision  for  the  liabilities  of  any  j)erson  en- 
gaged in  the  insurance  business  in  this  State  for  losses  reported, 
expenses,  taxes,  and  reinsurance  of  all  outstanding  risks  estimated 
at  fifty  per  cent,  of  the  premiums  received  and  receivable  on  all  fire 
risks  and  marine  time  risks,  at  the  full  premium  received  and  re- 
ceivable on  all  the  marine  risks,  and  at  rates  for  life  risks  based 
upon  the  rates  of  mortality  established  by  the  American  Experience 
Life  Table,  and  interest  at  four  and  one-half  per  cent,  per  annum, 
and  such  rates  lor  accident  and  other  kinds  of  insurance  as  are 
accepted  by  the  insurance  authorities  of  the  State  of  New  York, 
would  so  far  impair  his  capital  stock  paid  in  to  reduce  the  same 
below  two  hundred  thousand  dollars  in  gold  coin  of  the  United 
States,  or  below  sixty  per  cent,  of  said  capital  stock  paid  in,  such 
person  is  insolvent ;  and  in  the  case  of  a  person  thus  engaged  in  the 
insurance  business  in  this  State  on  the  mutual  plan,  if  bis  available 
cash  assets  shall  not  exceed  his  liabilities  as  hereinbefore  enumer- 
ated, in  the  full  sum  of  two  hundred  thousand  dollars  in  United 
States  gold  coin,  such  jierson  is  insolvent.    {Ibid,  §  602,  as  amended.) 

317.  The  Commissioner  must  keep  and  preserve,  in  a  perma- 
nent form,  a  full  record  of  his  proceedings,  including  a  concise  state- 
ment of  the  condition  of  each  person  visited  or  examined  by  him. 
(I6i(Z,_p.  119,  §  603.) 

218.  The  Commissioner  may  employ  an  actuary  to  make  the 
valuation  of  life  policies,  at  the  compensation  of  not  exceedmg 


62  hine's  insueance  statutes. 

three  cents  for  each  thousand  dollars  of  insurance,  to  be  paid  by 
the  person  or  corporation  for  which  the  valuation  is  made.  {I hid, 
§  604.) 

!S19.  The  Commissioner  must  require  in  advance,  in  United 
States  gold  coin,  the  following  fees  : 

1.  For  filing  tbe  articles  of  incori)oration  or  certified  copy  of 
articles  or  other  certificate  required  to  be  filed  in  his  office, 
thirty  dollars. 

2.  For  filing  the  annual  statement  required  to  be  filed,  twen- 
ty dollars. 

3.  For  filing  any  other  papers  required  by  this  chapter  to  be 
filed,  five  dollars. 

4.  For  furnishing  copies  of  papers  filed  in  his  oifice,  twenty 
cents  per  folio. 

5.  For  certifying  copies,  one  dollar  each. 

6.  For  each  certificate  issued  as  provided  in  Section  619,  the 
sum  of  five  dollars.     [Ibid,  §  605.) 

^^O.  If  the  salary  of  the  Commissioner  and  the  expenses  of 
his  office  exceeds  the  fees  and  charges  collected  by  him,  such  excess 
must  be  annually  assessed  by  the  Commissioner  upon  all  persons 
or  corporations  engaged  in  the  business  of  insurance  in  this  State, 
and  they  are  severally  liable  therefor,  pro  rata,  according  to  the 
amount  of  premiums  received  or  receivable  from  risks  taken  in  this 
State,  respectivelj',  diu-ing  the  year  ending  on  the  thirty-first  day 
of  December  next  preceding  the  assessment.  The  Commissioner 
must  collect  all  fees  and  assessments,  and  pay  monthly  into  the 
State  treasiuy  whatever  amounts  may  be  received  and  collected 
by  him.  He  may  bring  actions  in  the  name  of  the  people  of  this 
State  to  enforce  such  collection  ;  and  {my  person  liable  for  any  as- 
sessment who  neglects  or  refuses  to  pay  the  amount  of  such  assess- 
ment within  ten  days  after  demand  thereof  in  writing  by  the  Insui-- 
ance  Commissioner,  becomes  liable  to  i)ay  douWe  the  amount  of 
such  assessment,  and  any  judgment  recovered  in  such  case  must  be 
for  such  double  amount  and  costs.     {Ibid,  p.  120,  §  606.) 

231 .  The  Commissioner  must  cause  every  corporation  or  per- 
son, before  engaging  in  the  business  of  insurance,  to  file  in  his  office 
as  follows : 

1.  If  incorporated  under  the  laws  of  this  State,  a  copy  of  the 
articles  ot  incori^oration  or  statement  of  any  increase  or  diminu- 
tion of  the  capital  stock,  certified  by  the  Secretary-  of  State  to 
be  a  copy  of  that  which  is  filed  in  his  office. 

2.  If  incorporated  under  the  laws  of  any  other  State  or  coun- 
try, a  copy  of  the  articles  of  incorporation,  if  organized  or 
formed  under  any  law  requiring  articles  to  be  filed,  didy  certi- 
fied by  the  officer  having  the  custody  of  such  articles ;  or,  if 
not  so  organized,  a  coj)y  of  the  law,  charter,  or  deed  of  settle- 
ment under  which  the  organization  is  made,  duly  certified  by 
the  proper  custodian  thereof,  or  i)ro\  ed  by  affidavit  to  be  a 
copy  ;  also,  a  certificate,  under  the  hand  and  seal  ot  the  proper 
officer  of  such  State  or  country  having  supervision  of  insurance 
business  therein,  that  such  corporation  or  company  is  orgaur 
ized  under  the  laws  of  such  State  or  country,  with  the  amount 
of  capital  stock  or  assets  required  by  this  chapter. 

3.  If  not  incorporated,  a  certificate  setting  forth  the  nature 
and  character  of  the  business,  the  location  of  the  principal  of- 
fice, the  names  of  the  persons  and  of  those  composing  the  associ- 


CALIFORNIA.  63 

ation,  the  amount  of  tictual  capital  employed  or  to  be  employed 
therein,  and  the  names  of  all  officers  and  persons  by  whom 
the  business  is  or  may  be  managed.  The  certificate  must  be 
verified  by*the  afflda^it  of  the  chief  officer,  secretary-,  agent,  or 
manager  of  the  association ;  and  if  there  is  any  written  articles 
of  agreement  or  association,  a  copy  thereof  must  accomj)any 
such  certificates.  {Ibid,  §  607.) 
»i2^.     He  must  require  from  every  insirrance  association  not 

formed  under  the  laws  of  this  State,  or  not  incorporated,  carrying 

on  the  business  of  insurance  by  an  agent : 

1.  A  certified  or  verified  power  of  attorney  or  written  author- 
ity to  such  agent ; 

2.  A  notice  of  any  change  of  agents  or  in  the  powers  of  any 
agent,  within  ninety  days  after  such  change,  and  a  certified 
copy  of  any  new  or  further  power  of  attorney  or  authority  be- 
fore the  same  is  acted  under ; 

3.  When  by  any  law,  agreement,  or  other  writing,  any 
change  is  made  in  respect  to  anj^  of  the  particulars  set  forth  in 
the  certificate  on  file,  a  certified  copy  of  such  law,  agreement, 
or  other  writing,  verified  respectively  as  certificates  are  requir- 
ed to  be  verified ;  also  a  notice  of  such  change  before  the  same 
is  acted  under,     {Ibid,  p.  121,  §  608.) 

!3!2S.  The  Commissioner  must  require  the  name  under  which 
any  corporation  hereafter  projioses  to  be  formed  or  organized  under 
the  laws  of  this  State  for  the  transaction  of  insurance  business  to 
be  submitted  to  him  before  the  commencement  of  such  business  ; 
and  he  may  reject  any  name  or  title  so  submitted  when  the  same  is 
an  interference  with  or  too  similar  to  one  already  appropriated,  or 
likely  to  mislead  the  public  in  any  respect ;  and  in  such  case  a  name 
not  liable  to  such  objection  must  be  chosen.     {Ibid,  §  609.) 

3^4.  The  Commissioner  must  require  from  every  corporation 
or  person  doing  the  business  of  insui'ance  in  this  State  a  statement, 
verified  as  follows : 

1.  If  it  be  made  by  a  corporation  organized  under  the  laws  of 
this  State,  by  the  oaths  of  the  president  and  secretary,  or  of 
the  vice-president  and  secretary  thereof. 

2.  If  made  by  a  foreign  insurance  company  or  person,  by 
the  oath  of  the  principal  executive  officer  thereof. 

3.  K  it  be  made  by  an  individual  or  firm,  by  the  oath  of  such 
individual  or  a  member  of  the  firm.     {Ibid,  p.  122,  §  610,  as 

amended.) 
223.  The  statement  mentioned  in  the  preceding  section  must 
exhibit  the  condition  and  afiairs  of  every  corporation,  person,  firm, 
or  indi^idual,  on  the  thirty -first  day  of  December  then  next  pre- 
ceding, and  must  be  published  in  a  daily  newspaper  in  the  city 
where  the  principal  office  is  located,  for  the  period  of  one  week ;  and 
must  be  filed  witli  the  Insurance  Commissioner  as  follows : 

1.  If  made  by  a  person  residing  in,  or  by  a  company  organ 
ized  under  the  laws  of  this  State,  on  or  before  the  first  day  of 
February  of  each  year. 

2.  If  made  by  a  person  resident  of,  or  by  a  company  organ- 
ized under  the  laws  of  any  other  State,  or  Territory,  or  district 
of  the  United  States,  on  or  before  the  first  day  of  March  of 
each  year. 

3.  If  made  by  a  person  resident  of,  or  by  a  company  organ- 
ized under  the  laws  of  any  country  foreign  to  the  United  States, 


64  hine's  insurance  statutes. 

on  or  before  the  first  day  of  April  of  each  year.    {Ibid,  §  611, 
as  amended.) 

336.     Such  statement,  if  made  by  fire,  marine,  and  inland  in- 
surance companies,  must  show : 

Mrst. — The  amount  of  the  capital  stock  of  the  company. 
Second.- The  property  or  assets  held  by  the  company,  speci- 
fying : 

1.  The  value  of  the  real  estate  held  by  such  company. 

2.  The  amount  of  cash  on  hand  and  deposited  in  banks  to 
the  credit  of  the  company,  specifying  the  same. 

3.  The  amount  of  cash  in  the  hands  of  agents  and  in  course 
of  transmission. 

4.  The  amount  of  loans  secured  by  bonds  and  mortgages  con- 
stituting the  first  loan  on  real  estate  on  which  there  is  less  than 
one  year's  interest  due  or  owing. 

5.  The  amount  of  loans  on  which  interest  has  not  been  paid 
within  one  year  previous  to  such  statement. 

6.  The  amount  due  the  company  on  which  judgments  have 
been  obtained. 

7.  The  amount  of  stocks  of  this  State,  of  the  United  States, 
of  any  incorx^orated  city  of  this  State,  and  of  any  other  stocks 
owned  by  the  company,  specifying  the  amount,  number  of 
shares,  and  par  and  market  value  of  each  kind  of  stock. 

8.  The  amount  of  stocks  held  as  collateral  security  for  loans, 
with  the  amount  loaned  on  each  kind  of  stock,  its  par  value  and 
market  value. 

9.  The  amount  of  interest  due  and  unpaid. 

10.  The  amount  of  all  other  loans  made  by  the  company, 
specifying  the  same. 

11.  The  amount  of  premium  notes  on  hand  on  which  policies 
are  issued. 

12.  All  other  property  belonging  to  the  company,  specifying 
the  same. 

Third.— The  liabilities  of  such  company,  specifying : 

1.  The  amount  of  losses  due  and  unpaid. 

2.  The  amount  of  claims  for  losses  resisted  by  the  company. 

3.  The  amount  of  losses  in  process  of  adjustment  or  in  sus- 
pense, including  all  reported  or  supposed  losses. 

4.  The  amount  of  dividends  declared,  due,  or  remaining  un- 
paid. 

5.  The  amount  of  dividends  declared,  but  not  due. 

6.  The  amount  of  money  borrowed,  and  security  given  for 
the  payment  thereof. 

7.  Gross  premiums  (without  any  deduction)  received  and  re- 
ceivable upon  all  unexpired  Jire  risks  running  one  year  or  less 
from  date  of  policy— reinsurance  thereon  at  fifty  per  cent. 

8.  Gross  premiums  (without  any  deduction;  received  and  re- 
ceivable upon  all  unexpired  Jire  risks  running  more  than  one 
year  from  date  of  policy — reinsurance  thereon  pro  rata ; 

9.  Gross  premiums  (without  any  deductions)  received  and  re- 
ceivable upon  all  unexpired  marine  and  inland  navigation 
risks,  except  time  risks — reinsurance  thereon  at  one  hundred 
per  cent. ; 

10.  Gross  premiums  (without  any  deductions)  received  and 
receivable  on  marine  time  risks — reinsurance  thereon  at  fifty 
per  cent. ; 


CALIFORNIA.  65 

11.  Amount  reclaimable  by  tlie  insured  on  perpetual  fire  in- 
surance policies,  being  ninety-live  per  cent,  of  the  premium  or 
deposit  received. 

12.  Reinsurance  fund  and  all  other  liabilities,  except  capital, 
under  the  life  insurance  or  any  other  special  dex)artment ; 

13.  Unused  bills  of  balances  and  notes  taken  in  advance  for 
premiums  on  open  marine  and  inland  policies,  or  otherwise,  re- 
turnable on  settlement ; 

11.  Principal  unpaid  on  scrip  or  certificates  of  profits  which 
have  been  authorized  or  ordered  to  be  redeemed ; 

15.  Amount  of  all  other  liabilities  of  the  company,  specifying 
the  same. 
Fourth. — The  incomes  of  the  company  during  the  preceding  year, 
specifying : 

1.  The  amount  of  cash  premiums  received  ; 

2.  The  amount  of  notes  received  for  premiums  ; 

3.  The  amount  of  interest  money  received,  specifying  the 
same ; 

4.  The  amount  of  income  received  from  all  other  sources,  spe- 
cifying the  same. 

Fifth. — The  expenditures  during  the  preceding  year,  specifying: 

1.  The  amount  of  losses  paid  ; 

2.  The  amount  of  dividends  paid  ; 

3.  The  amount  of  expenses  paid,  including  commissions  and 
fees  to  agents  and  officers  of  the  company ; 

4.  The  amount  paid  for  taxes  ; 

5.  The  amount  of  all  other  i^ayments  and  exi^enditures. 
tSixth. — 1.  The  amount  of  risks  written  during  the  year ; 

2.  The  amount  of  risks  expired  during  the  year  ; 

3.  The  amount  of  risks  written  during  the  year  in  the  State 
of  California ; 

4.  The  amount  of  premiums  thereon.     {Ibid,  p.  123,  §  G12.) 
S'ST'.     Such  statement,  if  made  by  life,  health,  and  accident 

companies,  must  show : 

First.— The  amount  of  the  capital  stock  of  the  company. 

Second.— The  property  or  assets  held  by  the  comjiany,   speci- 
fying : 

1.  The  value  of  the  real  estate  held  by  the  company  ; 

2.  The  amount  of  cash  on  hand  and  deposited  in  banks  to  the 
credit  of  the  company,  specifying  the  same  ; 

3.  The  amount  of  loans  secured  by  bond  and  mortgage  on 
real  estate,  specifying  the  same  ; 

4.  Amount  of  loans  secured  by  pledge  of  bonds,  stocks,  or 
other  marketable  securities  as  collateral,  specifying  the  same; 

5.  Cash  market  value  of  all  stocks  and  bonds  owned  by  the 
company,  specifying  the  same  ; 

6.  Interest  due  the  company  and  unpaid  ; 

7.  Interest  accrued  but  not  due ; 

8.  Premium  notes  and  loans  in  any  form  taken  in  payment  of 
premiums  on  i)olicies  now  in  force ; 

9.  Gross  amount  of  premiums  in  process  of  collection  and 
transmission  on  policies  in  force ; 

'10.  Gross  amount  of  deferred  premiums  ; 
11.  All  other  assets,  specifying  the  same. 
Third.— Liabiiities. — 1.  Claims  for  death  losses  and  matui*ed  en- 
dowments, due  and  unpaid ; 
5 


66  hine's  ixsijeance  statutes. 

2.  Claims  for  death  losses  and  matured  endowments  in  pro- 
cess of  adjustment  or  adjusted  and  not  due ; 

3.  Claims  resisted  by  the  company  ; 

4.  Amounts  due  and  unpaid  on  annuity  claims  ; 

5.  Trust  fund,  on  deposit,  or  net  present  value  of  all  the  out- 
standing policies,  computed  according  to  the  American  expe- 
rience tables  of  mortality,  with  four  and  one-half  per  cent,  inter- 
est; 

6.  Additional  trust  fund  on  deposit,  or  net  present  value  of 
extra  and  special  risks,  including  those  on  impaired  lives  ; 

7.  Amount  ot  all  unpaid  dividends  of  surplus  percentages, 
bonuses,  and  other  description  of  profits  to  policy-holders,  and 
interest  thereon  ; 

8.  Amount  of  any  other  liability  to  policy-holders  or  annui- 
tants, not  included  above ; 

9.  Amount  of  dividends  unpaid  to  stockholders  ; 

10.  Amount  of  National,  State,  and  other  taxes  due ; 

11.  All  other  liabilities,  specifying  the  same. 

Fourth. — Income. — 1.  Cash  received  for  i^remiums  on  new  policies 
during  the  year; 

2.  Cash  received  for  renewal  of  premiums  during  the  year; 

3.  Cash  received  for  the  purchase  of  annuities  ; 

4.  Cash  received  for  all  other  premiums ; 

5.  Cash  received  for  interest  on  loans,  specifying  the  same; 

6.  Eents  received ; 

7.  Cash  received  from  all  other  sources,  specifying  the  same  ; 

8.  Gross  amount  of  notes  taken  on  account  of  new  pre- 
miums ; 

9.  Gross  amount  of  notes  taken  on  account  of  renewal  pre- 
miums. 

Fifth. — Expenditures. — 1.  Cash  paid  for  losses ; 

2.  Cash  paid  to  annuitants  ; 

3.  Cash  paid  for  lapsed,  surrendered,  and  purchased  policies ; 

4.  Cash  paid  for  dividends  to  policy-holders  ; 

5.  Cash  paid  for  dividends  to  stockholders ; 

6.  Cash  paid  for  reinsurances  ; 

7.  Commission  ])aid  to  agents  ; 

8.  Salaries  and  other  compensation  of  officers  and  emj^lo^-es, 
except  agents  and  medical  examiners ; 

9.  Medical  examiners'  fees  and  salaries ; 

10.  Cash  paid  for  taxes  ; 

11.  Cash  paid  for  rents  ; 

12.  Cash  paid  for  commuting  commissions; 

13.  All  other  cash  payments. 

Sixth. — Balance  sheet  of  premium  note  account. 
Seventh. — Balance  sheet  of  all  the  business  of  the  company; 
Eighth.— 1.  Total  amount  of  insui-ance  effected  during  the  year 
on  new  policies ; 

2.  Total  amount  of  insurance  effected  in  the  State  of  Califor- 
nia: 

3.  Premiums  received  during  the  year  on  risks  written  in  the 
State  of  California.     [Ibid,  p.  126,  §  613.) 

9'2H.  Mutual  companies  formed,  existing,  and  doing  business 
under  an  Act  entitled  "  An  Act  to  provide  for  the  incorporation  of 
mutual  insurance  companies,"  passed  April  twenty-sixth,  eighteen 
hundred  and  lifty-one,  may  report  their  approved  stock  notes  as 


CALIFORNIA.  67 

capital  paid  up,  and  siicli  notes  for  all  purposes  must  lie  deemed 
part  of  the  paid  up  capital  stock  of  such  corporation.  [I bid,  p.  129, 
§  014.) 

St39.  The  Insurance  Commissioner  must  cause  to  be  prepared, 
and  furnish  to  each  person  and  to  each  of  the  companies  incorjio- 
rated  in  this  State,  and  to  the  attorney  of  each  of  the  comi)anies  in- 
corporated or  chartered  by  other  States  and  foreign  g-overnments, 
printed  forms  of  the  statements  herein  required  ;  and  he  may  make 
such  changes  from  time  to  tiuie  in  the  form  of  the  same  as  seems 
to  him  best  adapted  to  elicit  from  the  companies  a  true  exhibit  of 
their  condition  in  respect  to  the  several  points  hereinbefore  enumer- 
ated. The  same  forms  must  be  addressed  to  all  persons  and  com- 
lianies  engaged  in  the  same  kind  of  business.     {Ibid,  §  015.) 

S30.  The  Insurance  Commissioner  must  require,  as  a  condition 
precedent  to  the  transaction  of  insurance  business  in  this  State  by 
any  foreign  corporation  or  com^jany,  that  such  corporation  or  com- 
pany must  file  in  his  office  the  name  of  an  agent,  and  his  place  of 
residence  in  this  State,  on  whom  summons  and  other  jirocess  may 
be  served  in  all  actions  or  other  legal  proceedings  against  such  cor- 
poration or  company.  All  process  so  served  gives  jurisdiction  over 
the  person  of  such  corporation  or  company.  The  agent  so  appointed 
and  designated,  shall  be  deemed  in  law  a  general  agent,  and  must 
be  the  principal  agent  or  chief  manager  of  tbe  business  of  such  cor- 
poration or  comjiany  in  this  State.  Any  act,  statement,  representa- 
tion, or  agTcement,  done  or  made  by  an  agent  so  appointed  and 
designated,  which  in  any  manner  pertains  to  the  business  of  such 
corporation  or  company,  shaU  be  deemed  the  act,  statement,  repre- 
sentation, or  agreement  of  the  principal,  and  shall  have  the  same 
force  and  effect  as  if  done  or  made  by  the  principal.  Any  such 
foreign  corporation  or  company  shall,  as  a  further  condition  pre- 
cedent to  the  transaction  of  insurance  business  in  this  State,  and  in 
consideration  of  the  privilege  to  transact  such  insurance  business  in 
this  State,  make  and  file  with  the  Insurance  Commissioner  an 
agreement  or  stipulation,  executed  by  the  proper  authorities  of  such 
cori)oration  or  company,  in  form  and  substance  as  follows :  "  The 
(giving  name  of  corporation  or  company)  does  hereby  stipulate  and 
agree,  that  in  consideration  of  the  i^ermission  granted  by  the  State 
of  California  to  it,  to  transact  insurance  business  in  that  State, 
that  in  all  litigation  between  (gi\Tiig  name  of  corporation  or  com- 
pany) and  any  citizen  of  the  State  of  California,  the  Courts  of  said 
State  shall  luive  and  maintain  exclusive  jurisdiction  of  such  litiga- 
tion. And  it  is  further  agreed  that  no  action  hereafter  commenced 
in  any  district  court  of  said  State  of  California  against  (insert 
name)  shall  be  removed  or  transferred  therefrom  to  the  United 
States  Circuit  Court."  If  in  any  action  hereafter  commenced  in  any 
district  court  of  this  State,  by  a  citizen  thereof,  against  a  foreign 
corporation  or  company  doing  insurance  business  in  said  State,  such 
corporation  or  company  shall  transfer,  or  cause  to  be  transferred, 
such  action  to  the  United  States  Circuit  Court,  the  right  of  such 
corporation  or  company  to  transact  insurance  business  in  said  State 
shall  thereupon  and  thereby  cease  and  determine ;  and  the  Insur- 
ance Commissioner  shall  immediately  revoke  the  certificate  of  such 
corporation  or  company  authorizing' it  to  do  business  in  said  State 
of  California.     {Ibid,  §010,  as  amended.) 

2JJ 1 .     The  Commissioner  must  collect  the  sum  of  one  thousand 
dollars  from  any  corporation  or  company  engaged  in  the  business  of 


68  ni>'E'S  INSURANCE   STATUTES. 

insurance  for  a  failure  to  make  and  deposit  in  his  office,  within 
ninety  days  after  being  thereto  requested  by  said  Commissioner,  the 
statements  and  stipulations  provided  for  in  the  eighth  preceding- 
section  ;  and  the  last  preceding  sections ;  and  an  additional  penalty 
of  two  thousand  dollars  for  each  and  every  month  thereafter  that 
such  corporation  or  company  contiiuies  to  transact  tbe  business  of 
insurance, until  such  certificate,  statement,  and  stipulations  are  filed; 
and  for  that  purpose  suit  may  be  instituted  in  the  name  of  the  people 
of  the  State  of  California,  in  any  court  of  competent  jurisdiction. 
The  Insurance  Commissioner  shall,  immediately  after  the  passage 
of  this  act,  give  due  notice  of  its  I)ro^^sions  to  all  foreign  insurance 
corporations  or  companies  doing  or  proi^osing  to  do  business  in  this 
State      {Ibid,  §  617,  as  amended.) 

3Stl.  Whenever  the  laws  of  any  State  of  the  United  States  re- 
quire any  life  insurance  company  incorporated  by  or  organized  under 
the  laws  of  this  State  to  deposit  with  some  officer  of  this  State  securi- 
ties in  trust  for  or  for  the  benefit  of  the  policy-holders  of  such  corpo- 
ration as  a  prerequisite  to  transacting  business  in  such  other  State, 
the  Commissioner  of  this  State  must  receive  from  such  life  insurance 
corporation  securities  of  the  amount  required  by  the  laws  of  such 
other  State,  on  deposit  and  m  trust  for  the  policy-holders  of  such 
corporation,  the  value  of  which  must  be  equal  to  the  value  of  inter- 
est-beariug  stocks,  bonds,  or  other  securities  of  the  United  States. 
He  must,  upon  the  receipt  of  the  secm-ities,  forthwith  make  a  spe- 
cial deposit  in  the  State  treasury  of  the  same,  in  packages  marked 
with  the  name  of  the  corporation  from  whom  received,  where  they 
must  remain  as  security  for  policy-holders  in  the  corporation  to 
which  they  respectively  belong  ;  but  so  long  as  any  corporation  so 
depositing  continues  solvent,  he  must  permit  such  corj)oration  to 
collect  the  interest  or  dividends  on  its  securities  so  deposited,  and 
from  time  to  time  to  withdraw  any  such  securities  on  depositing 
other  securities  in  the  stead  of  those  to  be  withdrawn,  such  new  se- 
curities to  be  of  the  same  value  mentioned  in  this  chapter ;  but 
such  securities  must  not  be  withdrawn  from  the  State  treasury  un- 
less upon  the  written  order  of  the  acting  president  and  secretary 
of  the  corporation  making  the  deposits,  which  order  must  be  en- 
dorsed by  the  Commissioner,  or  uj)on  the  order  and  authority  of 
some  Court  of  competent  jurisdiction.     {Ibid,  p.  130,  §  618.) 

!333.  Whenever  any  life  insurance  corporation,  organized 
under  the  laws  of  this  State,  has  deposited  with  the  Commissioner 
the  requisite  securities,  in  conformity  with  the  laws  of  the  State  in 
which  such  corporation  is  desirous  of  transacting  its  business,  he 
must  issue  to  such  corporation  a  certificate,  under  his  official  seal, 
of  such  deposit,  for  each  State  requiring  the  same,  which  must 
state  tbe  items  and  amount  of  securities  thus  deposited,  and  that 
they  are  of  the  market  value  represented  therein  ;  but  no  securities 
must  be  estimated  above  the  par  value  of  the  same.     {Ibid,  §  619.) 

334.  Whenever  any  life  insurance  corporation  has  so  depos- 
ited its  securities,  and  has  paid,  canceled,  or  reinsured  all  its  unex- 
pired policies,  and  all  its  liabilities  under  such  policies  are  extin- 
guished or  resumed  by  other  responsible  corporations  having  a 
similar  deposit  with  the  Commissioner,  then  if,  on  api)licatiou  of 
such  corporation,  verified  by  the  oath  of  its  president  and  secre- 
tary, and  from  an  examination  of  the  books  of  the  corporation  and 
of  its  officers  under  oath,  the  Insurance  Commissioner  is  satisfied 
that  all  of  its  policies  are  so  paid,  canceled,  extinguished,  or  rein- 


CALIFORNIA.  09 

siirecl,  lie  must  deliver  up  to  the  corporation  the  securities  deposited. 
(Ibid,  §  020.) 

235.  The  Commissiouer  must  make  an  annual  examination  of 
the  securities  received  by  him  from  each  life  insurance  corporation, 
and  if  it  appear  at  any  time  that  the  securities  deposited  by  any 
corporation  amount  to  less  than  the  sum  required  for  the  pui'poses 
for  which  the  deposit  was  made,  he  must  notify  the  corporation 
thereof;  and  unless  the  deficiency  is  made  uj)  within  thirty  days 
after  notice,  the  Commissioner  must  countermand  all  the  certifi- 
cates he  may  have  issued  to  the  corporation  under  this  Chapter, 
and  give  notice  thereof  to  the  officers  of  the  several  States  to  whom 
the  certificate  may  have  been  transmitted ;  and  he  must  also  publish 
the  notice  for  three  weeks  successively  in  one  daily  newspaper 
printed  in  the  City  of  Sacramento  and  one  daily  newspaper  i)rinted 
in  the  City  of  San  Francisco,  at  the  expense  of  the  corporation, 
collected  by  assessment.     {Ibid,  §  021.) 

'S30.  Whenever  the  laws  of  any  State  or  count[r]y  require  of 
insiu\ince  companies,  incorporated  under  the  laws  of  this  State, 
and  having-  agencies  in  such  other  State  or  count[r]y,  or  of  the 
agents  thereof,  anj-  further  or  greater  license,  fees,  charges,  imposi- 
tions, taxes,  deposit  of  securities,  statements,  publications,  or  cer- 
tificates of  authority,  or  inflict  any  greater  fines  or  penalties  upon 
such  corporations  or  agents  than  are  required  from  similar  compa- 
nies or  agents  belonging  to  such  State  or  count ^rjy  respectively, 
then  and  in  every  such  case,  from  every  company,  person,  or  corpo- 
ration of  such  State  or  count[r]y,  which  has  or  is  about  to  establish 
agencies  in  this  State,  the  Commissiouer  must,  before  it  continues 
or  commences  to  do  business  in  this  State,  collect  the  same  licenses, 
fees,  charges,  impositions,  and  taxes  "  as  are  imposed  by  such 
State  upon  agents,  companies,  corporations,  or  persons  of  this  State 
doing  business  in  such  State,  in  excess  of  the  licenses,  fees,  charges, 
impositions,  and  taxes  upon  agents,  comi^anies,  corporations,  or 
persons  of  that  State,"  and  require  the  same  statements,  publica- 
tions, certificates  of  authority,  and  the  same  deposit  of  securities, 
as  are  required  by  the  laws  of  such  State  or  country  of  companies, 
persons,  or  corijoratious  and  agents  of  this  State  doing  business  in 
such  other  State  or  country ;  and  the  same  fines  and  penalties  must 
be  inflicted  upon  companies,  persons,  or  corporations  of  such  other 
State  or  country,  and  their  agents,  as  are  inflicted  by  the  laws  of 
such  State  or  country  upon  companies,  persons  or  corporations  of 
this  State,  and  their  agents,  in  excess  of  such  fines  and  penalties 
inflicted  ujion  companies,  persons,  or  corporations  belonging  to 
such  State  or  country  respectively  which  may  be  recovered  by  the 
Insurance  Commissioner  in  the  manner  provided  in  section  five 
hundred  and  ninety-eight  of  this  Code.  {Ibid,  p.  132,  §  022,  as 
amended.) 

S37.  The  Commissioner  must  require  every  company,  associ- 
ation, or  individual,  not  incorporated  under  the  laws  of  this  State, 
and  proposing  to  transact  insurance  business  by  agont  or  agents  in 
this  State,  before  commencing  such  business  to  file  in  his  office  a 
bond,  to  be  signed  by  the  person  or  firm,  officer  or  agent,  as  princi- 
pal, with  two  sureties,  to  be  approved  by  the  Commissioner,  in  the 
penal  sura  of  two  thousand  dollars  for  each  insurance  company, 
association,  firm,  or  individual  for  whose  account  it  is  proposed  to 
collect  premiums  of  insurance  in  this  State,  the  conditions  of  such 
bonds  to  be  as  follows  : 

1.  That  the  person  or  firm,  agent  or  officer  named  therein. 


70  hine's  insurance  statutes. 

acting  on  behalf  of  the  company,  association,  firm,  or  individual 
named  therein,  will  [)ay  to  the  treasurer  of  the  county,  or  city 
and  county,  in  which  the  principal  office  of  the  ag^ency  is  located, 
such  sum  per  quarter,  quarterly  in  advance,  for  a  license  to 
transact  an  insurance  business,  or  such  other  license  as  may  be 
imposed  by  law,  so  long  as  the  agency  remains  in  the  hands  of 
the  person  or  firm,  officer,  or  agent  named  as  principal  in  the 
bond ; 

2.  That  the  person  or  firm,  officer  or  agent  will  pay  to  the 
State  all  stamp  or  other  duties  on  the  gToss  amounts  insulted 
by  them  in  the  manner  and  at  the  time  prescribed  by  law, 
incbisive  of  renewals  on  existing  policies; 

3.  That  the  i)erson,firm,  agent,  or  corporation  named  therein 
will  conform  to  all  the  provisions  of  the  revenue  and  other  laws 
made  to  govern  them.     {Ibid,  p.  132,  §  023.) 

2.I8.  Whenever  the  same  person,  firm,  officer,  or  agent 
desires  to  collect  premiums  of  insurance  for  more  than  one  company, 
association,  or  individual,  not  incorporated  under  the  laws  of  this 
State,  the  Commissioner  must  require  a  separate  bond,  as  provided 
in  the  preceding  section,  for  each  company  or  association  so  repre- 
sented by  such  person,  firm,  officer,  or  agent.     {Ibid,  §  624.) 

S39.  The  Commissioner  must,  before  the  commencement  of 
each  fiscal  year,  as  fixed  in  the  revenue  laws,  furnish  the  Assessor 
of  the  county  in  which  the  principal  office  of  any  person  or  corpora- 
tion doing  the  business  of  insurance  is  situated,  all  the  data  con- 
cerning premiums  collected  by,  and  all  other  necessary  information 
in  relation  to  the  business  of  such  person  or  corporation  as  will 
assist  the  Assessor  in  the  performance  of  his  duties.     {Ibid,  §  625.) 

240.  The  (Commissioner  must  require  from  every  person, 
before  and  after  engaging  in  the  business  of  insurance,  a  full  com- 
pliance with  all  the  provisions  of  Title  II.,  Part  IV.,  Division  I.  of  the 
Civil  Code*  applicable  thereto;  and  every  person  neglecting  to 
comply  with  such  requii'ements  is  subject  to  the  fines  and  penalties 
therein  prescribed.     {Ibid,  p.  134,  §  626.) 

241.  All  statements,  estimates,  percentages,  payments,  and 
calculations  required  by  this  chapter  to  be  made,  either  by  the 
Commissioner  or  persons  engaged  in  the  business  of  fire  or  marine 
insurance,  must  be  in  gold  coin  of  the  United  States.    {Ibid,  §  627.) 

942.  The  annual  salary  of  the  Insiu"ance  Commissioner  is 
three  thousand  dollars.     {Ilnd,  §  628.) 

243.  The  annual  salary  of  the  Deputy  of  the  Commissioner  of 
Insurance  is  eighteen  hundred  dollars,     {tbid,  §  629.) 

24  J.  The  Commissioner  may  procure  rooms  for  his  office,  at  a 
rent  not  to  exceed  seventy-five  dollars  per  month,  and  may  provide 
a  suitable  safe  and  furniture  therefor ;  lie  may  also  provide  station- 
ery, fuel,  printing,  and  other  conveniences  necessary  for  the  trans- 
action of  the  business  of  his  office.  All  expenditures  authorized  in 
this  section  must  be  audited  by  the  Board  of  Examiners  and  paid 
in  the  same  manner  as  the  salary  of  the  Commissioner.  {Ibid,  §  630.) 

245.  The  Conunissioner  must  keep  his  office  in  the  City  of 
San  Francisco.     {Ibid,  §  631.) 

246.  The  Commissioner  must  execute  an  official  bond  in  the 
sum  often  thousand  dollars.     {Ibid,  p.  135,  §  632.) 

247.  No  person  shall,  in  this  State,  act  as  the  agent  or  soli- 
citor of  any  life  insurance  company  doing  business  in  this  State, 

*  See  Insurance  Corporations,  pp.  37,  38. 


CALIFORNIA.  71 

until  he  has  produced  to  the  Commissioner,  and  filed  with  him,  a 
duplicate  power  of  attorney  from  the  company  or  its  authorized 
agent,  authorizing  him  to  act  as  such  agent  or  solicitor.  Upon 
filing  such  power  the  Commissioner  shall  issue  a  license  to  him  to 
act  as  such  agent  or  solicitor  for  such  company,  if  such  company 
has  received  a  certificate  of  authority  fiom  such  Commissioner  to  do 
business  in  this  State  ;  Provided,  that  if  such  agent  or  solicitor  shall, 
within  the  twelve  months  next  preceding,  have  been  in  the  employ 
of  any  other  company  or  its  authorized  agent,  as  such  agent  or 
solicitor,  he  must  produce  to  the  Commissioner  written  evidence 
from  such  employer  that  all  moneys  he  may  have  collected  for  such 
company  or  agent  have  been  paid  over  to  said  company  or  agent. 
Such  license  shall  continue  in  force  for  twelve  months  from  the  date 
thereof,  but  may  be  and  shall  be  sooner  revoked  upon  application 
of  the  company  or  its  authorized  agent.  Such  license  may  be  re- 
newed from  time  to  time,  for  an  additional  period  of  twelve  months 
on  production  by  the  holder  to  the  Commissioner  of  a  certificate 
from  the  company  that  such  person's  authority  as  such  agent  or 
solicitor  continues.  For  each  such  license,  or  renewal  thereof,  the 
Commissioner  shall  receive  the  sum  of  one  dollar.  The  Commis- 
sioner shall  keep  an  alphabetical  list  of  the  names  of  persons  to 
whom  such  license  shall  be  issued,  with  the  date  of  the  license  and 
renewal,  and  the  name  of  the  company  for  which  such  person  is 
working.  If  any  person  shall  fraudulently  assume  to  be  an  author- 
ized agent  or  solicitor  of  any  life  insurance  company,  and  thus  pro- 
cure or  attempt  to  procure  applications,  or  receive  or  attempt  to 
obtain  money  for  premiums,  he  shall  be  guilty  of  a  misdemeanor. 
If  any  person  shall,  under  a  false  or  fictitious  name,  procure  or 
attempt  to  procure  a  license  to  act  as  agent  or  solicitor  of  any  life 
insurance  company,  he  shall  be  guilty  of  a  misdemeanor.  {Ibid, 
§  633  of  amendments.) 

548.  Every  person  who  in  this  Stat^  procures,  or  agrees  to 
procure,  any  insurance  for  a  resident  of  this  State,  from  any  insur- 
ance company  not  incorporated  under  the  laws  of  this  State,  unless 
such  company  or  its  agent  has  filed  the  bond  required  by  the  laws 
of  this  State  relating  to  insurance,  is  guilty  of  a  misdemeanor. 
{Penal  Code,  1872,  i>.  105,  §  439.) 

ARSON  AND  INCENDIARISM. 

549.  Arson  is  the  willful  burning  of  a  building  with  intent  to 
destroy  it.     {Penal  Code,  1872, 2>.  107,  §  447.) 

3«>(>.  Any  house,  edifice,  structure,  vessel,  or  other  erection, 
capable  of  afibrding  shelter  for  human  beings,  or  appurtenant  to  or 
connected  with  an  erection  so  adapted,  is  a  "  building,"  within  the 
meaning  of  this  chapter.     {Ibid,  §  448.) 

25 1 .  Any  building  which  has  usually  been  occupied  by  any 
person  lodging  therein  at  night  is  an  "  inhabited  building"  within 
the  meaning  of  this  chapter.     {Tbid,  p.  108,  §  449.) 

25S.  The  phrase  "  night  time,"  as  used  in  this  chapter,  means 
the  period  between  sunset  and  sunrise.     {Ibid,  §  450.) 

^5S.  To  constitute  a  burning  within  the  meaning  of  this 
chapter,  it  is  not  necessary  that  the  building  set  on  fire  should  have 
been  destroyed.  It  is  sufficient  that  fire  is  applied  so  as  to  take 
effect  upon  any  part  of  the  substance  of  the  building.   {1  bid,  §  441.) 

254.  To  constitute  arson,  it  is  not  necessary  that  a  person 
other  than  the  accused  should  have  had  ownership  in  the  building 


72  hine's  insurance  statutes. 

set  on  fire.  It  is  sufficient  that  at  the  time  of  the  burning  another 
I^erson  was  rightfully  in  possession  of,  or  was  actually  occupying 
such  building,  or  any  part  thereof.     {Ibid,  §  452.) 

3«>5.     Arson  is  divided  into  two  degrees.     {Ibid,  §  453.) 
350.     Malicious  burning  in  the  night-time  an  inhabited  build- 
ing, in  which  there  is  at  the  time  some  human  being,  is  arson  in  the 
first  degree.    All  other  kinds  of  arson  are  of  the  second  degree 
{Ibid,  §  454.) 

257.  Arson  is  punishable  by  imi^risonment  in  the  State  Prison, 
as  follows : 

1.  Arson  in  the  first  degree,  for  not  less  than  two  years ; 

2.  Arson  in  the  second  degree,  for  not  less  than  one  nor  more 
than  ten  years.     {Ibid,  §  455.) 

358.  Every  person  who  willfully  and  maliciously  burns  any 
bridge  exceeding  in  value  fifty  dollars,  or  any  building,  snowshed, 
or  vessel,  not  the  subject  of  arson,  or  any  stock  of  grain  of  any  kind, 
or  of  hay,  or  any  growing  or  standing  grain,  grass  or  tree,  or  anj^ 
fence,  not  the  property  of  such  person,  is  punishable  by  imprison- 
ment in  the  State  Prison,  for  not  less  than  one  nor  more  than  ten 
years.     {Ibid,  p.  140,  §  600.) 

359.  Every  person  who  willfully  biu-ns,  or  in  any  other  manner 
injures  or  destroys  any  property  which  is  at  the  time  insured  against 
loss  or  damage  by  fire  or  by  any  other  casualty,  with  intent  to  de- 
fraud or  jirejudice  the  insurer,  whether  the  same  be  the  property  of 
or  in  possession  of  such  person  or  of  any  other,  is  punishable  by  im- 
prisonment in  the  State  Prison,  not  less  than  one  nor  more  than  ten 
years.     (J/^^i).  128,  §  548.) 

FEAUD  AND  FALSE  SWEARING. 

360.  Every  person  who  presents  or  causes  to  be  presented  any 
false  or  fraudulent  claim,  or  any  proof  in  support  of  any  such  claim, 
upon  any  contract  of  insurance  for  the  payment  of  any  loss,  or  who 
I)repares,  makes,  or  subscribes  any  account,  certificate  of  siu'vey, 
affida.vit,  or  i^roof  of  loss,  or  other  book,  paper,  or  writing  with  intent 
to  i^resent  or  use  the  same,  or  to  allow  it  to  be  presented  or  used  in 
support  of  any  such  claim,  is  punishable  by  imj)risonment  in  the 
State  Prison,  not  exceeding  three  years,  or  by  a  fine  not  exceeding 
one  thousand  dollars,  or  by  both.     {Penal  Code,  1872, 2>.  129,  §  549.) 

EMBEZZLEMENT. 

361.  Embezzlement  is  the  fraudulent  appropriation  of  property 
by  a  person  to  whom  it  has  been  intrusted.  {Penal  Code,  1872,  p. 
120,  §  503.) 

363.  Every  officer,  director,  trustee,  clerk,  servant,  or  agent 
of  any  associati<  n,  society,  or  corporation  (public  or  private),  who 
fraudulently  appropriates  to  any  use  or  purpose  not  in  the  due  and 
lawful  execution  of  his  trust,  any  property  which  he  has  in  his  pos- 
session or  under  his  control  Ijy  virtue  of  his  trust,  or  secretes  it  with 
a  fraudulent  intent  to  appropriate  it  to  such  use  or  purpose  is  guilty 
of  embezzlement.     {Ibid,  §  504.) 

363.  Every  person  guilty  of  embezzlement  is  punishable  in  the 
manner  prescribed  for  feloniously  stealing  property  of  the  value  of 
that  embezzled ;  and  where  the  property  embezzled  is  an  evidence 
of  debt  or  right  of  action,  the  sum  due  upon  it,  or  secured  to  be  paid 
by  it,  shall  be  taken  as  its  value.     {Ibid,  p.  122,  §  514.) 

364.  For  General  Provisions  relating  to  Corporations,  see 
Civil  Code,  1872,  pp.  GO,  91,  and  amendments  thereto. 


INDEX  TO  CANADA. 


PAGE 

ACCLDEST   Insurance   Companies,  Deposit 

Required  (34,  56) 89,93 

Acts  of  lucorporation  to  be  File  J  (10,  38)77,89 

Acts  Repealed  (,24) 85 

Actuary  of  Insurance  Department  (28) 86 

Advertising  — 

Licenses  (12,  13,40,  50) 78.89,92 

Deposits  (13,  50) 78,92 

Annual  Statements  (43) 90 

Discoutinuance  of  Business  (12,  13, 

40) 78,89 

Kotice  of  Application  for  Release  of  Se- 
curities (18,  29) 79,87 

Agency,  Chief,  Defined  (1,  31) 75,87 

Agent- 
Defined  (1,  31) 75,  87 

Change  of  (5  7) 93 

Annual  Statements — 

Required  (20,  21,  36,43,  44)80-82,87,90 
Penalty  for  Xeglect  to  File  (22,  43)  82,  90 

Details  (20) 80 

Advertising  (43) 90 

Form  of  (4  3) 90 

Of  Companies  of  United  Kingdom  (44)    90 

Arson  and  Incendiarism  (58-66) 93,  94 

Articles  of  Association,  to  be  Filed  (10, 

38) 77,89 

Assets — 

Amount  Required  (41) 89 

Impairment  of  Local  (8) 77 

Assignees,  Appointment  and  Duties  of  (17, 

28) 79,80 

Canadian  Company  Defined  (1,  25) 75,85 

Canadian  Companies — 

Deposit  Required  (6) 76 

Annual  Statements  of  (2  0) 80 

Local  (51) 92 

Capital,  Amount  Required  (41) 89 

Charter,  to  be  Filed  (10,38) 77,  89 

Chief  Agency  Defined  (1,  31) 75,87 

Company,  when  Insol ven  t  ( 1  6) 78 

Company  Defined  (31) 87 

Companies — 

Of  United  Kingdom  (44) 80 

Foreign  (6) 76 

Courts,  Duties  in  Insolvency  (17) 79 

Dkfisitions  of  Terma  (1,  25,  31)  ..75,  85,  87 


PAGE 

Deposits — 

Required  (0,  16,  33,  34,  35,  55)70,78, 

87,88,92 

"What  Securities  Accepted  (6,  49). . .  76,91 

Additional  (7,56) 76,  93 

Interest  on  (9,  26,  36,  37)  ....  77,  85,  88 
AdvertisingAmonntof  (13,  50)..-- 78,  92 
Disposition  of,  in  Insolvency  (16,  45j 

46) 78,91,92 

For  Life  Insurance  Companies  (34,36, 

49,  56) 88,91,93 

Of  Premiums  (36,  47,  4!») 88,  91 

When  Considered  Capital  (41) 89 

]Made  by  Installments  (47) 91 

Release  of  (18,  27,  29,  48).. 79,  85,  86,  91 
OfMutual  Companies  (49) 91 

Duplicate  Documents,  to  be  Filed  (10) 77 

Examination  of  Companies  (23) 83-84 

Fees  of  Superintendent  of  Insurance  (23)..     84 

Fire  Insurance  Companies — 

Statutes  Concerning  (1-24) 75,  85 

License  of  (3 ) 76 

Foreign  Company  Defined  (1) 75 

Foreign  Companies — 

Deposits  of  (6,  7,  34,  5  6) 76,  88,  93 

Annual  Statements  (20) 80 

Form  of  Oath  to  Annual  Statement  (20).-.     80 

Fraud  and  False  Swearing  (67,  68) 95 

Guarantee  Companies,  Deposits  of  (34, 

56) 88,93 

Impairment  of  Local  Assets  (8) 77 

Incendiarism  and  Arson  (58-66) 93,  94 

Inland  Marine  Companies,  License  of  (3) . .    7(i 

Insolvent  Companies  (30) 87 

Insolvency  (16,  28,  45) 78,  91 

Insolvency,  Assignees  in  ( 1  7) 79 

Interest — 

On  Deposits  (9,26,  36,  37). -- .77,  85,  88 

Rate  of,  on  Securities  (54) 92 

On  Stock  of  Insolvent  Company  (46)  . .     91 

Licenses— 

To  Whom  Issued  (2) 75 

Who  may  do  Business  without  (2) 75 

When  Compulsory  (3,32) 76,  87 


INDEX  TO  CANADA. 


PAGE 

Licenses  (Continned)— 

Expiration  of  (4,  55) 76,92 

Advertising  (12,13) 77, 78 

Penalty   for   doing    Business    ivithout 

(14) 78 

When  Forfeited  (15,  47,  49) 78,91 

Renewal  after  Forfeiture  (15,  47). .  .78,  91 

"When  Suspended  or  Canceled  (13) 78 

How  Paid  (2  3  )   83-84 

Excepted  from  Operation  of  Act  (24) . .    85 

When  Issued  (33) 87 

Specifications  of  (33) 87 

Of  Local  Companies  (51) 93 

Life  Insurance  Companies — 

Statutes  Concerning  (25-5  5) 65,  92 

Deposits  of  (34,  56) S8,  93 

Life  and  Accident  Companies  (35,  53). .88,  99 

Life  Policies,  Eeinsurance  of  (28) 86 

Limitations  of  Act  (2) 75 

Losses— 

Paymentof  (32) 87 

After  Ceasing  Business  (18,  29) 79,  87 

Marine  Companies  Excepted  (3,  32) 76,  87 

Mutual  Life  Companies,  Deposits  of  (49)..     91 

Oath  to  Annual  Statements  (20) 80 

Ocean  Marine  Insurance  Cos,  (3,32) 76,  87 

Penalty— 

For  niegal  Business  (14,  42) 76,  89 

To  whom  Paid  (14) 78 

For  not  Filing  Annual  Statement  (22, 

43) 82,90 

For  Arson  and  Incendiarism  (58"J»6)93,  94 
For  Fraud  and  False  Swearing  (67,68)    95 

Policies,  Limit  of  (19) 80 

"Policies  in  Canada  "Defined  (25) 85 

Policy-holders'  Suit  for  Claims  (17}  28). 79, 86 


PAGE 

Power  of  Attorney  (10,  38,  57). .. -77,  89,  93 

Premiums— 

Receipt  of  (32) 87 

After  Withdrawal  of  License  (29) 87 

Deposit  of  Life  (36,  47) 88,91 

Investment  of  (49) 91 

Assessment  upon  (23)  83 

Reinsurance — 

Of  Risks  (18,  29) 79,87 

Of  Life  Policies  (28) 86 

Repeal  of  Acts  (24,  26) 85 

Report  of  Minister  of  Finance  (43) 90 

Return  Premiums  in  Insolvency  (17) 79 

Securities — 

Required  for  Deposits  (6,  26) 76,85 

Disposition  of ,  in  Insolvency  (16,  28, 

45,  48) 78,91 

Release  of  (18,  27,  29,  48)  .79,  85,  86,  91 

Value,  how  Estimated  (2  6) 85 

Rates  of  Interest  on  (34) 

Service  of  Process  (10,  38,  39,  57)  77,  89,  S3 

Statements— 

To  be  Filed  (10,  20,  41,  53)77,80,89,92 
Changes  in  Form  of  (20) 80 

Superintendent  of  Insurance- 
How  Appointed  (23) 83 

Powers  and  DuUes  of  (23,  52-54)  83,  84,92 

Salary  of  (23) 84 

Report  of  (23) 83 

Examinations  by  (23) 82 

Restriction  upon  (23) 84 

Expenses  of  (23) 84 

Fees  of  (23) 84 

TERMS,  Defined  (1,  25,  31) 75,85,  87 

U-MTED  Kingdom,  Companies  of  (44) 90 


INSURANCE  STATUTES  OF  CANADA. 


Revised  ly  Prof.  J.  B.  Cherriman,  Superintendent  of  Insurance. 


FIRE   AND   INLAND   MARINE  INSURANCE. 

1.  The  followiug"  terms  and  expressions  whenever  used  in  this 
act,  unless  it  be  otherwise  specially  provided,  or  there  be  something 
in  the  context  repugnant  to  or  iuconsivstent  with  sucli  construction, 
shall  be  construed  and  interpreted  as  hereinafter  mentioned,  that  is 
to  say : 

1.  "  Canadian  Company "  means  a  comijany  incorporated  in 
Canada,  for  purposes  of  fire  or  inland  marine  insurance  busi- 
ness or  both,  in  Canada,  and  having  its  head  ofiice  therein,  and 
entitled  under  the  second  section  of  this  Act  to  receive  a  license 
as  such. 

2.  "Foreign  (company"  means  a  company,  incorporated  or 
duly  established  according  to  the  laws  of  any  foreign  country 
(including  the  United  Kingdom),  for  piu-jioses  of  fire  or  inland 
marine  insurance  business  or  both,  and  entitled  under  the 
second  section  of  this  act  to  receive  a  license  as  such  in  the 
Dominion  of  Canada. 

3.  "Agent'*  means  the  chief  agent  of  the  company  in 
Canada,  named  as  such  in  the  power  of  attorney  hereinafter 
referred  to,  by  whatever  name  he  may  be  designated. 

4.  "  Chief  Agency  "  means  the  principal  ofiflce  or  place  of 
business  of  the  company  in  Canada.  [Act  38  Victoria,  1875, 
chap.  20,  §  1.) 

9.  This  act  shall  apply  oulj^  to  companies  heretofore  incorpo- 
rated by  any  act  of  the  Legislature  of  the  late  Province  of  Canada, 
or  by  any  act  of  the  Legislature  of  any  of  the  Pro\"inces  of  Canada, 
and  which  upon  the  day  of  the  passing  of  this  act,  were  also 
licensed  under  act  of  the  Parliament  of  Canada  to  transact  business 
of  Insurance  in  Canada,  and  also  to  any  company  heretofore  or 
which  may  hereafter  be  incorporated  by  act  of  Parliament  of 
Canada,  and  to  any  foreign  insurance  company  as  hereinbefore 
defined ;  and  it  shall  not  be  lawful  fpr  the  Minister  of  Finance  to 
License  any  other  comi^any  than  those  in  this  section  above  men- 
tioned, and  no  other  company  than  those  above  mentioned  shall  do 
any  business  of  fire  or  inland  marine  insurance  throughout  the 
Dominion  of  Canada ;  but  nothing  herein  contained  shall  prevent 
any  insurance  company  incorporated  by  or  under  any  act  of  the 
Legislature  of  the  late  Province  of  Canada,  or  of  any  Province  of 
the  Dominion  of  Canada,  from  carrying  on  any  business  of  insur- 
ance, within  the  limits  of  the  late  Pro^4nce  of  Canada,  or  of  such 
Province  only,  according  to  the  powers  granted  to  such  insurance 
company  within  such  limits  as  aforesaid,  without  such  license  as 
hereinafter  mentioned.     {Ibid,  §  2.) 


76  hine's  insurance  statutes. 

3.  Except  siicli  iusurance  companies  as  are  mentioned  in  the 
proviso  to  the  next  preceding  section,  or  companies  transacting  in 
Canada  ocean  marine  Imsiness  exclusively  (all  insurance  above  the 
harbor  of  Montreal  to  be  held  to  be  inland  insurance),  it  shall  not 
be  lawful  for  any  insurance  company  to  accept  any  risk  or  issue 
any  policy  of  fire  or  inland  marine  insurance,  or  receive  any 
premium  or  transact  any  business  of  fire  or  inland  marine  insur- 
ance in  Canada,  or  to  prosecute  or  maintain  any  suit,  action,  or 
proceeding,  either  at  law  or  in  equity,  or  to  file  any  claim  in  insol- 
vency, relating  to  such  business,  without  first  obtaining  a  license 
(as  hereinafter  provided  for)  from  the  Minister  of  Finance  to  carry 
on  business  in  Canada.     {Ihid,  §  3.) 

4.  The  license  shall  be  in  such  form  as  may  be,  from  time  to 
time,  determined  by  the  Minister  of  Finance,  and  shall  specify  the 
business  to  be  carried  on  by  the  company,  and  it  shall  expire  on  the 
thirty-first  day  of  March  in  each  year ;  but  shall  be  renewable  from 
year  to  year.     {Ibid,  §  4.) 

5.  The  Minister  of  Finance  so  soon  as  the  company  ap])lying 
for  the  same  has  deposited  in  the  hands  of  the  Keceiver-General  the 
securities  hereinafter  mentioned,  and  has  otherwise  conformed  to 
the  requirements  of  this  act,  shall  cause  to  be  issued  such  license 
as  aforesaid.     {Ibid,  §  5.) 

6.  Canadian  companies  shall,  before  the  issue  of  such  license, 
deposit  the  sum  of  fifty  thousand  dollars  with  the  Receiver-General 
in  securities  as  hereinafter  named.  Foreign  companies  shall,  before 
the  issue  of  such  license,  deposit  for  the  benefit  of  policy-holders  in 
Canada  the  sum  of  one  hundred  thousand  dollars  with  the  Eeceiver- 
General  in  such  securities  as  are  named  hereinafter.  •  All  such 
deposits  may  be  made  by  any  company  in  securities  of  the  Dominion 
of  Canada,  or  in  securities  issued  by  any  of  the  Provinces  in  the 
Dominion  of  Canada,  and  by  any  company  incorporated  in  the 
United  Kingdom  in  secnrities  of  the  United  Kingdom,  and  by  any 
company  incorporated  in  the  United  States  in  securities  of  the 
United  States ;  and  the  value  of  such  securities  shall  be  estimated 
at  their  market  value  at  the  time  when  they  are  so  deposited ;  if  any 
securities  other  than  those  above  named  are  offered  as  a  deposit, 
they  may  be  accepted,  at  such  valuation  and  on  such  conditions 
as  the  Treasury  Board  may  direct ;  and  if  the  market  value  of  any 
of  the  securities  which  have  been  deposited  by  any  company  shall 
decline  below  that  at  which  they  were  deposited,  the  Minister  of 
Finance  may  call  upon  the  company  to  make  a  further  deposit,  so 
that  the  market  value  of  all  the  securities  deposited  by  any  company 
shall  be  equal  to  the  amount  which  they  are  required  to  deposit  by 
this  Act.     {Ibid,  §  6.) 

7.  Any  company  licensed  under  this  act  may  nevertheless  at 
any  time  or  times  deposit  in  the  hands  of  the  Receiver-General  any 
further  or  other  sum  or  sums  of  money  or  securities  beyond  the  sum 
required  to  be  deposited,  and  any  such  further  sum  or  sums  of 
money  or  securities  therefor  so  deposited  in  the  hands  of  the 
Receiver-General  shall  be  held  by  him  subject  to,  and  to  be  dealt 
with  according  to  the  provisions  of  this  act  in  respect  to  the  orig- 
inal sum  required  to  be  deposited  by  such  company,  as  if  the  same 
had  been  part  of  such  original  deposit;  and  no  part  of  Such  addi- 
tional deposit  shall  be  withdrawn  except  with  the  sanction  of  the 
Governor-General  on  the  Report  of  the  Treasury  Board.  {Ibid,  §  7.) 

8.  If  from  the  annual  statements,  or  after  examination  of  the 


CANADA.  77 

affairs  and  condition  of  any  company,  it  appears  that  the  reinsur- 
ance value  of  all  its  risks  outstanding  in  Canada,  together  with  any 
other  liabilities  in  Canada,  exceed  its  assets  in  Canada,  including 
the  deposit  in  the  hands  of  the  Keceiver-General,  then  the  company 
shall  be  called  upon  by  the  Minister  of  Finance  to  make  good  the 
deficiency  at  once,  and  on  failure  so  to  do  its  license  shall  be 
canceled.     {Ibid,  §  8.) 

1>.  Excejit  in  cases  with  respect  to  which  it  may  be  otherwise 
l>rovided  by  the  Treasury  Board,  so  long  as  any  company's  deposit 
is  unimpaired  and  no  notice  of  any  final  judgment  or  order  to  the 
contrary  is  served  upon  the  Minister  of  Finance  or  Receiver-General, 
the  interest  upon  the  secmities  forming  the  deposit  shall  be  handed 
over  to  the  company  as  it  falls  due.     {Ibid,  §  9.) 

10.  Every  company  shall,  before  the  issue  of  a  license  to  it, 
file  in  the  Department  of  tlie  Minister  of  Finance  a  certified  copy  of 
the  charter,  act  of  incorporation,  or  articles  of  association  of  the 
company,  and  also  a  power  of  attorney  frona  the  company  to  its 
head  officer  or  agent  in  Canada,  under  the  seal  of  the  company  (if 
it  has  a  seal),  and  signed  by  the  president  and  secretary  or  other 
proper  officer  thereof,  verified  by  their  oath,  and  fiu^ther  corrob- 
orated on  oath  by  the  head  officer  or  chief  agent  of  such  company, 
or  by  some  person  cognizant  of  the  facts  necessary  to  its  verifica- 
tion ;  which  power  of  attorney  must  declare  at  what  place  in  Canada 
the  head  office  or  chief  agency  of  the  company  is  or  is  to  be 
established,  and  must  expressly  authorize  such  attorney  to  receive 
process  in  all  suits  and  proceedings  against  such  company  in 
Canada  for  any  liabilities  incurred  by  the  comi)any  therein,  and 
must  declare  that  ser\dce  of  process  for  or  in  respect  of  such  liabili- 
ities  at  such  office  or  chief  agency,  or  personally  on  such  attorney 
at  the  place  where  such  head  office  or  chief  agency  is  established, 
shall  be  legal  and  binding  on  the  company  to  all  intents  and 
piu'poses  whatsoever ;  and  also  a  statement  of  the  condition  and 
affairs  of  such  company  on  the  thirty-first  day  of  December  then 
next  preceding,  or  up  to  the  usual  balancing  day  of  the  company 
(provided  that  such  day  shall  not  be  more  than  twelve  months 
before  the  filing  of  the  statement),  in  such  form  as  may  be  required 
by  the  Minister  of  Finance. 

Whenever  any  company  licensed  under  this  act  changes  its 
chief  agent  or  chief  agency  in  Canada,  such  comj)any  shall  file  a 
power  of  attorney  as  hereinbefore  mentioned,  containing  any  such 
change  or  changes  in  such  respect,  and  containing  a  similar  declara- 
tion as  to  service  of  process  as  hereinbefore  mentioned. 

Duplicates  of  all  such  documents,  duly  verified  as  aforesaid,  shall 
be  filed  in  the  office  of  either  of  the  superior  courts  of  law  or  equity 
in  the  Pro\'ince  in  which  its  head  office  or  chief  agency  is  located  ; 
or  if  the  chief  agency  be  in  the  Pro\ince  of  Quebec,  with  the  Pro- 
thonotary  of  the  superior  court  of  the  district  wherein  such  chief 
agency  is  established.     {Ibid,  §  10.) 

1 1 .  Alter  the  certified  copies  referred  to  in  the  last  preceding 
section,  and  such  power  of  attorney  are  filed  as  aforesaid,  any 
process  in  any  suit  or  proceeding  against  such  company,  for  any 
liabilities  incurred  in  Canada,  may  be  served  on  the  company  at  its 
chief  agency,  and  all  proceedings  may  be  had  thereupon  to  judgment 
and  execution  in  the  same  manner  and  with  the  same  force  and 
effect  as  in  proceedings  in  any  civil  suit  in  Canada.  {Ibid,  §  11.) 
I'Z.     Every  company  obtaining  such  license  as  aforesaid  shall 


78  •  HI>'E'S  IlSrSUEANCE   STATUTES. 

forthwith  give  due  notice  thereof  in  the  CanaiJa  Gazeite,  and  in  at 
least  one  newspapaper  in  the  county,  city,  or  place  where  the  head 
office  or  chief  agency  is  established,  and  shall  continue  the  publica- 
tion thereof  for  the  space  of  four  weeks ;  and  the  like  notice  shall 
be  given  when  such  company  cease,  or  notify  that  they  intend  to 
cease,  to  carry  on  business  in  Canada,  tor  the  space  of  thi'ee  calendar 
months.     (Ibid,  §  12.) 

i;j.  The  Minister  of  Finance  shall  cause  to  be  published  quar- 
terly in  the  Canada  Gazette  a  list  of  companies  licensed  under  this 
act,  with  the  amount  of  dei)osits  made  by  each  company;  and  upon 
any  new  company  being  licensed,  or  upon  the  license  of  any  com- 
pany being  withdrawn  in  the  interval  Ijetween  two  such  quarterly 
statements,  he  sbail  publish  a  notice  thereof  iu  the  Canada  Gazette 
for  the  space  of  foiu-  weeks.     {Ibidy  §  13.) 

1 4.  Any  person  who  delivers  any  policy  of  insurance  or  collects 
any  premium  or  transacts  any  business  of  insurance  on  behalf  of 
any  company  as  aforesaid,  without  such  license  as  aforesaid,  or  if 
such  license  has  beeii  withdrawn  without  the  renewal  thereof,  or 
without  filing  the  copy  of  the  charter,  act  of  incorporation,  or 
articles  of  association  of  the  company,  and  a  power  of  attorney  or 
a  renewal  thereof  iu  the  event  of  any  change  as  hereinbefore  pro- 
^^ded,  shall  be  liable  to  a  penalty  of  one  thousand  dollars  for  each 
such  contravention  of  this  act  ;  which  penalty  may  be  sued  for  and 
recovered  on  information  filed  in  the  name  of  the  Attorney-General 
of  Canada;  and  one-half  of  the  said  penalty,  when  recovered,  shall 
be  paid  to  the  Crown,  and  the  other  half  of  the  said  penalty  to  the 
informer :  and  in  case  of  nonpayment  of  such  penalty  and  costs 
within  one  month  after  such  judgment,  the  person  so  oflending  shall 
be  liable  to  imprisonment  in  any  jail  or  prison  for  a  period  not  ex- 
ceeding six  months,  in  the  discretion  of  the  court  wherein  he  is 
convicted.     (Ibid,  §  14.) 

13.  Whenever  any  company  fails  to  make  the  deposits  under 
this  act  at  the  time  requii-ed,  or  whenever  written  notice  has  been 
served  on  the  Minister  of  Finance  of  any  undisputed  claim  arising 
from  loss  insured  against  in  Canada,  remaining  unpaid  for  the  space 
of  sixty  days  after  being  due,  or  of  a  disputed  claim  after  final 
judgment  in  a  regular  course  of  law  and  tender  of  a  legal  valid  dis- 
charge, so  that  the  amount  of  securities  representing  the  deposit  of 
such  company  is  liable  to  be  reduced  by  sale  of  any  j^ortion  thereof, 
the  license  of  the  said  company  shall  ipse  facto  be  null  and  void, 
and  shall  be  deemed  to  be  withclrawn  :  but  such  license  may  in  the 
case  last  mentioned  be  renewed,  and  the  company  may  again  trans- 
act business,  if  within  sixty  days  after  notice  to  the  Minister  of 
Finance  of  the  company's  failure  to  jiay  any  undisputed  claim,  or 
the  amount  of  any  final  judgment  asproWded  in  this  section,  undis- 
puted claims  or  final  judgments  upon  or  against  the  company  in 
Canada  are  paid  and  satisfied,  and  the  company's  deposit  is  no 
longer  liable  to  be  reduced  below  the  amount  required  by  this  act. 
{Ibid,  §  15.) 

1 6.  Any  company  shall  be  deemed  insolvent  upon  failitre  to 
pay  any  undisputed  claim  arising,  or  loss  insured  against,  in  Canada, 
upon  any  pohcy  held  in  Canada  for  the  space  of  sixty  days  after 
being  due,  or,  if  disputed,  after  final  judgment  and  tender  of  a  legal 
valid  discharge,  and  (in  either  case)  after  notice  thereof  to  the  Min- 
ister of  Finance.  In  case  of  the  insolvency  of  any  company  all  de- 
posits of  such  company,  held  by  the  Eeceiver-General  for  policy- 


CANADA.  79 

holders  in  Canada,  shall  be  applied  ])ro  rata  towards  the  payment 
of  all  claims  duly  authenticated  ag:ainst  such  company,  upon  or 
in  respect  of  policies  issued  to  policy-holders  in  Canada  ;  and  the 
distribution  of  the  proceeds  of  such  deposit  may,  if  applied  for  in 
the  Province  of  Ontario,  or  of  Nova  Scotia,  or  of  New  Brunswick, 
or  of  British  Columbia,  or  of  Prince  P]dward  Island,  be  made  by 
order  in  chancery,  or  in  equity ;  or,  if  applied  for  in  the  Province 
of  Quebec  or  Manitoba,  may  be  made  by  judgment  or  order  of  dis- 
tribution of  the  superior  court  within  the  district  where  the  chief 
agency  is  situated  ;  Provided,  that  in  any  case  wiien  a  claim  for  loss 
is  by  the  terms  of  the  policy  payable  on  proof  of  such  loss,  with- 
out any  stipiilated  delay,  the  notice  to  the  Minister  of  Finance 
under  this  section  shall  not  be  given  until  after  the  lapse  of  sixty 
days  from  the  time  when  the  claim  becomes  due.     [Ibid,  §  16.) 

\7.  Upon  the  insolvency  of  any  company,  such  court  as  afore- 
said having  jurisdiction  in  the  province  (or  sitting  in  the  district, 
if  such  pro\ince  be  the  Province  of  Quebec),  where  the  chief  agency 
in  Canada  of  such  company  is  situated,  shall  appoint  an  assignee  or 
assignees,  Avho  may  be  an  officer  or  officers  of  such  court,  Avho  shall 
forthwith  call  upon  the  company  to  furnish  a  statement  of  all  its 
outstanding  policies  in  Canada,  and  upon  all  such  policy-holders  to 
file  their  claims;  and  upon  the  filing  of  the  claims  before  the 
assignees,  the  parties  interested  shall  have  the  right  of  contestation 
thereof,  and  the  right  of  appeal  from  their  decision  to  such  court  as 
aforesaid,  according  to  the  practice  of  such  court ;  and  in  case  of 
any  insurance  company  becoming  insolvent,  the  parties  insured  in 
Canada  shall  be  entitled  to  claim  for  a  part  of  the  premium  ijaid, 
proportionate  to  the  unexpired  period  of  their  policies  respectively, 
and  such  return  j)remium  shall  rank  with  judgments  obtained  and 
claims  accrued,  in  the  distribution  of  the  assets ;  and  upon  the  com- 
pletion of  the  schedule  to  be  prepared  by  the  assignees,  of  all  judg- 
ments against  the  company  upon  such  i^olicies  held  in  Canada,  and 
of  all  claims  for  reinsurance  or  surrender  of  the  policy  as  aforesaid, 
the  court  having  jurisdiction,  as  above  provided,  shall  cause  the 
securities  held  by  the  Keceiver-General  for  such  company,  or  any 
part  of  them,  to  be  sold  in  such  manner  and  after  such  notice  and 
formalities  as  the  Court  may  appoint,  and  the  proceeds  thereof,  after 
paying  expenses  incurred,  shall  be  distributed  pro  rata  amongst  the 
claimants  according  to  such  schedule,  and  the  balance,  if  any,  shall 
be  surrendered  to  the  company.  But  if  any  loss  is  sustained  or  any 
claim  arises  after  the  statement  of  such  outstanding  policies  has 
been  obtained  from  the  company,  as  hereinbefore  provided,  and  be- 
fore the  final  order  of  the  court  lor  the  distribution  of  the  proceeds 
of  the  securities,  or  if  the  proceeds  of  the  securities  are  not  sufticient 
to  cover  in  full  all  claims  recorded  in  the  schedule,  such  policy- 
holders shall  not  be  barred  from  any  recourse  they  may  have  either 
in  law  or  equity  against  the  company  issuing  the  policy,  other  than 
that  for  a  share  in  distribution  of  the  proceeds  of  the  securities  held 
for  such  company  by  the  Eeceiver-General     {Hid,  §  17.) 

18.  When  any  company  has  ceased  to  transact  business  in 
Canada,  and  has  given  written  notice  to  that  effect  to  the  Minister 
of  Finance,  it  must  insure,  on  behalf  of  its  Canadian  policy-hokJ.ers, 
all  their  outstanding  risks,  in  some  company  or  companies  licensed 
in  Canada,  or  obtain  the  surrender  of  the  policies,  and  its  securities 
shall  not  be  delivered  to  the  company  until  the  same  is  done  to  the 
satisfiiction  of  the  Minister  of  Finance  : 


80  niNE'S  INSURANCE   STATUTES. 

Upon  inaliiug  application  for  its  securities,  the  company  must 
file  with  tlie  Minister  of  Finance  a  list  of  all  Canadian  policy-lioklers 
who  have  not  been  so  reinsiu-ed  or  have  not  surrendered  their  poli- 
cies ;  and  it  must  at  the  same  time  publish  in  the  Canada  Gazette  a 
notice  that  it  it  has  applied  to  Government  for  the  release  of  its 
securities  on  a  certain  day,  not  less  than  three  months  after  the  date 
of  the  notice,  and  calling-  upon  its  Canadian  policy-holders  opposing 
such  release  to  file  their  opposition  with  the  Minister  of  Finance  on 
or  before  the  day  so  named ;  and  after  that  day,  if  the  Minister  of 
Finance,  with  concurrence  of  the  Treasury  Board,  is  satisfied  that 
the  company  has  amj^le  assets  to  meet  its  liabilities  to  Canadian 
policy-holders,  all  the  securities  may  be  released  to  it  by  an  order 
of  the  Governor  in  Council,  or  a  sufficient  amount  of  them  may  be 
retained  to  cover  the  value  of  all  risks  resi)ecting  which  opposition 
has  been  filed ;  and  the  remainder  may  be  released,  and  thereafter 
from  time  to  time,  as  such  opposing  risks  may  lapse,  or  proof  may 
be  adduced  that  they  have  been  satisfied,  further  releases  may  be 
made  on  the  authority  aforesaid. 

And  after  a  company  has  ceased  to  transact  business  in  Canada 
after  the  notice  hereby  required,  and  its  license  has  in  consequence 
been  withdrawn,  such  company  may  nevertheless  pay  the  losses 
arising  upon  policies  not  reinsured  or  surrendered,  as  if  such  license 
had  not  been  withdrawn.     {Ibid,  §  18.) 

19.  No  fire  policy  shall  be  issued  for  or  extend  over  a  longer 
period  than  three  years.     {Ibid,  §  19.) 

20.  It  shall  be  the  duty  of  the  president,  ^dce-president,  or 
managing  director,  and  secretary  or  manager  of  each  Canadian 
company,  to  prepare  annually  under  their  own  oath,  on  the  first  day 
of  Jannary  or  within  one  month  thereafter,  a  statement  of  the  con- 
dition and  affairs  of  such  company  on  or  after  the  thirtieth  of  No- 
vember then  next  preceeding  ;  exhibiting-  the  facts  and  items  in  the 
form  given  in  the  following  schedule,  and  to  cause  such  statement 
to  be  deposited  in  the  office  of  the  Minister  of  Finance  ;  such  state- 
ment to  be  sworn  to  before  some  person  duly  authorized  to  admin- 
ister oaths  in  any  legal  proceeding. 


SCHEDULE  — DETAILS   OF  ANNUAL   STATEMENTS  EEQUIEED. 

A  list  of  the  stockholders  with  the  amount  subscribed  for,  the 
amount  paid  thereon,  and  the  residence  of  each  stockholder. 
The  property  or  assets  held  by  the  company,  specifying : 

1.  The  value  (as  nearly  as  may  be)  of  the  real  estate  held  by 
such  company. 

2.  The  amount  of  cash  on  hand  and  deposited  in  banks  to  the 
credit  of  the  company,  specifying  in  what  banks  the  same  are 
deposited,  with  amounts  sei)arately. 

3.  The  amount  of  cash  in  the  hands  of  agents. 

4.  The  amount  of  loans  secured  by  bonds  and  mortgages 
constituting  either  a  first  or  second  lien  on  real  estate  in  sepa- 
rate schedules. 

5.  The  amount  of  loans  on  which  interest  has  not  been  paid 
within  one  year  j^revious  to  such  statement,  with  a  schedule 
thereof. 

6.  The  amounts  due  the  company  for  which  judgments  have 
been  obtained. 


CANADA.  81 

7.  The  amount  of  Canadian  stocks  held  by  the  company, 
and  of  any  other  stock  o\vned  by  the  company,  specifying  in 
detail  the  amount,  number  of  shares,  and  par  and  market  value 
of  each  kind  of  stock  owned  by  the  company  absolutely. 

8.  The  amount  of  stocks  held  as  collateral  security  for  loans, 
with  the  amount  loaned  on  each  kind  of  stock,  its  par  and 
market  value. 

9.  The  amount  of  assessments  on  stock  and  premium  notes, 
paid  and  unpaid. 

10.  The  amount  of  interest  actually  due  and  uni)aid;  also  the 
amount  of  interest  accrued  and  unpaid. 

11.  The  amount  of  premium  notes  on  hand  on  which  policies 
are  issued,  with  amount  paid  thereon ;  also  bills  receivable 
held  by  the  company  and  considered  good,  the  amounts  of 
each  class  separately,  and  the  amounts  on  each  class  overdue- 

12.  The  amount  of  all  other  property  belonging  to  the  com- 
pany, with  a  detail  thereof. 

The  liabilities  of  the  company,  specifying : 

1.  The  amount  of  losses  due  and  yet  unpaid. 

2.  Amount  of  losses  adjusted,  but  not  due. 

3.  Amount  of  losses  incurred  during  the  year,  including  those 
claimed,  not  yet  adjusted,  and  of  those  reported  to  the  com- 
pany upon  which  no  action  has  been  taken ;  the  amounts  of 
each  class  se]3arately,  carrying  out  the  totals  in  one  sum. 

4.  Amount  of  claims  for  losses  resisted  by  the  company,  dis- 
tingTiishing  those  in  suit. 

5.  Amount  of  dividends  declared  and  due,  and  remaining 
unpaid. 

6.  Amount  of  dividends  declared,  but  not  yet  due. 

7.  Amount  of  money  borrowed,  and  security  given  for  pay- 
ment thereof;  stating  each  loan  separately,  and  the  interest 
paid  therefor. 

8.  The  amount  of  unearned  fire  premiums. 

9.  Amount  of  imearned  inland  marine  premiums. 

10.  Amount  received  for  marine  (ocean)  premiums,  not 
marked  off. 

11.  ^Vmount  of  all  other  claims  against  the  company,  with  a 
detailed  statement  thereof. 

12.  Aggregate  amount  of  all  unpaid  losses,  claims,  and  lia 
bilities  whatsoever,  except  capital  stock. 

Income  of  the  company,  specifying: 

1.  Amount  of  cash  premiums  received,  less  reinsurance. 

2.  Amount  of  notes  received  for  premiums,  less  reinsurance. 

3.  Amount  of  interest  money  received. 

4.  Amount  of  income  received  from  all  other  sources. 
Expenditures  of  the  company,  specifying : 

1.  Amount  paid  for  losses  which  occurred  prior  to  the  first 
day  of  January  last,  deducting  savings  and  salvage,  which 
losses  were  estimated  in  the  last  statement  at  $ 

Amount  paid  for  losses  which  occurred  during  the  year,  de- 
ducting savings  and  salvage. 

Total  amount  actually  paid  during  the  year  for  losses  in  each 
branch,  in  separate  columns. 

2.  Amount  and  rate  of  dividends  paid  during  the  year. 

3.  Amount  of  expenses  paid  during  the  year,  including  com- 
missions and  fees  to  agents  and  officers  of  the  company. 

6 


82  hine's  insukance  statutes. 

4.  Amount  of  all  other  payments  and  expenditures,  with  de- 
tails thereof. 
M  i  seel  hiu  eons: 

1.  Gross  amount  of  risks  taken  during  the  year,  original  and 
renewal,  in  each  branch  of  tbe  company's  business  separately ; 
deducting  amount  of  reinsurance  effected  thereon  in  each 
branch  separately ; 

2.  And  amount  of  risks  in  force  at  end  of  the  year  in  each 
branch  of  the  company's  business,  deducting  reinsurance;  and 
showing  at  foot,  in  separate  columns,  the  net  amount  of  risks 
then  in  force. 

Form  of  declaration  to  accompany  the  statement . 

Province  of 

County  of 

President,  and 
Secretary  of 
Company  being  duly  sworn,  depose  and  say,  and  each 
for  himself  says,  that  they  are  the  above-described  ofttcers  of  the 
said  company,  and  that  on  the  day  of 

last  all  the  above-described  assets  were  the  absolute  property  of 
the  said  company,  free  and  clear  from  any  liens  or  claims  thereon, 
except  as  above  stated,  and  that  the  foregoing  statement,  with  the 
schedules  and  explanations  hereunto  annexed  and  by  them  sub- 
scribed, are  a  full  and  correct  exhibit  of  all  the  liabilities,  and  of 
the  income  and  expenditure,  and  of  the  general  condition  and  affairs 
of  said  company,  on  the  said  day  of  last, 

and  for  the  year  ending  on  that  day,  according  to  the  best  of  their 
information,  knowledge  and  belief  respectively. 

Signatures. 

Subscribed  and  sworn  to  before  me,  this  day  of 

A.  D. 187  . 

The  Minister  of  Finance  may,  from  time  to  time,  make  such 
changes  in  the  form  of  such  statements  as  shall  seem  to  him  best 
adapted  to  elicit  from  the  companies  a  true  exhibit  of  their  condi- 
tion in  respect  to  the  several  points  hereinbefore  enumerated.  {Ibid, 
§20.) 

91.  All  foreign  companies  shall  make  annual  statements  of 
their  condition  and  affairs  under  oath  of  their  chief  agent,  and  fur- 
nish the  same  to  the  Minister  of  Finance — of  their  Canada  business, 
in  the  same  form  and  manner  as  required  of  Canadian  companies, 
in  the  month  of  January  in  each  year — and  of  their  general  busi- 
ness, in  such  form  and  to  such  date  as  they  may  be  required  by  law 
to  iurnish  to  the  Government  of  the  country  in  which  their  head  of- 
fice is  situate,  in  a  separate  schedule  attached.  The  blank  forms  of 
the  statements  of  the  Canada  business  to  be  furnished  in  duplicate 
hy  the  Finance  Department.     {Ibid,  §  21.) 

93.  Any  violation  of  either  of  the  two  next  preceding  sections, 
shall  subject  the  company  ^iolating  the  same  to  &  penalty  of  five 
hundred  dollars  for  each  violation,  and  of  the  additional  sum  of  one 
hundred  dollars  for  each  month  duiing  which  any  such  company 
shall  neglect  to  make  such  publication  or  to  file  such  afiidavits  and 
statements  as  are  therein  required.  If  such  penalties  are  not  paid, 
the  IVIinister  of  Finance,  with  the  concurrence  of  the  Treasury  Board, 


CANADA.  83 

may  order  sucli  companies  license  to  be  suspended  or  canceled,  as 
may  be  deemed  ex])edieiit.     {Ibid,  §  22.) 

'23.  For  the  efficient  administration  of  the  insurance  business 
in  the  Dominion  of  Canada,  and  to  enforce  strictly  the  pro\isions  of 
this  act,  with  the  necessary  details  resulting-  therefrom,  the  Gov- 
ernor in  Council  may  appoint  an  officer,  to  be  called  the  Superin- 
tendent of  Insurance,  acting-  under  the  instructions  of  the  Minister 
of  Finance,  whose  duty  it  shall  be  to  examine  and  report  to  the 
said  IMinister  of  Finance,  from  time  to  time,  u])on  all  matters  con- 
nected with  insurance,  as  carried  on  by  the  several  companies 
licensed  to  do  business  in  Canada,  or  required  by  this  act  to  make 
returns  of  their  afltairs ;  such  Superintendent  may  be  appointed  at 
a  salary  not  exceeding  four  thousand  dollars,  per  annum  ;  and  it 
shall  be  lawful  to  provide  from  time  to  time  such  assistance  as  may 
be  found  necessary ;  the  main  features  of  his  duties  as  to  which 
matters  shall  be  as  follows : 

1.  The  Superintendent  of  Insurance  shall  keep  a  record  of 
the  several  documents  to  be  filed  by  each  company  in  the 
Superior  Courts  of  Canada,  under  the  tenth  section  of  this 
act ;  and  lie  shall  also  enter  in  a  book  under  the  heading  of 
each  company,  the  securities  deposited  on  its  account  with  the 
Receiver-General,  naming-  in  detail  the  several  securities,  their 
par  value,  and  value  at  which  they  are  received  as  dejiosit,  and 
before  the  issue  of  any  new  license,  or  the  renewal  of  any 
license,  he  shall  in  each  case  make  a  report  to  the  Minister  of 
Finance  that  the  requirements  of  the  law  have  been  complied 
with,  and  that  from  the  statement  of  the  affairs  of  the  company 
it  is  in  a  condition  to  meet  its  liabilities;  and  he  shall  keep  a 
record  of  the  licenses  as  they  are  issued. 

2.  The  Su])erintendent  of  Insurance  shall  visit  the  head 
office  of  each  company  in  Canada  at  least  once  in  every  year, 
and  shall  examine  carefully  the  statements  of  the  condition  and 
affairs  of  each  company,  as  required  under  this  act,  and  re- 
port thereon  to  the  Minister  of  Finance  as  to  all  matters  re- 
quiring his  attention  and  decision.  The  Superintendent  of  In- 
surance shall  prepare  for  the  Minister  of  Finance  from  the  said 
statements  an  annual  report,  showing  the  full  i)articulars  of 
each  company's  business,  together  with  an  analysis  of  each 
branch  of  insurance,  with  each  company's  name  ;  giving-  items, 
classified  from  the  statements  made  by  each  company.  The 
Minister  of  Finance  shall  lay  the  Superintendent's  annual  re- 
port before  Parliament  within  thirty  days  after  the  commence- 
ment of  each  session  thereof. 

3.  If  the  Superintendent  of  Insurance,  after  a  careful  ex- 
amination into  the  condition  and  affairs  and  business  of  any 
company  licensed  to  transact  business  in  Canada,  from  the 
annual  or  other  statements  furnished  by  such  company  to  the 
Minister  of  Finance,  or  for  any  other  cause,  deems  it  necessary 
and  exi^edient  to  make  a  further  examination  into  the  affairs  of 
such  company,  and  so  reports  to  the  Minister  of  Finance — the 
Minister  of  Finance  may  at  his  discretion  instruct  the  Superin- 
tendent of  Insurance  to  visit  the  office  of  such  company,  to 
thoroughly  inspect  and  examine  into  all  its  affairs,  and  to  make 
all  such  further  inquiries  as  are  necessary  to  ascertain  its  con- 
dition and  ability  to  meet  its  engagements,  and  whether  it  has 
complied  with  all  the  i)rovisions  of  this  act  aiiplicable  to  its 


84  hine's  insurance  statutes. 

transactions.  And  it  shall  be  the  duty  of  the  officers  or  agents 
of  such  company  to  cause  their  books  to  be  open  for  the  in- 
spection of  the  Superintendent  of  Insurance,  and  otherwise  to 
facilitate  such  examination  so  far  as  it  may  be  in  their  power ; 
and  for  that  purpose  the  said  Superintendent  shall  have  power 
to  examine  under  oath  the  officers  or  agents  of  such  company 
relative  to  its  business.  A  report  of  all  companies  so  visited 
by  the  Superintendent  shall  be  entered  in  a  book  kei:)t  for  that 
purpose,  with  notes  and  memoranda  showing  the  condition  of 
each  comi^any  after  such  investigation,  and  a  special  report  com- 
municated in  writing  to  the  Minister  of  Finance,  stating  the 
Superintendent's  opinion  as  to  its  standing  and  financial  x>osi- 
tion,  and  all  other  matters  desirable  to  be  made  known  to  the 
Minister  of  Finance.  If  it  appears  to  the  Superintendent  that 
the  assets  of  any  company  are  insufficient  to  justify  its  continu- 
ance of  business  on  the  guarantee  basis  of  sections  six  and 
eight,  or  unsafe  for  the  ])ublic  to  effect  insurance  with  it,  he 
shall  make  a  special  report  on  the  affairs  of  such  company  to  the 
Minister  of  Finance ;  and  if  the  Minister,  after  a  full  consider- 
ation of  the  report,  and  a  reasonable  time  being  given  to  the 
company  to  be  heard  by  him,  after  such  further  inquiry  and  in- 
vestigation (if  any)  as  he  may  see  proper  to  make,  reports  to  the 
Governor  in  Council  that  he  agrees  with  the  said  Superintend- 
ent in  the  opinion  so  expressed  in  his  report,  then,  if  the 
Governor  in  Council  also  concurs  in  such  opinion,  an  order  in 
Council  may  issue  suspending  or  canceling  the  license  of  such 
company,  which  shall  then,  during  such  sns pension  or  cancel- 
ation, be  held  to  be  unlicensed  ;  and  after  the  notification  of  the 
suspension  or  canceling  of  such  license  in  the  Canada  Gazette^ 
any  person  delivering  any  policy  of  insurance,  or  collecting  any 
premium,  or  transacting  any  business  of  insurance,  on  behalf 
of  such  company,  shall  be  liable  to  the  x)enalties  provided  for 
by  the  fourteenth  section  of  this  act. 

4.  The  Superintendent  of  Insiu'ance,  or  officers  under  him, 
shall  not  be  interested  as  shareholders,  directly  or  indirectly, 
with  any  insurance  company  doing  business  in  Canada,  or 
licensed  under  this  act. 

5.  Towards  defraying  the  expenses  of  the  office  of  the 
Superintendent  of  Insurance,  a  sum  not  exceeding  eight  thou- 
sand dollars  shall  be  annually  contributed  by  the  companies 
licensed  under  this  act,  which  sum  shall  be  assessed  pro  rata 
upon  the  gross  premiums  received  by  each  during  the  preceding 
year,  such  sum  to  be  paid  upon  the  issue  of  the  annual  license. 

6.  The  Superintendent  of  Insurance  shall  also  collect  and 
pay  to  the  Keceiver-General  the  following  fees : 

For  recording  and  filing  the  several  documents  required 

of  each  company,  under  the  tenth  section  of  this  act.  .$10  00 

For  change  of  attorney  under  the  said  section 5  00 

For  license  to  do  business 5  00 

For  every  renewal  of  such  license 2  00 

For  annual  statements  of  each  companv 5  00 

— (7i/V/,  §23.) 

34.  After  the  passing  of  this  act  the  act  of  the  Parliament 
of  Canada,  passed  in  the  thirty-first  year  of  Her  Majesty's  Reign, 
intituled  "  An  Act  respecting  Insurance  Companies,''^  and  the  act 
passed  in  the  thirty -foiu'th  year  of  Her  Majesty's  Keign,  intituled, 


CANADA.  85 

"  An  Act  to  amend  the  Act  respecting  Insurance  Companies,''^  are  hereby 
repealed,  in  so  far  as  they  rehite  to  fire  and  inland  marine  insur- 
ance, saving-  nevertheless  all  licenses  which  may  have  been  there- 
under issued,  until  the  thii-ty-flrst  day  of  March,  in  the  year  1870 
(at  which  date  they  shall  exj)ire),  and  the  right  of  companies  so 
licensed  to  continue  business  during  the  existence  of  the  same  ;  and 
saving  also  any  act  done,  or  right,  or  right  of  action  existing,  ac- 
cruing, accrued,  or  established,  or  any  proceedings  commenced,  or 
any  otfense  committed,  or  any  penalty  or  forfeiture  incurred,  before 
the  passing  of  this  act,  with  respect  to  all  which  the  said  acts 
shall  remain  in  force.     {Ibid,  §  24.) 


compa:sies  other  than  fire  or  inland  marine. 

S5.  In  this  act  and  the  act  hereby  amended,  the  expression 
"Canadian  Policy,"  or  "Policies  in  Canada,"  means  all  policies 
issued  by  any  company  licensed  to  transact  the  business  of  insur- 
ance in  Canada,  in  favor  of  any  person  or  party  resident  in  Canada 
at  the  time  wh^n  such  policies  were  issued,  and  also  as  regards  fire 
insurance,  any  policy  of  insurance  on  any  i)roperty  in  Canada.  {Act 
34  Victoria,  1871,  Chap.  9,  §  1.) 

26.  The  seventh  section  of  the  act  respecting  insurance  com- 
panies, passed  in  the  thirty-first  year  of  Her  Majesty's  reign,  and 
chaptered  forty-eight,  is  hereby  rei)ealed,  and  the  following  section 
is  substituted  therefor,  and  shall  hereafter  be  read  as  the  seventh 
section  of  the  said  act : 

"7.  All  such  deposits  may  be  made  by  any  company  in  securi- 
ties of  the  Dominion  of  Canada,  or  in  securities  issued  by  any  of  the 
Pronnces  in  the  t)ominion  of  Canada,  and  by  any  company  incor- 
porated in  Great  Britain,  in  securities  of  the  United  Kingdom,  and 
by  any  company  incori)orated  in  the  United  States,  in  securities  of 
the  United  States ;  and  the  value  of  such  securities  shall  be  esti- 
mated at  their  market  value  at  the  time  when  they  are  so  deposited ; 
if  any  securities  other  than  those  above  named  are  offered  as  a  de- 
posit, they  may  be  accepted,  at  sucih  valuation  and  on  such  condi- 
tions as  the  Treasury  Board  may  direct;  and  if  the  market  value  of 
any  of  the  securities  which  have  been  deposited  by  any  company 
shall  decline  below  that  at  which  they  were  deposited,  the  Treasury 
Board  may  call  upon  the  company  to  make  a  further  deposit,  so  that 
the  market  value  of  all  the  securities  deposited  by  any  company 
shall  be  equal  to  the  amount  which  they  are  required  to  deposit  by 
this  act." 

And  wherever  it  is  provided  in  the  aforesaid  act  that  a  company 
shall  deposit  any  amount  in  money  with  the  Receiver-General,  it 
shall  be  held  to  imply  that  the  company  shall  deposit  securities 
with  the  Receiver-General  equivalent  in  value  to  such  amount ;  and 
wherever  it  is  provided  that  the  Receiver-General  shall  invest  in 
Dominion  stock  the  interest  accrued  on  any  securities  deposited  by 
a  company,  it  shall  be  held  to  imply  that  he  shall  pay  su(;h  interest 
to  the  company  upon  its  depositing  with  him  securities  of  equiv- 
alent value.     {Ibid,  §  2.) 

27.  If  any  company  shall  have  made  a  deposit  in  cash,  as  pro- 
vided by  the  seventh  section  of  the  Act  31  Victoria,  chapter  48,  and 
such  deposit  has  been  invested  in  trust  for  the  company  in  Domin- 
ion stock  at  par,  such  stock  shall  for  the  purposes  of  the  next  pre- 


86  niNE's  INSURANCE  STATUTES. 

ceding  section  be  reckoned  at  par ;  and  if  such  comj)any  shall  there- 
after withdraw  from  business  in  Canada,  or  become  insolvent,  the 
amount  so  invested  in  Dominion  stock  shall  be  repaid  to  the  com- 
pany, or  applied  in  liquidation  of  the  claims  against  it,  at  par.  {Ibid, 
§3.) 

28.  Upon  the  insolvency  of  any  company,  the  court  having 
jurisdiction  in  the  Province  (or  sitting  in  the  district  if  such  Pro- 
^^nce  be  the  Province  of  Quebec)  where  the  chief  agency  in  Canada 
of  such  company  is  situated,  shall  appoint  an  assignee  or  assignees, 
who  shall  forthwith  call  u])on  the  company  to  furnish  a  statement 
of  all  its  outstanding  policies  in  Canada,  and  upon  all  policy-hold- 
ers to  hie  their  claims  ;  and  upon  the  tiling  of  the  claims  before  the 
assignees,  the  parties  interested  shall  have  the  same  right  of  con- 
testation, and  the  assignee  shall  have  the  same  powers  in  respect 
thereof,  subject  to  the  same  right  of  appealing  from  their  decision 
to  the  same  tribunals,  as  is  provided  for  in  similar  cases  by  the  In- 
solvent Act  of  1809;  and  in  the  case  of  a  life  insurance  company 
the  assignee  or  assignees  may  insure  all  outstanding  Canadian  poli- 
cies wnth  some  company  licensed  to  transact  business  in  Canada, 
advertising  for  tenders  to  that  effect ;  and  if  the  amount  of  the  de- 
posit be  not  enough  so  to  reinsure  all  policies  to  the  full  amount, 
and  to  meet  all  judgments  against  the  company,  and  claims  accrued, 
the  assignees  may  insure  them  for  such  a  percentage  of  the  risks  as 
the  amount  at  their  disposal  may  admit  of,  such  reinsurance  rank- 
ing ^ro  rata  with  judgments  and  claims  accrued;  and  the  court  hav- 
ing jurisdiction,  as  above  provided,  may  order  a  sufficient  amount 
of  the  securities  to  be  sold  to  meet  such  reinsurance  If  the  assign- 
ees are  unable  to  reinsure,  in  full  or  in  part,  all  outstanding  Cana- 
dian policies  as  a  whole,  they  shall  appoint  a  competent  actuary, 
and  shall  ascertain  the  reinsurance  value  of  each  policy  according 
to  the  tables  which,  on  the  report  of  the  Treasury  Board,  may  be 
sanctioned  by  the  Governor  in  Council  for  that  purpose;  and  upon 
the  completion  of  the  schedule  to  be  prepared  by  the  assignees  of 
all  judgments  against  the  company  and  of  all  claims  for  reinsurance 
or  for  surrender  of  the  ])olicy  as  aforesaid,  the  court  having  juris- 
diction, as  above  provided,  shall  cause  the  securities  held  by  the 
Receiver-General  for  such  company,  or  any  part  of  them,  to  be  sold 
in  such  manner  and  after  such  notice  and  formalities  as  the  court 
may  appoint,  and  the  proceeds  thereof,  after  paying  the  expenses 
incurred,  shaU  be  distributed  pro  rata  amongst  the  claimants*  ac- 
cording to  such  schedule,  and  the  balance,  if  any,  shall  be  surren- 
dered to  the  company.  But  if  any  loss  shall  be  sustained  or  any 
claim  shall  arise  after  the  statement  of  outstanding  policies  has 
been  obtained  from  the  company,  as  hereinbefore  provided,  and  be- 
fore the  final  order  of  the  court  for  the  distribution  of  the  proceeds 
of  the  securities,  or  if  the  i)roceeds  of  the  securities  shall  not  be  suf- 
ticient  to  cover  in  full  all  claims  recorded  in  the  schedule,  the  policy- 
holders shall  not  be  barred  from  any  recourse  they  may  have  either 
in  law  or  equity  against  the  company  issuing  the  policy,  other  than 
that  for  a  share  in  the  distribution  of  the  proceeds  of  the  securities 
held  for  such  company  by  the  Keceiver-General.     {Ibid,  §  4.) 

29.  When  any  company  has  ceased  to  transact  business  in  Can- 
ada, and  has  given  the  notice  required  by  this  act  to  that  effect, 
^^-^fore  its  securities  can  be  given  up  to  it  it  must  insure  on  behalf 
of  i*  j  Canadian  policy-holders  all  outstanding  risks  in  some  com- 

any  or  comiianies  licensed  in  Canada,  or  obtain  the  surrender  of 


CANADA.  87 

the  policies.  Upon  making  application  for  its  secnrities,  the  com- 
pany juust  file  with  the  Minister  of  Finance  a  list  of  all  Canadian 
policT-hoklers  who  have  not  been  so  insnred  or  liave  not  snrren- 
dered  their  policies,  and  it  must  at  the  same  time  publish  in  theCanada 
Gazette  a  notice  that  it  has  ai)plied  to  GoA^ernment  for  the  release  of 
its  seciu'ities  on  a  certain  day,  not  less  than  thirty  days  after  the 
date  of  the  notice,  and  calliuf^  upon  its  Canadian  policy-holders  op- 
posinof  such  release  to  tile  their  opposition  with  the  JMinister  of  Fi- 
nance on  or  before  the  day  so  named;  and  after  that  day,  if  the 
Treasury  Board  is  satisfied  that  the  company  has  ample  assets  to 
meet  its  liabilities,  all  the  securities  may  be  released  to  it  by  an 
order  of  the  Governor  in  Council,  or  a  sufficient  amount  of  them  may 
be  retained  to  cover  the  value  of  all  risks  respecting  which  opposi- 
tion has  been  filed,  and  the  remainder  may  be  released,  and  thereafter, 
from  time  to  time,  as  such  opposing  risks  may  lapse  or  proof  maybe 
adduced  that  they  have  been  satisfied,  further  releases  may  be  made 
on  the  authority  aforesaid;  and  after  a  company  has  ceased  to 
transact  business  in  Canada  after  the  notice  hereby  required,  and 
its  license  has  in  consequence  been  withdrawn,  such  company  may 
nevertheless  continue  to  receive  the  premiums  coming-  due  on  poli- 
cies not  reinsm-ed  or  surrendered,  and  may  pay  the  losses  arising 
thereon  as  if  such  license  had  not  been  withdrawn.     {Ibid,  §  5.) 

S®.  This  act  shall  come  into  force  on  the  first  day  of  July,  in 
the  present  year  1871 ;  and  the  provisions  of  this  act  shall  apply  to 
all  insurance  companies  which  may  have  become  insolvent  within 
the  twelve  months  prior  to  the  date  of  the  passing  of  this  act. 
{Ibid,  §  6.) 

31.  The  following  terms  and  expressions  whenever  used  in 
this  act,  unless  it  be  otherwise  sx-)3oially  provided,  or  there  be  some- 
thing in  the  context  repugnant  to,  or  inconsistent  with  such  con- 
struction, shall  be  construed  and  interpreted  as  hereinafter  men- 
tioned, that  is  to  say  : 

"  Company"  means  and  includes  any  corporation,  and  any  soci- 
ety or  association,  incorporated  or  unincorporated,  and  any  partner- 
ship carrying  on  the  business  of  insurance  other  than  that  of  ma- 
rine insurance  only ; 

"  Agent "  means  the  principal  agent  of  the  company  in  Canada, 
named  as  such  in  the  power  of  attorney  hereinafter  referred  to,  by 
whatever  name  he  may  be  designated  ; 

"  Chief  agency  "  means  the  principal  office  or  place  of  business 
of  the  company  in  Canada.     {Act  31  Victoria,  1868,  Chap.  48,  §  1.) 

Sa.  Except  companies  transacting  in  Canada  ocean  marine  in- 
surance business  exclusively,  it  shall  not  be  lawful  for  any  insurance 
company  to  issue  any  policy  of  insurance,  or  take  any  risk,  or  re- 
ceive any  premium,  or  transact  any  business  of  insurance  in  Can- 
ada, or  to  prosecute  or  maintain  any  suit,  action,  orjiroceeding, 
either  at  law  or  in  equity,  or  file  any  claim  in  insolvency,  without 
first  obtaining  a  license  from  the  Minister  of  Finance  to  carry  on 
business  in  Canada  ;  but  the  premiums  to  become  due  on  policies 
actually  issued  previous  to  this  date  may  coTitinue  to  be  received, 
and  the  losses  arising  thereon  may  be  paid  as  if  this  Act  had  not 
been  passed.     {Ibid,  §  2.) 

33.    The  Minister  of  Finance  shall  issue  such  license  as  afore- 
said, so  soon  as  the  company  aj)plying  for  the  same  has  deposited 
through  him  in  the   hands  of  the  Keceiver  General,  the  sums  of 
money  or  secui'ities  hereinafter  mentioned  and  required,  and  Kuch 


88  hine's  insueance  statutes. 

license  shall  specify  the  business  to  be  carried  on  by  the  company. 
{Ibid,  §  3.) 

34,  The  deposit  to  be  so  made,  as  aforesaid,  shall  be  as  fol- 
lows, to  wit :  By  every  life  insurance  or  guarantee  company,  a  sum 
of  not  less  than  fifty  thousand  dollars  ;  and  by  every  accident  com- 
pany, a  sum  of  not  less  than  twenty  thousand  dollars ;  and  such 
sum  shall  be  deposited  before  the  license  is  issued,  except  only  in 
the  case  of  companies  incorporated  before  the  passing  of  this  act, 
by  act  of  the  Parliament  of  Canada,  or  of  the  legislature  of  any  of 
the  late  Provinces  of  Canada,  Lower  Canada  or  Ui>per  Canada,  or 
of  ]Sova  Scotia  or  ]Sew  Brunswick,  or  which  may  have  been  or  may 
hereafter  be  incorporated  by  the  Parliament  of  Canada  or  by  the 
legislature  of  any  Province  of  the  Dominion,  and  carrying  on  the 
business  of  life  insiirance,  but  no  other,  which  companies  may  make 
such  deposits  in  three  equal  annual  installments,  the  first  of  which 
shall  be  paid  before  the  issue  of  the  license,  on  or  before  the  first 
day  of  August,  one  thousand  eight  hundred  and  sixty -nine,  {Ibid, 
§  4,  as  amended  ly  act  of  37  Victoria,  chap.  48,  §  1.) 

3d.  T\Tien  any  comi)any  carries  on  more  than  one  description 
of  insurance  business,  it  shall  make  a  sei)arate  deposit,  as  atoresaid, 
for  each  branch  of  its  business  ;  Provided,  That  a  company  combin- 
ing life  and  accident  insurance  shall  only  be  required  to  make  one 
deposit  for  each  such  combination  of  two  branches  of  business  ;  and 
with  respect  to  any  insurance  business  other  than  those  hereinbefore 
specified,  the  Minister  of  Finance  may  prescribe  the  amount  of  de- 
posit which  shall  be  required.     {Ibid,  §  5.) 

36.  Except  only  as  regards  companies  entitled  to  make  their 
deposits  by  installments,  as  aforesaid,  whenever  and  so  long  as  the 
deposits  of  any  company  under  this  act,  shall  be  less  than  one  hun- 
dred thousand  dollars,  the  agent  of  such  company  shall  send  in 
yearly  to  the  Minister  of  Finance,  within  one  month  after  the  first 
day  of  Januarj^  of  each  year,  returns  under  oath,  of  the  amount  of 
premiums  received  by  the  company  on  risks  in  Canada,  and  after 
deducting  twenty-five  per  cent,  therefrom,  and  the  net  amount  of 
losses  or  claims  actually  paid,  shall  deposit  in  the  hands  of  the  Re- 
ceiver-General for  the  purposes  of  this  act,  and  subject  to  its  pro- 
visions, the  balance  of  such  premiums,  until  the  deposit  of  such 
company  shall  be  equal  to  one  hundred  thousand  dollars  ;  and  so 
long  as  such  deposit  is  under  one  hundred  thousand  dollars,  no  in- 
terest or  dividends  shall  be  ])H\d  on  the  actual  deposit,  but  such  in- 
terest or  di\'ideud  shall  be  added  to  the  principal  every  half  year 
until,  with  the  premiums  hereinbefore  mentioned,  the  deposit  shall 
amount  to  one  hundred  thousand  dollars  ;  Provided,  That  any  com- 
I)any  combining  the  business  of  fire  and  life  insurance  shall  be  re- 
quired to  make  such  additional  deposit  only  as  regards  the  pre- 
miums received  for  life  insurance ;  and  Provided  also,  That  any  life 
insurance  company  incorporated  in  Canada  since  the  Union,  which 
shall  deposit  all  the  balance  of  the  premiums  received  by  it,  after 
the  deductions  above  i^rovided  for,  until  such  deposit  amounts  to 
one  hundred  thousand  dollars,  shall  not  be  subject  to  any  i)rovision 
of  this  act  requiring  any  other  deposit.     {Ibid,  §  6.) 

37.  Except  in  the  cases  with  respect  to  which  it  is  otherwise 
provided,  so  long  as  the  amount  of  the  deposit  which  any  company 
is  required  to  have  then  made  is  unimpaired,  and  no  notice  of  any 
judgment  or  order  to  the  contrary  is  served  upon  the  ]Minister  of 
Finance  and  the  Eeceiver-General,  the  interest  upon  the  stock  or  se- 


CANADA.  89 

curities  representing  or  forming-  part  of  such  deposit  shall  be  pay- 
able to  the  company.     {Ibid,  §  8.) 

38.  Every  company  obtaining  such  license  as  aforesaid  shall, 
before  the  transaction  of  any  business  of  insurance,  file  in  the  office 
of  either  of  the  superior  courts  of  law  or  equity  in  that  one  of  the 
Provinces  of  Ontario,  Xova  Scotia,  or  New  Brunswick  in  which  it 
has  its  chief  agency  (if  such  chief  agency  be  in  one  of  those  Pro- 
vinces), or  if  the  chief  agency  be  in  the  Province  of  Quebec,  with 
the  Prothouotary  of  the  superior  court  of  the  district  within  such 
chief  agency-  is  established,  a  certified  copy  of  the  charter,  act  of 
incorporation,  or  articles  of  association  of  the  company,  and  also 
a  power  of  attorney  from  the  company  to  its  agent  in  Canada,  under 
the  seal  of  the  comjiany  (if  it  have  a  seal),  and  signed  by  the  i)resi- 
dent  and  secretary  or  other  proper  officer  thereof,  and  verified  as  to 
its  authenticity  by  the  oath  of  the  agent  of  such  company  in  Canada, 
or  of  some  person  cognizant  of  the  facts  necessary  to  its  verifica- 
tion, which  power  of  attorney  must  declare  at  what  place  in  Canada 
the  chief  agency  of  the  company  is  or  is  to  be  established,  and  must 
exjjressly  authorize  such  agent  to  receive  process  in  all  suits  and 
proceedings  against  such  company  in  Canada,  for  any  liabilities  in- 
curred by  the  company  therein,  and  must  declare  that  service  of 
process  for  or  in  respect  of  such  liabilities  at  such  chief  agency  or 
personally  on  such  agent,  at  the  place  where  such  chief  agency  is 
estabbshed,  shall  be  legal  and  binding  on  the  company  to  all  intents 
and  purposes  whatever.     {Ibidy  §  9.) 

39.  After  the  certified  copies  referred  to  in  the  next  preced- 
ing section  and  such  power  of  attorney  are  filed  as  aforesaid,  any 
process  in  any  suit  or  proceeding  against  such  company,  for  any 
liabilities  inciu'red  in  Canada,  may  be  served  on  the  company  at 
its  chief  agency  in  the  same  manner  as  process  may  be  served 
upon  any  company  incorporated  in  Canada,  and  all  proceedings  may 
be  had  thereupon  to  judgment  and  execution  in  the  same  manner 
and  with  the  same  force  and  effect  as  in  x)roceedings  in  any  civil 
suit  in  Canada.     {Ibid,  §  10.) 

4®.  Every  company  obtaining  such  license  as  aforesaid  shall 
forthwith  give  due  notice  thereof  in  the  Canada  Gazette,  and  in  at 
least  one  newspaper  in  the  county,  city,  or  place  where  the  chief 
agency  is  established,  and  shall  continue  the  publication  thereof  for 
the  space  of  one  calendar  month,  and  the  like  notice  shall  be  given 
when  such  company  shall  cease,  or  notify  that  they  intend  to  cease 
to  carry  on  business  in  Canada.     {Ibid,  §  11.) 

4:1.  No  foreign  stock  company  shall  transact  any  business  of 
insurance  in  Canada  unless  such  company  is  possessed  of  at  least 
one  hundred  thousand  dollars  of  paid  up  and  unimpaired  capital, 
or  accumulated  surplus  funds  invested  in  good  and  sufficient  securi- 
ties, nor  shall  any  license  be  issued  in  favor  of  such  comi)any  until 
statement  under  oath  to  that  effect  is  filed  with  the  Minister  of 
Finance  sworn  to  by  some  one  whose  duty  it  is  to  know  and  who  is 
personally  cognizant  of  the  fact  sworn  to  ;  Provided,  That  the  unim- 
paii'ed  amount  of  the  deposit  of  any  company  then  in  the  hands  of 
the  Eeceiver-General  shall  be  reckoned  as  part  of  its  capital.  {Ibid, 
§12.) 

42.  Any  person  who  shall  deliver  any  policy  of  insurance  or  col- 
lect any  premium,  or  transact  any  business  of  insurance  on  behalf 
of  any  such  company  as  aforesaid,  without  such  license  as  aforesaid, 
or  if  such  license  has  been  withdrawn,  without  the  renewal  thereof, 


90  hike's  insurance  statutes. 

or  without  filing:  tlie  copy  of  the  charter,  act  of  incorporation,  or 
articles  of  association  of  the  company,  and  a  jiower  of  attorney 
as  hereinbefore  provided,  shall  be  liable  to  a  penalty  of  one  thousand 
dollars  for  each  such  contravention  of  this  act,  which  penalty  may 
be  sued  for  and  recovered  on  information  tiled  in  the  name  of  the 
Attorney-General  for  Canada,  and  shall  be  paid  to  the  Crown,  and 
in  case  of  non-payment  of  such  penalty  in  one  month  after  such 
judgment,  the  person  so  offending  shall  be  liable  to  imprisonment  in 
any  gaol  or  prison  in  the  jurisdiction  where  he  is  convicted,  for  the 
space  of  three  months.     {Ibid,  §  13.) 

43.  Subject  to  the  exce])tion  in  the  next  following  section, 
every  company  so  licensed  shall  transmit  annually,  to  the  office  of 
the  Minister  of  Finance,  a  statement  in  duplicate,  verified  by  the 
oath  of  the  president,  manager,  or  agent  of  such  company-,  or  any 
person  cognizant  of  the  facts,  containing  the  particulars  mentioned 
in  the  form  in  the  schedule  to  this  act  ap])licable  to  the  case,  such 
statement  to  be  made  up  to  the  first  day  of  July  next  preceding,  or 
to  the  usual  balancing  day  of  the  company;  Provided^  Such  balancing 
day  be  not  more  than  twelve  months  in  the  case  of  life  assurance 
companies  and  six  months  in  the  case  of  other  companies  before 
the  filing  of  such  statement,  and  a  copy  of  such  statement  shall  be 
published  in  the  Canada  Gazette  ;  and  the  Minister  of  Finance  shall 
cause  the  statements,  or  an  analysis  thereof,  to  be  laid  before  Parlia- 
ment, within  thirty  days  after  the  commencement  of  each  session 
thereof,  and  any  company  failing  to  comply  with  the  pro^asions  of 
this  section  shall  forfeit  and  pay  to  the  Crown  the  sum  of  one  thou- 
sand dollars,  to  be  recovered  on  information  to  be  filed  in  the  name 
of  the  Attorney-General  for  Canada,  in  that  behalf;  and  with  re- 
spect to  any  kind  of  business  not  provided  for  in  the  said  schedules, 
the  Minister  of  Finance  may  j^rescribe  the  form  of  return  which  shall 
be  made,  under  the  like  penalty,  and  recoverable  in  the  like  manner, 
and  the  Minister  of  Finance  may  from  time  to  time  vary  the  forms 
in  the  said  schedules,  as  far  as  regards  the  basiness  done  by  any 
company  in  Canada,  or  grant  an  extension  of  time  for  filing  the 
same  according  as  exj^erience  or  the  special  constitution  of  any  com- 
pany may  require.     {Ibid,  §  14.) 

44,  No  insurance  company  established  in  the  United  Kingdom, 
and  which  is  not  bound  by  the  laws  in  force  there  to  furnish  or  pub- 
lish statements  of  its  affairs,  shall  be  liable  to  the  obligation,  or  to 
the  penalty  mentioned,  in  the  next  preceding  section,  provided 
such  company,  if  a  life,  or  fire  and  life  insurance  company,  has  de- 
posited not  less  than  one  hundred  and  fifty  thousand  dollars  in 
the  hands  of  the  Receiver-General,  for  the  purposes  of  this  act,  and 
subject  to  all  the  provisions  thereof,  but  every  such  company  shall 
publish  and  tile  with  the  Minister  of  Finance,  on  or  before  the  thir- 
ty-first day  of  January  in  each  year,  a  general  statement  under 
oath  of  the  agent  in  Canada,  containing  the  particulars  mentioned 
in  the  form  D,  in  the  schedule  annexed  to  this  act.     {Ibid,  §  15.) 

4»^.  In  case  of  the  insolvency  of  any  company,  the  stock  re- 
presenting the  deposit  of  such  company  shall  be  applied  pro  rata 
towards  the  payment  of  all  claims  duly  authenticated  against  such 
company,  ujion  or  in  respect  of  policies  issued  in  Canada, ;  and  any 
such  company  shall  be  deemed  insolvent  upon  failure  to  pay  any 
undisputed  claim  arising  or  loss  insured  against  in  Canada  for  the 
space  of  thirty  days  after  being  due,  or,  if  disputed,  after  final 
judgment  and  tender  of  a  legal  valid  discharge  and  (in  either  case) 


CANADA.  91 

after  notice  thereof  to  the  Minister  of  Finance ;  and  the  distribution 
of  the  proceeds  of  such  stock  may,  if  applied  for  in  the  Province 
of  Ontario,  or  of  Nova  Scotia,  or  of  New  Briinswiclc,  be  made  by 
order  in  cliancery,  or  in  equity,  or  if  applied  for  in  the  Province 
of  Quebec,  may  be  made,  by  judgment  or  order  of  distribution  of 
the  superior  court  within  the  district  where  the  chief  agency  is  sit- 
uated ;  Provided,  That  in  any  case  when  a  claim  for  loss  is  by  the 
terms  of  the  policy  payable  on  proof  of  such  loss,  without  any  stip- 
ulated delay,  the  notice  to  the  Minister  of  Finance  under  this  sec- 
tion shall  not  be  eiven  until  after  the  lapse  of  sixty  days  from  the 
time  when  the  claim  becomes  due.     {Ibid,  §  IG.) 

46.  For  the  purposes  of  such  distribution  the  Court  may  or- 
der that  the  stock  of  the  company  so  insolvent  be  transferred  to 
and  inscribed  in  the  Government  stock  books  at  or  nearest  to  the 
place  of  the  chief  agency,  and  within  the  jurisdiction  of  the  Court, 
if  such  stock  be  not  already  inscribed  tiiere,  and  may  order  that  no 
further  interest  on  such  stock  be  thereafter  paid  to  the  company, 
and  that  such  stock  or  any  part  thereof  be  sold  in  such  manner  and 
after  such  notice  and  formalities  as  the  Court  may  appoint.  {Ibid, 
§17.) 

47.  Whenever  any  company  entitled  to  make  the  deposits  re- 
quired by  this  act  by  installments,  fails  to  pay  any  such  installment 
when  due,  or  if  any  company  fails  to  pay  the  Eeceiver-General  the 
proper  balance  of  its  premiums  as  required  by  this  act,  and  at  the 
time  requii-ed  by  it,  or  whenever  notice  has  been  given  to  the 
Minister  of  Finance  under  the  next  preceding  section  but  one,  so 
that  the  amount  of  the  stock  representing  the  dejiosit  of  such  com- 
pany is  liable  to  be  reduced  by  sale  of  any  portion  thereof,  the 
license  of  such  company  shall  ipse  facto  be  null  and  void  and  shall 
be  deemed  to  be  withdrawn  ;  bnt  such  license  may,  in  the  case  last 
mentioned,  be  renewed  and  the  company  may  again  transact  busi- 
ness, if  within  sixty  days  after  notice  to  the  Minister  of  Finance  of 
the  company's  failure  to  pay  any  vmdisputed  claim,  or  the  amount 
of  any  linal  judgment,  as  pro\ided  in  the  said  section,  undisputed 
claims  or  final  judgments  upon  or  against  the  company  in  Canada 
are  paid  and  satisfied,  and  the  company's  deposit  is  restored  to  the 
amount  required  by  this  Act.     {Ibid,  §  18.) 

48.  After  any  company  has  ceased  to  transact  business  in 
Canada,  and  given  the  notice  required  by  this  act  to  that  effect,  it 
shall  be  lawful  for  the  Governor  in  Council,  on  the  report  of  the 
Treasury  Board,  to  authorize  the  whole  or  any  portion  of  the  stock 
of  other  securities  so  held  in  deposit  for  any  company  as  aforesaid, 
to  be  released  and  transferred  to  the  company,  upon  being  satisfied 
that  it  has  no  liabilities  upon  policies  issued  in  Canada,  and  that 
no  suit  or  legal  i^roceedings  are  pending  against  the  company  there- 
in, or  on  proper  proof  on  oath  of  the  state  of  its  affairs  being  given, 
that  such  company  has  ample  assets  to  meet  all  its  liabilities ;  and 
upon  such  authority  being  given ,  by  the  Governor  in  Council,  the 
company  shall  be  entitled  to  receive,  instead  of  anj-  Dominion  stock 
so  held,  the  amount  thereof  in  money  at  par.     {Ibid,  §  19.) 

49.  And  as  regards  British  and  other  foreign  insurance  com- 
panies actually  doing  business  in  Canada  at  the  time  of  the  passing 
of  this  act,  which  can  not  by  the  terms  of  their  constitutions,  or 
charters,  or  by-law,  invest  in  Canadian  securities,  it  shall  be  lawful 
for  the  Minister  of  Finance,  with  the  api)roval  of  the  Governor  in 
Council,  to  receive  the  amount  of  the  dei)Osit  required  of  them  uu- 


92  hike's  insurance  statutes. 

der  tliis  act  in  British  or  foreign  Government  secnrities,  including 
stock  of  any  one  or  more  of  tlie  United  States,  at  tlieir  then  market 
vahie,  but  with  power  to  him  to  require  from  time  to  time,  if  such 
market  value  should  decline,  additional  security  equivalent  to  their 
diminution  in  value ;  and  the  portion  of  the  premiums  received  by 
any  such  companj-  required  to  be  deposited  under  this  act,  may  be 
invested  by  the  company  in  any  such  British  or  foreign  stock  as 
aforesaid,  and  such  stock  may  be  deposited  ^vith  the  Keceiver-Gen- 
eral,  subject  to  the  provision  above  made  as  to  value,  and  diminution 
in  value ;  but  all  such  stock  shall  be  replaced  by  cash  or  investment 
to  the  amount  aforesaid  A^athin  three  years  from  the  issue  of  the 
license  to  the  company,  otherwise  such  license  shall  be  void ;  and 
as  regards  any  such  company  acting  on  the  mutual  principle  in 
such  wise  as  to  be  unable  legally  to  make  a  deposit  under  this  a  ct, 
for  the  security  of  policy-hohlers  resident  in  Canada  the  deposit 
may  be  for  the  general  benefit  of  all  its  members,  but  the  company 
shall  specify  the  fact  when  making  the  deposit  and  in  all  returns 
made  or  published  by  them.     (Ibid,  §  22.) 

50.  The  Minister  of  Finance  shall  publish  quarterly,  in  the 
Canada  Gazette,  a  list  of  comi)anies  licensed  under  this  act,  with  the 
amount  of  deposits  made  by  each,  stating  whether  such  deposit  is 
for  the  security  of  the  Canadian  policy-holders,  exclusively,  or  for 
the  general  security  of  all  policy-holders.     {Ibid,  §  23.) 

5 1 .  The  provisions  of  this  Act  as  to  dei)osit  and  issue  of  li- 
cense shall  not  apply  to  any  insurance  company  incorporated  by 
any  Act  of  the  Legislature  of  the  late  province  of  Canada,  or  in- 
corporated or  to  be  incorporated  under  any  Act  of  any  one  of  the 
Provinces  of  Ontario,  Quebec,  Nova  tScotia,  or  New  Brunswick,  so 
long  as  it  shall  not  carry  on  business  in  the  Dominion  beyond  the 
limits  of  that  province  by  the  Legislature  or  Government  of  which 
it  was  incorporated,  but  it  shall  be  lawful  for  any  such  company  to 
avail  itself  of  the  provisions  of  this  Act.     [Ibid,  §  25.) 

5!2.  The  Superintendent  of  Insurance,  who  may  at  any  time  be 
appointed  under  an  act  of  the  present  session,  intituled  ^'■An  Act  to 
amend  and  consolidate  the  several  acts  respecting  insurance,  in  so  far 
as  regards  fire  and  inland  marine  business,''^  shall  have  authority  to 
examine  into  the  affairs  of  all  companies  licensed  to  transact  life 
insiu'ance  business  or  any  form  of  insurance  other  than  that  of  fire 
and  inland  marine  insurance;  and  he  shall  have  the  like  powers 
with  respect  to  the  superintendence  of  such  companies  as  are  pro- 
vided for  by  the  said  act  with  respect  to  fire  and  inland  marine 
companies.     {Act  38  Victoria,  1875,  chap,  til,  §  1.) 

Sit.  The  Minister  of  Finance  shall  have  the  power  to  call  upon 
all  such  insurance  companies  to  make  such  returns  as  he  may  deem 
necessary  to  show  the  condition  and  affairs  of  the  same.  {Ibid, 
§2.) 

•54.  In  estimating  the  financial  condition  of  companies,  the 
Superintendent  shall  base  his  calculations  on  a  rate  of  interest  of 
five  per  cent,  per  annum  on  their  securities.     {Ibid,  §  3.) 

55.  Any  company  which  at  the  time  of  tlie  passing  of  this  act 
has  made  the  deposit  required  by  law,  and  has  obtained  a  license 
for  fire  and  life  insurance,  shall  not  be  required  to  make  any  further 
deposit  until  after  the  expiration  of  such  license,  March  thirty - 
first,  one  thousand  eight  hundred  and  seventy-six.     {Ibid,  §  4.) 

56.  For  and  notwithstanding  anything  in  the  said  act  con- 
tained (31  Victoria,  chap.  48),  any  comi)any  licensed  under  the  said 


CANADA.  93 

act  may,  at  any  time  or  times,  deposit  in  the  hands  of  the  Receiver- 
General  any  further  or  other  sum  or  sums  of  money  or  securities 
beyond  the  sum  in  and  by  the  said  act  required  to  be  deposited, 
and  any  such  further  sum  or  sums  of  money  or  securities  therefor 
so  de])osited  in  the  hands  of  the  Receiver- General  shall  be  held  by 
him  subject  to  and  to  be  dealt  with  according  to  the  provisions  of 
the  said  act  and  of  an  act  passed  in  the  thirty-fourth  year  of  her 
Majesty's  reign,  intituled  "  An  Act  to  amend  the  Act  respecting  Insur- 
ance Companies,''^  in  respect  to  the  original  sum  required  to  be 
deposited  by  such  company,  as  if  the  same  had  been  part  of  such 
original  deposit.     {Act  37  Victoria,  chap.  48,  §  2.) 

o7.  Whenever  any  company  licensed  under  the  said  act  (31 
Victoria,  chap.  48)  shall  change  its  chief  agent  or  its  chief  j)lace  of 
agency  in  Canada  such  company  shall  tile  a  ijower  of  attorney 
according  to  the  pro^dsions  of  the  ninth  section  of  the  said  first 
mentioned  act,  containing  any  such  change  or  changes  in  such 
respect ;  and  shall  thereby  declare  that  service  of  process  for  or  in 
respect  of  any  liabilities  under  the  said  acts  hereinbefore  men- 
tioned, respectively,  at  such  last-mentioned  chief  agency,  or  person- 
ally on  such  last-mentioned  agent  at  the  place  where  the  chief 
agency  is  established,  shall  be  legal  and  binding  on  the  company, 
to  all  intents  and  purposes  whatever.     {Ibid,  §  3.) 


ARSOX  AInD  incendiarism. 

08.  Whosoever  unlawfully  and  maliciously  sets  fire  to  any 
church,  chapel,  meeting-house,  or  other  place  of  divine  worship,  is 
guilty  of  felony,  and  shall  be  liable  to  be  imprisoned  in  the  peniten- 
tiary for  life,  or  for  any  term  not  less  than  two  years,  or  to  be  im- 
prisoned in  any  other  ji^aol  or  place  of  confinement  for  any  term  less 
than  two  years,  with  or  without  hard  labor,  and  with  or  without 
solitary  confinement.     {Acts  32-33  Victoria,  1869,  chap.  22,  §  1.) 

09.  Whosoever  unlawfully  and  maliciously  sets  fire  to  any 
dwelling-house,  any  person  being  therein,  is  guilty  of  felony,  and 
shall  be  liable  to  be  imprisoned  in  the  penitentiary  for  life  or  for 
any  term  not  less  than  two  years,  or  to  be  imprisoned  in  any  other 
gaol  or  place  of  confinement  for  any  term  less  than  two  years,  with 
or  ^sathout  hard  labor,  and  with  or  without  solitary  confinement. 
{Ibid,  §  2.) 

60.  Whosoever  unlawfully  and  maliciously  sets  tire  to  any 
house,  stable,  coach-house,  out-house,  warehouse,  oftice,  shoj),  mill, 
malt-house,  hop-oast,  barn,  storehouse,  granary,  hovel,  shed  or  fold, 
or  to  any  larm  building,  or  to  any  building  or  erection  used  in  farm 
ing  land,  or  in  carrying  on  any  trade  or  manufacture,  or  any  branch 
thereof,  whether  the  same  is  then  in  the  possession  of  the  offender, 
or  in  the  possession  of  any  other  person,  with  the  intent  thereby  to 
injure  or  defraud  any  person,  is  guilty  of  felony,  and  shall  be  liable 
to  be  imprisoned  in  the  penitentiary  for  life,  or  for  any  term  not 
less  than  two  years,  or  to  be  imprisoned  in  any  other  gaol  or  place 
of  confinement  for  any  term  not  less  than  two  years,  with  or  with- 
out hard  labor,  and  with  or  without  solitary  confinement.  (Jftirf,  §  3.) 

Ol.  Whosoever  unlawfully  and  maliciously  sets  fire  to  any 
station,  engine-house,  warehouse,  or  other  building  belonging  or 
appertaining  to  any  railway,  port,  dock,  or  harbor,  or  to  any  canal 
or  other  navigation,  is  guilty  of  felony,  and  shall  be  liable  to  be 


94  hine's  insurance  statutes. 

imprisoned  in  llie  penitentiary  for  life,  or  for  any  term  not  less  than 
two  years,  or  to  be  imprisoned  in  any  other  gaol  or  place  of  confine- 
ment for  any  term  less  than  two  years,  with  or  without  hard  labor, 
and  with  or  without  solitary  confinement.     {Ibid,  §  4.) 

G*2.  Whosoever  unlawfully  and  maliciously  ^ts  on  fire  or 
burns,  or  otherwise  destroys  or  causes  to  be  set  on  fire  or  burnt,  or 
otherwise  destroyed,  or  aids,  procures,  abets,  or  assists  in  the  setting 
on  fire  or  burning,  or  otherwise  destroying,  of  any  of  Her  ^Majesty's 
ships  or  vessels  of  war,  whether  afloat  or  biTildiiig,  or  begun  to  be 
built  in  an}'  of  Her  Majesty's  dockyards,  or  buikling  or  repairing  by 
contract  in  any  i)rivate  yard  for  the  use  of  Her  ]\Iajesty,  or  any  of 
Her  Majesty's  arsenals,  magazines,  dockyards,  ropeyards,  victu'rd- 
liug  offices,  or  any  of  the  buildings  erected  therein  or  belonging 
thereto,  or  any  timber  or  material  there  placed,  for  building,  repair- 
ing or  fitting  out  of  ships  or  vessels,  or  any  of  Her  Majesty's  mili- 
tary, naval,  or  victualling  stores,  or  other  amnumition  of  war,  or 
any  place  or  places  where  any  such  military,  naval  or  victualling 
stores,  or  other  ammunition  of  war  are  kept,  placed,  or  deposited,  is 
guilty  of  felony,  and  shall  be  liable  to  be  imprisoned  in  the  peniten- 
tiary for  life,  or  for  any  term  not  less  than  two  years,  or  to  be 
imprisoned  in  any  other  gaol  or  place  of  confinement  for  any  term 
less  than  two  years,  with  or  without  hard  labor,  and  with  or  with- 
out solitary  confinement.     {Ibid,  §  5.) 

fiJI.  Whosoever  unlawfully  and  maliciously  sets  fire  to  any 
building,  other  than  such  as  are  in  this  act  before  mentioned, 
belonging  to  the  Queen  or  any  county,  riding,  division,  city,  town, 
village,  parish,  or  place,  or  belonging  to  any  university  or  college  or 
hall  of  any  university,  or  to  any  corporation,  or  to  any  unincor- 
porated body  or  society  of  persons,  associated  together  lor  any 
lawful  purpose,  or  devoted  or  dedicated  to  public  use  or  ornament, 
or  erected  or  maintained  by  public  subscription  or  contribution,  is 
guilty  of  felony,  and  shall  be  liable  to  be  imprisoned  in  the  peniten- 
tiary for  life,  or  for  any  term  not  less  than  two  years,  or  to  be 
imprisoned  in  any  other  gaol  or  place  of  confinement  for  any  term 
less  than  two  years,  with  or  without  hard  labor,  and  with  or  without 
solitary  confinement.     {Ibid,  §  6.) 

64.  Whosoever  unlawfully  and  maliciously  sets  fire  to  any 
building  other  than  such  as  are  in  this  act  before  mentioned,  is 
guilty  of  felony,  and  shall  be  liable  to  be  imprisoned  in  the  peniten- 
tiary for  any  term  not  exceeding  fourteen  years,  and  not  less  than 
two  years,  or  to  be  imprisoned  in  any  other  gaol  or  place  of  confine- 
ment for  any  term  less  than  two  years,  with  or  without  hard  labor, 
and  with  or  without  solitary  confinement.     {Ibid,  §  7.) 

65.  Whosoever  unlawfully  and  maliciously  sets  fire  to  any 
matter  or  thing  being  in,  against,  or  under  any  building,  under 
such  circumstances  that  if  the  building  were  thereby  set  fire 
to  the  offense  would  amount  to  felony,  is  guilty  of  felony,  and 
shall  be  liable  to  be  imi>risoned  in  the  penitentiary  for  any  term  not 
exceeding  fourteen  years  and  not  less  than  two  years,  or  to  be  im- 
prisoned in  any  other  gaol  or  place  of  confinement  for  any  term  less 
than  two  years,  with  or  without  hard  labor,  and  ^vith  or  without 
solitary  confinement.     {Ibid,  §  8.) 

66.  Whosoever  unlawfullj'  or  maliciously  sets  fire  to,  or  casts 
away,  or  in  any  wise  destroys  any  ship  or  vessel,  with  intent 
thereby  to  prejudice  any  owner  or  part  owner  of  such  ship  or  ves- 
sel, or  of  any  goods  on  board  of  the  same,  or  any  person  that 


CANADA.  95 

has  underwritten,  or  may  underwrite,  any  policy  of  insurance  upon 
such  ship  or  vessel,  or  on  the  freight  thereof,  or  upon  any  goods  on 
board  of  the  same,  is  giiilty  of  felony,  and  shall  be  liable  to  be  im- 
prisoned in  the  penitentiary  for  life  or  for  any  term  not  less  than 
t^yo  years,  or  to  be  imprisoned  in  any  other  gaol  or  place  of  confine- 
ment for  any  term  less  than  two  years,  with  or  without  hard,  labor, 
and.  with  or  without  solitary  coutinement.     {Ili-l,  §  49.) 

FRAUD  AND  FALSE  SWEAKIXG. 

67.  Any  person  knowingly,  willfully,  and  corruptly  making 
any  affirmation,  affidavit,  or  declaration  required  by  any  tire,  life, 
or  marine  insurance  company  authorized  by  law  to  do  business  in 
Canada,  claiming  to  be  entitled  to  any  insurance  money  in  respect 
to  any  loss  of  property  or  life,  insured  or  assured  therein,  or  on  be- 
half of  any  person  making  such  claim  containing  any  false  state- 
ment of  fact,  matter,  or  thing  in  regard  to  such  loss  of  property  or 
life,  shall  be  guilty  of  willful  and  corrupt  perjury.  {Act,  32-33  Vic- 
toria, 18G9,  chap.  23,  §  5.) 

68.  Perjury  or  subornation  of  perjury  is  a  misdemeanor;  and 
any  i^erson  guilty  thereof  shall  be  liable  to  be  imprisoned  in  the 
penitentiary  for  any  term  not  exceeding  fourteen  years  and  not  less 
than  two  years,  or  to  be  imprisoned  in  any  other  gaol  or  place  of 
confinement,  for  any  term  less  than  two  years,  and  to  pay  such  fine 
as  the  court  may  award.     [Ibid,  §  1.) 


INDEX  TO   CONNECTICUT. 


PAGE 

Agent— 

Term  Defined  (13) 100 

Liceuse  of  (13) 100 

To  make  Annual  Statement  (19) 102 

To  Cease  Business,  when  (45) 107 

To  Report  Premiums  (73) 112 

Annual  Statements — 

Required  (7,  23,  30) 99,  102,  103 

Time  of  Filing  (13) 100 

Of  Foreign  Fire  Insurance  Cos.  (19).  102 

Of  Foreign  Companies  (43) 106 

Fees  for  Filing  (3) 98 

Arson  and  Incendiarism  (78-80) 

Assessment  of  Taxes  (61) 110 

Assets— 

Of  Insolvent  Companies  (59) 109 

Of  other  State  Mutual  Companies  (14)  102 
Of  Life  Company,  after  Repeal  of  Char- 
ter (34-40) 105-6 

Of  Mutual  Life  Companies,  how  Ascer- 
tained (65) 110 

Of  Mutual  Fire  Companies,  how  Ascer- 
tained (69) 110 

Attorney,  to  be  Appointed,  when  (45) J 07 

Bonds  of  Insurance  Commissioner  (40) . . .  103 

Capital— 

Ratio  of  Risk  to  (6,  22) 98, 102 

Impairment  of  (9,  16) lOD,  101 

Reduction  of  19,  10) 100 

Increase  of  (11) lO.i 

Of  Fire  Insurance  Companies  (17) 101 

Of  Foreign  Fire  Insurance  Cos.  (18).  102 

Of  other  State  Companies  (13) 100 

Of  Foreign  Companies  (41) 1 06 

Of  Consolidated  Companies  (47) 107 

Tas  on  (63) 110 

Certificate  of  Authority — 

When  Issued  (13,1  7,29,30,43)  100,  101 
When  Renewed  (13; 100 

Charter — 

To  be  Filed,  when  (13) lUO 

Assets  of  Life  Company  after  Repeal 
of  (34-40) 105-G 

Consolidation  of  Companies  (46-49) 107 

Corporations— 

To  Report  for  Taxation  (61) 110 

To  give  Information  to  Assessors  (62)  110 

To  Report  Capital  (63) 110 

To  Pay  Tax  on  Capital  (63) 110 

Miy  Change  Location,  when  (75) 112 

General  Provisions  Relating  to  (84)..  114 


PAGE 

Deposits— 

Of  Foreign  Companies  (41,  42) 106 

Required,  when  (53) 108 

Examination  of  (5 1 ) 108 

Return  of  (56) 1C9 

Changing  (57) 109 

Examixatiox— 

Of  Companies  (16,  20,  26,  2 7)..  10 1-2-3 

Of  Life  Companies,  Fees  for  (29) 103 

Of  Deposits  (54,  55) 108 

Fees— 

Paid  by  Companies  (3,  43,  55,  72)98,  lOdi 

108,  112 
For  Examining  Life  Companies  (29) . .  103 

For  Holding  Deposits  (55) 108 

For  Examining  Deposits  (55) 108 

Fire  Policies,  to  Contain  what  (5) 98 

Fire  Insurance  Companies — 

Annual  Statements  (7) 99 

Assets  of  other  State  Mutual  (14) 101 

Capital  of  (17,  18) 101 

Mutual  may  Insure  Personal  Property. 
when  (12) 100 

Foreign  Insurance  Companies- 
Capital  of  ( 4 1 ) 106 

Deposit  of  (41) 106 

Policy  of  not  Invalidated  by  War  (41 )  106 
To  File  Statement  and  Charter  (42).  -  -  106 
Fees  Paid  by  (43) 106 

Foreign  Fire  Insurance  Companies — 

Capital  and  Assets  of  (18) 101 

Annual  Statements  of  (19) 102 

Examination  of  (20 ) 102 

Certificate  of  Authority  (21) 102 

Ratio  of  Risk  to  Capital  (22) 10i2 

Fraud  and  False  Swearing  (83)   113 

IsiPAiRMEST  of  Capital  (9,  16,  59) 100,  lOy 

Incendiarism  and  Arson  (78-80) 113 

Insolvency- (45,  59) 107.  109 

Of  Life  Companies  (23,  32) 102,  104 

Insurance  Commissioner — 

Appointment  and  Term  of  Office  ( 1 ) . . .     98 

General  Powers  and  Duties  of  (2) 98 

To  Collect  Certain  Fees  (3; 98 

Report  ot  (4) 98 

M&y  make  Inquiries  (8) 100 

To  Issue  Certificate  of  Authority,  when 

(13,  17) 100,  101 

To  Renew  Same,  when  (13,  2!),  30, 

45)  ....' 100,  103,  109 

To  Revoke  Same  when  (45) 107 


INDEX  TO  CONNECTICUT. 


97 


PAGE 

Insurance  Commissioner  (Continned) — 
May  Examine  Companies,  wlien  (16, 

20,  26) 10],  102,  103 

"VTinding  up  Life  Companies  by  (3  i) . . .  104 
Duties  of,  after  Repeal  of  Charter  of 

Life  Companies  (34-10) 105,  106 

Bonds  of  (40) 106 

Service  of  Process  on  (44) 106 

Action  in  Insolvency  (.59j 109 

LiCESSESof  Agents  (13) 100 

Life  Insurance  for  Married  Women  (77)..  113 

Life  Insurance  Companies — 

Annual  Statements  of  (23,  30) 100, 103 

Examinatirn  of  (26-28) 101,  102 

Insolvency  of  (32,  33) 104 

Liabilities  of  Insolvent  (33) 104 

Kepealof  Charter  of  (34-40) 104,  106 

Mutual,  Taxation  of  (64) 110 

Tax  on  (66) Ill 

Life  Policies,  Valuation  of  (3,  24,   25, 

30) 98,  101,  103 

Marine  Companies,  Foreign  Mutual  (1  5).  101 

Married  Woman's  Policy  (77) 113 

Mutual — 

Insurance  Companies  (50) 107 

Life  Companies,  Taxation  of  (64) 110 

Fire  Companies,  Taxation  of  (68) Ill 

Penaltx— 

For  Violating  Insurance  Laws  (60)  . . .  109 

For  Refusing  to  Deliver  Assets  to  In- 
surance Commissioner  (39) 106 

For  Failing  to  Report  to  Assessor  (61)  110 

For  Refusing  Information  to  Assessor 
(62) 110 

For  Neglect  to  Report  Capital  for  Taxa- 
tion (63) 110 

For  Failing  to  Report  for  Taxation 
(67,  71)  .• 111,112 

For  Violating  Laws  Relating  to  Foreign 
Companies  (76) 112 

For  Arson  and  Incendiarism  (78-80)  112 


PAGE 

Penalty  (Continued) — 

For  Embezzlement  (81,82) 1 12 

For  Fraud  and  False  Swearing  (83)  - . .  112 

Policies — 

Fees  for  Valuing  Life  v3) 98 

Fire,  what  to  Contain  ( 5 ) 9y 

Valuation  of  Life  (24,25) 103 

Of  Foreign  Company  not  Invalidated  by 

War  (41) 10(1 

When  may  be  Issued  f58) 109 

Citizens  may  Procure  (58) 109 

Policy  of  Married  Woman  (77) 113 

Premiums,  Tax  on  (73,  74) 112 

Premium — 

Notes  (50) 107 

Taxon(68,  70) lU 

Reciprocal  Laws  (52,  53,  73)    108,  112 

Reinsurance  Reserve  (24) 103 

Risk,  Ratio  of  Capital  to  (6,  22) 98,  102 

Statements — 

Annual  (7,  13,  19,  23,  30,  42)  99,100, 

101  103,  106 

To  be  in  Writing  (8) 100 

Of  Foreign  Companies  (13,  19,  42)  .100, 

102,  106 

To  Assessors  for  Taxation  (61 ) 110 

Suit,  Limit  of  Time  to  Bring  (51) 108 

Taxes— 

Assessment  of  (61,  62) 110 

On  Capital  (63) 110 

On  Mutual  Life  Companies  (66) Ill 

On  Stockholders  (61) 110 

On  Mutual  Fire  Companies  (70) Ill 

On  Foreign  Companies  (70) 112 

On  Premium  Notes  (66,  70) lU 

On  Premiums  (74) 112 

Valuation  of  Life  Policies  (3,  24,  25, 

30) 98,  103 

Wife's  Policy  (77) 113 


INSURANCE  STATUTES  OF  CONNECTICUT. 


INSUEANCE  COMMISSIONER. 

1.  Tlie  Governor,  with  the  advice  and  consent  of  the  Senate, 
shall  once  in  every  three  years,  appoint  some  suitable  person  not  a 
director,  olflcer,  or  agent  of  any  insurance  company,  to  be  Insurance 
Commissioner,  who  shall,  unless  sooner  removed  by  the  Governor 
for  cause,  hold  his  oifice  for  three  years,  and  until  his  successor  is 
ai)pointed  and  qualified.  All  vacancies,  shall  be  filled  in  the  same 
manner  for  the  unexpired  term,  except  that  any  vacancy,  occurring 
while  the  Senate  is  not  in  session,  may  be  filled  by  the  Governor  till 
the  next  session  of  the  General  Assembly.  {General  Statutes,  1875; 
p.  16,  §  1.) 

S.  Said  Commissioner  shall  have  the  powers  and  duties  speci- 
fied in  Chapter  II.  of  Title  XVII. ;  shall  see  that  all  the  laws  respect- 
ing insurance  companies  are  faithfully  executed ;  may  employ  cler- 
ical aid ;  shall  furnish  to  each  of  the  insurance  companies  incorpor- 
ated by  this  State,  and  to  the  attorneys  of  companies  incorjiorated 
by  other  States  and  foreign  governments,  doing  business  in  this 
State,  printed  forms  of  the  statements  required  by  law ;  shall  pay 
over  all  fees,  which  he  may  receive  from  insurance  companies,  to  the 
Treasurer  ;  and  may  administer  oaths  in  the  discharge  of  his  official 
duties.     {IMd,  p.  17,  §  2.) 

S.  Said  Commissioner  shall  demand  and  receive  the  following 
fees  from  insurance  com])anies:  For  receiving  and  filing  annual  re- 
ports, ten  dollars  ;  for  valuation  of  policies  of  life  insurance  compa- 
nies, one  cent  for  each  thousand  dollars  of  insurance  valued;  for 
filing  any  additional  paper  required  by  law,  twenty-five  cents;  and 
for  every  certificate  of  valuation,  copy  of  report,  or  certificate  of  con- 
dition of  company  to  be  filed  in  other  States,  five  dollars.  {Ibid,  §  3.) 

4.  No  insurance  company  shall  be  required  to  report  to  the 
General  Assembly ;  but  said  Commissioner  shall  annually  submit 
a  report  thereto  of  his  official  acts,  and  of  the  condition  of  all  insur- 
ance companies  doing  business  in  this  State,  with  a  condensed  state- 
ment of  their  reports  made  to  him,  arranged  in  proper  form  for 
printing,  together  with  a  statement  of  the  fees  received  by  him  for 
such  companies,  and  paid  b^'  him  to  the  Treasurer.    Ibid,  §  4.) 

FIRE  AND  MARINE  INSURANCE. 

5.  In  all  policies  of  insurance  against  loss  by  fire,  hereafter 
made  by  companies  chartered  by  or  doing  business  in  this  State, 
no  conditions  shall  be  valid  unless  stated  in  the  body  of  the  policy. 
{Ibid,  2^.  301,  §  1.) 

6.  No  tire  insurance  company-,  doing  business  in  this  State, 
shall  expose  itself  to  loss  on  any  risk,  to  an  amount  exceeding  ten 
per  cent,  of  its  i^aid-up  capital.     {Ibid,  §  2.) 


CONNECTICUT.  99 

7.  The  president,  or  vice-president  and.  secretary  of  eacli  fire 
and  each  fire  and  marine  insiu^ance  company  shall,  annually  in  Jan- 
uary, transmit  to  the  Insurance  Commissioner  a  statement  of  its 
condition  on  the  thirty-first  day  of  December  next  preceding,  in  the 
following  form,  namely: 

jpirst. — The  an.onnt  of  its  capital  stock. 

Second.— Its  assets,  specifying  : 

1.  The  value  of  its  real  estate. 

2.  The  amount  of  its  cash  on  hand  and  in  bank,  specifying 
where  it  is  deposited. 

3.  The  amount  of  cash  in  the  hands  of  agents  and  in  course 
of  transmission. 

4.  The  amount  of  loans  secured  by  mortgages  on  which  there 
shall  be  less  than  one  year's  interest  due. 

5.  The  amount  of  like  loans  with  one  year's  interest  or  more 
due  thereon. 

6.  The  amount  due  on  judgments. 

7.  The  amount  of  its  stocks  and  bonds,  with  the  description 
of  amount,  number  of  shares,  and  the  par  and  market  value  of 
each. 

8.  The  amount  of  stocks  and  bonds  held  as  collateral  security 
for  loans,  with  the  amount  loaned  on  each,  and  the  par  and  mar- 
ket value  thereof. 

9.  The  amount  of  assessments  on  stock  or  premium  notes  paid 
and  unpaid. 

10.  The  amount  of  interest  accrued  and  unpaid. 

11.  The  amount  of  premium  notes  on  hand  on  which  policies 
are  issued. 

Third. — Its  liabilities,  specifying  2 

1.  The  amount  of  losses  due  and  unpaid. 

2.  The  amount  of  unpaid  losses  not  due. 

3.  The  amount  of  claims  for  losses  resisted  by  the  company. 

4.  The  amount  of  losses  incurred  during  the  year,  including 
those  claimed  and  not  yet  due,  and  those  reported  to  the  com- 
I)any  upon  which  no  action  has  been  taken. 

5.  The  amount  of  dividends  due,  and  unpaid. 

6.  The  amount  of  dividends,  either  cash  or  scrip,  not  yet  pay- 
able. 

7.  The  amount  of  money  borrowed  and  security  given  for  the 
payment  thereof. 

8.  The  amount  of  premiums  received  on  all  risks  not  termin- 
ated. 

9.  The  amount  required  to  reinsure  all  fire  risks  in  force,  com- 
puted at  fift}'  per  cent,  of  the  gross  amount  of  fire  premiums 
(less  return  premiums  and  reinsurance^,  received  on  risks  in 
force,  not  perpetual,  ninety-five  per  cent,  of  premiums  on  per- 
petual risks  in  force,  and  one  hundred  per  cent,  of  the  amount 
of  ocean  marine  premiums  received  on  risks  in  force. 

10.  The  amount  of  all  other  claims  against  it. 

Fourth. — Its  income  during  the  preceding  year,  specifying : 

1.  The  amount  of  cash  premiums  received. 

2.  The  amount  of  notes  received  for  premiums. 

3.  The  amount  of  interest  money  received. 

4.  The  amount  of  income  received  from  other  sources. 
Fifth. — Its  expenditure  during  the  preceding  year,  specifying : 


100  HI^^E'S  rXSUEANCE   STATUTES. 

1.  Tl)e  amoimt  of  losses  paid,  stating  liow  much  of  the  same 
accraed  prior,  and  how  much  subsequent,  to  its  preceding  state- 
ment, and  the  amount  at  which  such  losses  were  estimated  in 
such  statement. 

2.  The  amount  of  dividends  paid. 

3.  The  amount  of  expenses  paid,  including  agents'  commis- 
sions. 

4.  The  amount  paid  in  taxes. 

5.  The  amount  of  all  other  expenses.     {Ibid,  §  3.) 

8.  The  Insurance  Commissioner  may  inquire  of  any  fire  or  fire 
and  marine  insurance  company  doing  business  in  this  State,  or  of  its 
secretary',  in  relation  to  its  financial  condition,  and  such  inquiry 
shall  be  i^romptly  answered  in  writing.    {Ibid,  §  4.) 

S>.  AVhen  the  capital  stock  of  any  fire  or  marine  insurance  com- 
pany shall  be  impaired,  it  may  reduce  it  and  the  par  value  of  its 
shares  to  such  an  amount  as  shall  be  justified  by  its  assets ;  but  no 
part  of  its  assets  shall  be  distributed  to  its  stockholders,  and  no  re- 
duction shall  be  made,  except  upon  the  vote  of  the  stockholders, 
approved  by  at  least  two-thirds  of  the  board  of  directors,  and  certi- 
fied under  the  corporate  seal,  by  the  secretary,  a  copy  of  which  shall 
be  filed  in  the  office  of  the  secretary  of  this  State.  {Ihid,  p.  302,  §  5.) 

10,  The  du-ectors,  after  such  reduction  of  capital,  may  require 
each  stockholder  to  surrender  his  certificate,  and  in  lieu  thereof  may 
issue  new  certificates  for  such  number  of  shares  as  he  shall  be  en- 
titled to.     {Ibid,^(j.) 

1 1 ,  Such  comjiany,  after  its  capital  shall  be  so  reduced,  may  in- 
crease its  capital  stock  to  any  amount  not  exceeding  the  amount  au- 
thorized by  its  charter.      {Ibid,  §  7.) 

1 3.  Every  mutual  fire  insurance  company,  which  shall  approve 
this  section,  may  insure  personal  j^ropeity  upon  such  terms  as  shall 
be  agreed  upon  by  the  parties.     {I hid,  §  8.) 

13.  jS'o  fire  or  fire  and  marine  insurance  company,  association, 
or  partnership,  incor])orat8d  by  or  organized  under  the  laws  of  any 
other  State  of  the  United  States,  shall  directly  or  indirectly  take 
risks  or  transact  any  business  of  insurance  in  this  State,  unless  pos- 
sessed of  at  least  one  hundred  and  fifty  thousand  dollars  of  cash  cap- 
ital  paid  up  and  seciu'cly  invested ;  and  every  such  company  shall 
deposit  with  said  Commissioner  a  certified  copy  of  its  charter,  and  a 
statement  under  the  oath  of  its  president,  or  vice-president  and  secre- 
tary, stating  its  name  and  location,  and  all  the  other  particulars 
required  by  the  third  section  of  this  article ;  nor  shall  any  agent  act 
for  any  such  company,  directly  or  indirectly,  in  taking  risks  or  trans- 
acting the  business  of  fire  insurance  in  this  State,  witliout  procuring 
from  the  Insurance  Commissioner  a  certificate  of  authority  stating 
that  such  company  has  complied  with  all  the  requisitions  of  this 
part,  and  giving  the  name  of  the  attorney  appointed  to  act  for  the 
company.  Such  a  statement  as  is  required  by  this  section  shall  be 
made  annually  in  January,  and  shall  specify  the  amount  of  premiums 
received  and  losses  paid  in  this  State  during  the  preceding  year; 
and  said  Commissioner,  on  being  satisfied  that  the  capital,  securities 
and  investments  remain  secure,  shall  furnish  a  renewal  of  his  cer- 
tificate. The  term  agent  or  agents  used  in  this  section  shall  include 
an  acknowledged  agent  or  surveyor,  and  any  person  or  persons  who 
shall  in  any  manner  aid  in  transacting  the  insurance  business. 
{Ibid,  §  9.) 

1 4.  Any  mutual  fire  or  fire  and  marine  insurance  company  lo- 


CONNECTICUT.  101 

cated  in  any  other  State  of  the  United  States,  possessed  of  one  hun- 
dred and  fifty  thousand  dollars  in  cash,  or  securely  invested  in  avail- 
able cash  assets,  maybe  admitted  to  take  risks  and  transact  business 
in  this  State;  Provided,  It  shall  comply  with  all  the  other  require- 
ments of  the  laws  of  this  State  relating  to  companies  of  other  States. 
{Ibid,  §  10.) 

1»>.  Mutual  marine  insurance  companies  of  other  States  may  be 
admitted  to  transact  business  in  this  State  upon  complying  with  the 
provisions  of  the  laws  of  this  State  relating  to  mutual  fire  and  fire 
and  marine  insiu-ance  companies  of  other  States.     {Ibid,  §  11.) 

1 «».  The  Insurance  Commissioner,  either  personally  or  by  a 
committee  to  be  appointed  by  him,  to  consist  of  one  or  more  persons 
not  directors,  officers,  or  agents  of  ;.ny  fire  or  fire  and  marine  insur- 
ance company  doing  business  in  this  State,  may  at  any  time  ex- 
amine into  the  affairs  of  any  fire  or  fire  and  marine  insurance  com- 
pany incorporated  by  or  doing  business  in  this  State.  The  officers 
or  agents  of  such  company  shall  exhibit  its  books  to  said  Commis- 
sioner or  committee,  and  otherwise  facilitate  siich  examination  ;  and 
the  Commissioner  or  committee  may  examine  under  oath  the  officers 
and  agents  of  any  such  company  in  relation  to  its  afl'airs ;  and  said 
Commissioner  may  jiublish  the  result  of  such  investigation  in  one  or 
more  newsi)apers  published  in  this  State;  but  in  relation  to  the 
affairs  of  any  company  incorporated  by  or  organized  under  the  laws 
of  any  other  State  of  the  United  States,  he  may  in  lieu  of  such  in- 
vestigation accept  the  certificate  of  the  Insurance  Commissioner  or 
Sui)erintendent  of  such  State,  as  to  its  condition.  And  whenever 
he  shall  ascertain  that  the  assef  s  of  any  fire  or  fire  and  marine  insur- 
ance comj)any  incorporated  by  this  State,  after  deducting  for  re- 
insurance, and  its  other  proper  liabilities,  excepting  capital,  amount 
to  less  than  three-fourths  of  its  capital  stock,  if  it  have  a  stock 
capital,  or  in  the  case  of  a  mutual  company,  if  the  assets,  less  un- 
settled claims,  and  other  absolute  liabilities,  amount  to  less  than 
three-fourths  the  sura  requisite  for  reinsurance,  he  shall  call  upon  it 
to  make  uji  such  deficiency  within  such  reasonable  time  as  he  shall 
fix,  and,  on  a  failure  to  comply  with  such  requirement,  shall  bring 
his  petition  to  a  judge  of  the  Superior  Court,  praying  for  an  injunc- 
tion restraining  said  company  from  the  further  prosecution  of  the 
business  of  making  or  renewing  insurances,  until  said  deficiency  is 
made  up;  and  if,  upon  a  hearing  before  said  judge,  after  such 
reasonable  notice  to  such  com])any  as  he  may  order,  the  allegations 
contained  in  such  petition  shall  be  found  true,  he  shall  issue  such 
injunction.     {Ibid,  §  12.) 

17.  Every  fire  insurance  company  incorporated  by  this  State, 
not  now  organized  and  doing  business,  before  transacting  any 
business,  shall  have  not  less  than  one  hundred  thousand  dollars  of 
its  capital  stock  paid  in  cash,  and  shall  receive  from  the  Insurance 
Commissioner  a  certificate  showing  that  it  has  complied  with  the  pro- 
visions of  this  Act,  and  authorizing  it  to  issue  policies  and  transact 
business.     {Laws  of  1875,  p.  71,  §  1.) 


FOREIGN  FIRE  INSURANCE  COMPANIES. 

1 8.  The  capital  of  every  foreign  company  doing  fire  insurance 
business  in  this  State  shall,  for  all  the  purposes  of  the  insurance 
laws  of  this  State,  be  the  aggregate  value  of  its  money  or  securities 


102  hine's  insukance  statutes. 

deposited  in  the  public  departments  of  this  State  and  other  States 
of  the  United  States,  for  the  benefit  of  policy-liolders,  and  all  sums 
loaned  on  real  estate  security  in  any  State  of  the  United  States,  in 
conformity  with  the  laws  of  such  State  providing  for  the  investment 
of  the  assets  of  insurance  companies  therein,  and  all  other  assets  in 
the  United  States  in  which  fire  insurance  companies  organized  under 
the  laws  of  this  State  may  invest,  provided  such  real  estate  securi- 
ties and  assets  shall  be  held  in  the  United  States  by  trustees  who 
are  citizens  of  the  United  States,  approved  by  the  Insurance  Com- 
missioner, for  the  benefit  of  all  its  policy-holders  and  creditors  in  the 
United  States,  after  making  the  same  deduction  from  such  aggregate 
value  for  losses  and  liabilities  in  the  United  States,  and  for  premiums 
upon  risks  therein  not  expired,  as  is  authorized  or  required  by  the 
laws  of  this  State,  or  the  regulations  of  its  insurance  department, 
with  respect  to  tire  insurance  comi)anies  organized  under  the  laws 
of  this  State.     {General  Statutes,  1875,  p.  303,  §  1.) 

11^.  The  agent  or  attorney  of  such  comi)any  shall,  in  January, 
annually,  sign,  swear  to,  and  return  to  said  Commissioner,  a  detailed 
statement  of  the  items  making  up  said  capital,  and  of  the  deductions 
to  be  made  therefrom ;  and  on  being  satisfied  that  said  statement  is 
correct,  said  Commissioner  shall  issue  to  such  company  a  certificate 
of  the  amount  of  its  capital  so  determined,  and  that  the  requirements 
of  this  part  have  been  complied  with,  upon  which  cg^pital  it  may 
transact  business  in  this  State,  but  subject  to  all  the  laws  regulat- 
ing fire  insurance  companies  incorporated  in  this  State.  {Ibidj 
p.  304,  §  2.) 

2I>.  The  trustees  referred  to  in  the  first  section  of  this  Article, 
shall  be  appointed  by  the  directors  of  such  company,  and  a  certified 
copy  of  the  vote  by  which  they  were  appointed,  and  of  the  deed  of 
trust,  shall  be  filed  in  the  office  of  the  Commissioner;  and  he  may 
examine  such  trastees  or  the  agents  of  such  company  under  oath, 
and  its  assets,  books,  and  accounts,  in  the  same  manner  as  he  may 
examine  the  officers,  agents,  assets,  books,  and  accounts  of  any  com- 
pany authorized  to  do  fire  insurance  business  in  this  State.  And  if 
he  finds  that  the  net  capital  as  stated  in  his  hist  certificate  has  been 
materially  reduced,  he  may  recall  such  certificate  and  issue  another. 
Ibid,  §  3.) 

si,  No  foreign  insurance  company,  or  agent  or  attorney 
thereof,  shall  transact  the  business  of  fire  insurance  in  this  State 
until  such  company  shall  comi)ly  with  the  laws  of  this  State  relative 
to  foreign  fire  insurance  companies,  and  receive  the  certificate  of 
the  Insurance  Commissioner  mentioned  in  the  second  section.  {Ibid, 
§4.) 

23,  No  foreign  insurance  company  shall  insure  against  loss 
by  fire  or  inland  navigation,  nor  expose  itself  to  any  such  loss  by 
any  one  risk  for  any  greater  amount  in  proportion  to  its  capital 
than  companies  organized  under  the  laws  of  this  State  may  do. 
{Ibid,  §  5.) 

LIFE  INSUEANCE  COMPANIES. 

S3.  Every  life  insurance  company  chartered  by  this  State 
shall,  on  or  before  the  first  day  of  March  in  each  year,  render  to  the 
Insurance  Commissioner  a  report,  signed  and  sworn  to  by  its  presi- 
dent and  secretary,  of  its  condition  upon  the  preceding  thirty-first 
day  of  December,  which  shall  include  a  detailed  statement  of  its 


CONNECTICUT.  103 

assets  and  liabilities  on  that  day,  the  amount  and  character  of 
business  transacted,  moneys  received  and  expended  during  the 
year,  a  descriptive  list  of  all  policies  and  contracts  of  insurance  in 
force  on  that  day,  and  such  other  information  as  the  Commissiouer 
may  deem  necessary ;  and  if  any  company  shall  fail  to  make  such 
report  within  the  time,  it  shall  be  deemed  insolvent.  {IbUJ, 
p.  304,  §  1.) 

SJr.  Upon  receipt  of  such  report,  the  Commissioner  shall  make 
a  valuation  of  the  policies  of  each  conipany,  and  ascertain  the  amount 
of  reinsurance  reserve  proper  to  be  held  on  account  thereof;  and  he 
shall  for  this  purpose  assume  the  rate  of  mortality  shown  by  the  so- 
called  Actuaries'  or  Combined  Experience  Table,  and  four  per  cent, 
compound  interest,  and  he  shall  value  only  net  premiums.  {Ihid^ 
p.  305,  §  2.) 

25.  The  Insurance  Commissioner,  upon  the  request  of  any  such 
company,  may  make  a  valuation  of  all  its  policies  in  force  on  the 
preceding  tliirty-tirst  day  of  December,  upon  the  basis  of  the 
"  American  Experience  Table,"  with  interest  at  the  rate  of  four  and 
one-half  per  cent,  a  year,  and  furnish  certificates  of  such  valuation, 
to  be  filed  with  the  proper  officers  of  such  other  States  as  by  law 
require  the  valuation  of  life  insurance  policies  upon  said  basis  ;  Pro- 
vided, That  the  standard  of  valuation  prescribed  for  companies 
doing-  business  in  this  State  shall  not  be  altered  by  this  section. 
{Ibid,  §  3.)      ' 

26.  The  Insurance  Commissioner  shall,  at  least  once  in  three 
years,  visit  each  life  insurance  company  incorporated  by  this  State, 
thoroughly  examine  its  financial  condition,  and  ascertain  whether  it 
has  complied  with  all  the  lirovisions  of  law.     {Ibid,  §  4.) 

27.  He  shall  in  like  manner  examine  any  life  insurance  com- 
pany not  incorporated  by  this  State,  but  doing  business  therein, 
whenever  he  has  reason  to  doubt  its  solvency,  and  may  emi)lo3'  such 
assistants  as  may  be  necessary  in  making  the  examination;  and  all 
the  expenses  of  an  examination  without  the  State  shall  be  borne  by 
the  company  examined.     {Ibid,  §  5.) 

28.  For  such  purpose  the  Commissioner  shall  have  free  access 
to  aU  books  and  papers  of  any  life  insurance  company  doing  business 
in  this  State,  and  may  examine  under  oath  its  officers  or  agents  rela- 
tive to  its  condition  ;  and  if  any  company  not  incorporated  by  this 
State,  or  its  officers  or  agents,  refuse  to  submit  to  such  examination, 
or  to  comply  with  any  provision  of  this  Article,  the  authority  of  such 
company  to  do  business  in  this  State  shall  cease.     {Ibid,  §  6.) 

29.  No  life  insurance  company,  hereafter  incorporated  by  this 
State,  shall  issue  policies  until,  upon  examination  by  the  Commis- 
sioner, it  shall  have  been  found  to  have  complied  with  the  laws 
thereof;  nor  until  he  shall  have  issued  his  certificate  setting  forth 
such  fact,  and  authorizing  such  company  to  issue  policies ;  and 
for  such  examination  the  company  shall  pay  him  thuty  dollars. 
{Ibid,  §  7.) 

30.  Any  life  insurance  company  organized  out  of  this  State, 
before  being  admitted  to  do  business  in  this  State,  and  on  or  before 
the  first  day  of  March  annually,  shall  furnish  to  the  Insurance  Com- 
missioner a  certificate  of  the  proper  officer  of  the  Government  by 
whose  authority  it  is  organized,  setting  forth  a  full  copy  of  its  report 
of  its  condition  on  the  preceding  thirty-first  day  of  December,  a  valu- 
ation of  its  policies  by  said  officer,  by  a  standard  equivalent  to  that 
pro\ided  in  the  second  section  of  this  article,  and  that  it  has  com- 


104  hine's  insurance  statutes. 

plied  with  the  laws  of  such  Government,  aod  is  authorized  to  trans- 
act business  therein.  If  said  Commissioner  be  satisfied  with  said 
certificate,  and  if  said  company  shall  have  complied  with  all  other 
provisions  of  law,  he  shall  thereupon  issue  his  license  to  it  to  trans- 
act business  in  this  State  for  one  year  from  the  thirty-first  day  of 
December  preceding ;  but  no  such  license  shall  be  issued  unless  such 
certificate  is  furnished,  nor  unless  such  government  shall  license  life 
insurance  companies  incorporated  by  this  State  to  transact  business 
therein,  upon  a  similar  certificate  from  the  Insurance  Commissioner, 
until  such  company  makes  the  report  required  from  companies  in- 
corporated by  this  State,  and  until  a  valuation  of  its  policies  shaU 
have  been  made  by  the  Commissioner.     {Ibid,  §  9.) 

IJ 1 .  No  person  shall  issue  or  deliver  in  this  State  any  policy  or 
contract  of  insurance  of  such  life  insm-ance  company  which  is  with- 
out a  license,  or  after  revocation  of  its  license.     [IbUl^  p.  300,  §  9.) 

3'2.  If  the  Insurance  Commissioner  shall  at  any  time  find  from 
any  report,  examination,  or  otherwise,  that  the  assets  of  any  com- 
pany incorporated  by  this  State  to  grant  insurance  or  make  con- 
tracts contingent  upon  lives,  are  less  than  its  liabilities,  or  if  such 
company  shall  fail  to  comply  with  any  of  the  requirements  of  law, 
he  may  notify  it  to  cease  the  issue  of  new  policies  or  the  payment 
of  dividends  to  stockholders  and  policy-holders,  or  both,  until  the 
deficiency  be  made  good  or  the  law  complied  with ;  and  he  may,  and 
if  it  appear  to  him  that  the  assets  of  such  company  are  less  than 
three-fourths  of  its  liabilities,  he  shall,  bring  his  petition  to  the  su- 
perior court  of  the  county  in  which  the  principal  ofiice  of  such  com- 
pany is  located,  if  in  session,  and  if  not,  to  a  jndge  of  the  Supreme 
Court  of  Errors,  praying  for  the  appointment  of  a  receiver,  and  that 
the  charter  of  such  company  may  be  annulled ;  and  said  court  or 
judge  shall  forthwith  issue  a  citation  to  such  company  to  appear  at 
a  day  and  place  to  be  named  therein,  and  answer  to  said  petition. 
And  if,  upon  the  hearing  of  said  petition,  said  court  or  judge  shall 
find  the  assets  of  such  company  to  be  less  than  its  liabilities,  said 
court  or  judge  may,  and  if  the  assets  are  found  to  be  less  than 
three-fourths  of  the  liabilities,  shall,  appoint  some  disinterested 
person  or  persons  to  be  receivers  of  such  company;  and  said  court 
or  judge  may  provide  the  mode  of  Y'roving  claims  against  such  com- 
pany, and  appoint  a  committee  to  hear  and  decide  upon  them,  and 
may  limit  and  extend  the  time  for  the  presentation  of  such  claims, 
and  may  make  all  necessary  orders  in  reference  to  the  delivery  to 
and  possession  by  such  receiver,  of  the  assets  and  property  of  such 
company,  and  the  sale  and  conveyance  of  the  same  by  him,  and 
may  direct  the  application  of  the  avails  of  such  assets  and  property 
equitably  in  satisfaction  of  the  claims  proved  against  such  company, 
and  the  payment  of  the  present  value  of  its  outstanding  policies  to 
]>olicy-holders,  either  in  whole  or  in  part,  or  to  the  reinsurance  of 
its  outstanding  i)olicies  in  some  other  solvent  company,  and  said 
court  or  judge  shall  annul  the  charter  and  decree  the  dissolution  of 
such  company,  and  may  make  all  other  orders  and  decrees  necessary 
and  proper  in  reference  to  winding  up  the  affairs  of  such  company, 
and  the  disposition  of  its  propertj\     (Laws  of  1875,  p.  12,  §  1.) 

3!$.  The  liabilities  of  any  such  company  for  all  the  purposes  of 
the  proceedings  mentioned  in  the  preceding  section,  shall  include 
the  net  present  value  of  the  policies  of  such  company,  or  reinsurance 
reserve  ascertained  as  now  required  by  law.     {Ibid,  p.  13,  §  2.) 

34.  Whenever  the  charter  of  any  life  insurance  company  of  this 


CONNECTICUT.  105 

State  sliall  be  repealed,  all  the  assets  of  sucli  company  shall  vest  in 
fee  simple  and  absolutely  in  the  Insurance  Commissioner  of  this 
State,  and  his  successors  in  office,  who  shall  hold  and  dispose  of  the 
same  for  the  use  and  benefit  of  the  creditors  and  j)olicy-hohlers  of 
such  company,  and  such  other  persons  as  may  be  interested  in  such 
assets.     {Laics  oflS7o,p.  51,  §  1.) 

35.  The  Insui-ance  Commissioner  shall  take  immediate  posses- 
sion of  tlie  assets,  books,  and  papers,  and  collect  the  debts  and 
claims  due  such  company ;  he  shall  sell  and  dispose  of  the  leal  estate 
and  other  property  of  such  company,  and  may  execute  in  his  own 
name  as  Insurance  Commissioner  all  necessary  and  i)roper  convey- 
ances of  the  same ;  he  may  also  in  his  own  name  as  Insurance  Com- 
missioner, maintain  and  defend  all  actions  at  law  or  in  equity,  re- 
lating to  such  company,  its  assets  and  business.     {Ibid,  §  2.) 

36.  The  superior  court  for  the  county  in  which  the  principal 
office  of  such  comi)auy  is  located,  upon  the  application  of  the  Insur- 
ance Commissioner,  shall  limit  and  may  extend  the  time  for  the  pre- 
sentation of  claims  against  such  company,  and  notice  thereof  shall 
be  given  in  such  manner  as  said  court  shall  direct ;  and  any  credi- 
tor neglecting  to  present  his  claim  within  the  time  so  limited,  shall 
be  debarred  of  all  right  to  share  in  the  assets  of  such  company. 
Said  court  shall  appoint  not  more  than  three  disinterested  persons 
as  commissioners  to  receive  and  decide  upon  the  claims  presented 
against  such  company,  who  shall  give  notice  of  the  times  and  places 
of  their  meeting  for  that  purpose,  in  such  manner  as  said  court  shall 
])rescribe  ;  and  within  one  month  after  the  expiration  of  the  time  so 
limited,  shall  file  with  the  clerk  of  said  court  a  list  of  the  claims 
presented  to  them,  specifying  those  allowed  and  those  disallowed. 
{Ibid,  §  3.) 

37.  The  Insurance  Commissioner  shall  ascertain  the  net  present 
value  of  each  ])oliey  in  force  in  such  company  at  the  time  of  the  re- 
peal of  its  charter,  and  for  that  purpose  shall  use  the  Actuaries'  or 
Combined  Experience  Table  of  Mortality,  with  four  per  cent,  com- 
pound interest ;  and  he  shall  file  with  the  clerk  of  said  court  a  certifi- 
cate showing  the  net  present  value  of  each  of  said  policies,  and 
such  net  present  value  shall  be  the  surrender  value  of  each  of  said 
policies.     {Ibid,  §  4.) 

38.  The  Insurance  Commissioner,  under  the  direction  of  said 
court,  shall  apply  the  sums  realized  from  the  assets  of  such  com- 
pany, first  to  the  payment  of  all  the  expenses  of  closing  the  business 
and  disposing  of  the  assets  of  such  company  ;  secondly,  to  the  pay- 
ment of  all  lawful  taxes  and  debts  due  the  State  and  the  United 
States ;  thirdly,  to  the  payment  of  the  debts  and  claims  allowed 
against  such  company,  and  the  surrender  value  of  its  policies,  in 
proportion  to  their  respective  amounts;  and  lastly,  any  sums  re- 
maining in  the  hands  of  the  Insurance  Commissioner,  after  the  pay- 
ments have  been  made  in  full  as  herein  provided,  shall  be  disposed 
of  in  such  manner  as  said  court  shall  order  and  direct.  And  said 
court  may  make  all  orders  and  decrees  necessary  and  proper  in  re- 
ference to  the  title,  j^ossession,  disposition,  and  distribution  of  said 
assets,  and  the  allowance  and  satisfaction  of  claims  against  such 
company,  and  in  any  other  matter  relating  to  its  affairs  and  busi- 
ness.    {Ibid,  §  5.) 

39.  Whenever  by  this  act,  or  by  any  other  law  of  this  State, 
general  or  special,  the  Insui-ance  Commissioner  is  authorized  or  re- 
quired to  take  possession  of  the  assets  of  any  life  insurance  com- 


100  hine's  insurance  statutes. 

pany,  any  person  wlio  shall  neglect  or  refuse  to  deliver  to  said  Com- 
missioner, on  demand,  any  books,  papers,  evidences  of  title  or  debt, 
or  any  property  belonging  to  any  such  company  in  his  possession  or 
under  his  coutrol,  shall  be  punished  by  a  fine  of  not  more  than  ten 
thousand  dollars,  or  by  imprisonment  in  the  county  jail  for  a  term 
not  exceeding  three  years,  or  by  such  fine  and  imprisonment  both. 
{Ibid,  §  6.) 

40.  Before  the  Insurance  Commissioner  shall  take  i)ossession 
of  any  of  the  books,  papers,  or  assets  of  any  life  insurance  company 
in  accordance  with  the  provisions  of  this  act,  or  of  any  other  act, 
general  or  special,  he  shall  give  bonds  for  the  faithful  discharge  of 
his  duties,  in  such  sums,  and  upon  such  conditions,  as  may  be  re- 
quired by  the  Chief  Judge  of  the  Supreme  Couit  of  Errors,  and  to 
the  satisfaction  of  said  Judge.     {Ibidy  p.  53,  §  7.) 


rOEBIGN  INSURANCE  COMPANIES  GENERALLY. 

41.  No  foreign  insurance  company  shall  take  risks  in  this 
State  unless  it  has  a  cash  capital  of  more  than  two  hundred  thou- 
sand dollars,  and  shall  have  made  a  deposit  with  the  Treasurer  of 
this  State,  or  with  the  proper  officer  of  some  other  State,  of  not  less 
than  two  hundred  thousand  dollars  in  the  bonds  of  this  State,  or 
of  the  State  of  New  York  or  Massachusetts,  or  in  bonds  or  public 
stocks  of  the  United  States,  in  trust  for  the  benefit  of  its  policy- 
holders in  the  United  States;  and  no  policy  issued  by  such  company 
to  any  citizen  of  this  State  shall  be  invalidated  by  the  occurrence 
of  hostilities  between  the  Government  of  the  United  States  and  the 
government  under  the  laws  of  which  it  was  organized.  {General 
Statutes  1815,  p.  306,  §  1.) 

43.  Every  foreign  insurance  company  shall,  before  admission 
to  do  business  in  this  State,  furnish  to  the  Insurance  Commissioner 
a  copy  of  its  charter  or  articles  of  association  and  of  its  last  annual 
report  made  in  the  country  where  it  was  organized,  and  the  certifi- 
cate of  the  officer  holding  in  trust  said  deposit  of  two  hundred 
thousand  dollars,  stating  the  manner  in  which  the  same  is  invested 
and  the  purposes  for  w^hich  the  same  is  held ;  and  it  shall  furnish 
annually  to  the  Insurance  Commissioner  a  statement  of  the  condition 
of  its  affairs  in  the  United  States,  in  such  form  as  he  shall  require. 
{Ibid,  §  2.) 

43.  When  such  foreign  insurance  company  shall  have  com- 
plied with  the  provisions  of  law  relating  to  such  companies,  and 
the  Insurance  Commissioner  is  satisfied  that  it  is  solvent  in  the 
United  States,  he  may  issue  its  license  to  transact  business  in  this 
State,  but  it  and  its  agents  shall  pay  the  fees  now  required  of  the 
insurance  companies  of  the  State  of  New  York,  and  shall  annually 
pay  to  the  Insurance  Commissioner  a  license  fee  of  fifty  dollars. 
{Ibid,  §  3.)  • 

GENERAL  PROVISIONS. 

44.  No  insurance  company,  association,  or  pai^tnership,  organ- 
ized under  the  laws  of  any  other  State,  or  any  foreign  country, 
shall  directly  or  indirectly  issue  policies,  take  risks,  or  transact 
business  in  this  State,  until  it  shall  have  ai)pointed  an  attorney  re- 
siding in  this  State,  who  shall  act  in  that  capacity  until  a  successor 


CONNECTICUT.  107 

be  duly  appointed  and  upon  whom  any  civil  process  maybe  served. 
And  sucli  service  shall  be  binding,  and  shall  be  personal  service 
upon  the  company  appointing  him ;  a  certificate  of  such  api)oint- 
ment  shall  be  filed  with  the  Insuiance  Commissioner,  and  shall 
contain  a  stipulation  that  in  case  of  the  death,  absence,  or  removal 
from  this  State  of  such  attorney,  any  process  relating  to  such  com- 
pany may  be  served  upon  the  Insurance  Commissioner,  and  shall 
have  the  same  effect  as  if  served  upon  such  attorney ;  and  if  such 
conii)any  withdraw  from,  or  cease  to  do  business  in  this  State,  ser- 
vice ui)on  such  attorney  or  the  Insurance  Commissioner  shall  nev- 
ertheless be  binding,  and  be  deemed  a  personal  service  upon  the 
company.     {Laics  of  1875,  jp.  30,  §  1.) 

4»1.  When  the  Insurance  Commissioner  shall  find  that  any  in- 
surance company  not  incorporated  by  this  State  is  unsound,  esti- 
mated in  the  manner  prescribed  in  the  twelfth  section  of  Article  I. 
of  this  Part,  he  shall  revoke  its  license  and  cause  notice  thereof  to 
be  published  in  two  daily  newspapers,  printed,  one  in  Hartford  and 
one  in  New  Haven,  at  least  foui"  weeks;  and  he  may  reissue  such 
license  when  he  shall  be  satisfied  of  its  soundness  ;  and  no  agent  or 
agents  of  such  company  shall,  after  the  first  publication  of  such 
notice,  issue  or  renew  any  policy  of  insurance  in  its  behalf.  {Gen- 
eral Statutes  1875,  p.  307,'§  2.) 

4G.  When  the  stockholders  of  any  insurance  company  shall 
vote  to  consolidate  with  any  other  similar  comi)any,  and  the  stock- 
holders of  both  companies  shall  agree  to  such  consolidation,  and 
determine  under  which  corporate  organization  and  name  their  busi- 
ness shall  be  conducted,  they  shall  be  consolidated  under  the  cor- 
porate organization  and  name  thus  chosen,  and  thereupon  all  rights 
and  property  of  both  of  said  companies  shall  become  the  property 
of  the  corporation  composed  of  such  companies,  and  said  last 
named  corporation  shall  be  liable  for  the  outstanding  obligations 
of  such  companies.     {Ibid,  §  3.) 

47.  Upon  such  consolidation,  the  value  of  each  share  of  the 
capital  stock  of  each  of  them  shall  be  ascertained  through  a  valua- 
tion of  all  its  assets  and  liabilities  at  tLe  time  of  such  consolidation, 
and  new  shares  (and  when  necessary,  parts  of  shares)  of  the  consol- 
idated company  shall  be  ai^portioned  to  each  stockholder,  equal  to 
the  value  of  his  shares  in  either  of  the  original  companies ;  and  such 
shares  so  apportioned  shall  be  substituted  for  the  shares  in  such 
companies ;  and  all  certificates  of  shares  in  said  original  companies 
shall  be  surrendered  when  new  certificates  shall  be  issued.  (Ibid, 
§  4.)  ^ 

48.  The  capital  stock  of  the  consolidated  company  shall  not 
exceed  the  aggregate  authorized  capital  of  the  original  companies. 
[1  bid,  p.  308,  §  5.) 

40.  The  president  and  directors  of  such  consolidated  company 
shall,  within  thirty  days  after  such  consolidation,  file  a  certificate  in 
the  office  of  the  Secretary  of  this  State,  stating  such  consolidation, 
and  the  name  and  charter  adopted.     {Ibid,  §  G.) 

50.  When  any  inhabitant  of  this  State  shall  effect  insurance 
in  any  insurance  company,  and  give  a  premium  note,  the  policy 
and  note  shall  constitute  one  contract,  and  every  equitable  claim 
of  the  maker  thereof  ujion  said  company  may  be  set  oft"  against  said 
note  in  the  bands  of  a  third  party;  and  when  anj'  such  company  be- 
comes insolvent,  the  maker  shall  be  liable  on  said  note  for  only  the 
equitable  proportion  thereof,  for  such  part  of  the  term  of  insurance 


108  hine's  insurance  statutes. 

as  said  company  continued  solvent;  and  if  the  insolvency  ocjcurs 
witliin  sixty  days  after  its  date,  said  note  shall  be  void,  except  for 
iiuj  amount  for  which  the  maker  may  have  a  claim  on  said  com- 
pany. All  mutual  insurance  companies  (except  those  otherwise 
authorized  by  their  charters)  shall  take  premium  notes  for  the  obli- 
gations of  the  assured ;  and  assessments  shall  be  for  losses  only,  and 
upon  said  notes,  and  when  paid  shall  be  in  payment,  in  whole  or  in 
part,  as  the  case  may  be,  of  such  notes.     {Ibid,  §  7.) 

51.  No  insurance  com i)any  shall  limit  the  term  within  which 
any  suit  shall  be  brought  against  it  to  a  period  less  than  one  year 
fi'om  the  time  when  the  loss  insured  against  shall  accrue,  (i  bid, 
§8.) 

5"3.  When,  by  the  laws  of  any  other  State  or  any  foreign 
country,  any  payments,  deposits,  or  other  obligations  shall  be  im- 
posed upon  insurance  companies  of  this  State,  or  their  agents  trans- 
acting business  in  such  other  State  or  foreign  country,  the  like  pay- 
ments, deposits,  and  obligations  are  hereby  imposed  on  similar 
companies  of  such  other  State  or  foreign  country,  and  their  agents 
transacting  business  in  this  State ;  and  such  companies  and  their 
agents  shall  pay  all  penalties  to,  and  make  deposits  with,  the  State 
Treasurer.     {Laws  of  1875,  |>.  40,  §  1.) 

53.  When  any  State  shall  require  insurance  companies  of 
other  States  to  deposit,  with  some  oflicor  of  such  other  State,  secur- 
ities in  trust  for  the  policy-holders  of  such  companies,  as  a  prerequi- 
site to  their  transacting  business  in  such  State,  the  Treasurer  of 
this  State  may  receive  from  any  insurance  company  of  this  State 
the  securities  required  by  the  laws  of  such  other  State,  on  deposit, 
and  hold  the  same  in  trust  for  the  ])olicy -holders  of  such  other  com- 
pany ;  but  it  may  collect  and  receive  the  interest  and  dividends 
thereon,  and  withdraw  them  on  depositing  with  the  said  Treasurer 
other  securities  of  like  character  and  value.  The  Treasurer  shall  is- 
sue a  certificate  under  seal,  of  such  deposit,  for  each  State  which 
shall  require  the  same,  which  shall  state  the  items  and  amount  of 
securities  thus  deposited,  and  that  he  is  satisfied  that  they  are  of 
the  market  value  represented  therein ;  but  no  secui"ities  shall  be  es- 
timated above  the  par  value  of  the  same,  nor  shall  any  such  securi- 
ties be  withdrawn,  except  as  provided  in  this  section.  {General 
statutes,  1875,  j9.  308,  §  10.) 

54.  An  examination  shall  be  annually  made  by  the  Treasurer 
of  the  securities  held  by  him  in  trust,  as  aforesaid,  from  each  insur- 
ance company,  and  if  it  shall  ai>pear  at  any  time  that  they  amount 
to  less  than  the  sum  required  for  the  purposes  for  which  such  de- 
posit was  made,  he  shall  notify  said  company  thereof,  and  unless 
the  deficiency  is  made  up  within  thirty  days  shall  countermand  all 
the  certificates  he  may  havQ  issued  to  said  company  under  the  pre- 
ceding section,  and  give  notice  thereof  to  the  offices  of  the  States  to 
whom  said  certificates  may  have  been  transmitted,  and  publish  said 
notice  in  one  newspaper  printed  in  Hartford,  and  one  printed  in 
New  Maven,  for  three  weeks  successively.     {Ibid,  §  11.) 

55.  Each  insurance  company,  so  depositing  secm'ities  with  the 
Treasurer,  shall  pay  him  twenty-five  dollars  annually,  in  lieu  of  all 
fees  for  such  services,  except  in  cases  where  it  shall  be  necessarj^ 
to  make  an  examination  out  of  his  office ;  for  each  of  which  such 
special  examinations  and  appraisals  he  shall  be  paid  by  the  compa- 
ny, in  whose  behalf  the  service  is  performed,  ten  dollars  and  his  ac- 
tual traveling  expenses,  in  lieu  of  other  fees.     {Ibid,  p.  309,  §  12.) 


CONNECTICUT.  109 

56.  When  said  company  shall  have  caused  all  its  unexpired 
policies  to  be  paid,  canceled  or  reinsiu-ed,  and  all  its  liability  under 
such  policies  thereby  to  be  extinguished,  or  to  be  assumed  by  some 
other  responsible  couipany  having  a  similar  deposit  with  said  Treas- 
urer, he  shall,  on  aj^plication  of  such  company,  verified  by  the  oath 
of  its  i)resideut  or  secretary,  and  on  being-  satisfied  by  an  examina- 
tion of  its  bookvS,  and  of  its  officers  under  oath,  that  all  its  policies 
are  so  paid,  canceled,  extingnished,  or  reinsured,  deliver  up  to  it 
such  securities.     {Ibid,  §  13.) 

57.  The  several  insurance  companies  of  tliis  State,  which  have 
deposited  with  the  Treasurer  registered  bonds  of  this  State,  or  of 
the  United  States,  are  hereby  i)ermitted  to  substitute  for  such 
bonds  the  bonds  of  any  incorporated  city  or  town  of  this  State,  of 
like  amount ;  and  all  deposits,  hereafter  made  with  the  Treasurer 
by  any  insurance  company,  shall  consist  only  of  registered  bonds 
of  this  State,  or  of  the  United  States,  or  such  mortgages  upon  real 
estate  within  this  State,  as  the  Treasurer  may  tleem  satisfactory,  or 
the  bonds  of  an  incorporated  city  or  town  of  this  State.     (IbicL 

58.  No  person  shall,  in  this  State,  receive  or  procure  applica- 
tions for  insurance,  or  issue  policies  of  insurance  or  renewals  thereof, 
or  in  any  manner  aid  in  the  transaction  of  the  business  of  any  in- 
surance company  or  association,  organized  under  the  laws  of  any 
other  State,  until  he  has  in  all  resi)ects  complied  with  the  laws  of 
this  State ;  but  nothing  herein  contained  is  to  be  so  construed  as 
to  prohibit  any  person  residing  in  this  State  from  making  applica- 
tion to  and  procuring  from  any  insurance  company  doing  business 
out  of  this  State,  and  having  no  agents  in  this  State,  policies  of  in- 
surance on  his  property  in  this  State.     {Ibid,  §  15.) 

59.  If  the  Insurance  Commissioner  shall  at  any  time  find  that 
the  assets  of  any  insurance  company  incorporated  by  this  State  are 
less  than  its  liabilities,  or  if  it  shall  fail  to  comply  with  the  require- 
ments of  law,  he  shall  forthwith  notify  it  to  cease  to  issue  new  poli- 
cies, or  pay  di\'idends,  until  the  deficiency  shall  be  made  good,  and 
the  law  complied  with ;  and  he  may,  and,  if  it  appears  to  him  that 
its  asssts  are  less  than  three-fourths  of  its  liabilities,  shall,  bring 
his  petition  to  the  superior  court  of  the  county  in  wbich  the  prin- 
cipal office  of  such  company  is  located,  if  in  session,  and  if  not  to  a 
judge  of  the  supreme  court  of  errors,  praying  for  the  appointment 
of  a  receiver,  and  that  said  company  may  be  enjoined  from  any 
further  proceeding  in  its  business,  and  that  its  charter  may  be 
annulled ;  and  said  court  or  judge,  and  the  receiver  if  appointed, 
shall  thereupon  proceed,  as  nearly  as  may  be,  as  provided  in  Part 
II.  of  this  chapter  in  the  case  of  banks  ;  and  said  court  may  make 
such  orders  relative  to  the  assets  of  said  company  as  it  may  deem 
proper.     {Ibid,  §  ]0.) 

60.  Every  person  who  shall  violate  any  provision  of  this  part, 
for  which  no  other  penalty  is  provided,  or  provision  made,  shall  be 
fined  not  less  than  one  hundred  dollars,  nor  more  than  five  hundred 
dollars.     {Ibid,  p.  310,  §  17.) 


ASSESSMENT  OF  TAXES. 

61 .    Tlie  cashiers  or  secretaries  of  all  corporations,  whose  stock 
is  liable  to  taxation,  shall,  on  or  before  the  twelfth  day  of  October, 


110  hike's  insurance  statutes. 

annually,  inform  the  assessors  of  each  town  of  the  names  of  the 
stockholders  residing  therein,  and  the  amount  of  stock  owned  by 
each,  as  exhibited  by  the  books  of  said  corporations,  on  the  first 
day  of  said  October,  so  far  as  the  residence  of  such  stockholders 
shall  be  known  to  such  cashiers  or  secretaries,  and  its  market  value 
during  the  month  of  September  next  preceding ;  and  any  such 
cashier  or  secretary  who  shall  neglect  to  furnish  such  information 
to  the  assessors  of  any  town  where  said  stock  is  liable  to  be  taxed, 
shall  forfeit  fifty  dollars  to  such  town ;  but  putting  a  letter  into 
the  post  office  containing  such  information,  postage  paid,  addressed 
to  the  assessors  of  any  town  where  such  owner  resides,  shall  be  a 
compliance  with  the  provisions  of  this  section.  {Ibid,  p.  157,  §  21.) 
iiH,  The  cashier  of  each  bank  and  national  banking  associa- 
tion, the  treasurer  of  each  savings  bank,  and  the  secretary  of  each 
corporation  incorporated  by  the  laws  of  this  State,  shall,  upon  the 
request  of  the  assessors  of  any  town,  inform  them  of  the  name  of 
any  person  therein,  who  owns  stock  or  bonds  held  by  such  corpora- 
tion as  collateral  security  for  any  indebtedness  or  liability,  and  the 
amount  and  description  of  such  stock  or  bonds;  and  any  such 
cashier,  treasurer,  or  secretary,  wbo  shall  neglect  to  furnish  such 
information  to  the  assessors  of  any  town  where  said  stock  or  bonds 
are  liable  to  be  taxed,  shall  forfeit  one  hundied  dollars  to  said 
town.     {Ibid,  §  22.) 

SPECIAL  TAXES   ON  CORPOEATIONS. 

63.  The  cashier  or  secretary  of  each  corporation,  whose  stock 
is  liable  to  taxation,  and  not  otherwise  taxed  by  the  provisions  of 
this  Title,  shall  on  the  first  day  of  October,  annually,  or  within  ten 
days  thereafter,  deliver  to  the  Comptroller  a  sworn  list  of  all  its 
stockholders,  residing  without  this  State  on  the  said  day,  and  the 
number  and  market  value  of  the  shares  of  stock  therein  then  be- 
longing to  each ;  and  shall,  on  or  before  the  twentieth  day  of  Octo- 
ber, annually,  i)ay  to  the  State  one  per  vent,  of  such  value  ;  and  if 
any  such  cashier  or  secretary  shall  neglect  to  comply  with  the  pro- 
visions of  this  section  he  shall  forfeit  to  the  State  one  hundred  dol- 
lars, in  addition  to  said  one  per  cent,  so  required  to  be  paid.  {Ibid, 
p.  167,  §  2.) 

64.  The  secretary  or  treasurer  of  every  life  insurance  company 
chartered  by  this  State,  and  doing  business  in  whole  or  in  part 
upon  the  plan  of  mutual  insurance,  including  all  companies  whose 
policy -holders  have  a  right  to  participate  in  its  i^rotits,  shall,  on  or 
before  th»  fifteenth  day  of  February,  annually,  render  to  the  Comp- 
troller a  sworn  statement  of  the  total  amount  of  its  assets  on  the 
preceding  thirty-first  day  of  December,  with  a  detailed  enumeration 
of  such  assets  and  the  market  value  thereof,  the  amount  of  premium 
notes  held  by  it,  its  ascertained  and  paid  losses  on  that  day,  and  if 
said  company  be  also  in  part  a  stock  company,  the  stock  whereof  is 
by  law  taxable,  the  market  value  of  the  assets  belonging  to  the 
stock  department  of  said  company.     {Laics  o/1875,  ^.  10,  §  1.) 

65.  The  board  of  equalization  shall  examine  and  correct  all 
statements  and  returns  made  to  the  Comptroller  in  pursuance  of  the 
foregoing  section,  and  in  case  any  such  comj^any  shall  not  make  the 
return  herein  prescribed,  said  board  shall,  upon  the  best  informa- 
tion it  can  obtain,  make  out,  within  ten  days  after  the  time  above 
limited  for  making  such  returns,  the  statements  required  to  be 


COXNECTICUT.  Ill 

made  by  such  company,  and  such  statement  or  return,  so  corrected 
or  made  out  shall  be  conclusive  as  to  the  market  value  and  amount 
of  the  assets  of  said  comi)any.     {Ibid,  §  2.) 

6S.  Every  such  insurance  company  shall,  annually,  on  or  before 
the  twenty-fifth  day  of  February,  pay  to  the  State,  as  a  tax  on  its 
corporate  franchise,  a  sum  equal  to  one  half  of  one  per  cent,  on  the 
total  amount  of  its  premium  notes  and  on  the  market  value  of  all 
its  other  assets,  deducting,  however,  the  amount  of  its  ascertained 
and  unpaid  losses,  the  market  value  of  its  real  estate  liable  to 
taxation  in  this  State,  the  market  value  of  any  bonds  owned  by  it 
which  have  been  heretofore  issued  by  this  State,  or  by  any  town  or 
city  in  this  State,  in  aid  of  the  construction  of  any  railroad,  and 
which  by  the  laws  of  this  State  are  exempt  from  taxation,  and  if 
said  company  be  in  i^art  a  stock  company,  the  stock  whereof  is  by 
law  otherwise  liable  to  taxation,  the  market  value  of  the  assets  be- 
longing- to  its  stock  department ;  and  said  tax  so  paid  shall  be  in 
lieu  of  all  other  taxes  on  the  assets  of  said  company,  except  on  its 
taxable  stock  and  on  real  estate  held  by  it,  over  and  above  what 
may  be  necessarily  used  by  it  in  transacting  its  appropriate  business. 
{Ibi^h  §  3.) 

G7,  If  any  person  whose  duty  it  shall  be  to  make  such  returns 
shall  fail  to  do  so  \\ithin  the  time  limited,  he  shall  forfeit  five  thou- 
sand dollars  to  the  State,  and  if  any  insurance  company  required 
by  this  statute  to  make  any  payment  fail  to  do  so  within  the  time 
herein  limited,  it  shall  forfeit  to  tbe  State  twice  the  amount  required 
for  such  payment.     {Ibid,  p.  11,  §  4.) 

68.  The  secretary  or  treasurer  of  each  fire  insurance  company 
chartered  by  this  State,  which  does  business,  in  whole  or  in  part, 
upon  the  plan  of  mutual  insurance,  including  every  company  whose 
policy-holders  have  a  right  to  participate  in  its  profits,  shall,  on  or 
before  the  twentieth  day  of  January,  annually,  render  to  the  Comp- 
troller a  sworn  statement  showing  the  total  amount  of  its  assets  on 
the  preceding  thirty-first  day  of  December,  and  containing  a  detailed 
enumeration  of  such  assets,  and  the  market  value  thereof,  the 
amount  of  premium  notes  held  by  it,  and  its  ascertained  and  unpaid 
losses  on  that  day,  with  the  balance  remaining  after  deducting 
from  said  total  amount  of  unpaid  losses,  and  the  market  value  of 
any  bonds  owned  by  it  which  have  been  heretofore  issued  by  this 
State,  or  by  any  town  or  city  in  this  State,  in  aid  of  the  construction 
of  any  railroad,  and  which  by  the  laws  of  this  State  are  exempt 
from  taxation,  and  the  premiimi  notes  held  by  it.    (Laics  of  1875,  p. 

li,  §  1) 

69.  The  Board  of  Equalization  shall  examine  and  correct  all 
statements  and  returns  made  to  the  Comptroller  in  pursuance  of  the 
foregoing  section,  and  in  case  any  such  company  shall  not  make  the 
return  herein  prescribed,  said  Board  shall,  upon  the  best  information 
it  can  obtain,  make  out  within  ten  days  after  the  time  above  limited 
for  making  such  returns,  the  statement  required  to  be  made  by  such 
comi^any,  and  such  statement  or  return  so  corrected,  or  made  out, 
shall  be  conclusive  as  to  the  market  value  and  amount  of  assets  of 
said  company.     (Ibid,  §  2.) 

70.  Each  ojf  such  mutual  fire  insurance  companies  shall,  annu- 
ally, on  or  before  the  thirtieth  day  of  January,  pay  to  the  State,  as  a 
tax  upon  its  corporate  franchise,  a  sum  equal  to  three-fourths  of  one 
per  cent,  upon  the  amount  of  the  balance  remaining  as  aforesaid; 
and  said  tax  so  paid  shall  be  in  lieu  of  all  other  taxes  on  the  assets 


112  hine's  insurance  statutes. 

of  said  company,  except  upon  the  real  estate  held  by  it,  over  and 
above  what  may  be  necessarily  used  by  it  in  transacting  its  appro- 
priate business.     {Ibid,  p.  12,  §  3.) 

71.  If  any  person  whose  duty  it  shall  he  to  make  such  returns, 
shall  fail  to  do  so  within  the  time  limited,  he  shall  forfeit  five  thou- 
sand dollars  to  the  State,  and  if  any  insurance  company  required 
by  this  statute  to  make  any  pajanent,  shall  fail  to  do  so  within  the 
time  herein  limited,  it  shall  forfeit  to  the  State  twice  the  amount 
required  for  such  payment.     (Ibid,  §  4.) 

72.  Every  insui'ance  comj)any  or  association  incorporated  by  or 
organized  under  the  laws  of  any  other  State,  and  admitted  to  trans- 
act business  in  this  State,  and  each  agent  of  every  such  insurance 
company,  shall  pay  the  same  fees  and  taxes  to  the  Treasurer  of  this 
State  as  are  imposed  by  such  other  State  upon  any  similar  insur- 
ance companies  incorporated  by  or  organized  uuder  the  laws  of  this 
State,  or  upon  the  agents  of  any  such  companies  transacting  busi- 
ness in  such  other  State.     {Laics  of  1875,  p.  23,  §  1.) 

73.  Every  agent  of  any  such  insurance  company  admitted  to 
transact  business  in  this  State  shall  return  annually,  the  first  day 
of  January,  under  oath  to  the  Insurance  Commissioner,  the  gTOSs 
amount  of  premiums  collected  by  him  for  the  year  previous :  and 
upon  receiving  from  said  commissioner  a  certificate  of  the  accept- 
ance of  said  return,  and  of  the  amount  of  tax  due  thereon,  shall 
pay  the  same  to  the  Treasurer  of  the  State  on  or  before  the  twen- 
tieth day  of  January  annually.  And  every  such  agent,  and  every 
agent  ot  a  foreign  insurance  company,  shall  retain  from  the  premi- 
ums collected  by  him,  the  tax  due,  or  to  become  due  thereon. 
{Ibid,  §  2.) 

74.  Each  agent  of  any  insurance  company  or  association  incor- 
porated by  or  organized  under  the  laws  of  any  foreign  government, 
which  shall  liave  received  from  the  Insurance  Commissioner  a 
license  to  transact  business  in  this  State,  shall  return  annually,  on 
the  first  day  of  January,  under  oath  to  said  Commissioner,  the  gross 
amount  of  premiums  collected  by  him  for  the  year  previous :  and 
shall,  annually,  on  or  before  the  twentieth  day  of  January,  pay  to  the 
Treasurer  of  the  State  a  tax  of  two  per  cent,  upon  the  amount  of 
premiums  so  collected.     {Ibid,  §  3.) 

75.  No  bank,  savings  bank,  insurance  company,  or  trust  com- 
pany, heretofore  incorporated,  shall  change  its  location  from  one 
town  to  another,  except  bv  act  of  General  Assembly.  {General 
Statutes,  lS15,p.  280,  §  21.)' 

76.  Every  person  who  shall  violate  any  law  of  this  State  relat- 
ing to  insurance  companies  organized  uuder  the  laws  of  other  States 
or  foreign  governments  shall  forfeit  one  hundred  dollars.  {General 
JStatutes,  1875,  p.  527,  §  8.) 

INSURANCE    ON  LIVES    FOR    THE    BENEFIT    OF    MAR- 
RIED  WOMEN  AND   CHILDREN. 

77.  Any  policy  of  life  insurance,  expressed  to  be  for  the  benefit 
of  a  married  woman,  or  assigned  to  her,  or  in  trust  for  her,  shall 
inure  to  her  separate  use,  or  in  case  of  her  decease  before  payment, 
to  the  use  of  her  children,  or  of  her  husband's  children,  as  may  be  pro- 
vided in  such  policy,  provided  that  if  the  annual  premium  on  such 
policy  shall  exceed  three  hundred  dollars,  the  amount  of  such 
excess  with  interest  shall  inure  to  the  benefit  of  the  creditors  of  the 


CONNECTICUT.  113 

person  paying  the  premium  ;  but  if  she  shall  die  before  the  person 
insured,  leaving  no  chihlren  of  herself  or  husband,  the  policy  shall 
become  the  ])roperty  of  the  person  who  has  paid  the  premiums, 
unless  otherwise  i)rovided  in  such  policy.  [Revised  Statutes  o/187o, 
p.  187,  §  7.) 

AESON  Ai^D   TNCENDIAKISM. 

78.  Every  person  who  shall  commit  arson,  nnd  owner  or  tenant 
of  any  building  wlio  shall  willfully  burn  it,  or  anything  therein,  with 
intent  to  defraud  another  5  and  every  owner,  officer,  or  mariner  of 
any  vessel,  who,  with  like  intent,  shall  willfully  cast  awa}',  burn,  or 
destroy  such  vessel,  shall  be  imprisoned  in  the  State  prison  not  less 
than  seven,  nor  more  than  ten  years.  {General  Statutes,  1875, }).  502, 
§3.) 

79.  Every  person  who  shall  willfully  burn  any  vessel,  unfin- 
ished dwelling  house,  or  other  private  building,  not  a  dwelling 
house,  belonging  to  another,  shall  be  imprisoned  in  the  State  prison 
not  less  than  two  nor  more  than  five  years;  and  if  the  building  so 
burned  shall  be  so  near  to  any  dwelling  house  that  the  burning  of 
such  building  shall  or  may  endanger  the  burning  of  such  dwelling 
house,  the  offender,  instead  of  foregoing  punishment,  shall  be 
imprisoned  in  the  State  i^rison  not  less  than  seven  nor  more  than 
ten  years.     {Ibid,  §  4.) 

80.  Every  person  who  shall  Avillfully  burn  any  building  of 
another,  in  which  any  horses  or  cattle  are  stabled  or  kept,  shall  be 
imprisoned  in  the  State  prison  not  more  than  ten  years.   {Ibid,  §  5.) 


EMBEZZLEMENT. 

8 1 .  Every  officer  or  agent  of  any  private  corporation  of  this 
State,  or  of  any  common  carrier,  or  any  agent  of  any  private  indi- 
\idual,  who  shall  take,  purloin,  secrete,  or  in  any  way  a])propriate 
to  his  own  use,  or  to  the  use  of  others,  any  of  the  goods,  moneys,  or 
choses  in  action,  in  the  care  or  custody  of,  belonging  to  or  depos- 
ited with  such  corporation,  carrier,  or  individual,  with  intent  to 
defraud  another,  or  who  shall,  with  like  intent,  make  any  false 
entries  upon  any  of  their  books,  or  shall  keep  false  books  or  entries 
of  and  concerning  their  business  and  affairs,  with  like  intent,  shall 
be  imprisoned  in  the  State  prison  not  more  than  ten  years  ;  but  the 
provisions  of  this  section  shall  not  apply  to  an  agent  of  a  i)rivate 
indi\adual,  when  the  value  of  the  goods  taken,  purloined,  secreted 
or  appropriated  by  such  agent  shall  not  exceed  twenty-five  dollars. 
{General  Statutes,  1875,  p.  524,  §  1.) 

8S.  Any  agent  of  an  agent  of  any  corporation,  who  shall 
appropriate  to  his  own  use  the  property  of  his  principal,  with  intent 
to  defraud  him,  shall  be  punished  in  the  same  manner  as  the  agent 
of  such  corporation  would  be  for  a  similar  olience.     {Ibid,  §  3.) 

FRAUD   AND   FALSE   SWEARING. 

83.     Every  person  who  shall  obtain,  or  attem])t  to  obtain,  from 
any  life  or  accident  insurance  company  of  this  State,  any  money  on 
any  policy  of  insurance  issued  by  it,  by  falsely  or  fraudulently  rep- 
7 


114  niNE'S  INSURANCE  STATUTES. 

resenting  the  insured  person  as  dead,  or  tbe  person  insured  against 
accident  as  injured;  or  shall  fraudulently  obtain  or  attempt  to 
obtain  any  money  from  such  company  upon  a  policy  of  insurance 
issued  in  the  name  of  a  fictitious  person,  shall,  if  the  sum  so 
obtained,  or  attempted  to  be  obtained,  be  one  hundred  dollars  or 
more,  be  imprisoned  in  the  State  prison  not  more  than  ten  years ; 
and  if  such  sum  shall  be  less  than  one  hundred  dollars,  he  shall  be 
fined  not  more  than  five  hundred  dollars,  or  imprisoned  in  a  jail  not 
more  than  one  year  or  both.     {General  Statutes,  1875,^.  524,  §  6.) 

84.  For  General  Provisions  relating  to  Private  Corporations, 
see  Kevised  Statutes,  1875,  pp.  277-281 ;  Joint  Stock  Corporations, 
Ibid,  pp.  310-315. 


I:N"DEX   to   DELAWARE. 


FAGK 

Advertising,  Annnal  Statements  (1,  2)..  116 

Agent^ 

Who  Deemed  (10,  17) 118,  121 

Effect  of  Death  ol.  on  License  (11) 118 

Agents — 

Business  of,  when  Illegal  (2) 116 

Under  Eeciprocal  Laws  (3) 116 

Licenses  (6-12)  IIT,  119 

Annual  Statements  (1,  2) 116 

Arson  and  Incendiarism  (19-24) 121,  122 

Certificate  of  Authority  under  Reciprocal 

Laws  (3) 116 

t^opartnership  Licenses  (11) 118 

Corporations,  General  Provisions  Kelatiug 

to  (25) 122 

Fees  for  Licenses  (8,  11) 117,  118 

Fire  Insurance  Agent,  who  Deenied  (10)..  118 

Fire  Insurance  Companies- 
Annual  Statements  (1,2) 116 

Licenses  (6-12) 117,  119 

Tax  on  Home  (13) 119 

Penalty  for  not  Paying  Same  (1  i) 119 

Proceedings  when  Same   is  not  Paid 
(15,  16i 120 

Foreign- 
Fire  Ins.  Cos..  License  of  (6-12)  ..117,  119 
Life  Ins.  Cos.,  License  of  (G-12). .  .117,  119 
Insurance  Cos  ,  Suits  against  (17) 121 

Home  Fire  Ins.  Cos.  Tax  on  (13-16).  .119,  120 

Incendiarism  and  Arson  (19-24) 121,  122 

License—*  6-12) 13  7, 119 

Fees  (8,11) 1 17,  11 8 

Fees,  under  Reciprocal  Laws  (3,  4)  . . .  116 

How  Obtained  (7) 117 

Penalty  for   doing    Business    without 

(9) 117 

Must  Contain  what  (11) 118 

Of  Copartnership  (11 118 

For  each  kind  of  Easiness,  Xecessary 

(11) 118 


FACE 

License  (Continued) — 

To  be  Produced  on  Demand  (12) 119 

Proceedings     against    Persons     doing 
Business  without  (12) 119 

Life  Insurance- 
Companies,  Annual  Statements  (1,  2).  116 

Companies,  License  (6-12) 117,  119 

Agent,  Who  Deemed  (10,  17) 118,121 

For  Married  "Women  (18) 

Lire  Stock  Ins.    Co.,  Annual    Statements 

(1,2) 116 

Marine  Ins.  Cos.,  Annual  Statements  (1, 

2) 116 

Married  "Woman's  Life  Policj  (18) 121 

Penalty— 

For  not  making  Annual  Statements  (1 , 

2) 116^ 

For  Illegal  Business  (9) 1 17 

Under  Keciprocal  Laws  (3-5) 116 

For   Arson    and    Incendiarism    (19- 

24) .....121,  122 

For  not  Paying  State  Tax  (14) 120 

Policy,  Married  Woman's  Life  (18) 121 

Premiums — 

Tax  on  (8) 117 

Statement  of  ( 8) 117 

Keceipt  of.  Constitutes  Agent  (17) 121 

Reciprocal  Laws  (3) 116 

Service  of  Process  (17) 121 

State  Insurance  Cos.,  Tax  on  (13-16)  119,  120 
Suits  against  Foreign  Companies  (17) 121 

Tax— 

On  Premiums  (8) 117 

On  Home  Fire  Ins.  Cos.  (13) 119 

Penalty  for  not  Paying  Same  (14) 1 19 

Proceedings  when  Same  is  Unpaid  (1 5, 
16) 120' 

Taxes  under  Reciprocal  Laws  (3,  4) lit*- 

Wife's  Policy  (18) 121 


INSURANCE  STATUTES  OF  DELAWARE. 


1 .  Every  fjre,  marine,  life,  or  live  stock  insurance  company,  in- 
cori)orated  under  the  laws  of  this  State,  shall,  within  six  months 
alter  the  ])assage  of  this  act,  and  thereafter  annually,  before  the 
first  day  of  July  in  each  year,  publish  or  cause  to  be  published  once 
a  week  for  three  weeks,  in  at  least  two  newspapers  of  this  State,  a 
statement  in  detail,  setting:  forth  its  financi;)!  condition  at  the  time 
such  statement  is  published,  jjresenting  the  amount  and  nature  of 
the  business  done  during  the  last  preceding  jear,  with  the  assets  and 
liabilities  of  the  corporation,  and  the  manner  in  which  its  assets 
are  invested,  the  amount  of  annual  expenses,  and  for  a  failure  to 
})ublish  such  statement  the  said  bank  or  insurance  company  shall  be 
liable  to  a  fine  of  two  hundred  dollars  for  each  and  every  such  omis- 
sion, to  be  prosecuted  and  received  by  the  Attorney  General  for  the 
use  of  the  States.     {Laics  of  1875,  p.  180,  §  1.) 

S.  Every  foreign  fire,  life,  marine  or  live  stock  insurance  com- 
pany, having  a  duly  authorized  agent  or  agents  representing  it 
within  this  State,  or  doing  business  within  the  State,  shall  be  re- 
quired to  publish  a  statement  as  provided  in  the  foregoing  section, 
and  in  default  of  such  publication  it  shall  not  be  lawful  for  any 
agent  or  agents  to  pursue  the  business  of  representing  a  company 
so  omitting  to  jmblish  or  to  receive  insiu-ance  for  the  same,  within 
the  limits  of  this  State,  under  the  penalty  prescribed  in  the  pre- 
ceding section.     {Ibid,  §  2.) 

3.  Whenever  the  existing  or  futiu-e  laws  of  any  other  State  of 
the  United  States  shall  require  of  insurance  comi)anies  incorporated 
by  this  State,  and  having  agencies  in  such  other  State,  or  of  the 
agents  thereof,  any  deposit  ot  securities  in  such  State  for  the  pro- 
tection of  i^olicy-holders,  or  otherwise,  or  any  payment  for  taxes, 
penalties,  certificates  of  authority,  license  iees,  or  otherwise,  greater 
than  the  amounts  required  for  such  ])urposes  from  similar  companies 
of  other  States  by  the  then  existing  laws  of  this  State,  then,  and  in 
every  such  case,  all  companies  of  such  States,  establishing,  or  hav- 
ing heretofore  established  an  agency  or  agencies  in  this  State,  shall 
be  and  are  hereby  required  to  make  the  same  deposit,  for  a  like  pur- 
pose, with  the  Treasurer  of  the  State  of  Delaware,  and  to  pay  to 
said  Treasurer  for  taxes,  fines,  ])enalties,  certificates  of  authority, 
license  fees,  and  otherwise,  an  amount  equal  to  the  amount  of  such 
charges  and  payments  imposed  by  the  laws  of  such  State  upon  com- 
panies of  this  State  and  agents  thereof.     {Ibid,})'  380,  §  1.) 

4.  All  sums  of  money  received  by  the  Treasurer  of  the  State 
of  Delaware  under  the  provisions  of  this  act,  in  payment  of  taxes, 
penalties,  certificates  of  authority,  or  license  fees,  from  foreign  in- 
surance companies  transacting  business  in  this  State  by  agents  or 
otherwise,  shall  be  for  the  use  of  the  State  of  Delaware.     {Ibid,  §  2.) 

5.  All  persons  violating  any  of  the  provisions  of  this  act, 
shall  be  liable  to  indictment,  on  information  of  such  violation  being 
given  to  the  Attorney-General  of  this  State,  or  to  his  deputies,  and 


DELAWARE.  117 

Oil  conviction,  shall  be  fined  not  less  than  one  hundred  dollars,  nor 
more  than  five  hundred  dollars,  at  the  discretion  of  the  jury  and 
court  trying  the  same.     {Ibid,  §  3.) 

6.  No  person  or  persons,  firm,  company  or  corporation,  with- 
out ha\iiig  first  obtained  a  i)roper  license  therefor,  as  hereinafter 
provided,  shall  within  the  limits  of  this  State,  be  engaged  in,  prose- 
cute, follow,  or  carry  on  any  trade,  business,  pursuit,  or  occupation  in 
this  section  hereinafter  next  mentioned,  that  is  to  say:  foreign  life 
insurance  agency ;  foreign  tire  insurance  agency.  {Revised  Statutes, 
1S74.,]).  3i,  part  of  ^  I.) 

7,  Any  person  or  persons,  firm,  company,  or  coi^poration  desir- 
ing to  be  engaged  in,  prosecute,  follow,  or  carry  on  any  trade,  bus- 
iness, pursuit,  or  occupation  named  in  the  foregoing  section  of  this 
act,  may  apply  to  the  Clerk  of  the  Peace  of  any  county  in  this  State  for 
a  proper  license  authorizing  or  empowering  him,  her,  or  tbem  to  en- 
gage in,  i>rosccute,  follow,  or  carry  on  such  trade,  business,  pursuit, 
or  occupation  which  he,  she,  or  they  may  desire  to  engage  in,  prose- 
cute, follow,  or  carry  on,  and  upon  his,  her,  or  their  paying,  for  the 
use  of  the  state,  to  the  said  Clerk  of  the  Peace,  the  fee  hereinafter 
mentioned  for  such  license,  also  the  fee  to  the  Clerk  of  the  Peace 
for  issuing  the  same,  it  shall  be  the  duty  of  such  Clerk  of  the  Peace 
to  issue  to  him,  her,  or  thein  a  projier  license  thereof.     {Ibid,  §  2.) 

?«i.  The  following  fee  shall  be  paid  to  the  Clerk  of  the  Peace, 
for  the  use  of  the  State,  for  any  license  to  be  issued  by  him  under 
the  provisions  of  this  act,  that  is  to  say :  for  each  license  as  a 
foreign  life  insurance  agent  the  sum  of  fifty  dollars;  and  such 
agent  shall  rJso  pay  to  the  Clerk  of  the  Peace,  for  the  use  of  the 
State,  at  the  time  of  obtaining  such  license  in  each  year,  two  and 
one-half  i^er  centum  on  the  gross  amount  of  premiums  received  and 
assessments  collected  by  such  agent  during  the  year  immediately 
next  preceding  the  date  of  obtaining  such  license  in  each  year ;  and 
every  such  agent  shall  at  the  same  time  furnish  to  the  Clerk  of  the 
Peace  a  statement  showing  the  gross  amounts  of  premiums  received 
and  assessments  collected,  and  shall  verify  such  statement  by  his  oath 
or  aflirmation,  taken  before  some  person  who,  by  the  laws  of  this 
State,  is  duly  authorized  to  administer  the  same :  for  each  license 
as  a  foreign  fire  insurance  agent  the  sum  of  fifty  dollars;  and  such 
agent  shall  also  pay  to  the  said  Clerk  of  the  Peace,  for  the  use  of  the 
State,  the  sum  of  two  and  one-half  per  centum  on  the  gross  amount 
of  premiums  received  and  the  assessments  collected  by  such  agent 
during  the  year  immediately  next  preceding  the  date  of  obtaining 
such  license  in  each  year;  and  such  agent  shall  at  the  same  time 
furnish  to  the  said  Clerk  of  the  Peace  a  statement  showing  the  gross 
amount  of  premiums  received  and  assessments  collected,  and  shall 
verify  such  statement  by  his  oath  or  aflirmation  duly  administered 
by  some  i)erson  authorized  by  the  laws  of  this  State  to  administer 
oaths.     {Ibid,  §  3.) 

9.  That  if  any  person  or  persons,  firm,  company,  or  corporation 
shall  be  engaged  in,  prosecute,  follow,  or  carry  on,  within  the  limits 
of  this  State,  any  trade,  business,  ])ursuit,  or  occupation  named  in 
the  first  section  of  this  act,  without  having  first  obtained  a  proper 
license  therefor,  he,  she,  or  they,  and  the  indi\iduals  composing- 
such  firm  or  company,  and  each  of  them,  and  the  president  and 
directors,  and  each  of  them,  of  such  corporation,  for  every  such 
offense  shall  be  deemed  guilty  of  a  misdemeanor,  and  upon  con- 
viction thereof  by  indictment,  besides  being  liable  to  the  payment 


118  hine's  insurance  statutes. 

of  the  tax,  be  subject  to  imprisouraent  for  a  term  not  exceeding  two 
years,  or  a  fine  not  exceeding  five  hundred  dollars,  or  both,  at  the 
discretion  of  the  court ;  one  moiety  of  such  fine  for  the  use  of  the 
State,  the  other  moiety  to  the  use  of  the  person  who  shall  first  give 
information  of  the  fact  whereby  said  forfeiture  was  incurred.  {I  bid, 
p.  -62,  §  4.) 

1 0.  Every  person  other  than  the  clerk  or  assistant  of  any  life  in- 
surance agent  who  shall  have  become  qualified  to  conduct  and  carry 
on  the  business  of  life  insurance  agent  as  provided  for  in  section  2  of 
said  chapter  117  (2),  at  the  one  place  designated  in  his  license,  who 
shall  procure  or  solicit  any  citizen  or  resident  of  this  State  to  take 
out  a  policy  on  his  or  her  life,  or  life  or  lives  of  another  or  others,  in 
any  company  or  companies  not  incorporated  by  the  laws  of  this 
State,  shall  be  deemed  a  foreign  life  insurance  agent  within  the 
meaning  of  this  act.  Every  person  other  than  the  clerk  or  assistant 
of  any  fire  insurance  agent  who  shall  have  become  qualified  to  con- 
duct and  carry  on  the  business  of  fire  insurance  agent,  as  provided 
for  in  section  2  of  said  chapter  117,  at  the  one  ])lace  designated  in 
his  license,  who  shall  procure  or  solicit  any  citizen  or  resident  of 
this  State  to  take  out  a  policy  of  insurance  in  any  fire  insurance 
company  or  companies  not  incorporated  by  the  laws  of  this  State, 
shall  be  deemed  a  foreign  fire  insurance  agent  within  the  meaning 
of  this  act.     {Ibid,  §  5.) 

11.  In  every  license  to  be  taken  out  under  or  by  authority  of 
this  act,  shall  be  contained  and  set  forth  the  trade  business,  pursuit, 
or  occupation  for  which  such  license  is  granted,  the  name  and  place 
of  abode  of  the  person  or  persons  taking  out  the  same,  and  that  the 
fee  due  the  State  therefor  has  been  paid.  Where  one  or  m ore  persons 
are  associated  together  as  a  firm  or  copartnership,  and  doing  or  car- 
rying on  any  trade,  business,  pursuit,  or  occupation  mentioned  in 
the  first  section  of  this  act  at  the  same  time  and  place,  it  shall  not 
be  necessary  for  each  of  the  individuals  composing  such  firm  or  co- 
partnership to  take  out  a  separate  license  thereof,  but  one  license  may 
be  granted  in  the  name  of  the  firm  or  copartnership.  In  every  case 
where  more  than  one  of  the  trades,  businesses,  pursuits,  or  occupa- 
tions mentioned  in  the  first  section  of  this  act  shall  be  pursued  or 
carried  on  by  the  same  person  or  persons,  firm,  company,  or  corpora- 
tion at  the  same  time,  a  license  must  be  taken  out  for  each  accord- 
ing to  the  rates  prescribed  by  the  third  section  of  this  act.  Every 
license  issued  in  pursuance  of  the  provisions  of  this  act  shall  bear 
date  on  the  day  on  which  it  was  issued,  and  shall  continue  in  force  one 
year  from  the  date  thereof  and  no  longer.  Such  licenses  shall  be 
signed  by  the  Governor  of  this  State,  and  countersigned  by  the 
Secretary  of  State  and  sealed  with  the  seal  of  his  office.  The  death, 
resignation,  or  removal  from  office  of  the  Governor,  or  of  the  Sec- 
retary of  State,  shall  not  avoid  or  invalidate  any  license  issued 
under  the  provisions  of  this  act.  Every  person  or  persons,  firm, 
company,  or  corporation,  who  shall  procure  a  license  under  this 
act  as  a  foreign  life  insurance  agent,  or  foreign  fire  insurance  agent, 
shall  be  authorized  and  empowered  during  the  year  for  which  such 
license  was  granted,  to  exercise  and  carry  on  the  trade,  business, 
pursuit,  or  occupation  for  which  the  license  was  granted  in  any 
county  of  this  State ;  Provided,  That  no  such  person  or  persons, 
firm,  companj',  or  corporation  shall  be  engaged  in,  prosecute,  follow, 
or  carry  on  such  trade,  business,  pursuit,  or  occupation  at  more  than 
one  place  at  the  same  time ;  And  provided  further.  That  if  any  per- 


DELAWARE.  119 

son  or  persons  shall  be  duly  licensed  under  this  act  as  a  foreign  life 
insurance  agent,  or  foreign  fire  insurance  agent,  and  shall  die  be- 
fore the  expiration  of  the  year  for  which  such  license  was  granted, 
it  shall  be  lawful  for  his,  her,  or  their  executors  or  admiuistrators 
to  exercise  and  carry  on  the  trade,  business,  pursuit,  or  occupation 
for  which  the  license  was  granted  uutil  the  expiration  of  the  year 
for  which  it  was  granted.  Every  person  applying  to  any  Clerk  of 
the  Peace  for  a  license  under  the  provisions  of  this  act  shall,  in  ad- 
dition to  the  fee  for  the  use  of  the  State  mentioned  in  the  third 
section  of  this  act,  pay  to  such  Clerk  of  the  Peace  a  fee  of  fifty 
cents  for  issuing  the  same.     {Ibid, p.  33,  §  6.) 

12.  It  shall  be  the  duty  of  every  justice  of  the  peace,  sheriff, 
deputy  sheriff,  and  constable  within  their  respective  counties, 
whenever  he  shall  have  knowledge  that  any  person  or  persons, 
firm  or  company  is  or  are  engaged  in,  exercising,  following,  or 
carrying  on  any  trade,  business,  pursuit,  or  occupation  mentioned 
in  the  first  section  of  this  act,  without  having  first  obtained  a 
license  therefor  as  i)rovided  by  this  act,  to  make  complaint  or  cause 
complaint  to  be  made  thereof  before  some  justice  of  the  peace  of 
his  county,  who  shall  thereupon  proceed  according  to  the  provisions 
of  chapter  ninety-seven  of  the  lievised  Code  of  the  State  of  Delaware 
in  relation  to  complaints  made  before  him  in  other  criminal  cases,  and 
all  existing  provisions  of  law  relative  to  misdemeanors  and  offenses 
shall  extend  and  apply  to  offenses  created  by  this  act,  so  far  as  the 
same  are  applicable  and  are  not  inconsistent  herewith.  Every  per- 
son exercising  or  carrying  on  any  trade,  business,  pursuit,  or  occu- 
pation named  in  the  first  section  of  this  act  shall,  on  demand  of 
any  justice  of  the  peace,  sheriff,  deputy  sheriff,  constable,  or  citizen 
within  this  State,  produce  the  license  therefor,  and  unless  he  shall 
do  so  it  shall  be  presumptive  evidence  that  he  has  no  Ucense. 
{Ibid,  p.  35,  §  9.) 

IS.  Every  person,  or  persons,  association  of  individuals,  or 
corporation  who  shall,  within  the  limits  of  this  State,  be  engaged 
in,  pursue,  or  follow  the  business  or  occupation  of  insuring  j)roperty 
against  loss  by  fire  shall,  on  the  first  Tuesday  in  the  mouth  of  Jidy 
next  after  the  passage  of  this  act,  and  on  the  same  day  annually  and 
every  year  thereafter,  while  they  shall  continue  in  such  business, 
pay  to  the  State  Treasurer,  for  the  use  of  the  State,  a  tax  of  one 
hundred  dollars ;  Provided,  That  where  two  or  more  persons  are 
associated  together  and  carrying  on  tlie  business  or  occupation  of 
insuring  property  against  loss  by  fire,  it  shall  not  be  necessary  for 
each  of  the  persons  composing  such  association  to  pay  the  said  tax, 
but  the  payment  thereof  by  such  association  collectively  shall  be 
sufficient.     {Ibid,  §  11.) 

14.  If  any  person  or  jiersons,  or  association  of  individuals,  who 
shall  be  engaged  in,  pursue,  or  follow  the  business  or  occupation  of 
insuring  property  against  loss  by  fii'e  shall  refuse,  fail,  or  neglect  to 
pay  to  the  State  Treasurer  the  tax  imposed  by  the  next  foregoing 
section  of  this  act,  within  five  days  after  the  same  shall  become 
due  and  payable,  such  person  or  persons,  or  the  individuals  com- 
posing any  such  association  so  refusing,  failing,  or  neglecting,  be- 
sides being  liable  to  i)ay  the  tax  imposed  by  the  next  foregoing 
section  shall  be  deemed  guilty  of  a  misdemeanor,  and  upon  con- 
viction thereof  by  indictment  shall  forfeit  and  pay  a  fine  of  not  less 
than  five  hundred  dollars  nor  more  than  two  thousand  dollars,  be- 
sides costs.     And  if  any  corporation  liable  to  the  tax  imposed  by 


120  hine's  insurance  statutes. 

the  next  foregoing  section  of  this  act  shall  refuse,  fail,  or  neglect, 
for  the  space  of  five  days  after  the  same  shall  be  due  and  payable, 
t)  pay  the  State  Treasurer  the  tax  imposed  by  the  next  foregoiug 
section  of  this  act,  such  refusal,  failure,  or  neglect  shall  work  a 
rev^ocatiou  of  the  charter  of  such  corporation  so  refusing,  failing,  or 
neglecting,  and  the  president  and  directors  of  such  cori)oratiou  so  re- 
fusing, failing,  or  neglecting,  as  aforesaid,  shall  be  deemed  guilty  of  a 
misdemeanor,  and  ui)on  conviction  thereof  by  indictment  shall  forfeit 
and  pay  a  tine  of  not  less  than  five  hundred  dollars,  nor  more  than  two 
thousand  dollars,  besides  costs,  and  the  individual  property  of  such 
president  and  directors  shall  also  be  liable  for  the  payment  of  the 
tax  imposed  by  the  next  forgoing  section  of  this  act.  And  further, 
In  case  of  any  person,  or  persons,  com^iany,  or  association  of  indi- 
viduals as  aforesaid,  so  refusing,  failing,  or  neglecting  to  pay  the 
tax  for  which  he,  she,  or  they  are  liable  under  the  next  foregoing- 
section  of  this  act,  within  the  time  appointed  for  the  payment 
thereof,  it  shall  be  unlawful  for  him,  her,  or  them  therealter  to 
be  engaged  in,  pursue,  follow,  or  carry  on  the  business  or  occu- 
pation of  insuring  property  against  loss  by  fire  within  this  State, 
and  if  he,  she,  or  they  shall  thereafter  presume  to  engage  in,  pur- 
sue, follow,  or  carry  on  said  business  or  occupation  of  insuring 
property  against  loss  by  fire  within  this  State,  he,  she,  or  they  shall 
be  deemed  guilty  of  a  misdemeanor,  and  upon  conviction  thereof 
by  indictment  shall  forfeit  and  pay  a  fine  of  not  less  than  five  hun- 
dred dollars,  nor  more  than  two  thousand  dollars,  besides  costs. 
{Ibid,  p.  3G,  §  12.) 

1^.  The  Court  of  Chancery  shall  have  jurisdiction  and  power, 
and  upon  the  ai)plication  of  the  State  Treasurer,  on  behalf  of  the 
State,  it  shall  be  the  duty  of  the  Chancellor  to  restrain,  bj^  injunc- 
tion i)rocess,  any  breach  of  the  next  foregoing  section  of  this  act 
attempted  to  be  committed  by  any  })erson,  or  persons,  company,  or 
association  of  individuals  by  engaging  in,  ])ursuiug,  or  carrying  on 
the  business  or  occui)ation  of  insuring  j)roperty  against  loss  by  fire 
after  a  refusal,  failure,  or  neglect  to  mahe  payment  to  the  State 
Treasurer  of  the  tax  imposed  bj'  section  eleven  of  this  act,  within 
the  time  limited  for  the  payment  thereof.  And  further,  In  case  of 
any  refusal,  failure,  or  neglect  by  any  corporation  liable  to  the  pay- 
ment of  the  tax  imi)osed  by  section  eleven  of  this  act  to  make  the 
payment  to  the  State  Treasurer  of  the  tax  imposed  by  said  section 
eleven,  within  the  time  api^ointed  for  the  payment  thereof,  the  State 
Treasurer  shall  report  the  fact  immediately  to  the  General  Assem- 
bly, if  in  session,  or  at  the  next  meeting,  either  regular  or  ad- 
journed, and  also  to  the  Attorney-General,  whoso  duty  it  shall  be 
to  proceed  without  delay  against  the  s.iid  corporation,  in  the  proper 
tribunal,  to  carry  the  aforesaid  revocation  into  effect.     {I hid,  §  13.) 

1 0.  That  it  shall  be  the  duty  of  the  State  Treasurer  to  enforce 
the  payment  of  the  tax  imposed  by  section  eleven  of  this  act,  and 
for  this  purpose  all  the  provisions  of  chapter  twenty-nine  of  the 
Revised  Code  of  this  State,  conferring  powers  and  duties  upon  that 
officer  and  his  collectors,  in  relation  to  the  execution  of  the  warrant 
issued  to  him  by  the  Auditor  of  Accounts  for  the  collection  of  the 
State  tax,  shall  be  vested  in  and  may  be  exercised  by  him  and 
them  in  the  collection  of  the  tax  imposed  by  said  section  eleven  of 
this  act.     {Ibid, p.  37,^14.) 

17,  In  any  case  where  any  insurance  company,  not  incorpo- 
rated by  this  State,  shall  have  an  agency,  transact  any  business,  or 


DELAWARE.  121 

issue  policies  of  insiu"ance  upon  any  property  or  life,  within  any 
county  in  this  State,  it  shall  and  may  be  lawful  to  institute  and 
commence  an  action  against  such  insurance  company  in  such 
county,  and  the  original  writ  may  be  served  upon  the  president, 
agent,  chief  or  other  clerk,  or  upon  any  director  or  agent  of  such 
company,  within  such  county,  and  such  service  shall  be  good  and 
valid  in  law,  to  all  intents  and  purposes.  For  the  purpose  of  this 
act  the  receiving  of  a  premium  of  insurance  for  transmission  to 
such  company  or  otherwise,  constitutes  the  receiver  thereof  their 
agent.     [Laics  of  lS75j  p.  303,  §  1.) 

18.  A  married  woman  may,  in  her  own  name,  or  otherwise, 
effect  insurance  for  her  sole  use,  on  the  life  of  her  husband,  for  any 
definite  period,  or  for  the  term  of  his  life;  and  if  she  survive  him, 
the  sum  due  upon  such  insurance,  shall  be  i^ayable  to  her,  for  her 
own  use,  free  from  the  claims  of  the  creditors  or  representatives  of 
her  husband  ;  but  such  exemption  shall  not  apply  where  the 
amount  of  premium  annually  paid,  shall  exceed  one  hundred  and 
fifty  dollars. 

In  case  of  the  wife's  death  before  the  husband,  the  amount  of 
such  insurance  may  be  made  payable  to  her  children  or  grand- 
children.    {Revised  /Statutes,  1874,  p.  478,  §  3.) 

I  i).  If  any  person  shall  willfully  and  maliciously  burn,  or  set 
on  fire  any  dwelling-house  of  another,  or  any  store,  or  other  build- 
ing, adjoining  to,  or  parcel  of  a  dwelling-house  of  another,  such 
person  shall  be  deemed  guilty  of  arson  and  felony,  and  shall  suffer 
death.     (Revised  Statutes,  1874,^9.770,  §  1.) 

Si>.  If  any  person  shall  willfully  and  maliciouslj^  burn  or  set  on 
fire  the  court-house  in  either  of  the  counties  of  this  State,  or  any 
house  or  office,  wherein  public  records  are  kept,  he  shall  be  deemed 
guilty  of  felony,  and  shall  be  fined  one  thousand  dollars,  stand  one 
hour  in  the  pillory,  shall  be  whipped  with  sixty  lashes,  shall  be  im- 
prisoned not  exceeding  twenty  years.     [Ibid,  p.  771,  §  2.) 

SI.  If  any  person  shall  willfully  and  maliciously  burn,  or  set  on 
fire  any  ship,  or  other  vessel,  any  mill,  any  building  part  of  a  manu- 
facturing establishment,  or  used  in  carrying  on  any  manufacture  or 
trade,  any  granary,  warehouse,  store,  shop,  barn,  stable,  or  out- 
house, the  property  of  another  (other  than,  and  except  such  houses 
as  are  embraced  in  the  preceding  sections) ;  or  shall  willfully  and 
maliciously  burn  or  set  on  fire  any  magazine,  church,  chapel,  meet- 
ing-house, academy,  or  school-house,  such  persons  shall  be  deemed 
guilty  of  felony,  and  shall  be  fined  not  less  than  one  hundred  nor 
more  than  five  hundred  dollars ;  and  in  case  of  the  destruction  of 
private  property,  shall  restore  and  pay  to  the  owner  thereof  two- 
fold the  value  thereof,  shall  stand  one  hour  in  the  pillory,  shall  be 
whipped  with  not  more  than  twenty  lashes,  shall  be  imprisoned  for 
not  more  than  six  years.     (//;;//,  §  3.) 

22.  If  any  person,  being  the  owner,  or  tenant,  of  any  house  or 
building,  shall  willfullj^  burn  the  same  with  intent  thereby  to  defraud 
or  prejudice  any  person,  or  corporation,  that  shall  have  underwritten 
any  policy  of  insurance  thereon,  or  on  any  goods,  v/ares,  or  mer- 
chandise therein,  such  person  shall  be  deemed  guilty  of  felony,  and 
shall  be  fined  four-fold  the  sum  insured  on  such  houses  or  goods. 
{Ibid,  §  4.) 

Qli.  If  any  person  shall  willfully  and  maliciously  burn,  or  set  on 
fire  any  wheat,  or  other  grain,  hay  [corn  fodder]  or  straw,  any 
boards,  shingles,  or  other  lumber,  or  any  coals  of  another,  he  shall 


122  hine's  insurance  statutes. 

be  deemed  guilty  of  a  misdemeanor,  and  shall  be  fined  not  exceeding 
one  thousand  dollars,  shall  stand  one  hour  in  the  pillory,  shall  be  im- 
prisoned not  exceeding  one  year,  and,  in  case  of  the  destruction  of 
private  property,  shall  restore  and  i)ay  to  the  owner  thereof  two-fold 
the  value  thereof.  And  if  a  fire,  so  set  to  such  wheat,  grain,  or  other 
property,  or  to  any  building,  ship,  or  vessel,  shall  spread,  the  person 
so  setting  the  same  on  fire,  shall  be  deemed  guilty  of  burning,  or 
setting  on  fire  every  dwelling-house,  ship,  vessel,  buikling,  or  other 
property  to  which  such  fire  shall  extend.     {Ibid^  §  5.) 

34.  If  any  person  shall  willfully  and  maliciously  attempt  to 
set  on  fire  any  dwelling-house,  or  other  buikling,  any  ship,  vessel, 
wheat,  grain,  hay,  straw,  boards,  shingles,  lumber,  or  coals  of  an- 
other, he  shall  be  deemed  guilty  of  a  misdemeanor,  and  shall  be 
fined  not  exceeding  five  hundred  dollars,  shall  be  imprisoned  not 
exceeding  two  years.     {Ihid^  §  6.) 

25.  For  General  Provisions  relating  to  Corporations  see  Kevised 
Statutes,  1874,  pp.  376,  380. 


INDEX  TO   DISTRICT   OF   COLUMBIA. 


FAOB 

Agent— 

Defined  (5) 124 

License  of  (5) 124 

To  Obiaiu  for  each  Co.  f  2,  5  I 124 

May  Employ  Sjlicitors  (2) 124 

Non-Eesidcnt,  Defined  ( 5 ) 124 

Xon-Resident,  Tax  on  (5; 124 

Arson  and  Incendiarism  ^8) 125 

Capital,  Tax  on  i  3,  4) 124 

Corporations,  General  Provisions  Kelating 

to  (9) 125 

Embezzlement  (8) 125 

Fees  for  Licenses  (5) 124 

Fire  Insurance- 
Agents,  Tax  on  (5) 124 

Company,  Defined  i,S> 124 

Company,  Agents  of  <  2) 124 

Company,  Tax  on  Capital  (3) 124 

Tncenuiarism  and  Arson  (7 j 125 

License — 

Tax  Limited  (1 ) 124 

Fees  (5) 124 

Of  Xon-Kesident  Agent  (5) 124 


PAGE 

License  (Continued) — 

Penalty  for  S on-Payment  of  (6) 124 

Life  Insurance — 

Company,  Defined  (4) 124 

Company,  Tax  on  (4) 124 

Company,  Agents  of  (2) 124 

Agents,  License  of  (5) 124 

Agents,  Tax  on  (5) 124 

Penalty— 

For  Kon-Payment  of  License  (6) 124 

For  Arson  and  Incendiarism  (.7) 125 

For  Embezzlement  (8) 125 

Premiums — 

Tax  on,  Limited  (1) 124 

Tax  on  (5) 124 

SoLiciTOES,  Xeed  no  License  (2) 124 

Tax— 

On  Premiums  Limited  (1) 12-1 

On  Premiums  ( 5 ) 1-4 

On  Capital  (3,4) 124 

License  (5) 124 

On  Non-Resident  Agents  (5) 124 

Penalty  for  Xon-Payment  of  License  124 
(6; " 124 


INSURANCE  STATUTES  OF  THE   DISTRICT  OF 

COLUMBIA. 


1.  The  second  section  of  the  act  entitled  "Ah  act  to  continue, 
alter,  and  amend  the  charter  of  the  city  of  Washington,-^  approved 
May  seventeen,  eighteen  hundred  and  forty-eight,  shall  be  so 
amended  as  to  read,  "  To  license,  tax,  and  regulate  agencies  of  all 
kinds  of  insurance  companies ;  Provided,  That  the  tax  or  license 
shall  not  exceed  one  per  centum  upon  the  cash  premiums  received. 
{U.  S.  Statutes  1865-1807,iJ.  433.) 

2.  Every  agent  for  life  or  fire  insurance  companies,  whose 
principal  office  is  beyond  the  limits  of  the  District  of  Columbia, 
shall  obtain  a  separate  license  for  each  company  he  may  be  agent 
for;  Provide!,  That  licensed  insurance  agents  may  emploj"  solicitors 
of  insurance  without  the  payment  of  an  additional  license.  [Laws 
of  1871,  p.  92,  §  20.) 

3.  Fire  insurance  companies  sball  pay  annually  fifty  cents  on 
each  thousand  dollars  of  capital  invested.  Every  company,  firm,  or 
corporation  whose  business  it  is  to  grant  policies  of  insurance  for 
buildings  of  any  kind,  boats,  vessels,  and  ships,  furniture,  or  mer- 
chandise, against  loss  by  lire,  shall  be  regarded  as  a  fire  insurance 
company.     {Ibid,  j)'  97,  §  21,  clause  29.) 

4.  Life  insurance  companies  shall  pay  annually  fifty  cents  on 
each  thousand  dollars  of  capital  invested.  Every  company,  firm,  or 
corporation  whose  business  it  is  to  insui'e  the  life  of  any  person,  or 
who  may  agree  to  pa}^  to  the  person  insured  any  sum  of  money,  in 
case  of  accident  to  said  person,  or  who  may  agree,  on  conditions,  to 
pay  to  the  person  insured  an  annuity,  shall  be  regarded  as  a  life 
insurance  company.     {Ibid,  §  21,  clause  30.) 

5.  Insurance  agents  shall  pay  annually  fifteen  dollars,  and,  in 
addition,  a  semi-annual  tax  of  one  per  centum  on  the  gross  receipts 
of  such  agency,  whether  such  receipts  are  in  casli  or  notes  for  the 
part  payment  of  premiums.  Every  person  whose  business  it  is  to 
act  as  agent  for  any  life  or  fire  insurance  company,  whose  principal 
office  is  located  beyond  the  District  of  Columbia,  shall  be  regarded 
as  insurance  agents  ;  Provided,  That  in  case  where  any  person  is 
agent  for  more  than  one  company,  the  license  tax  of  fifteen  dollars 
shall  be  paid  for  each  company ;  Provided  further.  That  non-resi- 
dent insurance  agents  shall  pay  two  hundred  and  fifty  dollars 
annually.  Every  agent  or  solicitor  of  insurance,  whose  office  and 
residence  is  beyond  the  limits  of  the  District  of  Columbia,  shall  be 
regarded  as  a  non-resident  insurance  agent.  {Ibid, p.  98,  §  21,  clause 
31,  as  amended  by  Laics  of  1872,  p.  63,  §  1.) 

6.  Every  person  liable  for  license  tax,  who  failing  to  pay  the 
same  within  thirty  days  after  the  same  has  become  due  and  pay- 
able, for  such  neglect  shall,  in  addition  to  the  license  tax  imposed, 
pay  a  fine  or  penalty  of  not  less  than  five  nor  more  than  fifty 
dollars,  and  a  like  fine  or  penalty  for  every  subsequent  offense. 

•  {Laws  of  1S71,  J).  88,  §  4.) 


DISTRICT   OF    COLUMBIA.  125 

AESON  AND  INCENDIARISM. 

7.  Every  person  convicted  of  the  crime  of  maliciously,  willful- 
ly, or  frnndiiiently  burning  any  dwelling-house,  or  any  other  house, 
barn,  or  stable  adjoining  thereto,  or  any  store,  barn,  or  out-house 
having  goods,  tobacco,  hay,  or  grain  therein,  although  the  same 
shall  not  be  adjoining  to  any  dwelling-house;  or  of  maliciously, 
willfully,  or  fraudulently,  and  with  intent  to  injure  or  defraud  any 
other  [)erson  or  ])ersons,  or  body  i^olitic  or  corporate,  burning  or 
setting  on  fire  with  intent  to  burn,  or  attempting  to  set  on  fire  or 
burn,  any  house  or  out-house  in  the  District,  whether  the  same  be 
finished  or  in  i^rocess  of  erection,  though  such  house  or  out-house 
shall  not,  at  the  time  of  such  burning  or  setting  on  fire,  or  attempt- 
ing to  set  on  fire  or  burn,  have  any  goods,  tobacco,  hay,  or  grain 
therein,  nor  be  adjoining  to  any  dwelling-house,  nor  be  occupied  or 
used  for  5iny  i)urpose  whatever ;  or  of  maliciously  and  willfully 
burning  any  of  the  public  buildings  in  the  District  belonging  to  the 
United  States  or  to  the  District,  or  any  church,  meeting-house,  or 
other  building  for  public  worship,  belonging  to  any  voluntary  socie- 
ty or  body  corporate,  or  any  ct)llege,  academy,  school-house,  or 
library,  or  any  ship  or  vessel  afloat  or  building,  or  as  being  acces- 
sory thereto,  shall  be  sentenced  to  sufier  imprisonment  and  labor 
for  a  period  of  not  less  than  one  nor  more  than  ten  years  for  the 
first  oti'ense,  and  not  less  than  five  nor  more  than  twenty  years  for 
the  second  otiense.  {Revised  Statutes  U.  8.  relating  to  B.  C,  1875,  jp. 
132,  §  1151.) 

EMBEZZLEMENT. 

8.  If  any  clerk,  or  servant  of  any  private  person,  or  any  co- 
partnership (except  persons  within  the  age  of  sixteen  years),  or  any 
officer,  agent,  clerk,  or  servant  of  any  incorporated  company, 
shall  embezzle  or  convert  to  his  own  use,  or  fraudulently  take, 
make  way  with,  or  secrete,  with  intent  to  embezzle  or  fraudulently 
convert  to  his  own  use,  without  the  assent  of  his  master  or  em- 
])loyers,  any  money,  goods,  rights  of  action.  Government  bonds. 
United  States  Treasury  notes,  or  Government  stamps,  or  other  val- 
uable security  or  effects  whatever,  belonging  to  any  other  person, 
which  shall  come  into  his  possession  or  under  his  care  by  virtue  of 
such  emj)loynient  or  office,  he  shall,  upon  conviction,  be  punished 
in  the  manner  prescribed  by  law  for  feloniously  stealing  ju^operty 
of  the  value  of  the  article  or  property  so  embezzled,  taken,  or  se- 
creted, or  of  the  value  of  any  sum  of  money  payable  or  due  upon  any 
right  in  action  so  embezzled.  {Revised  Statutes  U.  S.  relating  to  D. 
C,  1875,  p.  135,  §  11G9.) 

9.  For  (icneral  Provisions  relating  to  Corporations  see  U.  S. 
Statutes  18(J9-1871,  pp.  98-1 IG. 


INDEX  TO  FLORIDA. 


PAGE 

ADvERTists'G  Annual  StatementB  (7) 129 

Agent,  Defined  (9) 329 

Agent — 

Certificate  of  Authority  (3) 127 

Service  of  Process  on  ( 3) 127 

License  of  (13) 130 

Penalty    for   Acting   without   License 

(13) 130 

Penalty  for  Violating  Law  (11) 130 

Annual  Statements— (1-8) 127-9 

Pees  for  Filing  (12) 130 

Penalty  for  :^L''.king  False  (11) 130 

Annual  Roport  of  State  Treasurer  (7) 129 

Arson  and  Incendiarism  (15-20) 131-132 

Assets  Eequired  (4) 128 

Certificate  of  Authority- 
Necessary  (3) 127 

When  Issued  (4) 128 

When  Renewed  (8) 129 

When  Revoked  (6,  10) 129,  130 

Constitutional  Provisions  Concerning  Cor- 
porations (1,  2) 127 

Corporations — 

General  Provisions  Relating  to  (23)  .  -   132 
Constitutional    Provisions   Concerning 
(1,2) 127 

Embezzlement— (21,  22) 132 

Examination  of  Companies  (5) 128 

Fees- 

For  Licenses  (13) 130 

For  Filing  Annual  Statement  (12) 130 

Foreign  Insurance  Companies — 

Certificateof  Authority  (4) 128 

Licenses  of  (13^ 130 

Aesets  Required  (4) 128 

HOUE  Insurance  Companies — 

Certificate  of  Authority  (4) 128 


PAGE 

Home  Insurance  Companies  (Continued) — 

Assets  Required  (4) 128 

Incendiarism  and  Arson  (1 5-20) 131-2 

Insurance  Business,  when  Illegal  (10) 130 

Insurance  Commissioners — 

Board  of  ( 5)  128 

Powers  and  Duties  of  (5-7) 128-9 

Report  of  (7) 129 

Insurance  Companies,  Examination  of  (5).  128 

License— 

Of  Agent  (13) 130 

Of  Company  (13) 130 

Fees  (13) 130 

Penaltyfor  Acting  without  (13) 130 

Life  Policy,  to  whom  Payable  (14) 131 

Married  Woman's  or  Man's  Policy  (14)..  131 

Penalty- 

For  Violation  of  Act(ll) 130 

For  False  Statements  d  1 ) 130 

For  Acting  without  License  (13) 130 

For  Arson  and  Incendiarism  (15-20)131-2 
For  Embezzlement  (21-22; 132 

Policy  of  Wife  or  Husband  (14) 131 

Service  of  Process  (3 ) 127 

State  Treasurer — 

Report  of  ( 7 ) 129 

To  Issue  Certificate  of  Authority  (4). . .  128 
To    Revoke   Certificate    of  Authority 
(10) 130 

Statements  Required  (3,  8) 127,  129 

Taxation  of  Corporations  (2) 127 

Tax,  License  (13) 130 

Wife's  or  Husband  s  Policy  (14) 131 


INSURANCE  STATUTES  OF  FLORIDA. 


Eevised  by  Hon.   W.  A.  Cocke,  Attorney- General. 


CONSTITUTIONAL  PEO VISIONS  CONCEENING  COEPOEA- 

TIONS. 

t .  The  Legislature  shall  provide  by  general  laws  for  incorpor- 
ating such  municipal,  educational,  agricultural,  mechanical,  mining, 
and  other  useful  companies  or  associations  as  may  be  deemed  neces- 
sary.   {Art A,  ^22.) 

2.  The  property  of  all  corporations,  whether  heretofore  or  here- 
after incorporated,  shall  be  subject  to  taxation,  unless  such  property 
be  held  and  used  exclusively  for  religious,  educational,  or  charitable 
purposes.     {Art.  16,  §  24,  as  amended.) 

J{.  It  shall  not  be  lawful  for  any  agent  or  agents  of  any  insur- 
ance company  incorporated  by  any  other  State  than  the  State  of 
Florida,  nor  for  any  insurance  comjjany  organized  under  the  laws  of 
this  State,  or  their  agents,  directly  or  indirectly,  to  take  any  risks 
or  transact  any  business  of  insurance  in  this  State  without  such  com- 
pany has  first  obtained  a  certificate  of  authority  from  the  State 
Treasurer  5  and  before  obtaining  such  certificate  such  insui-ance 
company  shall  furnish  the  said  Treasurer  with  a  statement,  under 
the  oath  of  the  president  or  vice-president  and  secretary  of  the  com- 
pany, showing: 

First. — The  name  and  locality  of  the  company. 

Second — The  amount  of  its  capital  stock,  and  the  amount  paid  up. 

Third. — The  amount  of  its  accumulations. 

Fourth.— The  assets  of  the  company,  including : 

1.  The  amount  of  cash  on  hand  and  in  the  hands  of  agents  or 
other  persons. 

2.  The  real  estate  unincumbered. 

3.  The  bonds  owned  by  the  company,  and  how  they  are 
secured,  with  rates  of  interest  thereon,  and  schedule. 

4.  Debts  to  the  company  secured  by  mortgage.     . 

5.  Debts  otherwise  secured. 

6.  Debts  for  premiums. 

7.  All  other  securities. 

Fifth. — The  amount  of  liabilities  due  or  not  due  banks  or  other 
creditors  by  the  company. 

Sixth. — Losses  adjusted  and  due. 

Seventh. — Losses  adjusted  and  not  due. 

Eighth. — Losses  unadjusted. 

JVint/t.— Losses  in  suspense,  waiting  for  further  proof. 

Tenth. — All  other  claims  against  the  company. 

Eleventh. — The  greatest  amount  insured  in  any  one  risk. 


128  hike's  insurance  statutes. 

Ticelfth. — The  act  of  incorporation  of  such  company. 

Thirteenth. — The  amount  of  gross  receipts  of  such  company  in  the 
State  of  Florida  during  the  i^receding  year. 

It  shall  be  the  duty  of  the  Board  to  be  caused  to  be  prepared,  and 
to  furnish  to  each  insurance  company,  printed  forms  of  the  state- 
ment re(piired  by  this  section.  Such  statement  shall  be  filed  in  the 
office  of  said  insurance  company,  together  with  a  written  agreement, 
under  the  seal  of  the  company,  signed  by  the  president  and  secre- 
tary thereof,  and  agreeing  on  the  part  of  the  company  that  service 
of  process  in  any  civil  action  against  such  company  may  bo  made 
upon  any  agent  of  the  company  in  this  State,  and  authorizing  such 
agent,  for  and  in  behalf  of  such  company,  to  admit  such  service  of 
process  on  him,  and  agreeing  that  the  service  of  process  upon  any 
agent  shall  be  valid  and  binding  upon  the  company  as  if  made  upon 
the  president  or  secretary  thereof.     {Laws  of  1872,  p.  9,  §  1.) 

4.  ISTo  insurance  comj)any,or  agent  or  agents  thereof,  shall  trans- 
act any  business  of  insurance  in  this  State  unless  such  comj)any  is 
possessed  of  at  least  one  hundred  and  fifty  thousand  dollars  in  value, 
invested  in  United  States  or  State  bonds,  or  other  bankable  interest- 
bearing  stocks  of  the  United  States,  at  their  market  value.  Upon 
complying  with  the  preceding  section,  and  up  on  furnishing  evidence 
to  the  satisfaction  of  the  Board  of  Insurance  Commissioners  herein- 
after provided  for,  that  such  company  has  actually  invested  the 
amount  above  stated  in  such  securities  as  hereinbefore  mentioned, 
the  State  Treasurer  shall  issue  a  certificate  thereof,  with  authority 
to  such  company  to  transact  the  business  of  insurance  in  this  State; 
Provided,  That  insurance  companies  organized  under  the  laws  of  this 
State  shall  be  entitled  to  such  certificate  of  authority  by  furnishing 
evidence  to  the  satisfaction  of  said  Treasurer  that  such  company  is 
possessed  of,  and  has  actually  invested,  at  least  twenty-five  thou- 
sand dollars  in  United  States  or  State  bonds,  or  other  bank- 
able interest-bearing  stock  of  the  United  States,  at  their  market 
value,  and  by  otherwise  compl;^ing  with  the  i^rovisions  of  this  act ; 
Provided,  That  insurance  comjianies  incorporated  under  the  laws  of 
this  State  shall  be  exempted  from  the  operation  of  this  act  until  the 
next  annual  statement  is  required  to  be  made  ;  Provided  further, 
That  life  insurance  companies  organized  under  the  laws  of  any  other 
State  shall  be  entitled  to  such  certificate  of  authority  by  fm-nishing 
evidence  to  the  satisfaction  of  saiil  Treasurer  that  such  company  is 
l^ossessed  of,  aud  has  actually  invested,  one  hundred  thousand  dol- 
lars in  United  States  or  State  bonds,  or  other  bankable  interest- 
bearing  stocks  of  the  United  States,  at  their  market  value,  or  in 
mortgages  on  unincumbered  real  estate  worth  double  the  amount 
loaned  therecm,  inclusive  of  buildings  thereon.     (Ibid,  p.  10,  §  2.) 

5.  The  State  Treasurer,  Comptroller,  and  Attorney-General  are 
hereby  created  a  Board  of  Insurance  Commissioners,  whose  duty  it 
shall  be  to  examine  into  the  aftairs  of  any  insurance  company  doing 
business,  or  applying  to  do  business,  in  this  State.  And  it  shall  be 
the  duty  of  the  officers  or  agents  of  each  insurance  company,  at  their 
own  expense,  whenever  so  required  by  the  said  Treasurer,  to  cause 
their  books  to  be  opened  for  the  inspection  of  said  Board,  and  other- 
wise to  facilitate  such  examination  as  far  as  it  may  be  in  their  power 
to  do  ;  and  for  that  iiurpose  the  said  board  shall  have  power  to  ex- 
amine under  oath  the  officers  or  agent  of  such  company  relative  to 
the  business  of  and  securities  possessed  by  such  company ;  and 
whenever  the  said  Treasurer  shall  deem  it  for  the  interest  of  the 


FLORIDA.  129 

public  so  to  do  lie  may  publish  the  result  of  such  examination  in  one 
or  more  newspapers  of  the  State.     {Ihid,  p.  11,  §  3.) 

6.  Whenever  any  insurance  company  doing  business  in  this 
State,  upon  a  reasonable  recjuest  of  said  Treasurer,  sliall  refuse  to 
comi)ly  with  ;iny  of  the  provisions  of  the  foregoing  section,  and 
whenever  it  shall  appear  to  the  said  Board  upon  such  examination 
that  in  their  opinion  the  assets  of  any  such  company  are  insufticient 
under  the  provisions  of  this  act  to  justify  the  continuance  in  busi- 
ness of  any  such  conii)any,  or  that  the  condition  of  such  company  is 
unsound,  the  Board  of  Insurance  (commissioners  shall  forthwith  re- 
voke the  certiticate  of  authority  granted  in  behalf  of  such  company, 
and  shall  cause  a  notification  thereof  to  be  published  in  some  news- 
paper pubiislied  at  the  capital,  and  such  company,  or  the  agent  or 
agents  of  the  same,  is,  after  such  notice,  required  to  discontinue  the 
issuing  of  any  new  policy,  and  the  renewal  of  any  previously  issued; 
and  whenever  it  shall  appear  upon  such  examination  that  any  insur- 
ance company,  its  ofticers,  or  agents,  have  violated  any  of  the  pro- 
visions of  this  act,  the  said  Board  shall  forthwith  report  the  facts, 
with  such  statements  and  remarks  as  the  Board  may  deem  expe- 
dient, to  the  Attorney-General,  who  shall  at  once  in'osecutesaid  com- 
l)any,  officer,  or  agent.     {Ibid,  §  4.) 

7.  The  State  Treasui-er  shall  annually,  in  his  rei)ort  to  the 
Legislature,  exhibit  an  abstract  of  all  the  returns  and  statements 
made  and  accepted  under  the  provisions  of  this  act  during  the  year, 
with  such  other  information  in  regard  to  the  condition  of  the  various 
insurance  companies  doing  business  in  this  State  as  he  may  deem 
necessary  for  the  public  interest;  and  he  shall  also,  within  a  reason- 
able time  after  the  passage  of  this  act,  and  annually  thereafter  in 
the  mouth  of  February,  publish  in  some  newspaper  published  at  the 
capital  a  list  of  all  insurance  companies  authorized  to  do  business 
in  this  State,  showing  in  a  tabular  form  the  assets,  liabilities,  and 
other  essential  data  and  information  regarding  the  statements  made 
and  accepted  under  the  act.     {Ibid,  §  5.) 

8.  The  statement  and  e\idences  of  investment  required  by  this 
title  shall  be  renewed  annually  in  the  month  of  January  in  each 
year.  The  first  statement  may  be  made  at  any  time.  The  Board, 
on  being  satisfied  that  the  capital,  securities,  and  investments  re- 
main secure  as  at  first,  shall  furnish  a  renewal  of  certificate  as 
aforesaid,  the  certified  copy  of  which,  with  the  certified  copy  of  the 
statement  upon  which  the  same  was  obtained,  shall  be  filed,  kept, 
and  published  in  the  same  manner,  and  be  governed  in  all  respects 
by  the  provisions  of  section  one  of  this  act.     {Ibid,  p.  12,  §  6.) 

©.  Any  person  or  firm  in  this  State  who  receives  or  receipts 
for  any  money  on  account  of  or  for  any  contract  of  insurance  made 
by  him  or  them,  or  for  any  such  insurance  company  or  indi\'idual 
aforesaid,  or  who  receives  or  receipts  for  money  from  other  persons 
to  be  transmitted  to  any  such  conijiany  or  individual  aforesaid,  for 
a  policy  of  insurance,  or  any  renewal  thereof,  although  such  policy 
of  insurance  is  not  signed  by  him  or  them  as  agent  or  agents  of  such 
company,  or  who  in  any  wise  directly  or  indirectly  makes  or  causes 
to  be  made  any  contract  or  contracts  of  insurance  for  or  on  account 
of  such  insurance  company,  shall  be  deemed  to  all  intents  and  pur- 
poses an  agent  or  agents  of  such  company,  and  shall  be  subject  and 
liable  to  all  i)rovisious,  regulations,  and  penalties  of  this  act.  {Ibid, 
§  7.) 

10.  Whenever  a  judgment  for  the  recovery  of  any  money  has 
9 


130  niNE'S  INSUEANCE   STATUTES. 

heretofore  been,  or  hereafter  may  be,  recovered  in  any  of  the  courts 
of  this  State  against  any  insurance  company,  or  against  any  associa- 
tion, partnership,  firm,  or  individual  engaged  in  the  business  of  in- 
surance, and  holding  a  certificate  of  authority  therefor  from  the 
State  Treasurer  under  the  laws  of  this  State,  and  an  execution 
thereon  is  issued  and  duly  returned  unsatisfied  in  whole  or  in  part, 
and  proof  is  made  by  any  person  by  filing  with  the  State  Treasurer 
a  certified  transcript  of  the  docket  of  such  judgment,  together  with 
a  certificate  of  the  clerk  of  the  court  in  the  county  where  the  judg- 
ment roll  in  such  action  is  filed,  and  the  judgment  therein  is 
docketed,  that  an  execution  has  been  issued  on  such  judgment  to 
the  proper  officer  of  such  county  and  returned  unsatisfied  in  whole 
or  in  part,  with  the  date  of  issuing  and  return,  the  State  Treasurer 
shall  forthwith  revoke  all  authority  or  license  for  the  transaction 
of  any  kind  of  insurance  business  within  this  State  conferred  upon 
such  insurance  company,  association,  partnership,  firm,  or  individual 
by  any  certificate  therefor  granted  by  said  Treasurer  to  such  com- 
pany, association,  partnership,  firm,  or  individual  under  the  provi- 
sions of  this  act,  and  shall  withhold  therefrom  iiny  new  certificate  of 
authority  such  as  is  contemplated  herein,  until  such  judgment  so 
docketed  against  such  company,  association,  partnership,  firm  or 
individual  is  wholly  i)aid  and  satisfied,  and  proof  thereof  filed  with 
such  State  Treasurer  by  the  ofticial  certificate  of  the  clerk  of  the 
court  in  the  county  where  the  judgment  roll  is  filed  and  judgment  is 
docketed,  showing  that  the  same  is  satisfied  of  record,  and  until  the 
expenses  and  fees  incurred  in  the  case  under  the  provisions  of  this 
title  are  also  paid  by  such  company,  association,  partnership,  firm,  or 
individual ;  and  the  State  Treasurer  shall  also  forthwith  cause  notice 
of  such  revocation  of  authority  to  be  published  in  some  daily  or 
w^eekly  newspaper  iirinted  and  published  in  the  city  of  Tallahassee 
or  Jacksonville  for  at  least  one  week ;  and  duriug  the  time  such 
authority  or  license  remains  so  revoked  it  shall  be  unlawful  for  the 
company,  association,  partnership,  firm,  or  individual  holding  such 
revoked  certificate  of  authority,  or  any  of  its  agents  or  officers,  to 
issue  or  renew  any  i^olicies  of  insurance,  take  any  risks,  or  transact 
any  business  relating  to  insurance,  except  such  as  is  absolutely 
necessary  in  closing  up  its  affairs  in  this  State.     {Ibid,  §  8.) 

1 1 .  Any  person  violating  the  provisions  of  this  act  within  this 
State  shall,  upon  conviction  in  any  court  of  competent  jurisdiction, 
be  fined  in  any  sum  not  exceeding  one  thousand  dollars,  or  im- 
prisoned in  the  county  jail  not  more  than  six  months,  or  both,  in 
the  discretion  of  the  court ;  and  any  company  that  wilfully  makes 
false  returns  or  statements  under  the  provisions  of  this  act,  shall  be 
liable  to  a  fine  of  not  less  than  five  hundred  nor  more  than  five 
thousand  dollars.     {Ibid,  p.  :I3,  §  9.) 

13.  For  the  services  required  to  be  rendered  by  the  pro^^sions 
of  this  title,  the  State  Treasurer  shall  receive  a  fee  of  five  dollars, 
to  be  paid  by  the  companies  for  each  statement  made  and  accepted. 
{Ibid,  §  10.) 

13.  Insurance  agents  shall  pay  for  license  ten  dollars  for  each 
company  represented  by  them,  and  each  insurance  company  doing 
business  in  this  State  shall  pay  to  the  State  Treasurer  two  hundred 
dollars  for  license  before  any  of  its  agents  can  transact  business  for 
it.  Any  insurance  agent  neglecting  to  pay  the  license  provided 
for  in  this  section,  or  who  acts  as  the  agent  of  any  company  neg- 
lecting to  pay  the  license  provided  for  in  this  section,  shall  be  deemed 


FLORIDA.  131 

guilty  of  a  misdemeanor,  and,  on  conviction  thereof,  shall  be  pun- 
ished by  a  line  of  not  less  than  fifty  dollars,  or  be  confined  in  the 
county  jail  for  a  term  not  exceeding  six  months.  {Laws  of  1874,  p. 
12,  §  11,  paragraph  5.) 


LIFE  mSURANCE  FOE  THE  BENEFIT  OF  HUSBAND  OR 

WIFE. 

14.  Whenever  any  person  shall  die  in  this  State  leaving  in- 
surance upon  his  or  her  life,  the  said  insurance  shall  inure  exclu- 
sively to  the  benefit  of  his  or  her  child  or  children,  husband  or  wife, 
in  equal  i)ortions,  or  to  any  other  i)erson  or  persons  for  whose  use 
and  benefit  said  insurance  is  declared  in  the  policy ;  and  the  pro- 
ceeds thereof  shall  in  no  case  be  liable  to  attachment,  garnishment, 
or  any  legal  process  by  any  creditor  or  creditors  of  the  person  whose 
life  was  so  iusiu-ed,  unless  said  policy  declares  that  said  insurance 
was  effected  for  the  benefit  of  such  creditor  or  creditors.  {Laws  of 
1872,  p.  13,  §  1.) 

ARSON  AND   INCENDIARISM. 

15,  Whoever  "svillfully  and  maliciously  burns  the  dwelling- 
house,  or  any  building  adjoining  such  dwelling-house,  or  ,willfully 
and  maliciously  sets  fire  to  any  building,  by  the  burning  whereof 
such  dwelling-house  is  burnt,  shall  be  punished  by  imprisonment  in 
the  State  penitentiary  for  life,  or  for  such  time  as  the  Court  mav 
direct,     {l^igest  of  Statute  Laic,  1872,  p.  219,  §  1.) 

1 0.  Whoever  wollfully  and  maliciously^  burns,  in  the  night 
time,  a  meeting-house,  church,  court  house,  town-house,  college, 
academy,  jail,  or  other  buildings  erected  for  public  use,  or  a  bank- 
ing-house, warehouse,  store,  manufactory,  or  mill  of  another  (being, 
with  the  property  therein  contained,  of  the  value  of  one  thousand 
dollars),  or  a  barn,  stable,  shop,  or  office,  within  the  curtilage  of  a 
dwelling-house,  or  any  other  building,  by  the  burning  whereof  any 
building  mentioned  in  this  section  is  burnt  in  the  night  time,  shall 
be  punished  by  imprisonment  in  the  State  penitentiary  for  life,  or 
for  such  time  as  the  Court  may  direct.     {Ibid,  §  2.) 

17.  Whoever  willfully  and  maliciously  burns,  in  the  day  time, 
any  building  mentioned  in  the  preceding  section,  the  punishment 
for  which,  if  burnt  in  the  night  time,  would  be  imprisonment  in  the 
State  penitentiary  for  life,  shall  be  jiunished  by  imprisonment  in 
the  State  penitentiary  not  exceeding  ten  years.     {Ibid,  §  3.) 

1  St.  Whoever  willfully  and  maliciously  burns  a  banking-house, 
warehouse,  store,  manufactory,  mill,  barn,  stable,  shop,  out-house, 
or  other  building  whatsoever,  of  another,  other  than  is  mentioned 
in  section  2,  or  a  bridge,  lock,  dam,  or  flume,  or  a  sloop  or  vessel  of 
another,  shall  be  punished  by  imprisonment  in  the  State  penitentiary 
not  exceeding  ten  years.     {Ibid,  §  4.) 

19.  Whoever  willfully  and  maliciously  bums,  or  otherwise 
destroys  or  injures  a  pile  or  parcel  of  wood,  boards,  timber,  or  other- 
lumber,  or  any  fence,  bars,  or  gate,  or  a  stack  of  grain,  hay,  or 
other  vegetable  product,  or  any  vegetable  product  severed  from  the 
soil  and  not  stacked,  or  any  standing  trees,  grain,  grass,  or  other- 
standing  product  of  the  soil,  or  the  soil  itself  of  another,  shall  be 
punished  by  imprisonment  in  the  State  penitentiary  not  exceeding; 


132  hine's  insurance  statutes. 

five  years,  or  by  a  fine  not  exceeding  five  thousand  dollars  and  im- 
prisonment in  the  county  jail  not  exceeding  one  year.  {{Ibid,  §  5.) 
20.  Whoever  burns  a  building,  or  any  goods,  wares,  mer- 
chandise, or  other  chattels,  which  are  at  the  time  insured  against 
loss  or  damage  by  tire,  with  intent  to  injiu^e  the  insurer,  whether 
such  iierson  is  the  owner  of  the  property  burnt  or  not,  shall  be  pun- 
ished by  imprisonment  in  the  State  penitentiary  not  exceeding 
twenty  years.     {Ibid,  p.  220,  §7.) 


EMBEZZLEMENT. 

31.  Whoever  embezzles,  or  fraudulently  converts  to  his  own 
use,  money,  goods,  or  property  delivered  to  him,  which  may  be  the 
subject  of  larceny,  or  any  j)art  thereof,  shall  be  deemed  guilty  of 
larceny  and  punished  accordingly.  {Digest  of  Statute  Law,  1872, 
p.  223",  §  30.) 

9^.  If  an  officer,  agent,  clerk,  or  servant  of  any  incorporated 
company,  or  if  a  clerk,  agent,  or  servant  of  any  ijrivate  person  or 
copartnership  (except  apprentices  and  other  persons  under  the  age 
of  sixteen  years),  embezzles  or  fraudulently  converts  to  his  own  use, 
or  takes,  or  secretes,  with  intent  so  to  do,  without  consent  of  his 
employer  or  master,  any  property  of  another  which  has  come  to  his 
possession,  or  is  under  his  care  by  nature  of  such  employment,  he 
shall  be  deemed  guilty  of  larceny,  and  punished  accordingly.  {Ibid, 
§33.) 

Si5.  For  general  provisions  relating  to  corporations  see  Digest 
of  Laws,  18/2,  pp.  163-173 ;  Laws  of  1872,  pp.  23-25 ;  Laws  of  1874, 
pp.  94,  95. 


INDEX   TO   QEORGIA. 


AOEN'TS—  PACK 

Licenses  (5,18) 136,  138 

When  to  Pay  Taxes  (8) 137 

Tax     Exeoutious    against    Municipal 

Taxes  on  (20j 138 

Annual  Statements  (2,  3,  4,  5) 135-6 

Fees  for  Filing  (5) 136 

Applications,  Good  Faith  in  (29) 139 

Arson  and  Incendiarism  (70-82) 142-3 

Assessment  of  Taxes  (15) 137 

Assets  Required  (3) 136 

Capital — 

Tax  on  (19) 138 

Required  (3) 136 

Certificate  of  Authority — 

Necessary  (2) 135 

When  Issued  (4) 136 

"When  Renewed  (5) 136 

Fnder  Reciprocal  Laws  (6) 136 

Concealment,  EflFect  of,  on  Policy  (31) 139 

Constitutional  Provisions  Concerning  Cor- 
porations (1) 135 

Contracts — 

Of  Insurance  (21-67) 138-41 

Of  Fire  Insurance  (21-44) 138-40 

Of  Life  Insurance  (45-50)  140 

Of  Marine  Insurance  (51-62) 140-41 

Of  Mutual  Insurance  (63-67) 141-42 

Contribution — 

In  Insurance  (41) 139 

In  Marine  Insurance  (53) 140 

Corporations- 
Constitutional  Provisions   Concerning 

( 1 )  135 
General  Provisions  Relating  to  (84)..  143 

Deposits  under  Reciprocal  Laws  (6) 136 

Deviation  in  Marine  Insurance  (56) 140 

Embezzlement  (83) 143 

Executions  for  Taxes  (16,  17} 137,138 

Fees— 

For  Filing  Statements  (5) 136 

For  Agents' Licenses  (5,  18) 136,  138 

For  Licenses  under  Reciprocal  Laws 
(6) 136 

Fire  Insuiance— 

Defined  (21) 

Contracts  of  (21-44) 138-40 

Insurable  Interest  (22,  23) 138 

Reinsurance  (23) 138 

Policy  on  Changing  Property  (24) 138 

Contract,  how  Construed  (25) 138 

Loss,  how  may  Occur  (26) 138 


PAOE 

JFire  Insurance  (Continued,— 

Ignor.ince  of  (27) 138 

Efi"ect  of  Negl'gence  (28) 139 

Applications  (29) 139 

Statements  of  Facts  (30) 139 

Concealment  (31) 139 

Change  in  Risk  (32) 139 

Fraud  (33) 139 

Alienation  or  Transfer  (34) 139 

Transferable  Policy  (35) 139 

Sale  of  Property  (36) 139 

Sale  after  Loss  (37) 139 

Transfer  by  Law  (38) 139 

Other  Insurance  (39) 139 

Proofs  of  Loss  (40) 139 

Amount  Recoverable  (41) 139 

Value  of  Property  (42) 139 

Right  of  Rebuilding  (43) 140 

Loss  Wrongfully  Paid  (44) 140 

Principles  of,  Applicable  to  Life  Insur- 
ance (62) 141 

Rules  Applicable  to  Marine  Insurance 
(62) 141 

Garnishment  for  Delinquent  Taxes  (16)..  137 

Incendiarism  and  Arson  (70-82) 142-3 

Incendiaries,  Reward  for  (82) 143 

Information,  False  (30) 139 

Insurable  Interest  (22,  23,  53) 138,  140 

Insurance,  Suits  to  Recover  (68,  69) 142 

Insurance  Companies — 

Capital  and  Assets  of  (3) 136 

Statements  (2-5 ) 135-6 

Certificate  of  Authority  (2,  4,  5) 135-6 

Suits  Against  (68,  69) 142 

Contracts  (21-67) 138-42 

Licenses  of  Agents  (5,  18) 136,  138 

License  Fees— (5,  18) 136,  138 

Under  Reciprocal  Laws  (6) 136 

Life  Insurance — 

Defined  (45) 140 

Contracts  (45-50) 140 

Contracts,  "Who  may  Make  (46) 140 

Principles  of  Fire  Insurance  Applicable 
to  (48) 140 

Life  Policy— 

To  whom  Payable  (47) 140 

Assignment  of  (47) 140 

Suicide,  etc..  Voids  (49)  140 

Beginning  of  Term  of  (50} 140 

Loss- 
May  Occur,  How  (25) 138 


134 


INDEX  TO   GEORGIA. 


Loss  (Continued)—  page 

Loss,  Ignorance  of  (27) 138 

Sale  After  (37> 139 

Proofs  of  (40) 13y 

Amount  Eecoverable  (41) 139 

How  Estimated  (42) 139 

Rebuilding  nftcr  (43) 140 

Wrongful  Payment  of  (44) 140 

In  Marine  Insurance  (53,  57) 140,141 

In  Mutual  lusurancs  (66) HI 

To  be  Paid  in  Sixty  Days  (68) 142 

Marine  Insurance— 

Contracts  (51-62) 140-1 

Defined  (51) 140 

Not  to  Cover,  what  (52) 140 

Double  f53) 140 

Double  Contribution  under  (53) 140 

Seawoi-tMness  (54) 140 

"Warranties  (54) 140 

Illegal  Voyage  (55) 140 

Deviation  (56) 140 

" Perils  of  the  Sea "  (57) 141 

Unskillfulness  and  Negligence  (57) 141 

Limit  ofKisk  (58) 141 

Increase  of  Risk  (59) 141 

Open  Policy  (60) 141 

Yaluo,  how  Reduced  (61) 141 

Rub  s  of  Fire  Insurance  Applicable  to 
(62) 141 

Municipal  Taxation  (20) 138 

Mutual  Insurance- 
Contracts  (63-67) 141-2 

Defined  (63) 141 

Policy,  how  Construed  (64) 141 

Responsibility  of  Ofiaeers  (65) 141 

Liability  for  Unpaid  Losses  (66) 141 

Necessity  of  Good  Faith  (67) 141 

Ordin'aky  Diligence  Necessary  (28) 139 

Other  Insm-ance  (39) 139 

Pknaltiks— 

Under  Reciprocal  Laws  (6) 136 

For  Violating  Laws  (7) 138 

For  Non-payment  of  Taxes  (11-13)..  137 
For   Non-payment   of    Loss    in    Sixty 

Days  (68) 142 

For  Arson  and  Incendiarism  (70-81)  142-3 
For  Embezzlement  (83) 143 

Perils  of  the  Sea  (57) 141 


PAGE 

Policy- 
Fire  Insurance  (21-44) 138-40 

How  Construed  (25) 138 

May  Cover  what  (24) 138 

What  Voids  (28) 139 

What  Does  not  Void  (27,  28) -- -  .138, 139 

Effect  of  Fraud  (29,  33) 139 

Effect  of  Concealment  (31,  33) 139 

Increase  of  Risk  (,32) 139 

Transferring  (35) 139 

Sale  of  Property  (36,  37K.. 139 

Transfer  by  Law  (38) 139 

Other  Insurance  without  Ci^nsont  (39)  139 

Life,  to  whom  Issued  (46) 140 

Life,  to  whom  Payable  (47) 140 

Open  Marine  (60) -  141 

Suits  to  Recover  under  (68,  69) 142 

Premiums,  Tax  on  (19) 138 

Recifeocal  Laws  (6) 136 

Reinsurance  (23) 138 

Returns— 

For  Taxation  (8) 139 

To  be  in  Writing  (9) 137 

Reward  for  Incendiary  (82) 143 

Risk- 
Increase  of  (32,  59) 139,141 

Limitof Marine  (58) 141 

Seaworthiness— (54) 140 

Statements,  Annual  (2-5) 135-6 

Suicide,  Effect  on  Life  Policy  (49) 140 

Suits  against  Insurance  Cos.  (68,  69) 142 

Taxes — 

Under  Reciprocal  Laws  (6) 136 

When  Payable  (8) 13~ 

Returns  for  (8,  9) 13" 

How  Paid  (10) 137 

Penalty  for  Not  Paying  (11-13) 137 

Assessment  of  (15) 137 

Executions  for  (16,  17) 137,  138 

License  (18) 138 

On  Premiums  (19) l^^^ 

On  Capital  (19) 138 

Municipal  (20) ^38 

Warranty— 

Of  Seaworthiness  (54) 140 

In  Fire  Insurance  Applicable  to  Marine 
(62) I'^l 


INSURANCE  STATUTES  OF  GEORGIA. 


Revised  ly  Hon.  TT.  L.  Gohhmith,  CcmpirolUr-Gincral. 


CONSTITUTIONAL  PEOVISIOXS  COXCERNING  COKPO- 

EATIONS. 

1,  The  General  Assembly  shall  have  no  powers  to  grant  corpo- 
rate powers  and  privileges  to  private  companies,  except  to  banking, 
insiu'auce,  railroad,  canal,  navigation,  mining,  exj^ress,  lumber, 
manufactimng,  and  telegraph  companies.     {Art.  3,  §  0.) 

INSURANCE  COMPANIES  AND  AGENCIES. 

2.  It  shall  not  be  lawful  for  any  insurance  company,  or 
agent  of  the  same,  excepting  masonic,  odd  fellows,  and  religious 
mutual  aid  societies  already  chartered  by  this  State,  to  transact 
any  business  of  insurance  without  first  procuring  a  certificate  of 
authority  from  the  Comptroller  General  of  this  State ;  and  before 
obtaining  such  certificate,  such  company  must  iurnish  the  Comp- 
troller-General with  a  statement  under  oath,  specifying: 

First. — The  name  and  locality  of  company. 

Second. — The  condition  of  such  company  on  the  thirty-first  day  of 
December  then  next  preceding,  exliibiting  the  following  facts  and 
items  in  the  following  form,  namely : 

J^«r6-^.— The  amount  of  the  capital  stock  of  the  company,  and  what 
part  of  the  same  has  been  paid  up  in  cash,  and  what  part  is  in  notes 
of  the  stockholders,  and  how  such  notes  are  secured. 

Second. — The  property  or  assets  held  by  the  company,  specifying  : 

1.  The  value,  or  as  nearly  as  may  be,  of  the  real  estate  held 
by  such  company. 

2.  The  amount  of  cash  on  hand  and  deposited  in  banks  to  the 
credit  of  the  company. 

3.  The  amount  of  cash  in  the  hands  of  agents,  and  in  the 
course  of  transmission. 

4.  The  amount  of  loans  secured  by  bonds  and  mortgages  on 
real  estate. 

5.  The  amount  of  other  loans,  and  how  secured. 

6.  The  amount  of  stocks  of  this  State,  of  other  States  in  the 
United  States,  and  of  any  other  stocks  owned  by  the  comijany, 
specifying  the  amount,  number  of  shares,  and  par  and  market 
value  of  each  kind  of  stock. 

7.  The  amount  or  interest  actually  due  and  unpaid. 

8.  The  amount  of  premium  notes  on  hand  upon  which  policies 
have  been  issued : 

Third.— The  liabilities  of  the  company,  specifying: 

1.  The  amount  of  losses  due  and  yet  unpaid. 

2.  Amount  of  claims  for  losses  resisted  by  the  company. 


136  fine's  insurance  statutes. 

3.  The  amount  of  losses  not  yet  due,  including  those  reported 
to  the  company,  on  which  no  action  has  yet  been  taken. 

4.  The  amount  of  dividends  declared  and  due,  and  remaining 
unpaid. 

5.  The  amount  of  dividends  declared,  but  not  yet  due. 

0.  The  amount  of  money  borrowed. 

7.  The  amount  of  all  other  claims  against  the  company. 
Fourth. — The  income  of  the  company  dm-ing  the  preceding  year, 
.specifying : 

1.  Tlie  amount  of  the  cash  premiums  received. 
L*.  The  amount  of  notes  received  for  premiums. 

3.  The  amount  of  interest  money  received. 

4.  The  amount  of  income  received  from  other  sources. 
Fifth. — The  expenditures  during  the  preceding  year,  specifying  : 

1.  The  amount  of  losses  paid  during  the  year. 

2.  The  amount  of  dividends  paid  during  the  year. 

3.  The  amount  of  expenses  paid  during  the  year,  including 
fees  and  commissions  to  agents  and  officers  of  the  company. 

4.  The  amount  paid  in  taxes. 

5.  The  amount  of  all  other  payments  and  expenditures. 
Sixth. — The  greatest  amount  insured  in  any  one  risk. 

Seventh. — A  certified  copy  of  the  act  incorporating  the  company. 
{Laws  of  18G9,  p.  127  ^  1.) 

3.  The  said  statement  shall  be  filed  in  the  office  of  the  Com]:' 
troller-General.  No  company,  excepting  masonic,  odd  fellows,  and 
religious  mutual  aid  societies,  ali-eady  chartered  by  this  State, 
shall  be  allowed  to  transact  any  business  of  insurance  in  this  State, 
unless  possessed  of  at  least  one  hundred  thousand  dollars  of  actual 
cash  capital,  ])aid  in,  or  assets,  and  invested  in  bonds  and  stocks, 
estimated  at  their  actual  market  value  at  the  date  of  such  state 
ment,  and  in  mortgages  on  real  estate  worth  double  the  amount  for 
which  the  same  is  mortgaged.     {Ibi(l,j).  1U8,  §  2.) 

4.  Ui^on  filing  such  statement,  as  aforesaid,  the  Comptroller- 
General,  when  satisfied  that  the  statement  is  correct,  and  that  the 
company  has  fully  com])lied  with  the  i^rovisions  of  this  act,  shall 
issue  a  certificate  of  authority  to  transact  business  of  insurance  in 
this  State,  to  the  company  applying  for  the  same,  and  to  all  agents 
such  company  may  appoint  and  commission.     (rWr/,|).  129,  §  3.) 

i5.  Said  statement  must  be  renewed  annually,  on  the  first  day 
of  January  in  each  year,  or  within  sixfy  days  thereafter,  and  if 
the  Comptroller-General  is  satisfied  that  the  capital,  securities,  and 
investments  remain  secured  as  at  first,  he  shall  furnish  a  renewal  of 
the  certificate.  Insurance  comi)anies  shall  not  be  required  to  fur- 
nish but  the  single  statement  annually.  The  Comptroller-General 
shall  be  entitled  to  a  fee  for  examining  and  filing  each  statement  of 
such  com])anies,  of  seven  and  one-half  dollars,  and  for  certificates  to 
agents,  of  two  and  and  one-half  dollars,  which  fees  shall  be  paid  by 
the  company  or  agent  filing  the  said  statement,  and  to  whom  cer- 
tificates are  to  be  issued.     {Ibid,  §  4.) 

®.  Whenever  t  le  existing  or  future  laws  of  any  other  State  of 
the  United  States  snail  require  of  insurance  companies  incorporated 
by  this  State,  and  having  agencies  in  such  other  State,  or  of  the 
agents  thereof,  any  deposit  of  securities  in  such  State,  for  the  pro- 
tection of  policy-holders,  or  otherwise,  or  any  payment  for  taxes,  pen- 
alties, certifi*'ates  of  authority,  license  fees,  or  otherwise,  greater 
than  the  amounts  required  for  such  i^urposes  from  similar  companies 


GEORGIA.  137 

of  other  States  by  the  then  existing'  laws  of  this  State,  then  and  in 
every  such  case,  all  comiianies  of  such  States  establishing,  or  hav- 
ing heretofore  established,  an  agency  or  agencies  in  this  State,  shall 
be,  and  are  hereby,  required  to  make  the  same  deposit,  for  a  like 
])urpose,  with  the  Comptroller-General  of  this  State,  and  to  pay  to 
said  Comptroller-General  for  taxes,  fines,  penalties,  certificates  of 
authority,  license  fees  and  otherwise,  an  amount  equal  to  the 
amount  of  such  charges  and  payments  imposed  by  the  laws  of  such 
State  upon  companies  of  this  State  and  agents  thereof.  {Ibid,  §  5.) 
7,  That  all  persons  violating  the  provisions  of  this  act  shall  be 
liable  to  indictment,  and  on  conviction,  shall  he  fined  not  less  than 
one  hundred  dollars,  nor  more  than  five  hundred  dollars,  at  the  dis- 
cretion of  the  jury  and  court  trying  the  same.     {Ibid,  §  G.) 


TAXATION  OF  INSURANCE  COMPANIES. 

8,  The  returns  of  all  insurance  companies,  and  agents  of  for- 
eign companies,  authorized  in  this  State,  shall  be  made  to  the 
Comptroller-General  by  the  first  day  of  May  in  each  year,  and  the 
taxes  thereof  shall  be  paid  to  the  State  Treasurer  by  the  fi,rst  day  of 
October  in  each  year.     {Revised  Code,  1873,  ^j.  14G,  §  826.) 

9,  The  returns  of  all  companies,  or  i)ersons,  required  to  be 
made  to  the  Comptroller-General  must  be  in  writing,  and  sworn  to 
by  the  presiding  oflBcer,  or  agent,  of  a  foreign  company  to  be  a  just, 
true,  and  full  return  of  capital  stock,  net  annual  profits,  or  other 
property  or  effects,  for  which  said  company  is  subject  to  taxation  by 
the  laws  of  this  State.     {Ibid,  §  832.) 

1®.  Such  payments  must  be  made  in  the  funds  in  which  taxes 
may  be  paid  at  the  State  Treasury,  free  of  any  expense  to  the  State. 
{Ibid, p.  147,  §  833.) 

11.  If  any  corporation,  company,  person,  agency,  or  institu- 
tion, who  are  required  to  make  their  returns  to  the  Comptroller- 
General,  shall  fail  to  return  the  taxable  property  or  specifics,  or  pay 
annually  the  taxes  for  which  they  are  liable  to  the  State  Treasurer, 
the  Comptroller-General  shall  issue  against  them  an  execution  for 
the  amount  of  taxes  due,  according  to  law,  together  with  the  costs 
and  penalties.     {Hid,  p.  152,  §  876.) 

12.  The  penalty  against  all  such  corporations  shall  be  the  for- 
feiture of  their  charters,  and  if  not  chartered  by  this  State,  then  the 
immediate  suspension  of  their  business  therein.     {Ibid,  §  877.) 

13.  The  penalty  or  default  tax  on  corporations,  where  there  is 
no  special  provision,  shall  be  three  times  the  amount  of  their  lawful 
tax.     {Hid,  §  878.) 

14.  The  penalty  or  default  tax  on  foreign  insurance  companies 
shall  be  five  hundred"^  dollars.     {Ibid,  §  879.) 

15.  AVhen  there  is  no  return  by  which  to  assess  the  tax,  the 
Comptroller-General  shall,  from  the  best  information  he  can  pro- 
cure, assess  in  his  discretion.     {Ibid,  §  881.) 

1©.  The  executions  issued  by  the  Comptroller-General  against 
any  company  shall  be  directed  to  all  and  singular  the  Sheriff's  and 
other  lawful  officers  of  this  State,  with  directions  to  levy  the  same 
on  the  property  of  the  corporation  or  company,  wnth  power  to  issue 
and  serve  garnishments  uj)on  the  debtors  of  the  corporation.  {Ibid, 
§  882.) 

1?.    The  executions  against  agents  of  foreign  institutions,  as 


138  hike's  it^sukance  statutes. 

aforesaid,  shall  be  against  the  principal  agent  or  his  successor,  and 
shall  authorize  the  officer  to  levy  on  all  the  property  of  the  agency, 
to  seize  its  money,  notes  or  other  effects.     {Ibid,  §  883.) 

In  addition  to  the  ad  valorem  tax  on  real  and  personal  property, 
as  required  by  the  constitution,  the  following  specific  taxes  shall  be 
levied  and  collected : 

18.  Upon  each  agent  of  any  insui'ance  company  doing  business 
in  this  State,  the  sum  of  fifteen  dollars.     {Laws  oflSlo,}).  116,  §  2.) 

19.  All  home  and  foreigu  insurance  companies  doing  business 
in  this  State,  shall  pay  one  per  cent,  on  all  premiums  in  money,  or 
otherwise  received  by  them,  and  in  addition  to  the  tax  herein  im- 
posed upon  gross  receipts  of  insurance  companies,  all  such  com- 
panies shall  be  taxed  upon  their  capital  in  the  same  manner,  and 
at  the  same  rate,  as  herein  provided  for  banks  and  bankers.  {Ibid, 
p.  116,  §  3.) 

20.  No  assessment  or  payment  of  tax  to  the  State  is  to  exoner- 
ate the  person  from  taking  out  license  from  the  county,  or  city,  or 
incorporated  town,  in  cases  where  they  are  required  bv  law  so  to  do. 
{Revised  Code,  1873,  p.  143,  §  811.) 


CONTEACTS  OF  INSUEANCE-FIEE  IXSUEANCE. 

2 1 .  The  contract  of  fire  insurance  is  one  whereby  an  individual 
or  company,  in  consideration  of  a  premium  paid,  agrees  to  indemnify 
the  assured  against  loss  by  fii'e  to  the  pro])erty  described  in  the 
policy,  according  to  the  terms  and  stipulations  thereof.  Such  con- 
tract to  be  binding  must  be  in  writing  ^  but  delivery  is  not  neces- 
sary if  in  other  respects  the  contract  is  consummated.  {Revised  Code, 
1873,  p.  485,  §  2794.) 

2t5.  To  sustain  any  contract  of  insurance  it  must  appear  that 
the  assured  has  some  interest  in  the  property  or  event  insured,  and 
such  as  he  represented  himself  to  have.  A  slight  or  contingent  in- 
terest is  sufficient,  whether  legal  or  equitable,  and  several  having 
different  interests  may  unite  in  procuring  one  policy:  so  a  husband 
or  parent  may  insure  the  separate  property  of  his  wife  or  child,  the 
recovery  being  held  by  him  in  trust  for  them ;  but  a  mere  expecta- 
tion of  an  interest  is  not  insurable.     {Ibid,  p.  486,  §  2795.) 

2S.  If  one  undertakes  to  insure  the  interest  of  another,  it  must 
be  done  by  his  consent,  or  be  subsequently  ratified  by  him  ;  but  an 
insurer  may  reinsure  to  protect  himself  against  loss  on  his  contract. 
{Ibid,  §  279  •.) 

24.  A  policy  of  insurance  may  be  made  to  cover  property 
changing  daily  in  its  specific  articles,  as  a  stock  of  goods.  {Ibid, 
§  2797.) 

25.  The  contract  of  insurance  should  be  construed  so  as  to  carry 
out  the  true  intention  of  the  i)arties.     {Ibid,  §  2798.) 

26.  A  loss  or  injury  may  incur  from  fire  without  the  actual 
burning  of  the  articles  of  property,  as  a  house  blown  up  to  stop  a 
conflagration,  or  goods  removed  in  imminent  danger,  or  damaged 
by  water  used  to  extinguish  the  flames.     {Ibid,  §  2799.) 

27.  If  the  loss  has  already  occui-red,  and  both  parties  are  igno- 
rant of  it,  the  contract  is  valid ;  but  the  slightest  gToimds  of  suspi- 
cion known  to  the  insured  will  vitiate  the  contract,  unless  made 
known  to  the  insurer.     {Ibid,  §  2800.) 

28.  The  assured  is  bound  to  ordinary  diligence  in  protecting 


GEORGIA.  139 

the  property  from  fire,  and  gross  negligence  on  his  patt  will  relieve 
the  insurer.  Simple  negligence  by  a  servant,  or  the  assured,  unaf- 
fected by  fraud  or  design  in  the  latter,  Avill  not  relieve  the  insurer. 
{Ibid,  §2801.) 

!3J>.  Every  application  for  insurance  must  be  made  in  the  ut- 
most good  faith,  and  the  representations  contained  in  such  applica- 
tion are  considered  as  covenanted  to  be  true  by  the  applicant.  Any 
variation  by  which  the  nature,  or  extent,  or  character  of  the  risk  is 
changed,  wUl  void  the  policy.     {Ibid,  §  2802). 

3<l>.  Any  verbal  or  written  representations  of  facts  by  the  as- 
sured to  induce  the  acceptance  of  the  risk,  if  material,  must  be  true 
or  the  policy  is  void.  If,  however,  the  party  has  no  knowledge,  but 
states  on  the  representations  of  others,  bona  fide,  and  so  informs  the 
insurer,  the  falsity  of  the  information  does  not  void  the  policy. 
{Ibid,  §  2803.) 

31.  A  failure  to  state  a  material  fact,  if  not  done  fraudulently, 
does  not  void ;  but  the  willful  concealment  of  such  a  fact,  which 
would  enhance  the  risk,  will  void  the  policy.     {Ibid,  §  2801.) 

33.  Any  change  in  the  property,  or  the  use  to  which  it  is  ap- 
plied, without  the  consent  of  the  insurer,  whereby  the  risk  is  in- 
creased, voids  the  policy.     {Ibid,  §  2805.) 

33.  Willful  misrepresentation  by  the  assured,  or  his  agent,  as 
to  the  interest  of  the  assured,  or  as  to  other  insurance,  or  as  to  any 
other  material  inquiry  made,  will  void  the  policy.  {Ibid,  p.  487, 
§2806.) 

34.  An  alienation  of  the  property  insured,  and  a  transfer  of  the 
policy,  without  the  consent  of  the  insurer,  voids  it :  but  the  mere 
hypothecation  of  the  policy,  or  creating  a  lien  on  the  property,  does 
not  void.     {Ibid,  §  2807.) 

35.  A  policy  issuing  to  several  may  be  transferred  to  one  of  the 
assured,  without  the  consent  of  the  insurer.     {Ibid,  §  2808.) 

36.  A  partial  sale  of  property  insured  voids  the  policy  only  pro 
tanto.  A  sale  not  fully  executed,  and  i)ossession  remaining  with 
the  assnred,  does  not  void.     {Ibid.,  §  2809.) 

37.  After  the  loss  occurs,  a  sale  of  the  property  and  transfer  of 
the  policy  does  not  affect  the  liability  of  the  insurer,  but  the  assignee 
may  recover.     {Ibid,  §  2810.) 

3  8 .  A  transfer  of  the  property  or  policy  by  operation  of  law,  or 
under  the  order  of  the  court,  will  confer  on  the  assignee  all  the 
rights  of  the  assured.     {Ibid,  §  2811.) 

39.  A  second  insurance  on  the  same  property,  unless  by  con- 
sent of  the  insurer,  voids  his  policy.     {Ibid,  §  2812.) 

40.  Every  insurer  has  a  right  to  prescribe  regulations  as  to 
notice  and  preliminary  proof  of  loss,  which  must  be  substantially 
complied  with  by  the  insured ;  Provided,  The  same  are  made  known 
at  the  time  of  the  insurance,  and  are  not  materially  changed 
during. the  existence  of  the  contract.  An  absolute  refusal  to  pay 
waives  a  compliance  with  these  preliminaries.     {Ibid,  §  2813.) 

41 .  The  assured  may  recover  the  full  amount  of  his  loss ;  Pro- 
vided, The  same  is  within  the  amount  insured.  If  he  has  several  i^ol- 
icies  on  the  same  property,  the  reciovery  from  each  company  will 
be^ro  rata  as  to  the  amount  insured.     {Ibid,  §  2814.) 

42.  The  value  of  property  is  to  be  estimated  at  the  time  of  the 
loss.  Contingent  profits  are  not  a  part  of  such  value.  {Ibid, 
§  2815.) 

43.  The  privilege  of  rebuilding  or  reinstating  the  property 


140  niNE'S  INSURANCE  STATUTES. 

must  be  reserved  iu  the  policy,  or  it  does  not  exist.  In  such  cases, 
the  assured  has  no  chiim  for  rents,  if  done  within  a  reasonable  time, 
nor  the  insurer  for  increased  value,  from  the  fact  of  new  and  more 
valuable  materials.     {Ibid,  §  2816.) 

44.  If,  after  payment  of  loss,  the  insurer  discovers  evidence  to 
show  himself  not  liable  on  the  policy,  he  may  recover  back  the 
money  in  an  action  for  money  had  and  received.     {Ibid,  §  2817.) 

LIFE   INSURANCE. 

4^.  An  insurance  upon  life  is  a  contract  by  which  the  insurer, 
for  a  stipidated  sum,  engages  to  pay  a  certain  amoimt  of  money  if 
another  dies  within  the  time  limited  by  the  policy.  The  life  may  be 
that  of  the  assured,  or  of  another  iu  whose  continuance  the  assured 
has  an  interest.     {Ibid,}).  488,  §  2818.) 

46.  Contracts  of  life  insurance  can  be  taken  only  by  persons 
or  corporations  specially  authorized  so  to  do  by  law.    {Ibid,  §  2819.) 

47.  The  assured  may  direct  the  money  to  be  paid  to  his  per- 
sonal representatives,  or  to  his  widow,  or  to  his  children,  or  to  his 
assignee,  and  upon  such  direction,  given  and  assented  to  by  the  in- 
surer, no  otlier  person  can  defeat  the  same ;  but  the  assignment  is 
good  without  such  assent.     {Ibid,  §  2820.) 

48.  The  principles  before  stated  as  to  fire  insurance,  wherever 
applicable,  are  equally  the  law  of  life  insurance.     {Ibid,  §  2821.) 

49.  Death  by  suicide,  or  by  the  hands  of  justice,  either  puni- 
tive or  preventive,  releases  the  insurer  from  the  obligation  of  his 
contract.     {Ibid,  §  2822.) 

54K  A  policy  of  life  insurance  runs  from  midday  of  the  date  of 
the  policy,  and  the  time  must  be  estimated  accordingly,  if  the  policy 
is  limited  to  a  specified  number  of  years.     {Ibid,  §  2823.) 


MARINE    INSURANCE. 

51.  A  contract  of  marine  insurance  is  one  by  which  a  person 
or  corporation,  for  a  stipulated  premium,  insures  another  against 
losses  occurring  by  the  casualties  of  the  sea.     {Ibid,  §  2824.) 

52.  Prohibited  or  illegal  commerce,  or  commerce  with  an  ene- 
my, or  goods  contraband  of  war,  are  not  the  subject  of  marine  in- 
surance.    {Ibid,  §  2825.) 

5111.  Double  marine  insurance  may  be  obtained  by  a  party 
having  an  insurable  interest ;  but  in  case  of  loss,  he  can  recover 
from  both  companies  only  the  full  value  of  such  interest.  If  one 
underwriter  pays  the  whole  amount,  he  is  entitled  to  contribution 
from  the  others!     {Ibid,  §  282G.) 

54.  The  assured  impliedly  warrants  that  the  ship  is  seaworthy, 
and  shall  not  be  changed  except  from  necessity,  and  that  she  shall 
be  employed,  conducted,  and  navigated  with  reasonable  skill  and 
according  to  law.     {Ibid,  p.  489,  §  2827.) 

5»%.  The  illegality  of  the  voyage,  whether  known  to  the  assured 
or  not,  renders  the  contract  void.     {Ibid,  §  2828.) 

56.  A  deviation  from  the  voyage,  if  voluntary,  and  not  from 
necessity,  voids  the  policy.    This  necessity  may  arise  from  : 

1.  Stress  of  weather. 

2.  Want  of  necessary  repaii's. 

3.  Joining  convoy. 


GEORGIA.  ~-V  14-1 

4.  Succoring  ships  in  distress. 

5.  Avoiding  capture  or  detention. 

G.     Sickness  of  master  or  crew.      

7.  Mutiny  on  board. 

8.  Any  similar  cause  founded  upon  reason.     (Ibid,  §  2829.) 
."57.     The  "  perils  of  the  sea"  comprehend  all  those  misfortunes 

to  which  goods  and  ships  at  sea  are  exposed  from  earth,  air,  fire,  or 
water.  Loss  from  enemies  is  not  inchided,  unless  expressly  named. 
The  negligence  or  unskillfulness  of  masters  or  mariners  is  not  in- 
cluded in  a  policy  on  the  ships  or  goods  belonging  to  the  owners  of 
the  vessel.  If  loss  occurs  to  third  i)ersons  therefrom,  the  under- 
writer mav  recover  from  the  owner  of  the  ship  the  amount  paid  by 
him.     {Ihid,  §  2830.) 

38.  Generally  the  risk  continues  till  the  goods  are  delivered 
on  shore  at  the  port  of  destmation,  or  to  others,  by  a  direction  of  the 
assured.     {Ihid,  §  2831.) 

59,  Any  change  by  which  the  risk  is  increased  voids  the  policy. 
{Ibid,  §  2832'.) 

GO,  An  open  policy  is  where  the  amount  of  the  interest  of  the 
assured  is  not  fixed  by  the  policy,  but  is  left  to  be  adjusted  in  case 
of  loss ;  such  jiolicies  may  issue  in  blank,  to  be  filled  by  the  insured 
as  new  risks  may  be  desired.     {Ibid,  §  2833.) 

61.  The  value  stated  in  a  policv  is  always  subject  to  be  re- 
duced by  proof.     {Ibid,  §  2834.) 

GrJ.  The  rules  as  to  warranties,  misrepresentations,  and  con- 
cealments are  the  same  in  marine  as  in  fire  insiu"ance.  {Ibid, 
§  2835.) 

MUTUAL  I^'SUKANCE. 

63.  The  contract  of  insurance  is  sometimes  upon  the  idea  of 
mutuality,  by  which  each  of  the  assured  becomes  one  of  the  insur- 
ers, thereby  becoming  interested  in  the  profits,  and  liable  for  the 
losses.  Without  a  charter,  such  an  organization  would  be  governed 
by  the  general  law  of  partnership ;  when  incorporated,  they  are 
subject  to  the  terms  of  their  charter.     {Ibid,  p.  490,  §  2830.) 

64.  The  rules  and  regulations  of  such  a  company,  adopted  in 
pursuance  of  the  charter,  become  a  part  of  each  policy,  and  all  the 
assured  are  presumed  to  have  notice  thereof.  But  new  conditions 
can  not  be  annexed  to  the  policy  after  it  is  issued,  except  by  the 
consent  of  the  assured.     {Ibid,  §  2837.) 

65.  The  oflicers  of  such  a  company  are  the  agents  of  all  the 
assured,  and  to  the  extent  of  their  misconduct  or  neglect,  shall 
affect  each,  upon  the  general  principles  governing  principal  and 
agent,  except  as  to  the  transaction  of  making  the  contract  of  insur- 
ance ;  up  to  the  time  of  its  execution,  the  assured  stands  as  a  third 
party,  and  the  officer  issuing  the  policy  acts  for  those  already  in 
the  company.     {Ibid,  §  2838.) 

66.  If  a  mutual  insurance  company,  by  dividends,  reduces  its 
available V  funds  below  the  point  of  remaining  able  to  meet  all 
losses  occurring  on  policies  then  in  existence,  the  directors  of 
such  companies  primarily,  and  the  parties  receiving  the  dividends, 
ultimately  and  pro  rata,  shall  be  liable  individually,  jointly,  and 
severally,  for  the  amount  of  such  unpaid  losses.     {Ibid,  §  2839.) 

67.  A  stricter  good  faith,  as  to  representations  and  conceal- 


142  hine's  insurance  statutes. 

ments,  should  be  required  iu  mutual  insurance  tlian  in  any  otlijer 
similar  contracts.     {Ibid,  §  2840.) 

SUITS    MJAIKST  INSURANCE   COMPANIES. 

68.  The  several  insurance  companies  of  this  State,  and  foreign 
insurance  companies  doing  business  iu  this  State,  in  all  cases  when 
a  loss  occurs  and  they  refuse  to  pay  the  same  within  sixty  days 
after  a  demand  shall  have  been  maiie  by  the  holder  of  the  policy  on 
which  said  loss  occurred,  they  shall  be  liable  to  i^ay  the  holder  of 
said  policy,  in  addition  to  the  said  loss,  not  more  than  twenty-five 
per  cent,  on  the  liability  of  said  company  for  said  loss ;  also,  all 
reasonable  attorney's  fees  lor  the  prosecution  of  the  case  against 
said  company;  Provided,  It  shall  be  made  to  appear  to  the  jury  trying 
the  same  that  the  refusal  of  the  company  to  pay  said  loss  was  in 
bad  faith.     {Laws  of  1872,  p.  43,  §  1.) 

69.  The  form  of  an  action  to  recover  money  on  an  insurance 
policy  may  be  the  same  as  prescribed  in  section  3315  of  Ii-win's 
Eevised  Code,  for  actions  on  notes,  bills,  bonds,  receipts,  and 
written  promises ;  and  it  shall  not  be  necessary  to  set  forth,  in  the 
body  of  the  declaration,  allegations  of  conditions  other  than  may  be 
embraced  in  tae  form  prescribed  in  said  section  of  the  code ,  nor 
shall  it  be  necessary  to  attach  a  copy  of  what  may  be  within  or 
printed  upon  the  policy,  except  what  appears  upon  the  face  and  in 
the  body  of  the  policy.     {Laws  oflS12,2i-  38,  §  I.) 

ARSON  AND   INCENDIARISM. 

70.  Arson  is  the  malicious  and  willful  burning  of  the  house  or 
outhouse  of  another.     {Revised  Code,  1873,  p.  702,  §  4375.) 

71.  The  willful  and  malicious  burning,  or  setting  lire  to,  or 
attemi)ting  to  burn  a  house  in  a  city,  town,  or  village,  shall  be 
punished  with  death.     {Ibid,  §  4376.) 

7'2.  The  willful  and  malicious  burning  of  an  occupied  dwelling- 
house  of  another,  on  a  farm  or  plantation,  or  elsewhere,  shall  be 
punished  with  death,  but  the  punishment  may  be  commuted  in 
conformity  with  the  provisions  of  section  4323  of  this  Code.  [Ibid, 
§  4377.) 

7 SI.  The  willful  and  malicious  burning  of  an  unoccupied  dwell- 
ing house  of  another,  on  a  farm,  plantation,  or  elsewhere  (not  iu 
a  city),  shall  be  punished  by  imprisonment  and  labor  in  the  Peniten- 
tiary for  a  term  not  less  than  five  nor  longer  than  twenty  years, 
(ia/cs  o/ 1874,  _p.  21,  §  1.) 

74.  Setting  fire  to  the  dwelling-house  of  another,  with  intent 
to  burn  the  same,  on  a  farm  or  plantation  or  elsewhere,  not  in  a 
city,  towTi,  or  village,  shall  be  punished  by  imprisonment  and  labor 
iu  the  i)enitentiary  for  a  term  not  less  than  three  years  nor  longer 
than  seven  years.     {Revised  Code,  1873,  j;.  702,  §  4378.) 

73.  The  willful  and  malicious  burning  of  an  outhouse  of  an- 
other, such  as  a  barn,  stable,  or  any  other  house  (except  the  dwell- 
ing-house) on  a  farm  or  plantation,  or  elsewhere  (not  in  a  city, 
town,  or  village),  shall  be  punished  by  imprisonment  and  labor  iu 
the  penitentiary  for  any  terra  not  less  than  two  years  nor  more  than 
seven  years.     {Ibid,  §  4370.) 

76.  Setting  fire  to  the  outhouse  of  another,  as  described  in 
the  preceding  section,  shall  be  punished  by  imprisonment  and  labor 


GEORGIA,  143 

in  tlie  penitentiary  for  any  term  not  less  than  one  year  nor  more 
than  three  years.     {Ibid,  §  4380.) 

77.  The  crime  of  burning  shall  be  complete  wher«p^he  house 
is  consumed  or  generally  injured.     {Ibid,  §  4381.) 

78.  The  olfeuse  of  setting  fire  to  a  house  %iiall-be-<i8liiplete 
when  any  attempt  is  made  to  burn  it,  though  no  mutual  injuiy  is 
the  consequence.     {Ibid,  §  4382.) 

79.  The  willful  or  malicious  burning  or  attempting  to  burn, 
any  railroad  bridge  within  this  State,  shall  be  deemed  and  adjudged 
arson,  and  shall  be  punished  Avith  death  ;  but  the  punishment  may 
be  commuted  in  conformity  with  section  4  i23  of  this  Code.  {Ibid, 
§  4383.) 

80.  Arson  in  the  day  time  (except  in  a  city,  town,  or  village, 
shall  be  punished  by  a  shorter  period  of  imprisonment  and  labor 
than  arson  committed  in  the  night.     {Ibid,  §  4384.) 

81.  Arson  which  produces  the  death  of  any  person,  shall  be 
punished  by  the  death  of  the  person  or  persons  committing  the 
arson  ;  but  the  j)unishmeut  may  be  commuted  in  conformity  with 
the  provisions  of  section  4323  of  this  Code.     {Ibid,  §  4385.) 

82.  It  shall  be  the  duty  of  his  Excellency,  the  Governor  of 
this  State,  whenever  he  shall  receive  reliable  information  that  any 
gin  house  has  been  burned,  or  set  on  fire  in  violation  of  the  laws  of 
this  State,  to  issue  his  proclamation,  offering  a  reward  of  not  less 
than  five  hundred  dollars  each,  for  the  api)rehension  of  the  incen- 
diary or  incendiaries,  mth  proof  sufficient  to  convict.  {Laics  oj 
1875,  p.  104,  §  1.) 

EMBEZZLEMENT. 

83.  If  any  person,  employed  as  a  clerk,  agent,  or  servant,  or 
in  any  other  character  or  capacity,  in  any  store,  warehouse,  count- 
ing room,  exchange  office,  shop,  or  other  place  of  trade,  traffic,  or 
exchange,  where,  from  the  nature  of  the  business  or  em])lo3^ment, 
it  is  necessary  or  usual  to  entrust  to  such  person  any  goods,  wares, 
or  merchandise,  cotton,  corn,  or  other  produce,  money,  notes,  bills 
of  exchange,  bank  notes,  checks,  drafts,  orders  for  ijayment  of 
money,  or  other  valuable  thing,  or  any  other  thing  or  article  of 
value,  shall  fraudulently  take  and  carry  away,  or  convert  to  his 
own  use,  or  otherwise  dispose  of  any  of  the  said  goods,  wares,  or 
merchandise,  cotton,  corn,  or  other  produce,  money,  notes,  bills  of 
exchange,  bank  notes,  checks,  drafts,  orders,  or  other  thing  or 
things  of  value,  thus  entrusted  to  him,  or  committed  to  his  charge, 
to  the  injury  and  without  the  consent  of  the  owner  thereof,  or  per- 
son thus  entrusting  him,  such  person  so  offending  shall,  on  convic- 
tion, be  punished  by  imprisonment  and  labor  in  the  penitentiary  for 
any  time  not  less  than  one  year,  nor  longer  than  five  years.  {Revised 
Code,  1873,  p.  798,  §  4423.) 

84.  For  General  Provisions  relating  to  corporations.  {See  Re- 
vised Code,  1873,  pp.  288-299. 


INDEX  TO  ILLINOIS. 


Agent—  page 

Embezzlement  l)y  (30) 16t) 

Fees  ami  Taxes  ("29,  32) 160.161 

May  not  Act  for  Uuautliorized  Company 

(40) 162 

Of  Foreign  Companies  must  Advertise 

(24)  156 

Of  Foreign  Life  Companies  must  Exhib- 
it Xame  (59) 166 

Of    Foreign    Life    Companies   Defined 

(6o) 167 

Penalty  for  Violating  Act  (61) 167 

Annual  Stutement— 

Of  Fire,  Marine,  and  Inland  Companies 

(23) 153 

Of  Foreign  Companies  (24) 155 

Of  Life  Companies   (42-46,  5S)  163-4,166 

Of  Township  Companies  (80,  82) 170 

Receiver  mast  Make  (28) 169 

Assets,  Proceedings  in  Case  of  Insufficient 

(25) 157 

Arson  and  Incendiarism  (98,  102)...   174,  175 
Attorney,  Foreign  Companies  must  Appoint 

(24,  52) 156,165 

Auditor- 
Annual    Reports   to  (23,  28,  42-45:i53, 

159,  163-4 
Action  in  Case  of  Non-SuflBcient  Assets 

(25) 157 

May  Inqu're  of  Company  (23) 154 

May  Examine  Companies  (25) 157 

Shall  Classify  Risks  (23) 154 

Shall  Furnish  Printed  Forms  (23)  154 

Shall  Examine  Life  Companies  (39) .  -  -  162 

Shall  Value  Policies  (54) 166 

Shall  Publish  Statement  (63) 167 

CAPlTAt— 

Of  Joint  Stock  Companies  (8) 147 

Of  Mutual  Companies  (8)  147 

Of  Exisliag  Companies  (21) 152 

Of  Foreign  Companies  (24) 155 

Of  Life  Companies  (38) 162 

Increase  of  (20) 152 

Impairment  and  Reducti)n  of  (28) 159 

Investment  of  (10) 148 

Certificate  of  Authority  a  2,  24) 149,  155 

Charter — 

Diirntion  of  (27) 158 

May  be  Extended  (19) 152 

Must  be  Examined  and  Filed  (12,  58)  149, 

166 


Corporations —  fagr 

Companies  Subject  to  Law  of  (22) 153 

General  Provisions  Concerning  U03).  175 
Must  Organize  under  General  Laws  (1)  146 
Stockholders  to  Elect  Directors  (2) 146 

Deposit — 

Of  Foreign  Cos.  (24,  35-37,  53)155,  161- 

162,  165 

Of  Foreign  Cos.,  Surrender  of  (65) 167 

Dissolution — 

Of  Insurance  Companies  (85,  93).  171,  173 

Of  Township  Companies  (83) 171 

Dividends  of  F.,  M  ,  and  I.  Companies  (14)  150 

Ejibezzlemkxt  by  Agent  (30) 1  f>0 

Examination,  Auditor  may  Make  (25) 157 

Fees— 

For  Examination  of  Life  Cos.  (39) 162 

For  Valuation  of  Policies  (54) 166 

Of  Fire  and   Marine   Companies   and 

Agents  (29) 16° 

Of  Life  Companies  (62) 167 

Reciprocal  (31,  57) 161,166 

Fire,  Marine,  and  Inland  Companies- 
Authority  to  Commence  Business,  how 

Obtained  (12) 1^^ 

Annual  Report  (23) 154 

By-laws  and  Seal  (13) 149 

Capital  (8,  10) 147,  148 

Dividends  (14) 150 

Declaration,  Charter  (5,6) 147 

Fees  (29) 16° 

Liability  of  (18) 151 

May  Extend  Charter  (19) 153 

May  Increase  Capital  020) 152 

May  Insure  what  (37)    146,  147 

May  Reinsure  (4)  146 

Must  Print  Mutual  or  Stock  on  Policy 

(16)  151 

Opening  Books  (9) 14^ 

Purchase  and  Sale  of  Real  Estate  (1 1).  149 
Suits  by  and  Against  Members  (17).--  151 

"When  Assets  are  Insufficient  (25) 157 

Who  may  Form  (3) 146 

Fire  Patrol  (94,  97) 173,  174 

Foreign  Companies- 
Agent  must  Advertise  (24) f' 

Capital  and  Attorney  (24) 155, 

Certificate  of  Authority  (24) 155 


INDEX  TO  ILLINOIS. 


145 


PAGE 

Foreign  Companies  (Continued)— 

Deposit  (-24,  35-37; 155,161-2 

i'oes  (29) IfiO 

Must  File  Charter  and  Statement  (24)  155 

Prior  to  the  Act  (28) 159 

Peualties  for  Violating  Act  (24) 15(i 

Service  after  Stopping  Business  (24)..  156 

(See  Life  Insurance  Companies) 

When  Assets  are  Insnfficieut  (25) 157 

Impairment  of  Capital  (28 ) 159 

Inland  Companies— (See  Fire,  etc.) 

Insolvent  Companies,  Dissolution  of  (85). .  171 

JOKT  Stock  Companies — (See  Fire,  etc.) 

Lien  on  Stock  (28) 159 

Life  Insurance  Companies- 
Annual  Statement  ( 4 2-46) 163-4 

Auditor  Shall  Examine  (39,  40,  50).  162, 

165 

Capital  of  (38,  40) 162 

Directors  in  Mutual,  how  Elected  (41)  163 

Dividends  of  Mutual  (51) 165 

Foreign  must  Appoint  Attorney  (52)..  165 

Foreign  must  Exhibit  Name  (59) 166 

Foreign  must  Comply  with  Act  (40)  . .  162 
Foreign  must  File  Charter  and  State- 
ment (58) If 6 

Investments  of  (48,  49) 164 

May  Insure  what  (55) 166 

Must  Stop  Issuing  Policies,  when  (47).  164 

Retirement  of  (6-)) 167 

State    Treasurer   shall    hold    Deposits 

(53) 166 

Valuation  of  Policies  ( 5  4) 166 

Marine  Companies— (See  Fire,  etc.) 

Mutual  Insurance  Companies — 

Liability  of  Members  (15) 150 

May  Become  Joint  Stock  (19) 152 

Premium  Notes  (15) 150 

When  Assets  are  InsuiBcient  (25) 157 

Mutual  Life  Companies- 
Directors,  how  Elected  (41) 164 

Dividends  of  (51) 165 

Penalty— 

For  Arson  (98,  102) 174,175 

For  Failing  to  Ajiswer  Inquiries  (50).  165 


PAGE 

Penalty  (Continued) — 

For  Illegal  Insurance  by  Agent  (61)  ..  167 
For  not  Making  Annual  Keport  (23, 

46) 154,  1G4 

For  Violation  of  Act  by  Foreign  Com- 
pany (24) 156 

Suits  for  (26) io8 

Real  Estate,  Purchase  and  Sale  of  (11)...  149 

Receivers — 

In  Case  of  Dissolution  (89-92) 172-3 

Must  make  Annual  Statement  (28) 159 

Reciprocal  Taxes  and  Fees  (31,  5  7)  ..Ifil,  166 

Risks  shall  be  Classified  (23) 154 

Stockholdeks,  Liability  of  (2  5) 157 

Stock-- 

Lien  on  (28) 159 

Reduction  of,  when  Impaired  (28) 159 

Transfer  of,  Pending  Examination  (25)  158 

Taxes— 

On  Net  Receipts  (32).. 161 

Reciprocal  (31,  5  7) 160,  166 

(See  Fees.) 

Township  Companies- 
Assessments  (77,  78) 170 

Annual  Statements  (80,  82) 170 

Corporate  Powers  (71) 169 

Directors  and  Ofllcers  (68-70) 168, 169 

Dissolution  (83) 171 

Excepted  (33) 161 

Existing  Companies  (80) 1 70 

Formation  of  (66,  67) 168 

In  Case  of  Loss  (76) 169 

Limit  of  Business  (75) 169 

May  Classify  Risks  (74) 169 

Manner  of  Insuring  (73) 169 

Members  (72) 169 

'  Suits  (79) 170 

Withdrawal  (81)  170 

Transfer  of  Stock  Impending  Examination 

(25) 158 

Underwriters'  Patrol  (94,  97) 173, 174 

Valuation  of  Life  Policies  (54) 166 

Wives'  Policies  (56) 166 


10 


INSURANCE  STATUTES  OF  ILLINOIS. 


Revised  by  Hon.  C.  E.  Lipplncott,  Auditor  of  Public  Accounts, 


CONSTITUTIONAL    PEOYISIONS    CONCEENING    COEPO- 

EATIONS. 

1.  No  corporation  sliall  be  created  by  special  laws,  or  its  char- 
ter extended,  changed,  or  amended,  except  those  for  charitable,  edu- 
cational, i^enal  or  reformatory  purposes,  which  are  to  be  and  remain 
under  the  patronage  and  control  of  the  State ;  but  the  General 
Assembly  sliall  provide,  by  general  laws,  ibr  tlie  organization  of  all 
corporations  hereafter  to  be  created.     {Art.  11,  §  1.) 

•}.  The  General  Assembly  shall  provide  by  law,  that  in  all  elec- 
tions for  directors  or  managers  of  incorporated  companies,  every 
stockholder  shall  have  the  right  to  vote,  in  person  or  by  proxy,  for 
the  number  of  shares  of  stock  owned  by  him,  for  as  many  persons 
as  there  are  directors  or  managers  to  be  elected,  or  to  cumulate 
said  shares,  and  give  one  candidate  as  many  votes  as  the  number 
of  directors,  nmltiplied  by  the  number  of  his  shares  of  stock,  shall 
equal,  or  to  distribute  them  on  the  same  princij)le  among  as  many 
candidates  as  he  shall  think  fit ;  and  such  directors  or  managers 
shall  not  be  elected  in  any  other  manner.     [Art.  11,  §  3.) 


FIEE,  MAEINE,  AND  INLAND  NAVIGATION. 

3.  Any  number  of  persons,  not  less  than  thirteen,  may  associ- 
ate and  form  an  incori^orated  company,  for  the  following  j^urposes, 
to  wit :  To  make  insurance  on  dwelling-houses,  stores,  and  all  kinds 
of  buildings,  and  uiion  household  furniture  and  other  property, 
against  loss  or  damage  by  fire  and  the  risks  of  inland  navigation 
and  transportation.  Any  and  all  insurance  companies  hereafter 
incorporated  under  the  provisions  of  act,  which  shall,  in  tbe  declara- 
tion and  charter  provided  to  be  tiled,  have  expressed  an  intention  to 
make  insurance,  or  which  shall  have  power  to  make  insurance 
against  loss  or  damage  by  the  risks  of  inland  navigation  or  trans- 
portation, shall  have  power  to  make  insurance  upon  vessels,  boats, 
cargoes,  goods,  merchandise,  freights  and  other  property,  against 
loss  and  damage  by  all  or  any  of  the  risks  of  lake,  river,  canal,  and 
inland  navigation  and  transportation.  {Revised  Statutes,  1874, 
p.  591,  §  1.) 

4.  Any  companies  organized  under  this  act  shall  have  power  to 
effect  re-insurance  of  any  risks  taken  by  them  respectively.  {I  bid, 
§2.) 

5.  Such  x>erson  shall  file  in  the  office  of  the  Auditor  of  Public 
Accounts,^  a  declaration,  signed  by  all  the  corporators,  expressing 


ILLINOIS.  147 

their  intention  to  form  a  company  for  the  purpose  of  transacting 
the  business  of  insurance,  as  expressed  in  the  tirst  section  of  this 
act,  which  dechiration  shall  also  comprise  a  copy  of  the  charter  pro- 
posed to  be  adopted  by  them;  and  shall  publish  a  notice  of  such 
their  intention  once  in  each  week  for  at  least  four  weeks,  in  a  public 
newspai>er  in  the  county  in  which  such  insurance  company  is  pro- 
posed to  be  located.     {Ibid,  §  3.) 

6.  The  charter  comprised  in  such  declaration  shall  set  forth 
the  name  of  the  company,  the  place  wliere  the  principal  office  for 
the  transaction  of  its  business  shall  be  located,  the  mode  and  man- 
ner in  which  the  corporate  powers  granted  by  this  act  are  to  be  ex- 
ercised, the  mode  and  manner  of  electing  trustees  or  directors — a 
majority  of  whom  shall  be  citizens  of  this  State — and  of  filling 
vacancies  (but  each  director  of  a  stock  company  shall  be  the  owner 
in  his  own  right  of  at  least  five  hundred  dollars  worth  of  the  stock 
of  such  company  at  its  par  value),  the  period  for  the  commencement 
and  termination  of  its  fiscal  year,  and  the  amount  of  capital  to  be 
employed  in  the  transaction  of  its  business.  And  the  Auditor  of 
Public  Accounts  shall  have  the  right  to  reject  any  name  or  title  of 
any  company  applied  for  when  he  shall  deem  the  name  too  similar 
to  one  already  approjiriated,  or  likely  to  mislead  the  public  in  any 
respect.     {Ibid,  §  4.) 

7.  No  company  formed  under  this  act  shall,  directly  or  indi- 
rectly, deal  or  trade  in  buying  or  selling  any  goods,  wares,  mer- 
chandise or  other  commodities  whatever,  excepting  such  articles  as 
may  have  been  insured  by  such  company  and  are  claimed  to  be 
damaged  by  fire  or  water.     {Ibid,  §  5.) 

8.  No  joint  stock  company  shall  be  incorporated  under  this 
act  in  the  city  of  Chicago,  nor  shall  any  company  incorporated 
under  this  act  establish  any  agency  for  the  transaction  of  business 
in  said  city  with  a  smaller  capital  than  one  hundred  and  fifty  thou- 
sand dollars,  actually  paid  in  in  cash,  nor  in  any  other  county  in 
this  State  with  a  smaller  capital  than  one  hundred  thousand  dollars 
actually  paid  in  in  cash.    Nor  shall  any  company  formed  under  this 
act  for  the  purpose  of  doing  the  business  of  fire  or  inland  navigation 
insurance,  on  the  plan  of  mutual  insurance,  commence  buvsiness,  if 
located  in  the  city  of  Chicago,  nor  establish  any  agency  for  the 
transaction  of  business  of  said  city,  until  agreements  have  been  en- 
tered into  for  insurance  with  at  least  four  hundred  applicants,  the 
premiums  on  which  shall  amount  to  not  less  than  two  hundred 
thousand  dollars,  of  which  forty  thousand  dollars  at  least  shall  have 
been  ])aid  in  cash,  and  notes  of  solvent  parties,  founded  on  actual 
and  bona  fide  application  for  insurance,  shall  have  been  received 
for  the  rejnainder ;  nor  shall  any  mutual   insurance  company  in 
any  other  part  of  the  State  commence  business  until  agreements 
have  been  entered  into  for  insurance  with  at  least  two  hundred  ap- 
plicants, the  premiums  on  which  shall  amount  to  not  less  than  one 
liundreil  thousand  dollars,  of  which  twenty  thousand  dollars  at 
least  shall  have  been  paid  in   cash,  and  notes  of  solvent  parties,, 
founded  on  actual  and  bona  fide  applications  for  insm^ance,  shall 
have  been  received  for  the  remainder.     No  one  of  the  notes  re- 
ceived, as  aforesaid,  shall  amount  to  more  than  five  hundred  dollars; 
and  no  two  shall  be  given  for  the  same  risk,  or  be  made  by  the  same 
person  or  firm,  except  where  the  whole  amount  of  such  notes  shall 
not  exceed  five  hundred  dollars ;  nor  shall  any  such  note  be  repre- 
sented as  capital  stock  unless  a  policy  be  issued  upon  the  same 


148  hine's  insurance  statutes. 

within  thirty  days  after  the  organization  of  the  company,  upon  a 
risk  wliich  shall  not  be  for  a  shorter  period  than  twelve  months. 
Each  of  said  notes  shall  be  payable  in  part  or  in  whole  at  any  time 
when  the  directors  shall  deem  the  same  requisite  for  the  payment 
of  losses  by  fire  or  inland  navigation,  and  such  incidental  expenses 
as  may  be  necessary  for  transacting  the  business  of  said  com])any. 
And  no  note  shall  be  accepted  as  part  of  such  capital  stock  unless 
the  same  shall  be  accompanied  by  a  certificate  of  a  justice  of  the 
peace,  or  supervisor  of  the  town  or  city  where  the  person  making 
such  note  shall  reside,  that  the  person  making  the  same  is,  in  his 
opinion,  pecuniarily  good  and  responsible  for  the  same ;  and  no 
such  note  shall  be  surrendered  during  the  life  of  the  policy  for 
which  it  was  given.  No  joint  stock  tire  insurance  company  or- 
ganized under  this  act,  or  transacting  business  in  this  State,  shall 
expose  itself  to  any  loss  on  any  fire  or  inland  navigation  risk  or 
hazard  to  an  amount  exceeding  ten  per  cent,  of  its  paid-up  capital. 
{Ihid,  §  6.) 

9.  It  shall  and  may  be  lawful  for  the  individuals  associated  for 
the  purpose  of  organizing  any  company  under  this  act,  after  hav- 
ing published  the  notice  and  filed  the  declaration  and  charter,  as 
required  by  the  third  section  of  this  act,  and  also  on  filing  in  the 
oftice  of  the  Auditor  of  I'ublic  Accounts  proof  of  such  publication  by 
the  affidavit  of  the  publisher  of  such  newspaper,  his  foreman  or 
clerk,  to  open  books  for  subscription  to  the  capital  stock  of  the  com- 
pany so  intended  to  be  organized,  and  to  keep  the  same  open  until 
the  full  amount  specified  in  the  charter  is  subscribed ;  or  in  case  The 
business  of  such  company  is  proposed  to  be  conducted  on  the  plan 
of  mutual  insurance,  then  to  open  books  to  receive  propositions, 
and  to  enter  into  agreements  in  the  manner  and  to  the  extent  speci- 
fied in  the  sixth  section  of  this  act.     {Ibid,  p.  592,  §  7.) 

10.  It  shallbe  lawful  for  any  insurance  company  organized 
under  this  act,  or  any  such  company  incorporated  under  any  law  of 
this  State,  to  invest  its  capital  and  the  fuud  accumulated  in  the 
course  of  its  business,  or  any  part  thereof,  in  bonds  and  mortgages 
on  improved  unincumbered  real  estate  within  the  State  of  Illinois, 
worth  fifty  per  cent,  more  than  the  sum  loaned  thereon  (exclusive  of 
buildings,  unless  such  buildings  are  insured  and  the  policy  trans- 
ferred to  said  company),  and  also  in  the  stocks  of  this  State,  or 
stocks  or  treasury  notes  of  the  United  States,  and  also  the  bank 
stock  of  national  banks,  and  also  in  the  stocks  and  bonds  of  any 
county  or  incorporated  city  in  this  State,  authorized  to  be  issued  by 
the  legislature,  and  to  lend  the  same,  or  any  part  thereof,  on  the  se- 
curity of  such  stocks  or  bonds  or  treasury  notes,  or  upon  bonds  and 
mortgages  as  aforesaid,  and  to  change  and  reinvest  the  same  as  oc- 
casion may  from  time  to  time  require ;  but  any  surplus  money  over 
and  above  the  capital  stock  of  such  fire  and  inland  navigation  in- 
surance companies,  or  any  such  insurance  companies  incorporated 
under  any  law  of  this  State,  may  be  invested  in  or  loaned  upon  the 
pledge  of  the  public  stocks  or  bonds  of  tlie  United  States,  or  any 
one  of  the  States,  or  the  stocks,  bonds,  or  other  evidences  of  in- 
debtedness of  any  solvent,  dividend-i)aying  institution,  incorporated 
under  the  laws  of  this  State,  or  of  the  United  States,  except  their 
own  stock  ;  Provided^  always,  That  the  current  market  value  of  such 
stocks,  bonds,  and  other  evidences  of  indebtedness  shall  be  at  all 
times,  during  the  continuance  of  such  loans,  at  least  ten  per  cent, 
more  than  the  sum  loaned  thereon.     {Ibid,  §  8.) 


ILLINOIS.  149 

11.  No  company  organized  by  or  under  this  act  shall  purchase, 
hold,  or  convey  real  estate,  excepting  for  the  purposes  and  in  the 
manner  herein  set  forth,  to  wit:  1st.  Such  as  shall  be  requisite 
for  its  convenient  accommodation  in  the  transaction  of  its  busi- 
ness; or,  2d,  such  as  shall  have  been  mortgaged  to  it  in  good 
faith  by  way  of  security  lor  loans  previously  contracted,  or  for 
money  due;  or,  3d,  such  as  shall  have  been  conveyed  to  it  in 
satisfaction  of  debts  previously  contracted  in  their  legitimate 
business,  or  for  money  due;  or,  4th,  such  as  shall  have 
been  purchased  at  sales  upon  judgments,  decrees  or  mort- 
gages obtained  or  made  for  such  debts.  And  it  shall  not  be  law- 
ful for  any  such  company  to  purchase,  hold  or  convey  real  estate  in 
any  other  case,  or  for  any  other  purpose  ;  and  all  such  real  estate  as 
may  be  acquired  as  aforesaid,  and  which  shall  not  be  necessary  for 
the  accommodation  of  such  company  in  the  transaction  of  its  busi- 
ness, shall  be  sold  and  disposed  of  within  five  years  after  such  com- 
pany shall  have  acquired  title  thereto,  unless  the  company  shall 
procure  a  certificate  from  the  Auditor  of  Public  Accounts  that  the 
interests  of  the  company  will  suffer  materially  by  a  forced  sale 
thereof ;  in  which  event  the  sale  may  be  postponed  for  such  a  period 
as  the  said  Auditor  shall  direct  in  said  certificate ;  and  the  said 
Auditor  may  also  give  such  certificate  and  extend  the  time  for  hold- 
ing real  estate,  in  the  like  circumstances,  on  the  application  of  any 
insurance  company  heretofore  incorporated.     {Ibid,  p.  594,  §  9.) 

13.  The  charter  and  proof  of  publication  herein  required  to  be 
filed  by  every  such  company,  shall  be  examined  by  the  Attorney- 
General,  and  if  found  conformable  to  this  act,  and  not  inconsistent 
with  the  constitution  and  laws  of  this  State,  shall  be  certified  by 
him  to  the  Auditor  of  Public  Accounts,  who  shall  thereupon  cause  an 
examination  to  be  made,  either  by  himself  or  by  three  disinterested 
persons,  especially  appointed  by  him  for  that  pui'pose,  who  shall  cer- 
tify, under  oath,  that  the  capital  herein  required  of  the  company 
named  in  the  charter,  according  to  the  nature  of  the  business  pro- 
posed to  be  transacted  by  such  company,  has  been  paid  in,  and  is 
possessed  by  it  in  money,  or  in  such  stocks  and  bonds  and  mortgages 
as  are  required  by  the  eighth  section  of  this  act,  or  if  a  mutual  com- 
pany, that  it  has  received  and  is  in  actual  possession  of  the  capital, 
premiums,  or  honajide  engagements  of  insurance  or  other  securities, 
as  the  case  may  be,  to  the  fall  extent  and  of  the  value  required  by 
the  sixth  section  of  this  act ;  and  the  name  and  residence  of  the 
maker  of  each  premium  note  forming  part  of  the  capital,  and  the 
amount  of  such  note  shall  be  returned  to  the  said  Auditor ;  and  the 
corporators  and  officers  of  such  company  shall  be  required  to  certify 
under  oath,  that  the  capital  exhibited  to  those  persons  is  honajide 
property  of  the  company.  Such  certificate  shall  be  filed  in  the  office 
of  the  said  Auditor,  who  shall  thereupon  deliver  to  such  company  a 
certified  cojjy  of  the  charter  and  of  said  certificates,  which,  on  being 
tiled  in  the  office  of  the  clerk  of  the  county  where  the  company  is  to 
be  located,  shall  be  their  authority  to  commence  business  and  issue 
policies;  and  such  certified  copy  of  the  charter  and  of  said  certifi- 
cates may  be  used  in  evidence  for  or  against  said  company,  with  the 
same  effect  with  the  originals,  and  shall  be  conclusive  evidence  of 
the  fact  of  the  organization  of  such  company.    {Ibid,  §  10.) 

13.  The  corporators,  or  the  trustees  or  directors,  as  the  case 
may  be,  of  any  company  organized  under  this  act,  shall  have  power 
to  make  such  by-laws,  not  inconsistent  with  the  constitution  or  laws 


150  nrs'E's  insueance  statutes?. 

* 

of  tills  state,  as  may  be  deemed  necessary  for  tlie  government  of 
its  officers  and  the  conduct  of  its  affairs,  and  the  same,  when  neces- 
sary, to  alter  and  amend.  And  they  and  their  successors  may  have 
a  common  seal,  and  mav  change  and  alter  the  same  at  their  pleas- 
ure.    {Ibid,  §  11.) 

14,  It  shall  not  be  lawful  for  the  directors,  trustees  or  man- 
agers of  any  such  insurance  company  to  make  any  di\idend,  except 
from  the  surplus  profits  arising  from  their  business  ;  and  in  estima- 
ting such  profits,  there  shall  be  reserved  therefrom  a  sum  equal  to 
the  whole  amount  of  unearned  premiums  on  unexpired  risks  and 
pohcies ;  and  also,  there  shall  be  reserved  all  sums  due  the  corpora- 
tion on  bonds  and  mortgages,  stocks  and  book  accounts,  of  which 
no  part  of  the  princiijal  or  the  interest  thereon  has  been  paid  during 
the  last  year,  and  for  which  foreclosure  or  suit  has  not  been  com- 
menced for  collection,  or  which,  after  judgment  obtained  thereon, 
shall  remain  more  than  two  years  unsatisfied,  and  on  whicli  interest 
shall  not  have  been  paid  ;  and  also,  there  shall  be  reserved  all  inter- 
est due  or  accrued  and  remaining  unpaid  ;  Provided,  alicays,  That  any 
company  may  declare  dividends  not  exceeding  ten  per  cent,  on  its 
capital  stock  in  any  one  year,  that  shall  have  accumulated  and  be 
in  possession  of  a  fund,  in  addition  to  the  amount  of  its  capital 
stock— and  of  such  dividend,  and  all  actual  outstanding  liabilities, 
equal  to  one-half  of  the  amount  of  all  premiums  on  risks  not  termin- 
ated at  the  time  of  making  such  di\idend.  Any  di\'idend  made  con- 
trary to  these  provisions  shall  subject  the  company  making  the 
same  to  a  forfeiture  of  its  charter,  and  each  stockholder  receiving 
it,  to  a  liability  to  the  creditors  of  such  company  to  the  extent  of  the 
dividend  received,  in  addition  to  the  other  penalties  and  punish- 
ments in  such  case  made  and  provided.  This  section  shall  not  apply 
to  the  declaration  of  scrip  dividends  by  participating  companies; 
but  no  such  scrip  di\'idends  shall  be  paid  except  from  smplus  profits, 
after  reser\ing  all  sums  as  above  provided,  including  the  whote 
amount  of  i:)remiums  on  unexpired  risks.  The  word  "  year,"  where- 
ever  used  in  this  section,  shall  be  construed  to  mean  the  calendar 
year.     {Ibid,  §  12.) 

1 5.  All  notes  deposited  with  any  mutual  insurance  company  at 
the  time  of  its  organization,  as  provided  in  section  six  (6),  shall  re- 
main as  secmity  for  all  losses  and  claims,  until  the  accumulation  of 
the  profits,  invested  as  required  by  the  eighth  (8  section  of  this  act, 
shall  equal  the  amount  of  cash  capital  required  to  be  possessed  by 
stock  companies  organized  under  this  act,  the  liability  of  each  note 
decreasing  proportionately  as  the  profits  are  accumulated  ;  but  any 
note  which  may  have  been  deposited  with  any  such  mutual  insurance 
company  subsequent  to  its  organization,  in  addition  to  the  cash  pre- 
mium or  any  insurance  effected  with  such  company,  may,  at  tbe  ex- 
piration of  the  time  of  such  insurance,  be  relinquished  and  given 
up  to  the  maker  thereof,  or  his  representative,  upon  his  paying 
his  proportion  of  all  losses  and  expenses  which  may  have  accrued 
thereon  during  such  term.  The  directors  or  trustees  of  any  such 
company  shall  have  the  right  to  determine  the  amount  of  the  note  to 
be  given,  in  addition  to  the  cash  premium,  by  any  person  insured  in 
such  company ;  but  in  no  case  shall  the  note  be  more  than  five  times 
the  whole  amoimt  ot  the  cash  premium.  And  every  person  effecting 
insurance  in  any  mutual  comi)any  organized  under  this  act,  and  also 
their  heirs,  executors,  administrators  and  assigns,  continuing  to  be 
so  insured  shall  thereby'  become  members  of  said  corporation  dur- 


ILLINOIS.  151 

ing  the  period  of  insurance,  and  sliall  be  bound  to  pay  for  losses  and 
such  necessary  expenses  as  aforesaid,  accruing  iu,  and  to  said  com- 
pany, in  i^roportion  to  the  amount  of  his  deposit  note  or  notes.  The 
directors  shall,  as  often  as  they  deem  necessary,  after  receiving-  no- 
tice of  any  loss  or  damage  by  fire,  sustained  by  any  member,  and 
ascertaining  the  same,  or  after  the  rendition  of  any  Judgment  against 
such  company  for  loss  or  damage,  settle  and  determine  the  sums  to 
be  paid  by  the  several  members  thereof  as  their  respective  portion 
of  such  loss,  and  publish  the  same  in  such  manner  as  they  shall  see 
fit,  or  as  the  by-laws  shall  have  prescribed,  and  the  sum  to  be  paid 
by  each  member  shall  always  be  in  proportion  to  the  original  amount 
of  his  deposit  note  or  notes,  and  shall  be  paid  to  the  officers  of  the 
company  within  thirty  (30)  daj^s  next  after  the  publication  of  said 
notice.  And  if  any  member  shall,  for  the  space  of  thirty  (30)  days 
after  the  publication  of  said  notice  and  service  of  such  notice  upon 
such  member  by  mail,  directed  to  him  at  his  post  office,  addressed 
as  written  in  or  upon  his  application  for  insurance,  neglect  or  refuse 
to  pay  the  sum  assessed  upon  him  as  his  proportion  of  any  loss  as 
aforesaid,  in  such  case  the  directors  may  sue  for  and  recover  the 
whole  araoitbt  of  his  deposit  note  or  notes,  with  cost  of  suit,  but  ex- 
ecution shall  only  issue  for  assessments  and  costs  as  they  accrue.  If 
the  whole  amount  of  the  deposit  notes  shall  be  insufficient  to  pay 
the  loss  occasioned  by  any  fire  or  fires,  in  such  case  the  sufferers  in- 
sured by  the  said  company  shall  receive  towards  making  good  their 
respective  losses  a  proportional  share  of  the  whole  amount  of  said 
notes,  according  to  the  sums  by  them  respectively  insured,  but  no 
member  shall  ever  be  required  to  pay  for  any  loss,  occasioned  by  fire 
or  inland  navigation  more  than  the  whole  amount  of  his  deposit 
note.     {Ibid,  p.  594:,  ^  IX) 

16.  Everj'  fire  and  inland  naAngation  insm^ance  company  here- 
after organized,  shall,  if  it  be  a  mutual  company,  embody  the  word 
"mutual"  in  its  title,  which  sliall  appear  on  the  first  page  of  every 
policy  and  renewal  receipt ;  and  every  company  doing  business  as  a 
joint-stock  company,  shall,  upon  the  face  of  its  policy,  in  some  suit- 
able manner  express  that  such  policy  is  a  stock  policy.  [Ibid, 
p.  595,  §  14.) 

1 7.  Suits  of  law  may  be  maintained  by  any  corporation  formed 
under  this  act  against  any  of  its  members  or  stockholders,  for  any 
cause  relating  to  the  business  of  such  corporation;  also  suits  at 
law  may  be  prosecuted  and  maintained  by  any  member  or  stock- 
holder against  such  corporation,  for  any  losses  which  may  have  ac- 
crued, if  pavnient  is  withheld  after  such  losses  may  have  become 
due.     {IhUf,  §  15.) 

18.  The  trustees  and  corporators  of  any  company  organized 
under  this  (act)  shall  be  severally  liable  for  all  debts  or  responsibili- 
ties of  vsuch  conii)auy  to  the  amount  by  him  or  them  subscribed, 
until  the  whole  amount  of  the  capital  of  such  comiiaiiy  shall  have 
been  paid  in  and  a  certificate  thereof  recorded,  as  hereinbefore 
provided.  Notes  taken  in  advance  of  premiums,  under  this  act, 
are  not  to  be  considered  debts  of  the  company  in  determining 
whether  a  company  is  insolvent,  but  are  to  be  regarded  as  assets  of 
the  company.     [Ibid,  §  16.) 

19.  Any  existing  joint-stock  fire  insurance  company  hereto 
fore  incorporated  under  the  laws  of  this  State,  and  any  company 
organized  under  this  act,  having  a  capital  of  at  least  one  hundred 
thousand  dollars,  may,  without  increasing  its  capital,  at  any  time 


152  hike's  insueance  statutes. 

Tvitliin  two  years  previous  to  the  terminatiou  of  its  cliarter,  after 
givino-  notice  at  least  once  a  week  for  four  weeks  successive!}^,  in  a 
newspaper  published  in  the  county  where  such  company  is  located, 
of  such  intention,  and  with  a  declaration,  under  its  corporate  seal, 
signed  by  the  president  and  two-thirds  of  its  directors,  of  their  de- 
sire of  such  extension,  extend  the  term  of  its  original  charter  to  the 
time  specified  in  the  twenty-sixth  section  of  this  act,  by  altering 
and  amending  the  sa?ne  so  as  to  accord  with  the  provisions  of 
this  act,  and  filing  a  copy  of  such  amended  charter,  with  the 
declaration  aforesaid,  in  oflflce  of  the  Auditor  of  PuIjUc  Accounts, 
whereupon  the  same  proceedings  shall  be  had  as  required  in  the 
tenth  section  of  this  act.  And  any  mutual  insurance  company 
heretofore  incorporated  or  organized  under  any  of  the  laws  of  this 
State,  having  surplus  assets,  aside  from  premium  and  stock  notes, 
sufficient  to  reinsure  all  its  outstanding  risks,  after  having  given 
notice  once  a  week  for  four  weeks,  of  their  intention,  and  of  the 
meeting  hereinafter  provided  for,  in  a  newspaj)er  published  in  the 
county  where  such  company  is  located,  may,  with  the  consent  of 
two-thirds  of  the  corporators  or  members  present  at  any  regiilar 
annual  meeting,  or  at  any  special  meeting  duly  called  %r  the  pur- 
pose, or  with  the  consent,  in  writing,  of  two-thirds  of  the  corpo- 
rators or  members  of  such  comj>any,  and  the  consent,  also,  of  three- 
foLirths  of  the  trustees  or  directors,  unless  otherwise  i)rovided  in  the 
charter,  become  a  joint-stock  company,  by  conforming  its  charter  to 
and  otherwise  proceeding  in  accordance  with  this  act;  and  every 
member  of  such  company,  on  the  day  of  said  annual  or  special  meet- 
ing, or  the  date  of  said  written  consent,  shall  be  entitled  to  priority 
in  subscribing  to  the  capital  stock  of  said  company,  for  one  mouth 
after  the  opening  of  the  books  of  subscription  to  such  capital 
stock,  in  proportion  to  the  amount  of  cash  premiums  paid  in  by 
such  members  on  unexpired  risks  in  force  on  the  day  of  said  annual 
or  special  meeting,  or  the  date  of  said  written  consent ;  and  every 
company  so  extended  or  changed  shall  come  imder  the  provisions 
of  this  act,  in  the  same  manner  as  if  it  had  been  incorporated  origi- 
nally under  this  act.     {Ibid,  §  17.) 

20.  Any  existing  fire  insurance  company,  and  any  company 
formed  under  this  law,  may  at  any  time  increase  the  amount  of  its 
capital  stock,  alter  notice  given  once  a  week  for  four  weeks  in  any 
newspaper  published  in  the  county  where  such  company  is  located, 
of  such  intentions,  with  the  written  consent  of  three-fourths,  in 
amount,  of  its  stockholders,  unless  other^vise  provided  in  its  char- 
ter, or  if  a  mutual  company,  with  the  unanimous  consent  of  its 
trustees,  unless  otherwise  provided  in  its  charter,  by  altering 
or  amending  their  charter  in  this  respect,  and  filing  a  copy 
of  their  charter  so  amended,  together  with  a  declaration  under 
its  corporate  seal,  signed  by  its  president  and  directors,  of  their 
desire  (so  to  do),  with  such  written  consent  of  three-fourths,  in 
amount,  of  its  stockholders,  or  the  unanimous  consent  of  the  trus- 
tees as  aforesaid,  to  such  increase,  in  the  office  of  the  Auditor  of  Pub- 
lic Accounts,  and  ujion  the  same  proceedings  had  as  are  required  by 
the  tenth  section  of  this  act.     {Ibid,  p.  696,  §  18.) 

*J1 .  All  insurance  companies  heretofore  organized  in  the  State 
of  Illinois,  and  now  doing  business  in  this  State,  are  hereby  brought 
un<ler  all  the  provisions  of  this  act  except  that  their  capitals  may 
continue  of  the  amounts  and  character  named  in  and  authorized  by 
their  respective  charters,  during  the  existing  term  of  such  charters, 


ILLINOIS.  153 

and  tlie  investments  of  the  capital  and  assets  of  such  companies 
may  remain  the  same  as  prescribed  by  their  charters,  anything?  in 
this  act  to  the  contrary  notwithstanding-,  and  such  companies  shall 
also  be  entitled  to  all  the  privileges  and  powers  granted  by  said  char- 
ters.    {Ibid,  §  19.) 

St}.  All  companies  incorporated  or  extended  under  this  act 
shall  be  deemed  and  taken  to  be  bodies  corporate  and  politic  in 
fact  and  in  name,  and  shall  be  subject  to  all  the  provisions  of  law 
in  relation  to  corporations,  so  far  as  the  same  are  practicable. 
{Ibid,  §  20. 

23.  It  shall  be  the  duty  of  the  president  or  vice-president  and 
secretary  of  each  comi^any  organized  under  this  act,  or  incorporated 
under  any  law  of  this  State,  annually,  on  the  first  day  of  January 
of  each  year,  or  within  one  month  thereafter,  to  prepare  under  their 
own  oath,  and  deposit  in  the  office  of  the  Auditor  of  Public  Accounts 
a  statement  of  the  condition  of  such  company  on  the  thirty-first 
day  of  December  then  next  preceding,  exhibiting  the  following  facts 
and  items  in  the  following  form,  namely  : 

First. — The  amount  of  the  capital  stock  of  the  company  actually 
paid  in. 

Second. — The  property  or  assets  held  by  the  company,  specifying : 

1.  The  value,  or  as  nearly  as  may  be,  of  the  real  estate  held 
by  such  company. 

2.  The  amount  of  cash  on  hand  and  deposited  in  banks  to  the 
credit  of  the  company,  specifying  in  what  banks  the  same  are 
deposited. 

3.  The  amount  of  cash  in  the  hands  of  agents  and  in  course 
of  transmission. 

4.  The  amount  of  loans  secured  by  mortgages  and  bonds, 
constituting  the  first  lien  on  real  estate  on  which  there  shall  be 
less  than  one  year's  interest  due  or  owing. 

5.  The  amount  of  loans  on  which  interest  shall  not  have  been 
paid  within  one  year  previous  to  such  statement. 

0.  The  amount  due  the  comjiany  on  which  judgments  have 
been  obtained. 

7.  The  amount  of  stocks  of  this  State,  of  the  United  States, 
of  any  incorporated  city  of  this  State,  and  of  any  other  stocks 
owned  by  the  company,  si)ecifying  the  amount,  number  of 
shares  and  psir  and  market  value  of  each  kind  of  stock. 

8.  The  amount  of  stocks  held  thereby  as  collateral  security 
for  loans,  with  the  amount  loaned  on  each  kind  of  stock,  its  par 
value  and  the  market  value. 

9.  The  amount  of  assessments  on  stock  or  premium  notes 
(paid  and  unpaid),  specifying  each. 

10.  The  amount  of  interest  actually  due  and  unpaid. 

11.  The  amount  of  premium  notes  on  hand  on  which  policies 
are  issued, 

12.  The  amount  of  installment  notes  on  hand  on  which  poli- 
cies are  issued. 

Third. — The  liabilities  of  such  company,  specifying: 

1.  The  amount  of  losses  due  and  yet  unpaid. 

2.  The  amount  of  claims  for  losses  resisted  by  the  company. 

3.  The  amount  of  losses  incurred  during  the  year,  including 
those  claimed  and  not  yet  due,  and  including  the  probable 
amount  of  those  reported  to  the  company,  upon  which  no  action 
has  been  taken. 


154  Hill's  INSURANCE  STATUTES. 

4.  The  aTnount  of  dividends  declared  and  due,  and  remain- 
ing unpaid. 

5.  The  amount  of  dividends,  if  any,  declared  but  not  yet 
due. 

6.  The  amount  of  money  borrowed,  and  security,  if  any, 
given  for  the  payment  thereof. 

7.  All  other  existing  claims  against  the  company,  and  also 
the  gross  amount  of  outstanding  risks,  and  the  gross  amount 
of  premiums  thereon  unearned. 

Fourth. — The  income  of  the  company  during  the  preceding  year, 
specifying : 

1.  The  amount  of  cash  premiums  received. 

2.  The  amount  of  notes  received  for  premiums. 

3.  The  amount  of  interest  money  received. 

4.  The  amount  of  income  received  from  other  sources. 
Fifth. — The  expenditures  during  the  preceding  year,  specifying: 

1.  The  amount  of  losses  paid  during  the  year,  stating  how 
much  of  the  same  accrued  prior,  and  how  much  subsequent,  to 
the  date  of  the  preceding  statement,  and.  the  amount  at  which 
such  losses  were  estimated  in  such  preceding  statement. 

2.  The  amount  of  dividends  paid  during  the  year. 

3.  The  amount  of  expenses  paid  diiring  the  year,  including 
commissions  and  fees  to  agents  and  officers  of  the  company. 

4.  The  amount  paid  in  taxes,  specifying  the  amount  paid  in 
this  State. 

5.  The  amount  of  all  other  payments  and  expenditures. 

It  shall  be  the  duty  of  the  Auditor  to  establish  a  classification 
of  risks  into  any  number  of  classes,  not  less  than  four,  according  to 
the  degree  of  hazard  of  such  risks ;  and  the  Auditor  shall  require 
said  companies,  as  a  part  of  the  aforementioned  statement,  to  give 
the  number  of  policies  in  force  covering  property  embraced  in  each 
of  said  classes,  and  the  aggregate  amount  of  risk  upon  proi)erty  in 
each  class.  The  Auditor  of  Public  Accounts  is  hereby  authorized 
and  empowered  to  address  any  inquiries  to  any  insurance  company, 
or  the  secretary  thereof,  in  relation  to  its  doings  or  condition,  or 
any  other  matter  connected  with  its  transactions;  and  it  shall  be 
the  duty  of  any  company  so  addressed  to  promptly  reply,  in  writ- 
ing, to  any  such  inquiries.  The  statement  of  an.v  company,  the 
capital  of  which  is  composed  in  whole  or  in  part  of  notes,  shall,  in 
addition  to  the  foregoing,  exhibit  the  amount  of  notes  originally 
forming  the  capital,  and  also  what  proportion  of  said  notes  is  still 
held  by  such  company  and  considered  capital.  The  statements 
herein  pro\i.ded  for  shall  be  in  lieu  of  any  and  all  statements  now 
required  by  any  existing  law,  and  the  several  pro\isions  of  the  acts 
approved  February  14,  1855,  and  January  22,  1857,  are  hereby  re- 
pealed. Every  insurance  company  organized  under  any  law  of  this 
State,  fiiiliug  to  make  and  deposit  such  statements  or  to  reply  to 
any  inquiry  of  the  said  Auditor,  shall  be  subject  to  the  penalty  of 
five  hundred  dollars,  and  an  additional  five  hundred  dollars  for 
every  month  that  such  company  shall  continue  thereafter  to  trans- 
act any  business  of  insurance.  It  shall  be  the  duty  of  the  Auditor 
of  Public  Accounts  to  cause  to  be  prepared  and  furnished  to  each  of 
the  comjjanies,  and  to  the  attorneys  of  companies  incorporated  by 
other  States  and  foreign  governments,  printed  forms  of  the  state- 
ments required  by  this  act ;  and  he  may,  from  time  to  time,  make 
such  changes  in  the  form  of  such  statements  as  shall  seem  to. him 


ILLINOIS.  155 

best  adapted  to  elicit  from  the  companies  a  true  exhibit  of  their 
condition  in  respect  to  the  several  points  hereinbefore  mentioned. 
It  shall  be  the  dnty  of  the  Auditor  of  Public  Accounts  to  cause  the 
information  contained  in  the  statements  required  by  this  section  to 
be  arranoed  in  a  tabular  form  and  printed  in  his  biennial  rej)ort. 
{Ihkl,  §  21.) 

94.  It  shall  not  be  lawful  for  any  insurance  companj^,  associa- 
tion, or  partnership,  incorporated  by  or  organized  under  the  laws  of 
any  other  State  of  the  United  States,  or  any  foreign  government, 
for  any  of  the  purposes  specified  in  this  act,  directly  or  indirectly, 
to  take  risks  or  transact  any  business  of  insurance  in  this  State,  un- 
less possessed  of  the  amount  of  actual  capital  required  of  similar 
companies  foriiied  uuder  the  provisions  of  this  act ',  and  any  such 
company  desiring  to  transact  any  such  business  as  aforesaid,  by  any 
agent  or  agents,  in  this  State,  shall  first  apjioiut  an  attorney  in  this 
State,  on  whom  process  of  law  can  be  served,  and  file  in  the  office  of 
the  Auditor  of  Public  Accounts  a  written  instrument,  duly  signed 
and  sealed,  certifying  such  appointment,  which  shall  continue  imtil 
another  attorney  be  substituted ;  and  any  j)rocess  issued  by  any 
court  of  record  in  this  State,  and  served  upon  such  attorney  by  the 
proper  officer  of  the  county  in  which  such  attorney  may  reside,  or 
may  be  found,  shall  be  deemed  a  sufficient  service  of  process  upon 
such  company ;  but  service  of  process  upon  such  comj^any  may  also 
be  made  in  any  other  manner  provided  by  law.  In  case  any  insur- 
ance company,  not  ijicorporated  in  this  State,  shall  cease  to  trans- 
act business  in  this  State  according  to  the  laws  thereof,  tbe  agents 
last  designated,  or  acting  as  such  for  such  corporation,  shall  be 
deemed  to  continue  agents  for  such  corporation  for  the  purpose  of 
serving  process  for  commencing  action  upon  any  policy  or  liability 
issued  or  contracted  while  such  corporation  transacted  business  in 
this  State,  and  service  of  such  process,  for  the  causes  aforesaid, 
upon  any  such  agent,  shall  be  deemed  a  valid  personal  service  upon 
such  corporation.  And  every  such  company,  association,  or  partner- 
ship, shall  also  file  a  certified  copy  of  their  charter,  or  deed  of  settle- 
ment, together  with  a  statement,  under  the  oath  of  the  president  or 
vice-president,  or  other  chief  officer,  and  secretary  of  the  company 
for  which  he  or  they  may  act,  stating  the  name  of  the  company  and 
place  where  located,  the  amount  of  its  capital,  with  a  detailed  state- 
ment of  its  assets,  showiug  the  amount  of  cash  on  hand,  in  bank, 
or  in  the  hands  of  agents ;  the  amount  of  real  estate,  and  how  much 
the  same  is  encumbered  by  mortgage ;  the  number  of  shares  of  stock 
of  every  kind  owned  by  the  company ;  the  par  and  market  value  of 
the  same ;  amount  loaned  on  bond  and  mortgage ;  the  amount  loaned 
on  other  security,  stating  the  kind  and  amount  loaned  on  each,  and 
the  estimated  value  of  the  whole  amount  of  such  securities ;  any 
other  assets  or  property  of  the  company ;  also  stating  the  indebted- 
ness of  the  company;  the  amomit  of  losses  adjusted  and  unpaid; 
the  amount  incurred  and  in  process  of  adjustment;  the  amount 
resisted  by  the  company  as  illegal  and  fraudulent,  and  all  other 
claims  existing  against  the  company;  also  a  copy  of  the  last  annual 
report,  if  any,  made  under  any  law  of  the  State  by  which  such  com- 
pany was  incorporated ;  and  no  agent  shall  be  allowed  to  transact 
business  for  any  such  company  whose  caj^ital  is  impaired  to  the  ex- 
tent of  twenty  i)er  cent,  thereof,  while  such  deficiency  shall  con- 
tinue. And  any  company  incorporated  by  or  organized  under  any 
foreign  government  shall,  in  addition  to  the  foregoing,  deposit  with 


15c  HINE'S   INSUEANCE   STATUTES. 

the  Auditor  of  Public  Accounts,  for  tlie  benefit  and  security  of 
policy -lioklers  residing-  in  the  United  States,  a  sum  not  less  than  two 
hundred  thousand  dollars,  in  stocks  of  the  United  States  or  of  the 
State  of  Illinois,  in  all  cases  to  be  equal  to  a  stock  producing  six  per 
cent,  per  annum — said  stocks  not  to  be  received  by  said  Auditor  at 
a  rate  above  their  par  value,  or  about  their  current  market  value — 
or  in  bonds  and  mortgages  on  improved  unincumbered  real  estate 
in  the  State  of  Illinois,  worth  fifty  i^er  cent,  more  than  the  amount 
loaned  thereon.     The  stocks  and  securities  so  deposited  may  be  ex- 
changed, from  time  to  time,  for  other  securities,  receivable  as  afore- 
said.   And  so  long  as  the  company  so  depositing  shall  continue 
solvent,  and  comply  with  the  laws  of  this  State,  such  company  or 
association  may  be  permitted  by  the  said  Auditor  to  collect  the  in- 
terest or  dividends  on  said  deposits  ;   and  where  a  deposit  is  made 
of  bonds  and  mortgages,  accompanied  by  full  abstracts  of  title  and 
searches,  the  fees  for  an  examination  of  title  by  counsel,  to  be  paid 
by  the  party  making  the  deposit,  shall  not  exceed  twenty  dollars 
for  each  mortgage,  and  the  fee  for  an  appraisal  of  property  shall  be 
five  dollars  to  each  appraiser,- not  exceeding  two,  besides  expenses 
for  each  mortgage.    Nor  shall  it  be  lawful  for  any  agent  or  agents 
to  act  for  any  company  or  companies  referred  to  in  this  section,  di- 
rectly or  indirectly,  in  taking  risks  or  transacting  the  business  of 
fire  and  inland  navigation  insurance  in  this  State,  without  procur- 
ing from  the  Auditor  of  Public  Accounts  a  certificate  of  authority, 
stating  that  such  company  has  complied  with  all  the  requisitions  of 
this  act  which  apply  to  such  companies,  and  the  name  of  the  attor- 
ney appointed  to  act  for  the  company.    The  state*ient  and  evidences 
of  investments  required  by  this  section  shall  be  renewed  from  year 
to  year,  in  such  manner  and  form  as  may  be  required  by  said  Audi- 
tor, with  an  additional  statement  of  the  amount  of  premiums  re- 
ceived and  losses  incurred  in  this  State  during-  the  preceding  year, 
so  long  as  such  agency  continues ;  and  the  said  Auditor,  on  being 
satisfied  that  the  capital,  securities  and  investments  remain  secure, 
as  hereinbefore  provided,  shall  furnish  a  renewal  of  the  certificate, 
as  aforesaid.     Any  violation  of  any  of  the  provisions  of  this  act 
shall  subject  the  party  violating  the  same  to  a  penalty  of  five  hun- 
dred dollars  for  each  violation,  and  of  the  additional  sum  of  one 
hundred  dollars  for  each  month  during  which  any  such  agent  shall 
neglect  to  file  such  affidavits  and  statements  as  are  herein  required. 
Every  agent  of  any  insurance  company  shall,  in  all  advertisements 
of  such  agency,  publish  the  location  of  the  company,  giving  the 
name  of  the  city,  town,  or  village  in  which  the  company  is  located, 
and  the  State  or  government  under  the  laws  of  which  it  is  organized. 
The  term  "  agent"  or  "  agents,"  used  in  this  section,  shall  include 
an   acknowledged  agent,  siu'veyor,  broker,  or  any  other  person  or 
persons  who  shall,  in  any  manner,  aid  in  transacting  the  insurance 
business  of  any  insurance  company  not  incorporated  by  the  laws  of 
this  State.    The  provisions  of  this  section  shall  apply  to  all  foreign 
companies,  partnership  associations  and  individuals,  whether  incor- 
porated or  not.    All  insurance  companies,  associations,  or  partner- 
ships incorporated  by  or  organized  under  the  laws  of  any  other 
State  of  the  United  States,  or  any  foreign  government,  transacting 
the  busmess  of  fire  or  marine  insurance,  or  any  other  kind  of  insur- 
ance, in  this  State,  shall  make  annual  statements  of  their  condition 
and  affairs  to  the  Auditor's  office,  in  the  same  manner  and  in  the 
same  form  as  similar  companies  organized  under  the  laws  of  this  State. 


ILLI^•OIS.  157 

In  case  of  neglect  or  refusal  to  make  such  annual  statement,  as 
aforesaid,  all  persons  acting  in  this  State  as  agents  or  otherwise,  in 
transacting  the  business  of  insurance  for  said  companies,  corpora- 
tions, associations,  partnerships,  or  individuals,  shall  be  subject  to 
the  same  penalties  pro\ided  by  law  in  case  of  the  failure  of  any 
insurance  company  organized  under  the  laws  of  this  State  to  make 
an  annual  statement,  as  provided  in  this  act.  Foreign  insurance 
companies  shall  be  required  to  make  and  file  their  annual  state- 
ments and  e^'idences  on  the  first  day  of  January  in  each  year,  or 
within  thii'ty  days  thereafter,  made  out  for  the  year  ending  on  the 
preceding  30th  of  September.  The  supplementary  annual  state- 
ments of  their  business  and  affairs  in  the  United  States,  duly  veri- 
fied by  the  resident  manager  of  such  company,  shall  be  filed  in  the 
month  of  January  in  each  year,  made  out  for  the  year  ending  the 
31st  day  of  December  immediately  i)receding.     {Ibid,  p.  598,  §  22.) 

S5.  It  shall  be  the  duty  of  the  Auditor  of  Public  Ac(!ounts, 
whenever  he  shaU  deem  it  expedient  so  to  do,  in  person,  or  by  one 
or  more  persons  to  be  appointed  by  him  for  that  purpose,  not  officers 
or  agents  of,  or  in  any  manner  interested  in  any  insurance  company 
doing  business  in  this  State,  except  as  policy-holders,  to  examine 
into  the  affairs  of  any  insurance  company  incorporated  in  this  State, 
or  doing  business  by  its  agents  in  this  State ;  and  it  shall  be  the 
duty  of  the  ofiicers  or  agents  of  any  such  company,  doing  business 
in  this  State,  to  cause  their  books  to  be  opened  for  the  inspection 
of  the  Auditor  or  person  or  i)ersons  so  appointed,  and  otherwise 
to  facilitate  such  examinations,  so  far  as  it  may  be  in  their  power  to 
do,  and  to  pay  all  reasonable  expenses  incurred  therein ;  and  for 
that  purpose,  the  said  Auditor  or  person  or  persons  so  appointed  by 
him  shall  have  power  to  examine,  under  oath,  the  ofiicers  and 
agents  of  any  company,  relative  to  the  business  of  said  company ; 
and  whenever  the  said  Auditor  shall  deem  it  for  the  best  interests  of 
the  public  so  to  do,  he  shall  publish  the  result  of  said  investigation 
in  one  or  more  i)ai)ers  in  this  State.  And  whenever  it  shall  appear 
to  the  said  Auditor,  from  such  examination,  that  the  assets  of  any 
company  incorporated  in  this  State  are  insufficient  to  justify  the 
continuance  in  lousiness  of  any  such  company,  he  may  direct  the 
officers  thereof  to  require  the  stockholders  to  pay  in  the  amount  of 
such  deficiency,  within  such  period  as  he  may  designate  in  such 
requisition ;  or  he  shall  communicate  the  fact  to  the  Attorney-Gen- 
eral, whose  duty  it  shall  then  become  to  apply  to  the  circuit  court 
of  the  county  in  which  the  principal  office  of  said  comiiany  shall  be 
located,  for  an  order  requiring  them  to  show  cause  why  the  business 
of  such  company  should  not  be  closed ;  and  the  court  shall  there- 
upon proceed  to  hear  the  allegations  and  proofs  of  the  respective 
parties ;  and  in  case  it  shall  appear  to  the  satisfaction  of  said  court 
that  the  assets  and  tunds  of  said  company  are  not  sufficient,  as 
aforesaid,  or  that  the  interests  of  the  public  so  require,  the  said 
court  shall  decree  a  dissolution  of  said  company,  and  a  distribution 
of  its  effects.  The  said  circuit  court  shall  have  jiower  to  refer  the 
application  of  the  Attorney-General  to  a  Master  in  Chancery,  to 
inquire  into  and  rei^ort  upon  the  facts  stated  therein.  Any  company 
receiving  the  aforesaid  requisition  from  the  said  Auditor,  shall 
forthwith  call  upon  its  stockholders  for  such  amounts  as  will  make 
its  capital  equal  to  the  amount  fixed  by  the  charter  of  said  company ; 
and  in  case  any  stockholder  of  such  company  shall  refuse  or  neg- 
lect to  pay  the  amount  so  called  for,  after  notice  personally  given. 


158  hine's  insueance  statutes. 

or  by  advertisement,  in  sucTi  time  and  manner  as  tlie  said  Auditor 
shall  api^rove,  it  shall  be  lawful  for  the  said  coiniiauy  to  require  the 
return  of  the  original  certificate  of  stock  held  by  such  stockholder, 
and,  in  lieu  thereof,  to  issue  new  certificates  for  such  number  o^* 
shares  as  the  said  stockholder  may  be  entitled  to,  in  the  proportion 
that  the  ascertained  value  of  the  funds  of  the  said  company  may  be 
found  to  bear  to  the  original  capital  of  the  said  company — the 
value  of  such  shares,  for  which  new  certificates  shall  be  issued,  to 
be  ascertained  under  the  direction  of  the  said  Auditor,  and  the  com- 
pany paying  for  the  fractional  parts  of  shares ;  and  it  shall  be  law- 
ful for  the  directors  of  such  company  to  create  new  stock,  and  dis- 
pose of  the  same,  and  to  issue  new  certificates  therefor,  to  an 
amount  sufficient  to  make  up  the  original  capital  of  the  company. 
And  it  is  hereby  declared  that,  in  the  event  of  any  additional  losses 
accruing  upon  new  risks  taken  after  the  expiration  of  the  period 
limited  by  the  said  Auditor,  in  the  aforesaid  requisition  for  the  filling 
uj)  of  the  deficiency  in  the  capital  of  such  company,  and  before  said 
deficiency  shall  have  been  made  up,  the  directors  shall  be  individ- 
ually liable  to  the  extent  thereof.     And  if,  upon  such  examination, 
it  shall  appear  to  the  said  Auditor  that  the  assets  of  any  company 
chartered  on  the  plan  of  mutual  insurance,  under  this  act,  are 
insufiicient  to  justify  the  continuance  of  such  comj)any  in  business, 
it  shall  be  his  duty  to  proceed  in  relation  to  such  company  in  the 
same  manner  as  is  herein  required  in  regard  to  joint  stock  com- 
panies ;  and  the  trustees  or  directors  of  such  company  aie  hereby 
made  personally  liable  for  any  losses  which  may  be  sustained  upon 
risks  taken  after  the  expiration  of  the  period  limited  by  said  Auditor 
for  filling  up  the  deficiency  in  the  capital,  and  before  such  deficiency 
shall  have  been  made  up.     Any  transfer  of  the  stock  of  any  com- 
j)any  organized  under  this  act,  made  during  the  pending  of  any 
such  investigation,  shall  not  release  the  party  making  the  transfer 
from  his  liability  for  losses  which  may  have  accrued  previous  to  the 
transfer.     And  whenever  it  shall  appear  to  the  said  Auditor,  from 
the  report  of  the  person  or  persons  appointed  bj^  him,  that  the 
affairs  of  any  comjjany  not  incorporatetl  by  the  laws  of  this  State 
are  in  an  unsound  condition,  he  shall  revoke  the  certificates  granted 
in  behalf  of  such  company,  and  shall  cause  a  notification  thereof  to 
be  published  in  a  newspaper  of  general  circulation,  published  in  the 
city  of  Springfield,  and  mail  a  copy  thereof  to  each  agent  of  the 
company ;  and  the  agent  or  agents  of  such  company,  after  such 
notice,  shall  be  required  to  discontinue  the  issuing  of  any  new 
j)olicy,  and  the  renewal  of  any  previously  issued.  {Ibid.  p.  600,  §  23.) 

2^.  Every  penalty  provided  for  by  this  act  shall  be  sued  for 
and  recovered  in  the  name  of  the  people,  by  the  State's  attorney  of 
the  county  in  which  the  company  or  the  agent  or  agents  so  violat-  • 
ing  shall  be  situated ;  and  one  half  of  said  penalty,  when  recov- 
ered, shall  be  i>aid  into  the  treasury  of  said  county,  and  the  other 
half  to  the  informer  of  such  violation  ;  and  in  case  of  the  non-pay- 
ment of  such  penalty,  the  party  so  oflending  shall  be  liable  to  im- 
prisonment for  a  period  not  exceeding  six  months,  in  the  discretion 
of  any  court  having  cognizance  thereof  Such  i)enalties  may  also 
be  sued  for  and  recovered,  in  the  name  of  the  people,  by  the  Attor- 
ney-General, and  when  sued  for  and  collected  by  him,  shall  be  paid 
into  the  State  treasury.     {Ibid,  p.  601,  §  24.) 

27.    All  companies  incorporated  or  extended  under  this  act, 
may  provide  in  their  charters  for  not  more  than  thirty  years'  dura- 


ILLINOIS.  159 

tion,  but  the  legislature  may  at  any  time  alter  or  amend  this  act, 
and  i^rovide  for  the  closing  up  of  the  business  and  affairs  of  any 
company  formed  under  it.  Nothing  herein  contained  shall  be  con- 
strued to  prevent  subsequent  extension  of  the  charters  of  compa- 
nies organized  or  extended  under  this  act.     {Ihid,  §  25.) 

28.  Companies,  other  than  those  organized  under  the  laws  of 
this  State,  which  may  have  received  certificates  of  authority  for  the 
year  1869,  prior  to  the  passage  of  this  act,  shall  be  permitted  to 
continue  to  transact  the  business  of  insurance  without  farther 
statement  until  the  31st  day  of  January,  1870.  Any  fire,  or  fire 
and  marine,  insurance  company  chartered  by  this  State,  may  have 
a  lien,  by  passing  a  by-law  to  that  effect,  u^ion  the  stock  or  certifi- 
cate of  profits  owned  by  any  member,  for  any  debt  hereafter  to  be- 
come due  the  said  company  for  i^remiums,  by  stating  that  the  said 
stock  is  subject  to  any  such  lien  upon  the  certificates  of  stocks  or 
profits.  And  such  lien  may  be  waived,  in  writing,  by  the  consent 
of  the  president  of  said  company,  upon  the  transfer  of  any  such 
stock.  Whenever  it  shall  appear  to  the  Auditor  of  Public  Accounts, 
from  an  examination  made  by  him  in  the  manner  prescribed  by  law, 
that  the  capital  stock  of  any  joint  stock  company,  organized  pur- 
suant to  law,  is  impaired  to  an  amount  exc^eeding  twenty-five  per 
cent,  of  such  capital,  and  he  shall  be  of  the  opinion  that  the  inter- 
ests of  the  public  will  not  be  prejudiced  by  permitting  such  com- 
pany to  continue  business  with  a  reduced  cajiital,  it  shall  be  lawful 
for  such  company,  with  the  permission  of  the  said  Auditor,  to  re- 
duce its  capital  stock  and  the  par  value  of  the  shares  thereof,  to 
such  amount  as  the  said  Auditor  may,  under  his  hand  and  official 
seal,  certify  to  be  proper,  and  as  shall,  in  his  opinion,  be  justified 
by  the  assets  and  property  of  such  company;  Provided,  That  no 
part  of  such  assets  and  i^roperty  shall  be  distributed  to  the  stock- 
holders ;  And  ])rovided  further,  That  the  capital  stock  of  any  such 
company  shall  not  be  reduced  to  an  amount  less  than  the  sum  now 
required  by  law  for  the  organization  of  a  new  company  under  the 
general  insurance  laws,  for  the  transaction  of  business  at  the  place 
where  the  company  is  located,  and  of  the  kind  which  such  company 
is  authorized  to  transact.  JSo  reduction  of  the  capital  of  any  such 
company  shall  be  made,  except  upon  a  resolution  of  its  board  of 
directors,  approved  by  at  least  two-thirds  of  the  directors,  and  cer- 
tified under  its  corporate  seal,  signed  by  the  president  and  at  least 
two-thirds  of  the  directors,  and  jjroved  or  acknowledged  in  the 
manner  required  by  law  for  the  proof  or  acknowledgment  of  con- 
veyances ;  which  certificate  shall  be  filed  in  the  office  of  said  Audi- 
tor before  any  action  shall  be  had  by  him  thereon.  The  Auditor  of 
Public  Accounts,  in  case  he  shall  permit  any  such  company  to  re- 
duce its  capital  in  the  manner  provided  in  this  act,  shall  execute 
the  certificate  required  by  this  act  in  duplicate,  and  deliver  one  of 
such  certificates  to  the  ofiicers  of  such  company,  who  shall  forth- 
with file  the  same  with  the  clerk  of  the  county  in  which  such  com- 
pany is  located,  and  the  other  such  certificate  shall  be  filed  in  the 
office  of  said  Auditor.  Such  company,  upon  filing  the  certificate 
with  the  county  clerk,  as  required  by  this  act,  shall,  with  such  re- 
duced capital,  possess  the  same  rights,  and  be  subject  to  the  same 
liabilities,  that  it  possessed  or  was  subject  to  at  the  time  of  the  re- 
duction of  its  capital.  And  the  charter  of  such  company  shall  be 
deemed  to  be  amended  in  res])ect  to  the  amount  of  capital  and  the 
par  value  of  the  shares,  so  as  to  conform  to  such  reduction.    It 


100  HINE'S  rNSURANCE   STATUTES. 

shall  be  lawful  for  the  said  company  to  require  the  return  of  the 
original  certificate  of  stock  held  by  each  stockholder,  aud  in  lieu 
thereof  to  issue  new  certificates  for  such  number  of  shares  as  each 
stockholder  may  be  entitk^d  to,  in  the  proportion  that  the  reduced 
capital  may  be  found  to  bear  to  the  original  capital  of  the  company. 
It  shall  be  lawful  for  any  sucli  company,  after  its  capital  shall  be  so 
reduced  as  aforesaid,  to  increase  its  capital  stock  in  the  mode  pre- 
scribed by  this  law.  It  shall  be  the  duty  of  all  receivers  and  trus- 
tees of  insurance  companies,  during  the  mouth  of  January  in  each 
year,  and  at  any  other  time  when  required  by  the  Auditor  of  Public 
Accounts,  to  make  and  file  annual  and  other  statements  of  their  as- 
sets and  liabilities,  and  of  their  income  and  expenditures,  in  the 
same  manner  and  form,  and  under  the  same  penalties,  as  the  oflBcers 
of  such  companies  are  now  required  by  law  to  make  annual  and 
other  statements  to  the  Auditor's  office.  And  the  said  Auditor  shall 
also  cause  its  annual  statements  required  to  be  filed  by  this  act  to 
be  published  in  two  daily  newspapers  of  general  circulation,  the 
one  printed  in  the  city  of  Chicago,  and  the  other  printed  in  the  city 
of  Springfield,  not  less  than  fifteen  days.     {Ibid,  §  20.) 

29.  There  shall  be  paid  by  every  company,  association,  person 
or  persons,  or  agent,  to  whom  this  act  shall  apply,  the  fol  owing 
fees  :  For  filing  the  declaration  or  the  certified  copy  of  a  charter 
herein  required,  the  sum  of  thirty  dollars ;  for  filing  the  annual 
statement  required,  ten  dollars  ;  for  each  certificate  of  authority  to 
agents  of  companies  or  associations  not  incorporated  under  the 
laws  of  this  State,  two  dollars  ;  for  each  certificate  of  authority  to 
agents  of  companies  incorporated  under  the  laws  of  this  State,  fifty 
cents  ;  for  every  copy  of  paper  filed  in  his  office  the  sura  of  twenty 
cents  per  folio ;  and  for  affixing  the  seal  of  said  office  to  such  copy 
and  certifying  the  same,  one  dollar.  And  in  case  two  or  more  com- 
panies shall  combine  and  effect  insurance  under  a  joint  policy,  each 
and  every  company  shall  pay  the  fees  provided  herein,  the  same  as 
if  each  company  wrote  separate  and  distinct  policies ;  Provided, 
That  the  net  amount  of  all  fees  over  and  above  the  cost  of  perform- 
ing the  clerical  labor  connected  therewith  shall  not  exceed,  under 
this  act,  the  sum  of  five  thousand  dollars,  and  that  any  amount 
above  that  sum  shall  be  paid  over  to  the  State  Treasurer ;  And  pro- 
vided further.  That  the  Auditor  shall  render  account,  in  his  biennial 
report,  of  fees  received  by  him  under  the  provisions  of  this  act. 
{Ibid,  p.  602,^  27.) 

30.  Agents  ap])ointed  by  any  company  doing  business  in  this 
State  to  solicit  for  applications  for  insurance,  to  collect  tbe  pre- 
miums on  the  same,  and  to  transact  the  other  duties  of  agents  in 
such  cases,  shall  be  held  personally  responsible  to  such  company 
for  any  moneys  received  by  them  for  such  company ;  and  in  case 
any  such  agent  shall  embezzle  or  fraudulently  convert  to  his  own 
use,  or  shall  take  or  secrete  with  intent  to  embezzle  to  his  own  use, 
without  consent  of  such  company,  any  money  belonging  to  such 
company,  which  shall  have  come  into  his  possession,  or  shall  be 
under  his  care  by  virtue  of  his  agency,  he  shall  be  deemed,  by  so 
doing,  to  have  committed  the  crime  of  larceny,  and  on  conviction, 
shall  be  subject  to  the  fines  and  penalties  provided  by  the  statutes 
in  such  cases.     {Ibid,  'p.  003,  §  28.) 

3 1 .  Whenever  the  existing  or  future  laws  of  any  State  of  the 
United  States,  or  any  other  kingdom  or  country,  shall  require  of  in- 
surance companies  incorporated  by  or  organized  under  the  laws  of 


ILLINOIS.  161 

this  state,  and  having  agencies  in  such  other  State,  kingdom  or 
country,  any  deposit  or  secui'ities  in  such  State,  kingdom,  or  coun- 
try, for  the  i^roteetion  of  policy-hoklers,  or  otherwise,  of  any  pay- 
ment for  taxes,  tines,  penalties  certiticates  of  authority,  license  tees, 
or  otherwise,  greater  than  the  amount  required  for  such  purposes 
from  similar  companies  of  other  States  by  the  then  existing-  laws  of 
this  State,  then,  and  in  every  such  case,  all  companies  of  such 
States  establishing,  or  having  heretofore  established  an  agency  or 
agencies  in  the  State,  shall  be  and  are  hereby  required  to  make  the 
same  deposit  for  a  like  purpose  with  the  Auciitor  of  this  State,  and 
to  pay  to  the  Auditor  for  taxes,  tines,  penalties,  certiticates  of  au- 
thority, license  fees,  and  otherwise,  an  amount  equal  to  the  amount 
of  such  charges  and  payments  imposed  by  the  laws  of  such  State 
upon  the  companies  of  this  State  and  agents  thereof  5  Provided, 
That  the  payment  required  of  such  foreign  companies  shall  in  no 
case  be  less  than  required  by  this  act.     {Ibid,  §  29.) 

32.  Every  agent  of  any  insurance  company  incorporated  by: 
the  authority  of  anj^  other  State  or  government  shall  return  to  the 
proper  officer  of  the  county,  town,  or  municipality  in  which  the 
agency  is  established,  in  the  month  of  May,  annually,  the  amount 
of  the  net  recei])ts  of  such  agency,  which  shall  be  entered  on  the 
tax  lists  of  the  county,  town,  or  municipality,  and  subject  to  tbe  same 
rate  of  taxation  for  all  purposes — State,  county,  town,  municipal — 
that  other  personal  property  is  subject  to  at  the  place  where  located  ; 
said  tax  to  be  in  lieu  of  all  town  and  municipal  licenses,  and  all 
laws  and  part  of  laws  incousistent  herewith  are  hereby  repealed ; 
Provided,  That  the  provisions  01  this  section  shall  not  be  construed 
to  iirohibit  cities  having  an  organized  fire  department  from  levying 
a  tax  or  license  fee  not  exceeding  two  per  cent.,  in  accordance  with 
the  i)ro\'isions  of  their  respective  charters,  on  said  gross  receipts, 
to  be  applied  exclusively  to  the  support  of  the  tire  department  of 
such  city.     {Ibid,  §  30.) 

Ii2.  Nothing  in  this  act  shall  be  so  construed  as  to  interfere 
with  the  workings  or  organization  of  any  insurance  company 
organized  under  an  act  of  the  General  Assembly,  entitled  "  An  act 
to  authorize  the  formation  of  township  insurance  companies,"  ap- 
proved February  20,  1867,  or  to  any  township  insurance  company 
chartered  by  act  of  this  General  Assembly.     {Ibid,  §  31.) 

34.  This  act  shall  take  effect  from  and  after  its  passage  ;  Pro- 
vided, That  companies  other  than  those  organized  under  the  laws  of 
this  State  which  may  have  received  licenses  for  the  year  A.  D.  1869, 
prior  to  the  passage  of  this  act,  shall  not  be  obliged  to  renew  appli- 
cation during  the  said  year.  But  such  company  shall  be  subject  to 
examination  at  the  discretion  of  the  Aiulitor  of  Public  Accounts,  as 
hereinbefore  provided;  Also  provided,  That  the  examination  of  com- 
panies already  organized  under  the  laws  of  this  State,  shall  for  the 
year  1869,  be  made  in  the  month  of  July  next,  or  as  soon  thereafter 
asi)ossible,     {Ibid,  ^  32.) 


DEPOSITS  OF  FOREIGN  INSURANCE  COMPANIES. 

35.    When  any  fire,  or  fire  and  marine  insurance  company,  or- 
ganized under  the  laws  of  any  foreign  government,  shall  file  with 
the  Auditor  of  Public  Accounts  a  certificate  of  the  Superintendent 
of  Insurance  Department  of  any  other  State,  stating  that  a  deposit  of 
11 


162  hine's  insuean(;e  statutes. 

two  hundred  thousand  dollars,  or  the  equivalent  of  that  amount,  for 
the  protection  of  the  policy-holders  in  the  United  States,  has  been 
made  by  said  company  iu  that  State  in  accordance  with  the  existing 
laws  thereof,  said  company  shall  not  be  required  to  make  such  de- 
posit in  this  State  so  long  as  said  deposit  shall  remain  intact  with 
the  Superintendent  of  the  Insurance  Department  or  Treasurer  of  said 
State,  a  certificate  of  which,  from  the  Superintendent  of  the  Insur- 
ance Department  of  that  State,  shall  be  annually  filed  with  the  Aud- 
itor of  Public  Accounts  of  this  State.     {Ibid,  p.  604,  §  33.) 

3<».  All  fire,  or  fire  and  marine  insurance  companies  organized 
under  the  laws  of  any  foreign  country,  establishing,  or  having  hereto- 
fore established  an  agency  or  agencies  in  this  State  shall  be  and  are 
hereby  allowed  to  make  the  deposit  required  by  the  laws  of  this 
State,  in  such  bonds,  stocks,  or  other  securities  of  such  foreign 
country ;  Provided,  The  same  shall  not  be  received  for  more  than 
their  par  value,  nor  shall  they  in  any  case  be  valued  at  more  than 
their  current  market  value.     {Ibid,  §  34.) 

37.  The  recent  conflagration  in  Chicago  having  deprived  the 
people  of  the  State  of  Illinois  of  the  means  of  ample  insurance  on 
their  buildings  and  goods,  an  emergency  exists  requiring  this  act  to 
be  of  immediate  force  and  effect ;  therefore  this  act  shall  take 
effect  and  be  iu  force  from  and  after  its  j)assage.     {Ibid,  §  35.) 


LIFE  mSURAI^CE. 

38.  Before  any  life  insurance  company  goes  into  operation 
under  the  laws  of  this  State,  a  guarantee  capital  of  at  least  one 
hundred  thousand  dollars  shall  be  paid  in  money,  and  invested  in 
the  stocks  of  the  United  States  or  of  this  State,  or  of  any  city  or 
town  in  this  State,  estimated  at  their  market  value,  or  in  such  other 
stocks  and  securities  as  may  be  approved  by  the  Auditor  of  Public 
Accounts,  or  in  mortgages  being  first  liens  on  real  estate  in  this 
State— the  said  real  estate  being  worth  at  least  twice  the  amount  of 
the  money  loaned  thereon,  with  abstract  showing  a  good  and  suf- 
ficient title,  and  the  certificate  of  two  reputable  landholders,  under 
oath,  certifying  to  the  value  of  said  property.     {Ibid,  §  36.) 

39.  No  policy  shall  be  issued  until  a  certificate  from  the  Audi- 
tor has  been  obtained  authorizing  such  company  to  issue  policies. 
The  said  Auditor  shall  examine  the  capital,  and  a  majority  of  the 
directors  shall  make  oath  that  the  money  has  been  paid  in  by  the 
stockholders  towards  payment  of  their  respective  shares,  and  not  for 
any  other  purpose,  and  that  it  is  intended  that  the  same  shall 
remain  as  the  capital  of  the  company,  to  be  invested  as  required  by 
the  laws  of  this  State.  Every  insurance  company  incorporated  in 
this  State  shall  pay  to  said  Auditor,  for  the  examination  required  by 
this  section,  the  sum  of  thirty  dollars.     {Ibid,  §  37.) 

40.  It  shall  not  be  lawful  for  any  person  to  act  within  this 
State,  as  agent  or  otherwise,  iu  receiving  or  procuring  applications 
for  life  insurance,  or  in  any  manner  to  aid  in  transacting  the  busi- 
ness of  life  insurance,  referred  to  in  the  first  section  of  this  act  (38), 
for  any  company  or  association  incorporated  by  or  organized  under 
the  laws  of  any  other  State  government,  unless  such  company  has 
conformed  in  such  State,  or  in  this  State,  to  the  same  requirements 
in  regard  to  capital  that  are  imposed,  by  section  one  of  this  act, 
upon  companies  iu  this  State,  or,  in  lieu  thereof,  has  actual  assets 


J 


ILLINOIS.  163 

to  the  amount  of  at  least  one  hundred  thousand  dollars  invested  in 
the  same  manner  as  is  prescribed  in  regard  to  capital  in  section  one 
of  this  act.     {Ibid,  p.  005,  §  38. ) 

41.  The  subscribers  or  holders  of  guarantee  stock  in  a  life  in- 
surance company  organized  on  the  mutual  or  stock  and  mutual 
plan,  shall  choose  the  first  board  of  directors ;  and  at  all  subsequent 
elections  they  shall  choose  one-half  of  the  directors,  and  the  holders 
of  mutual  policies  the  other  half,  until  the  redemption  of  the  guar- 
antee stock,  when  the  holders  of  mutual  policies  shall  elect  all  the 
directors.     {Ibid,  §  39.) 

4:tJ.  Every  life  insurance  company  incorporated  in  this  State, 
or  doing  business  in  this  State,  shall,  on  or  before  the  first  day  of 
March,  in  each  year,  transmit  to  the  auditor,  and  tile  in  his  office,  a 
statement  of  its  business  standing  and  aftairs,  in  the  form  prescribed 
or  authorized  by  law,  and  adapted  to  the  business  done  by  such 
company,  signed  and  sworn  to  by  the  president  or  vice-president 
and  secretary,  and  made  out  for  the  year  ending  on  the  preceding 
thirty-first  day  of  December.     {Ibid,  §  40.) 

43.  The  form  for  life  insurance  companies  shall  be  as  follows  : 
1st.  Name  of  the  company.  2d.  When  chartered.  3d.  For  what 
period.  4th.  Where  located.  5th.  State  in  full  the  assets  of  the 
company.  6th.  Number  of  shares  owned  in  any  bank;  state  par 
value,  cost,  and  the  market  value  per  share.  7th.  Number  of 
shares  owned  in  any  railroad  ;  stating  the  corj)orate  name  of  each, 
and  the  amount  invested  in  each,  at  cost,  on  its  books ;  state  the 
par  value  and  the  market  value  of  each  share.  8th.  Amount 
owned  in  railroad  bonds ;  state  par  value,  cost,  and  market  value, 
per  share.  8th.  Amount  invested  in  real  estate,  at  cost,  on  the 
books  of  the  company.  10th.  Amount  loaned  on  mortgages  of  real 
estate,  and  estimated  value  of  said  real  estate.  11th.  Amount 
loaned  on  notes  secured  by  collaterals  of  personal  property.  12th. 
Amount  loaned  on  notes  without  collaterals,  13th.  IState,  in  full, 
all  other  investments.  14th.  How  much,  included,  in  the  foregoing 
statements  of  assets,  consists  of  j)remium  notes  on  policies  not  re- 
turned as  now  in  force.  15th.  Number,  date,  kind,  and  amount 
of  each  outstanding  policy,  and  age  of  the  insured,  excepting  such 
policies  as  are  subject  to  a  valuation  by  the  proper  officer  in  some 
other  State,  which  shall  be  shown  by  certificate  lirom  the  insurance 
department  of  such  State,  IfJth.  Number  and  amount  of  each 
class  or  kind  of  i>olicies  which  have,  within  the  year,  ceased  to  be 
in  force  ;  how  terminated  ;  what  has  been  paid  to  the  legal  holders 
of  the  policies.  17th.  Amount  of  losses  ascertained  and  unpaid. 
18th.  Amount  of  losses  claimed  against  the  comi)an3'',  whether  ac- 
knowledged as  due  or  not  by  the  company.  19th.  Amount  due 
from  the  company  on  its  declared,  promised,  or  acknowledged  in- 
debtedness, or  other  claims,  including  dividends,  bonuses  on  dis- 
tribution of  surplus,  or  as  profits.  20th.  Amount  received  for  pre- 
miums the  past  year.  21  st.  Amount  received  for  premiums  in  cash. 
22d.  Amount  received  for  premiums  in  promissory  notes  or  securi- 
ties. 23d.  Amount  received  for  interest  the  past  year.  24th. 
Amount  paid  for  interest  the  past  year.  25th.  Amount  of  guarantee 
funds,  and  state  particularly  whether  the  same  are  in  cash  or  in 
subscription  notes.  2Gth.  How  are  dividends,  distributions  of  sur- 
plus funds,  bonuses  or  estimated  profits  paid  ? — whether  in  cash, 
scrip,  or  otherwise  on  credit,  and  whether  on  demand;  or  if  on 
credit,  for  what  length  of  time,  and  whether  payable  at  a  specific 


164  hike's  insurance  statutes. 

time  or  indefinitely,  at  the  discretion  of  the  company.  27th.  Amount 
paid  for  the  expenses,  taxes  and  commissions  the  i)ast  year,  classi- 
fied.    {Ibid,  ^4:1.) 

44.  All  life  insurance  companies  chartered  or  organized  in 
any  other  State  of  the  United  States,  or  beyond  the  limits  of  the 
United  States,  and  doing  business  in  this  State,  shall  make  an 
annual  statement  of  their  condition  and  affairs  to  the  insurance  de- 
I)artment,  in  the  same  manner  and  in  the  sa^ne  form  as  similar  com- 
panies organized  under  the  laws  of  this  State.  The  Auditor  shall 
have  authority  to  extend  the  time  for  filing  such  statement,  for 
reasons  which  he  shall  deem  good  and  sufficient,  whether  the  com- 
l)any  is  organized  in  this  State  or  elsewhere.  The  statements 
herein  provided  for  shall  be  in  lieu  of  any  and  all  statements  now 
required  by  any  existing  law,  and  the  several  provisions  of  the  acts 
approved  February  the  twelfth,  eighteen  hundred  and  fifty-three, 
February  the  fourteenth,  eighteen  hundred  and  fifty-five,  and  Janu- 
ary the  twenty-second,  eighteen  hundred  and  fifty-seven,  are  hereby 
reiiealed  so  far  as  they  relate  to  life  insurance.     {Ibid,  p.  606,  §  42.) 

4i^.  Life  insurance  companies  chartered  beyond  the  limits  of 
the  United  States,  and  doing  business  in  this  State,  shall  make  a 
return  of  their  standing  on  the  thirty-first  day  of  December  in  each 
year,  agreeable  to  the  form  required  by  this  act  of  other  companies 
doing  business  in  this  State,  said  return  to  be  made  to  the  Auditor 
on  or  before  the  first  day  of  April,  annually,  and  verified  and  sworn 
to  before  some  consul  or  vice-consul  of  the  United  States,  by  two 
or  more  of  the  principal  officers  of  such  insurance  company.  {Ibid, 
§  43.) 

46  Any  company  doing  business  in  this  State,  neglecting  to 
make  returns  in  the  manner  and  within  the  time  hereinbefore  au- 
thorized and  prescribed,  shall  forfeit  one  hundred  dollars  for  each 
day's  neglect;  and  every  comiiany  that  willfully  makes  false  state- 
ments, shall  be  liable  to  a  fine  of  not  less  than  five  hundred  dollars, 
nor  more  than  one  thousand  dollars.  Any  new  business  done  by 
any  company,  or  its  agents,  in  this  State,  after  neglect  to  make  the 
j)rescribed  returns,  shall  be  deemed  to  be  done  in  violation  of  law. 
{Ibid,  §  44.) 

47.  ^Vhen  the  actual  funds  of  any  life  insurance  coinpany  do- 
ing business  in  this  State  are  not  of  a  net  value  equal  to  the  net 
value  of  its  policies,  according  to  the  "combined  experience"  or 
"actuaries"  rate  of  mortality,  with  interest  at  four  per  centum  per 
annum,  it  shall  be  the  duty  of  the  Auditor  to  give  notice  to  such 
company  and  its  agents  to  discontinue  issuing  new  policies  within 
this  State  until  such  time  as  its  funds  have  become  eipml  to  its  lia- 
bilities, valuing  its  policies  as  aforesaid.  Any  officer  or  agent  who, 
after  such  notice  has  been  given,  issues  or  delivers  a  new  policy 
from  and  on  behalf  of  such  company  before  its  funds  have  become 
equal  to  its  liabilities  as  aforesaid,  shall  forfeit,  for  each  ofi'ense,  a 
sum  not  exceeding  one  thousand  dollars.     (Ibid,  §  45.) 

48-  It  shall  be  lawful  for  any  company,  organized  in  this 
State,  to  invest  its  funds  or  accumulations  in  stocks  of  the  United 
States,  or  of  this  State,  or  of  any  city  or  town  in  this  State,  or  in 
any  National  bank,  or  in  such  other  stocks  and  securities  as  may 
be  approved  by  the  Auditor,  or  in  mortgages  (being  first  liens)  on 
real  estate,  being  worth  at  least  twice  the  amount  of  money  loaned 
thereon.     {Ibid,  §  46.) 

41>.     When  any  life  insurance  company,  organized  under  the 


ILLINOIS.  165 

laws  of  this  State,  sliall  transact  business  in  any  other  State,  it 
may  invest  its  siirphis  funds  in  such  State  in  like  security  and  un- 
der the  same  restrictions  as  in  this  State.     {Ibid,  §  47.) 

50.  The  Auditor  is  hereby  authorized  and  empowered  to  ad- 
dress any  inquiries  to  any  life  insurance  company,  or  to  the  secre- 
tary thereof,  in  relation  to  its  doings  or  conditions,  or  any  other 
matter  connected  with  its  transactions,  and  it  shall  be  the  duty  of 
any  such  comjiany,  so  addressed,  to  reply  promptly,  in  writing,  to 
any  such  inquiries  ;  and  all  such  companies,  not  incorporated  under 
the  laws  of  this  State,  failing  to  answer  all  such  inquiries,  shall  not 
be  authorized  to  transact  any  business  in  this  State,  and  their  cer- 
tificates of  authority  may  be  revoked  and  canceled.  It  shall  be  the 
duty  of  the  Auditor  to  make,  or  cause  to  be  made,  an  examination 
of  the  condition  and  aifairs  of  any  life  insurance  company  doing 
business  in  this  State,  whenever  he  shall  deem  it  expedient  to  do 
so,  and  also  whenever  he  shall  have  good  reason  to  suspect  the 
correctness  of  any  annual  statement,  or  that  the  aflairs  of  any  com- 
pany making  such  statement  are  in  an  unsound  condition.  {Ibid, 
§  48.) 

ol.  Life  insurance  companies  doing  business  in  this  State, 
which  do  business  upon  the  principle  of  mutual  insurance,  or  the 
members  of  which  are  entitled  to  share  in  the  surplus  funds  thereof, 
may  make  distribution  of  such  surplus  as  they  have  accumulated, 
annually,  or  once  in  two,  three,  four,  or  five  years,  as  the  directors 
thereof  may,  from  time  to  time,  determine.  In  determining  the 
amount  of  the  surplus  to  be  distributed,  there  shall  be  reserved  an 
amount  not  less  than  the  aggregate  net  value  of  all  the  outstand- 
ing policies  ;  said  value  being  computed  by  the  "  combined  expe- 
rience" or  '^ actuary"  rate  of  mortality,  with  interest  not  exceeding 
four  per  cent.     {Ibid,  p.  607,  §  49.) 

tjtS.  Every  life  insurance  company  not  organized  in  this  State,  be- 
fore doing  business  in  this  State,  shall,  in  writing,  appoint  an  attorney, 
resident  in  this  State,  upon  whom  all  lawful  process  against  the 
company  may  be  served  with  like  effect  as  if  the  company  existed 
in  this  State ;  and  said  writing  or  power  of  attorney  shall  stipulate 
and  agree,  on  the  part  of  the  company  making  the  same,  that  any 
lawful  process  against  said  company,  which  is  served  on  said  at- 
torney, shall  be  of  the  same  legal  force  and  validity  as  if  served  on 
said  company.  A  copy  of  the  writing,  duly  certified  and  authenti- 
cated, shall  be  filed  in  the  office  of  the  Auditor,  and  copies,  certified 
by  him,  shall  be  sufficient  evidence.  This  agency  shall  be  continued 
while  any  liability  remains  outstanding  against  the  company  in 
this  State,  and  the  power  shall  not  be  revoked  until  the  same  power 
is  given  to  another,  and  a  like  copy  filed  as  aforesaid.  Service 
upon  said  attorney  shall  be  deemed  sufficient  service  upon  the  com- 
pany.    {Ibid,  §  50.) 

53.  The  Treasurer  of  the  State,  in  his  official  capacity,  shall 
take  and  hold  on  deposit  the  securities  of  any  life  insurance  com- 
pany incorporated  under  the  laws  of  this  State,  which  are  dt posited 
by  any  such  company  for  the  purjwse  of  securing  policy  holders 
and  complying  \vith  the  laws  of  any  State,  in  order  to  enable  such 
company  to  transact  business  in  such  State.  The  company  deposit- 
ing such  securities  shall  have  the  right  to  receive  the  income  there- 
of, and  at  any  time  to  exchange  the  same,  according  to  the  laws  of 
the  State  in  which  they  may  be  doing  business.     (Ibid.,  §  51.) 

54.  If  any  life  insurance  company  organized  in  this  State,  or 


166  HINE'S   mSURANCE   STATUTES. 

in  any  other  State  of  the  United  States,  or  in  any  foreign  country, 
whose  policies  are  not  valued  by  the  insurance  department  or  proper 
officers  of  any  other  State,  shall  transact  business  in  this  State,  it 
shall  be  the  duty  of  the  Auditor  to  calculate  the  existing  value  of 
all  outstanding  policies  of  such  company ;  and  every  such  company 
shall  pay,  annually,  to  the  Auditor  of  this  State,  by  way  of  compen- 
sation for  the  valuation  of  its  policies,  three  cents  on  every  thousand 
dollars  insured  by  it  on  lives.     {Ibidj  §  52.) 

5»>.  No  life  insurance  company  organized  under  the  laws  of 
this  State  shall  issue  policies  insuring  fire,  or  marine,  or  accident,  or 
live-stock  risks,  or  do  any  banking  business.     {Ibid,  §  53.) 

56.  It  shall  be  lawful  for  any  married  woman,  by  herself  and 
in  her  own  name,  or  in  the  name  of  any  third  person,  with  his 
assent  as  her  trustee,  to  cause  to  be  insured,  for  her  sole  use,  the 
life  of  her  husband,  for  any  definite  period,  or  for  the  term  of  his 
natural  life;  and  in  case  of  her  siu'viving  such  period  or  term,  the 
sum  or  net  amount  of  the  insurance  becoming  due  and  payable  by 
the  terms  of  the  insurance  shall  be  payable  to  her  to  and  for  her 
own  use,  free  from  the  claims  of  the  representatives  of  the  husband 
or  of  any  of  his  creditors ;  Provided,  however.  That  if  the  premium 
of  such  policy  is  paid  by  any  person  with  the  intent  to  defraud  his 
creditors,  an  amount  equal  to  the  premium  so  paid,  with  interest 
thereon,  shall  inure  to  the  benefit  of  said  creditors,  subject,  how- 
ever, to  the  statute  of  limitations.  The  amount  of  the  insurance  may 
be  made  payable,  in  case  of  the  death  of  the  wife  before  the  period 
at  which  it  becomes  due,  to  his,  her,  or  their  children,  for  their  use, 
as  shall  be  provided  in  the  policy  of  iusiu"ance,  and  to  their  guar- 
dian, if  under  age.     {Ibid,  §  54.) 

57.  Whenever  the  existing  or  future  laws  of  any  other  State 
of  the  United  States  shall  require  of  life  insurance  companies  in- 
corporated by  or  organized  under  the  laws  of  this  State,  and  having 
agencies  in  such  other  State,  or  of  the  agents  thereof,  any  deposit  of 
securities  in  such  State  for  the  protection  of  policy-holders,  or  other- 
wise, or  any  payment  for  taxes,  fines,  penalties,  certificates  of  au- 
thority, license  fees,  or  otherwise  greater  than  the  amount  required 
lor  such  purposes  from  similar  companies  of  other  States  by  the 
then  existing  laws  of  this  State,  then,  and  in  every  such  case,  all 
life  insurance  companies  of  such  States  establishing,  or  having 
heretofore  established,  an  agency  or  agencies  in  this  State,  shall  be 
and  are  hereby  required  to  make  the  same  deposit,  for  a  like  pur- 
pose, with  the  State  Treasurer  of  this  State,  and  to  pay  to  the  Au- 
ditor for  taxes,  fines,  penalties,  certificates  of  authority,  license 
fees,  or  any  other  obligation,  an  amount  equal  to  the  amount  of 
such  charges  and  payments  imposed  by  the  laws  of  such  other  State 
upon  the  companies  of  this  State,  and  the  agents  thereof.  {Ibid, 
p.  608,  §  55.) 

58.  Every  life  insurance  company  not  organized  under  the 
laws  of  this  State,  shall,  before  doing  business  in  this  State,  deposit 
with  the  Auditor  a  copy  of  the  charter  of  the  company,  and  state- 
ment, signed  and  sworn  to  by  the  president  or  ^^ce-])resident  and 
secretary,  in  the  form  prescribed  or  authorized  for  the  annual  state- 
ment adapted  to  the  business  done  by  such  company.     {Ibid,  §  56.) 

59.  Every  person  acting  for  a  life  insurance  company  not  in- 
corporated in  this  State,  shall  exhibit,  in  conspicuous  letters,  on 
the  sign  designating  his  place  of  business,  the  name  of  the  State 
under  whose  authority  the  company  he  represents  has  been  incor- 


ILLINOIS.  167 

porated  ;  and  the  said  company  and  agent  shall  also  have  printed, 
in  large  type,  the  name  of  said  State  upon  all  policies  issued  to 
citizens  of  this  State,  and  on  all  placards,  pamphlets,  and  circulars 
published,  issued,  or  circulated  in  this  State  by  them  or  him,  relating 
to  the  business  of  said  company.     {Ibid,  §  57.) 

60,  Whoever  solicits  insurance  on  behalf  of  any  life  insurance 
company  not  chartered  by,  and  not  established  within,  this  State, 
or  transmits,  for  any  person  other  than  himself,  an  application  for 
life  insurance,  or  a  policy  of  life  insurance,  to  or  from  such  com- 
pany, or  advertises  that  he  will  receive  or  transmit  the  same,  shall 
be  held  to  be  an  agent  of  such  company  t<»  all  intents  and  purposes, 
and  subject  to  all  the  duties,  requisitions,  liabilities,  and  penalties  set 
forth  in  the  laws  of  this  State,  relating  to  life  insurance  companies 
not  incorporated  by  the  legislature  thereof.     (Ibid,  §  58.) 

61.  Any  agent  making  insurance  in  violation  of  any  law  of 
this  State  regulating  life  insurance  companies,  shall  forfeit,  for  each 
offense,  a  sum  not  exceeding  five  hundred  dollars.     (Ibid,  §  59.) 

G*i,  For  filing  the  annul  statement  required  in  the  office  of  the 
Auditor,  the  said  Auditor  shall  be  paid  ten  dollars ;  for  each  agent's 
certificate  of  authority,  two  dollars ;  for  every  copy  of  a  paper  filed 
in  the  Auditor's  office  twenty  cents  per  folio;  and  for  affixing  the 
seal  of  said  office  to  such  copy  and  certifying  the  same,  one  dollar ; 
and  for  examining  the  affairs  of  any  company,  when  deemed  neces- 
sary, the  expenses  incurred  therein  shall  be  paid  to  the  said  Au- 
ditor by  the  company.     {Ibid,  §  60.) 

63.  The  Auditor  shall  annually  prepare  and  print,  in  a  single 
document,  the  information  contained  in  the  statements  made  under 
this  act,  and  shall  communicate  the  same  to  the  General  Assembly. 
He  shall  also  cause  the  annual  statements  required  to  be  filed  by 
this  act  to  be  published  in  two  daily  newspapers  of  general  circula- 
tion, the  one  printed  in  the  city  of  Chicago  and  the  other  in  the 
city  of  Springfield,  not  less  than  one  month.     {Ibid,  §  61.) 

64,  This  act  shall  be  deemed  a  public  act,  and  take  effect 
and  be  in  force  from  and  after  the  first  day  of  July  next.  But 
nothing  herein  contained  shall  prevent  the  Auditor  from  receiving 
statements  from  comx)anies  desiring  to  file  the  same,  as  herein 
specified,  at  any  time  after  the  approval  of  this  act  by  the  Gov- 
ernor.    {Ibid,  p.  609,  §  63.) 


SUERENDER  OF  SECURITIES. 

65.  Any  life  insurance  company  which  desires  to  retire  from 
business,  may  notify  the  holders  of  its  outstanding  policies,  and 
publish  its  intention  to  retire  from  business,  for  thirty  successive 
days,  in  some  newspaper  published  in  Chicago,  and  having  a  gen- 
eral circulation ;  and  if  such  policy-holders  elect  to  have  their  poli- 
cies canceled,  such  company  shall  refund  and  pay  to  the  policy- 
holder, within  ninety  days  thereafter,  the  net  value  of  the  policy, 
valued  in  accordance  with  the  laws  of  this  State,  after  deducting 
any  indebtedness  that  may  exist  against  such  i)olicy,  or  if  any  policy- 
holders shall  so  elect,  the  company  may  secure  for  such  persons  re- 
insurance in  another  company— which  reinsurance  shall  equal  in 
value  the  net  value  of  such  policies  as  aforesaid,  and  the  company 
assuming  the  insurance  shall  issue  to  each  of  such  persons  a  policy, 
in  lieu  of  such  policies  as  may  be  canceled  for  that  purpose.     When 


168  iiine's  insurance  statutes. 

it  appears  to  the  Auditor  that  any  sucli  company  lias  canceled  its 
policies,  as  herein  provided,  and  has  no  other  liability  existing — a 
statement  of  which  shall  be  certiHed  by  the  affidavit  of  the  presi- 
dent and  secretary  of  the  company — he  shall  give  such  company 
his  certificate,  upon  which  it  may  withdraw  its  securities  deposited 
with  the  State  Treasurer ;  Provided,  That  any  company  having  dis- 
continued business  prior  to  the  passage  of  this  act,  by  obtaining 
the  cancellation  of  its  jjolicies  as  herein  provided,  may  in  like  man- 
ner withdraw  its  securities  so  deposited,  or  such  company  may 
Avithdraw  its  securities  by  depositing  other  bona  fide  securities  of 
the  kind  provided  by  law,  in  lieu  therefor,  to  the  amount  of  all  its 
outstanding  j)olicies.     [Ihid,  §  6-i.) 


TOWNSHIP   COMPANIES. 

66.  Any  number  of  persons,  not  less  than  twenty-five,  residing 
in  any  congressional  or  political  township,  or  in  one  or  more  adjoin- 
ing congressional  or  political  townships  in  this  State,  not  exceeding 
six  in  number,  and  without  regard  to  county  lines,  who  collectively 
shall  own  property  of  not  less  than  fifty  thousand  dollars  in  value, 
which  they  desire  to  have  insured,  may  form  an  incorijorated  com- 
pany for  the  purpose  of  mutual  insurance  against  loss  or  damage 
by  fire  or  lightning.     {Ibid,  §  G5.) 

67.  Such  persons  shall  file  with  the  Auditor  of  Public  Ac- 
counts a  declaration  of  their  intention  to  form  a  comijany  for  the 
purposes  expressed  in  the  preceding  section,  which  declaration 
shall  be  signed  by  all  the  corporators,  and  shall  contain  a  copy  of 
the  charter  proposed  to  be  adopted  by  them.  Such  charter  shall 
set  forth  the  name  of  the  corporation,  which  shall  embrace  the 
nanae  of  the  townshii)  in  wldcli  the  business  office  of  such  company 
is  to  be  located,  and  the  intended  duration  of  the  company ;  and 
if  it  is  found  conformable  to  this  act,  and  Jiot  inconsistent  with  the 
laws  and  constitution  of  this  State,  the  Auditor  shall  thereupon  de- 
liver to  such  persons  a  certified  copy  of  the  charter,  which,  on  be- 
ing filed  in  the  office  of  the  County  Clerk  of  the  county  where  the 
office  of  such  company  is  to  be  located,  shall  be  their  authority  to 
organize  and  commence  business.  Such  certified  coi)y  of  the 
charter  may  be  used  in  evidence  for  or  against  said  company,  with 
the  same  effect  as  the  original;  Provided,  That  such  charter  so  ob- 
tained shall  be  subject  to  control  of  and  modification  by  the  General 
Assembly.     {Ibid,^^  66.) 

68.  The  number  of  directors  shall  be  nine — five  of  whom  shall 
constitute  a  quorum  to  do  business — to  be  elected  from  the  corpora- 
tors by  ballot,  and  hold  their  offices  until  their  successors  are 
elected  and  qualified.  In  the  election  of  the  first  board  of  directors 
each  corporator  shall  be  entitled  to  one  vote.  All  subsequent  elec- 
tions, except  to  fill  vacancies,  shall  be  held  at  the  annual  meeting 
of  the  company,  which  shall  be  on  the  first  Tuesday  after  the  first 
Monday  in  Jan  nary  in  each  year.  And  every  person  insured  shall 
be  entitled  to  as  many  votes  as  there  are  directors  to  be  elected,  and 
an  equal  additional  number  for  each  $500  that  he  may  be  insured  in 
the  company,  and  may  cast  the  same  in  person  or  by  proxy,  dis- 
tributing them  among  the  same  or  a  less  number  of  candidates 
than  the  number  of  directors  to  be  elected,  or  cumulating  them 
upon  one  candidate,  as  he  shall  think  fit.     {Ibid,}).  GIO,  §  07.) 


ILLINOIS.  1G9 

6©.  The  directors  sliall  elect  from  their  number  a  president 
and  a  treasurer,  and  shall  also  elect  a  secretary,  who  may  or  may 
not  be  a  member  of  the  company — all  of  whom  shall  hold  their 
otflce  for  one  year,  and  until  their  successors  are  elected  and  quali- 
tied.     [rbid,  §  68.) 

70.  The  treasurer  and  secretary  sliall  each  give  bonds  to  the 
company  for  the  faithful  performance  of  their  duties,  in  such 
amounts  as  shall  be  prescribed  by  the  Board  of  Directors.  {Ihid^ 
§  69.) 

7 1 .  Such  corporation  and  its  directors  shall  possess  the  usual 
powers,  and  be  subject  to  tlie  usual  duties,  of  corporations  and  di- 
rectors thereof,  and  may  make  such  by-laws,  not  inconsistent  witli 
the  constitution  or  laws  of  this  State,  as  may  be  deemed  necessary 
for  the  management  of  its  affairs,  iu  accordance  with  the  provisions 
of  this  act ;  also,  to  prescribe  the  duties  of  its  officers,  and  fix  their 
compensation,  and  to  alter  and  amend  its  by-laws  when  necessary. 
{lUd^  §  70.) 

7i^.  Any  person  owning  i>roperty  in  the  district  for  which  any 
such  company  is  formed,  if  he  resides  in  the  county  in  which  such 
district  is  in  whole  or  in  i)art  situated,  may  become  a  member  of 
such  company  by  insuring  therein,  and  shall  be  entitled  to  all  the 
rights  and  privileges  appertaining  thereto ;  but  a  person  not  re- 
siding withiu  the  district  for  which  the  company  is  formed  shall  not 
become  a  director  of  such  company.     {I hid,  §  71.) 

73.  Such  company  may  issue  policies  only  on  detached  dwell- 
ings, barns  (except  livery,  boarding,  and  hotel  barns),  and  other 
farm  buildings,  and  such  proj^erty  as  may  properly  be  contained 
therein,  for  any  time  not  exceeding  five  years,  and  not  to  extend 
beyond  the  limited  duration  of  the  charter,  and  for  an  amount  not 
to  exceed  three  thousand  dollars  on  any  one  risk.  All  persons  so 
insured  shall  give  their  obligation  to  the  company,  binding  them- 
selves, their  heirs  and  a'-signs,  to  pay  their  pro  rata  share  to  the 
company  of  the  necessary  expenses,  and  of  all  losses  by  fire  or 
lightuing  which  may  be  sustained  by  any  member  thereof  during 
the  time  for  which  their  respective  jjolicies  are  written ;  and  they 
shall,  also,  at  the  time  of  effecting  the  insurance,  pay  such  percent- 
age in  cash,  and  such  other  charge  as  may  be  required  by  the  rules 
or  by-laws  of  the  company.     {IMd,  §  72.) 

74.  Any  such  comi^any  may  classify  the  property  insured 
therein  at  the  time  of  issuing  policies  thereon,  under  different  rates, 
corresponding,  as  nearly  as  may  be,  to  the  greater  or  less  risk  from 
fire  or  lightning  and  loss  which  may  attach  to  each  several  building 
insured.     [Ibid,  §  737.) 

75.  No  such  company  shall  insure  any  property  beyond  the  lim- 
its of  the  district  comprised  in  the  formation  of  the  company,  nor 
shall  they  insure  any  i^roperty  within  the  limits  of  any  city  contain- 
ing over  twelve  thousand  inhabitants  at  the  time  of  the  organiza- 
tion of  such  com]iany.     {Ibid,  §  74.) 

76.  Every  member  of  such  company  who  may  sustain  loss  or 
damage  hj  fire  or  lightning  shall  immediately  notify  the  president  of 
such  company,  or  in  case  of  his  absence,  the  secretary  tliereof,  who 
shall  forthwith  convene  the  directors  of  such  company,  whose  duty 
it  shall  be,  when  convened,  to  appoint  a  committee  of  not  less  than 
three  members  of  such  company,  to  ascertain  the  amount  of  such 
loss ;  and  in  case  of  the  failure  of  the  parties  to  agree  upon  the 
amount  of  such  damage,  the  claimant  may  appeal  to  the  judge  of  the 


170  hine's  insurance  statutes. 

! 
i 

county  court  of  the  county  in  which  the  office  of  such  company  is  : 
located,  whose  duty  it  shall  he  to  appoint  three  persons  as  a  com-  '\ 
mittee  of  reference,  who  shall  have  full  authority  to  examine  wit-  | 
nesses,  and  to  determine  all  matters  in  dispute,  and  shall  make  their  - 
award  in  writing  to  the  president  of  such  company,  and  such  award 
shall  be  final.  The  pay  of  said  committee  shall  be  two  dollars  per  I 
day  for  each  day's  service  so  rendered,  and  four  cents  for  each  mile  | 
necessarily  traversed  in  the  discharge  of  their  duties,  which  shall  be 
paid  by  the  claimant,  unless  the  award  of  said  committee  shall  ex-  j 
ceed  the  sum  offered  by  the  company  in  liquidation  of  such  loss  or  ^  ■ 
damage,  in  which  case  said  expenses  shall  be  paid  by  the  company. 
{Ibid,  §  75.) 

77.  Whenever  the  amount  of  any  loss  shall  have  been  ascer- 
tained, which  exceeds  in  amount  the  cash  funds  of  the  company,  the 
president  shall  convene  the  directors  of  said  company  who  shall 
make  an  assessment  upon  all  the  property  to  the  amount  for  which 
each  several  piece  of  property  is  insured,  taken  in  connection  with 
the  rate  of  premium  under  which  it  may  be  classified.  {Ibid,  p.  611, 
§  76. 

78.  It  shall  be  the  duty  of  the  president,  whenever  such  as- 
sessment shall  have  been  made,  to  immediately  notify  every  person 
composing  such  company,  personally,  by  an  agent  or  by  letter  sent 
to  his  usual  post  office  address,  of  the  amount  of  such  loss,  and  the 
sum  due  from  him  as  his  share  thereof,  and  of  the  time  when  and  to 
whom  such  payment  is  to  be  made ;  but  such  time  shall  not  be  less 
than  thirty  nor  more  than  ninety  days  from  the  date  of  such  notice. 
{Ibid,  §  77!) 

79.  Suits  at  law  may  be  brought  against  any  member  of  such 
company  who  shall  neglect  or  refuse  to  pay  any  assessment  m  ade 
upon  him  by  the  pro\isions  of  this  act ;  and  the  directors  of  any 
company  so  formed,  who  shall  willfully  refuse  or  neglect  to  perform 
the  duties  imposed  upon  him  by  the  jirovisions  of  this  act,  shall  be 
liable  in  their  individual  capacity,  to  the  person  sustaining  such  loss. 
Suits  at  law  may  also  be  brought  and  maintained  against  any  such 
company,  by  members  thereof,  for  losses  sustained,  if  payment  is 
withheld  after  such  losses  have  become  due     {Ibid,  §  78.) 

80.  It  shall  be  the  duty  of  the  secretary  to  prepare  an  annual 
statement,  showing  the  condition  of  such  company  on  the  thirty-first 
day  of  December,  and  present  the  same  at  the  annual  meeting. 
{Ibid,  §  79.) 

8 1 .  Any  member  of  such  company  may  withdraw  therefrom 
by  surrendering  his  policy  for  cancellation,  at  any  time  while  the 
company  continues  the  business  for  which  it  was  organized,  by  giving 
notice  in  writing  to  the  secretary  thereof,  and  paying  his  share  of  all 
claims  then  existing  against  said  company;  Provided,  That  by  the 
withdrawal  of  any  such  member  the  number  of  the  members  remain- 
ing in  the  company  shall  not  be  reduced  below  the  original  number 
of  corporators,  or  that  the  assets  will  not  be  reduced  below  the 
amount  at  the  time  of  the  organization  ;  Provided,  further.  That  the 
company  shall  have  power  to  cancel  or  terminate  any  policy  by  giv- 
ing the  insured  notice  to  that  effect.    {Ibid,  §  80.) 

8S.  It  shall  be  the  duty  of  the  president  and  secretary  of  every 
such  company,  on  the  first  day  of  January  of  each  year,  or  within 
one  month  thereafter,  to  prepare,  under  their  own  oath,  and  trans- 
mit to  the  Auditor  of  Public  Accounts,  a  statement  of  the  condition 
of  the  company  on  the  thirty-first  day  of  December  then  next  pre- 


ILLINOIS.  171 

ceding,  in  such  form  as  the  Auditor  may  direct.  If,  upon  examina- 
tion, he  is  of  the  opinion  that  such  company  is  doing  business  cor- 
rectly, ill  accordance  Avith  the  provisions  of  this  act,  he  shall  there- 
upon furnish  the  company  his  certificate,  which  shall  be  deemed  au- 
thority to  continue  business  the  ensuing  year,  subject,  however,  to 
subsequent  provisions  of  this  act.  For  such  examination  and  cer- 
tificate the  company  shall  pay  one  dollar.  Each  company  shall  pay, 
at  the  time  of  organization,  ten  dollars  for  the  Auditor's  services, 
all  of  which  shall  be  paid  into  the  State  treasury  and  applied  to  the 
insurance  fund.    {Ibid,  §  81.) 

83.  Any  such  company  may  be  proceeded  against  and  dis- 
solved in  the  manner  and  upon  the  same  conditions  as  provided  in 
case  of  other  insurance  companies  incorporated  in  this  State.  {Ihid, 
p.  612,  §  82.) 

84.  Any  township  insurance  company  formed  under  an  act  en- 
titled "An  act  to  incorporate  and  govern  mutual  fire  insurance  com- 
panies in  townships,"  approved  April  3,  1872,  may,  with  the  written 
consent  of  two-thirds  of  the  members,  accept  the  pro\ision  of  this 
act,  and  thereupon  shall  be  governed  by  its  provision.  Before  any 
such  company  shall  be  entitled  to  the  benefits  thereof,  the  directors 
or  a  majority  of  them  shall  file  with  the  Auditor  of  Public  Accounts 
the  declaration  provided  for  in  section  two  of  this  act.    {Ibid,  §  83.) 


DISSOLUTION  OF  INSUEANCE  COMPANIES. 

85.  If  the  Auditor  of  State,  upon  examination  of  any  insur- 
ance company  incorporated  in  this  State,  is  of  the  opinion  that  it  ia 
insolvent,  or  that  its  condition  is  such  as  to  render  its  further  con- 
tinuance in  business  hazardous  to  the  insured  therein,  or  to  the  pub- 
lic, or  that  it  has  failed  to  comply  with  the  rules,  restrictions,  or 
conditions  provided  by  law,  or  has  exceeded  or  is  exceeding  its  cor- 
porate powers,  he  shall  apply  by  petition  to  a  judge  of  any  circuit 
court  of  this  State  to  issue  an  injunction  restraining  such  company, 
in  whole  or  in  part,  from  further  proceeding  with  its  business,  until 
a  full  hearing  can  be  had,  or  otherwise,  as  he  may  direct.  It  shall 
be  discretionary  with  such  judge  either  to  issue  said  injunction  forth- 
with, or  to  grant  an  order  for  such  company,  upon  such  notice  as  he 
may  prescribe,  to  show  cause  why  said  injunction  should  not  issue, 
or  to  cause  a  hearing  to  be  had  on  complaint  and  answer,  or  other- 
wise, as  in  ordinary  proceedings  in  cases  in  equity,  before  determin- 
ing whether  an  injunction  shall  be  issued.  He  may  in  all  such  cases 
make  such  orders  and  decrees,  from  time  to  time,  as  the  exigencies 
and  equities  of  the  case  may  require,  and  in  any  case,  after  a  full 
hearing  of  all  parties  interested,  may  dissolve,  modify,  or  perpetuate 
such  injunction,  and  make  all  such  orders  and  decrees  as  may  be 
needful  to  suspend,  restrain,  or  prohibit  the  further  continuance  of 
the  business  of  the  company.     {Ibid,  §  84.) 

86.  When  a  majority,  in  number  or  interest,  of  the  members 
or  stockholders  of  any  insurance  company  incorporated  in  this 
State,  desire  to  close  its  concerns,  they  may  apply  by  petition  to 
the  circuit  court  of  the  circuit  in  which  the  company  is  located,  set- 
ting forth  in  substance  the  grounds  of  their  application ;  and  the 
court,  after  due  notice  to  all  the  parties  interested,  may  proceed  to 
hear  the  matter,  and  for  reasonable  cause  decree  a  dissolution  of 
the  corporation ;  and  corporations  so  dissolved  shall  be  deemed  and 


172  hine's  insurance  statutes. 

held  extinct  in  all  respects  as  if  tlieir  charters  had  expired  by  their 
own  liruitation,  subject,  however,  to  the  provisions  hereinafter  pre- 
scribed.    {Ibid,  §  85.) 

87.  The  charters  of  all  insurance  companies  incorporated  in 
this  State,  which,  either  from  neglect  or  by  vote  of  their  members 
or  officers,  or  in  obedience  to  the  decree  of  any  court,  have  ceased, 
or  shall  hereafter  cease,  for  the  period  of  one  year,  to  transact  the 
business  for  which  they  were  organized,  shall  be  deemed  and  held 
extinct  in  all  respects  as  if  they  had  expired  by  their  own  limita- 
tion ;  and  the  circuit  court  shall  have  authority,  upon  application, 
by  the  petition  of  the  Auditor  of  State,  or  of  any  person  interested, 
to  fix,  by  decree,  the  time  witbin  which  such  comi^anies  shall  close 
their  concerns ;  Provided,  That  this  section  shall  not  be  construed 
to  relieve  any  such  company  from  its  liabilities  to  the  assured  or 
any  of  its  creditors.     {Ibid,  §  8G.) 

§8.  Insui'ance  com])anies  whose  charters  expire  by  their  own 
limitation,  or  becdme  forfeited  by  non-user,  or  are  dissolved  by  de- 
cree of  court,  or  otherwise,  shall,  nevertheless,  be  continued  bodies 
corporate  for  the  term  of  two  years  after  such  expiration,  forfeiture, 
or  dissolution,  for  the  piu-pose  of  prosecuting  and  defending  suits 
by  or  against  them,  and  of  enabling  them  gradually  to  settle  and 
close  theu'  concerns,  to  dispose  of  and  convey  their  property,  and 
divide  their  capital  stock  and  assets,  but  not  for  the  pur})ose  of  con- 
tinuing the  business  for  which  they  were  organized.  [Ibid,  p.  613, 
§87.) 

80.  When  the  charter  of  any  such  insurance  company  expires, 
is  forfeited  or  annulled,  or  the  corporation  is  restrained  from  further 
prosecution  of  its  business,  or  is  dissolved,  as  hereinbefore  provided, 
the  court,  on  application  of  the  Auditor,  or  of  a  member,  stock- 
holder, or  creditor,  may,  at  any  time  before  the  exi)iration  of  said 
two  j'ears,  appoint  one  or  more  persons  to  be  receivers,  to  take 
charge  of  the  estate  and  effects  of  the  company,  including  such  se- 
curities as  may  be  deposited  with  the  Auditor  or  Treasurer  of  State, 
and  to  collect  the  debts  due,  and  propert3^  belonging  to  it,  with 
power  to  prosecute  and  defend  suits  in  the  name  of  the  cori)oration, 
or  in  their  own  names,  to  appoint  agents  under  them,  and  do  all 
other  acts  necessary  for  the  collection,  marshaling  and  distributing 
of  the  assets  of  the  company,  and  the  closing  of  its  concerns  ;  and 
when  necessary  for  the  final  settlement  of  its  unfinished  business, 
the  powers  of  such  receivers  may  be  continued  as  long  as  the  court 
deems  necessary  therefor.     {Ibid,  §  88.) 

90.  The  receiver  shall  pay  all  debts  due  from  the  company,  if 
the  funds  in  his  hands  are  sufficient  therefor,  and  if  not,  he  shall 
distribute  the  same  rataljly  among  the  creditors  who  ]>rove  their 
debts,  in  such  manner  as  the  court  may  direct,  and  receivers  may 
be  authorized  by  the  court  to  sell,  convey,  and  dispose  of,  and  con- 
vert into  money,  any  of  the  securities  or  assets  of  the  company,  for 
the  purpose  of  paying  such  debts  and  distributing  such  funds.  If 
there  is  a  balance  remaining  after  the  payment  of  the  debts,  the 
receiver  shall  distribute  the  same  among  those  who  are  justly  en- 
titled thereto,  as  members,  stockholders,  or  otherwise,  or  theii'  legal 
representatives.     {Ibid,  §  89.) 

9 1 .  Receivers  of  insurance  companies,  appointed  as  aforesaid, 
shall  report  to  the  Auditor  of  State,  annually,  in  such  manner  as  he 
shall  prescribe,  on  or  before  the  first  day  of  January,  and  as  much 
oftener  as  he  may  direct,  and  such  reports,  or   abstracts   there- 


ILLINOIS.  173 

from,  may  be  incorporated  into  liis  annual  report  on  insurance. 
(I/m/,§90.) 

9ii.  The  compensation  of  receivers,  and  their  expenses,  sliall 
be  determined  by  decree  of  court,  but  shall  not  exceed  the  costs  of 
court,  and  live  per  cent,  of  the  amount  collected  of  any  of  the  assets 
of  the  company.     (Ibid^  §  91.) 

03.  The  mode  of  summoning  parties  into  court,  the  rales  of 
practice,  course  of  procedure,  and  powers  of  courts,  in  cases  arising 
under  this  act,  shall  be  the  same  as  in  ordinary  proceedings  in 
equity  in  this  State,  excei)t  as  herein  otherwise  provided.     {Ibid, 

UNDERWRITERS'  PATROL. 

94.  Boards  of  underwriters  incorporated  by  or  under  the  laws 
or  the  State  of  Illinois,  shall  have  power  to  provide  suitable  rooms 
for  the  accommodation  of  a  fire  patrol,  and  also  to  provide  a  patrol 
of  men  and  a  competent  person  to  act  as  superintendent,  to  discover 
and  i)revent  fires,  with  suitable  apparatus  to  save  and  preserve  pro- 
j)erty  or  life  at  and  after  a  fire  ;  and  the  better  to  enable  them  so  to 
act  with  promptness  and  efliciency,  fuR  power  is  given  such  superin- 
tendent and  such  patrol  to  enter  any  building  on  fire,  or  which  may 
be  exposed  to  or  in  danger  of  taking  fire  from  other  burning  build- 
ings, subject  to  the  control  of  the  fire  marshal  of  the  city,  and  at  once 
proceed  to  protect  and  endeavor  to  save  the  property  therein,  and  to 
remov^e  such  proi^erty,  to  any  part  thereof,  from  the  ruins  after  a 
fire.     {Bevised  Statutes,  1871,^.  1087,  §  1.) 

95.  In  the  month  of  July  of  each  year,  there  shall  be  held  a 
meeting  of  said  Board  of  Underwriters,  of  which  ten  days'  previous 
notice  shall  be  inserted  in  at  least  one  daily  newspaper,  published 
in  the  city  where  said  Board  of  Underwriters  is  located,  at  which 
meeting  each  insurance  company,  corporation,  association,  under- 
writer, agent,  person,  or  persons  doing  a  fire  insurance  business  in 
the  city,  shall  have  the  right  to  be  represented  at  such  meeting  and 
shall  be  entitled  to  one  vote.  A  majority  of  the  whole  number  so 
represented  shall  have  power  to  decide  upon  the  question  of  sustain- 
ing the  fire  X)atrol  hereinbefore  mentioned,  and  of  fixing  a  maximum 
amount  of  expenses  which  shall  be  inciuTcd  therefor  during  the 
fiscal  year  next  to  ensue,  which  amount  shall  in  no  case  exceed  two 
I)er  centum  on  the  aggTegate  of  premiums  returned  as  received,  as 
provided  in  section  3  of  this  act ;  and  the  whole  of  such  amount,  or 
80  much  thereof  as  may  be  necessary,  may  be  assessed  upon  all  in- 
surance companies,  organizations,  corx)orations,  associations,  and 
persons  who  assume  risks  and  accept  premiums  for  fire  insurance  in 
said  city  as  hereinbefore  mentioned,  in  i^roportion  to  the  several 
amounts  of  premiums  returned  as  received  by  each,  as  hereinafter 
provided,  and  such  assessment  shall  be  collectable  by  and  in  the 
name  of  said  Board  of  Underwriters  in  any  court  of  law  in  the  State 
of  Illinois  having  jurisdiction,  in  such  manner  and  at  such  time  or 
times  as  said  Board  of  Underwriters  may  determine.     {Ibid,  §  2.) 

96.  To  provide  for  the  payment  of  persons  employed  under  the 
provisions  of  this  act,  and  to  maintain  suitable  rooms,  and  the  ap- 
paratus for  saving  life  and  property  contemplated,  said  board  of 
underwriteis  is  emi)owered  to  require  a  statement  to  be  furnished 
semi-annually  by  all  insurance  companies,  corporations,  associations, 
underwriters,  agents,  or  persons,  of  the  aggregate  amount  of  ])ve- 


174  niNE'S  INSURANCE  STATUTES. 

miums  received  for  insuring  property  in  the  city  wliere  said  Board 
of  Underwriters  is  organized  or  established,  for  and  during  tlie  six 
months  next  preceding  the  first  day  of  July  and  the  first  day  of 
January  of  each  year,  which  statement  shall  be  sworn  to  by  the 
president  or  secretary  of  the  corporation  or  association,  or  by  the 
agent  or  person  so  acting  and  eflecting  such  insurance  in  said  city, 
and  shall  be  handed  to  the  secretary  of  said  Board  of  Underwriters, 
within  such  time  as  is  hereinafter  provided  in  section  4  of  this  act. 
[Ibid,  §  3.) 

97.  It  shall  be  lawful  for  the  secretary  or  other  appointed 
ofiicer  of  said  Board  of  Underwriters,  within  ten  days  after  the  first 
day  of  July  and  the  first  day  of  January  in  each  year,  by  written  or 
printed  demand,  signed  by  him,  to  require  from  every  insurance 
company,  corporation,  association,  underwriter,  agent,  or  person  en- 
gaged in  the  business  of  fire  insurance  in  the  city  where  said  Board 
of  Underwriters  is  organized  or  established,  the  statement  provided 
for  in  the  last  preceding  section  of  this  act.  Such  demand  may  be 
delivered  personally  at  the  office  of  such  insurance  company,  corpor- 
ation, association,  underwriter,  agent,  or  person ;  and  every  officer 
of  such  insurance  company,  corporation,  or  association,  and  every 
individual  agent,  underwriter,  or  person  who  shall,  for  fifteen  days 
after  such  demand,  neglect  to  render  the  a(;count,  shall  forfeit  fifty 
dollars,  for  the  use  of  said  Board  of  Underwriters,  and  he  shall  also 
forfeit  for  its  use  twenty-five  dollars  in  addition  for  every  day  he 
shall  so  neglect  after  the  expiration  of  the  said  fifteen  days ;  and 
such  additional  penalty  may  be  computed  and  recovered  up  to  the 
time  of  trial  of  any  suit  for  the  recovery  thereof,  which  penalty  may 
be  sued  for  and  recovered,  with  costs  of  suit,  in  any  court  of  law 
within  the  State  of  Illinois,  having  jurisdiction,  by  and  in  the  name 
of  said  Board  of  Underwriters.     {Ibidjp.  1088,  §  4.) 


AESON  AND  INCENDIARISM. 

98.  Every  person  who  shall  willfully  and  maliciously  burn  or 
cause  to  be  burned  any  dwelling-house,  kitchen,  office,  shop,  barn, 
stable,  storehouse,  warehouse,  malt-house,  stilling  house,  factory,  mill, 
pottery,  or  other  building,  the  property  of  any  other  person,  or  any 
church,  meeting-house,  school-house,  state-house,  court-house, 
workhouse,  jail,  or  other  public  building,  or  any  boat  or  other  water 
craft,  or  any  bridge  of  the  value  of  fifty  dollars,  erected  across  any 
of  the  waters  of  this  State,  such  person  so  offending  shall  be  deemed 
guilty  of  arson,  and  upon  conviction  thereof,  shall  be  punished  by 
imprisonment  in  the  penitentiary  for  a  term  not  less  than  one  year, 
nor  more  than  twenty  years ;  and  should  the  life  of  any  person  be 
lost  in  consequence  of  any  such  burning,  such  offender  shall  be 
deemed  guilty  of  murder,  and  punished  accordingly.  {Revised 
Statutes,  1874,  p.  354,  §  13.) 

99.  Whoever  willfully  and  maliciously  burns  or  sets  fire  to,  or 
causes  to  be  burned  or  set  on  fire,  any  building,  or  any  goods,  wares, 
merchandise,  or  other  chattels  which  are  at  the  time  insured  against 
loss  by  fire,  with  intent  to  injiu-e  the  insurer,  whether  such  person  is 
the  owner  of  the  property  burned  or  not,  shall  be  imprisoned  in  the 
penitentiary  not  less  than  one  nor  more  than  ten  years.     {Ibid,  §  14.) 

100.  Whoever  willfully  and  maliciously  burns  or  causes  to  be 
burned,    any  barrack,    cock,    crib,  rick,  or   stack  of  hay,    corn, 


ILLINOIS.  175 

wheat,  oats,  barley,  or  other  grain,  or  vegetable  product  of  any  kind, 
or  any  pile  of  coal,  wood,  or  other  fuel,  or  any  pile  of  boards,  plank, 
posts,  rails  or  other  lumber,  or  any  personal  i^roperty  whatever,  of 
another,  shall  be  imprisoned  iu  the  penitentiary  not  less  than  one 
nor  more  than  six  years.     {Ibid,  §  15.) 

101.  Whoever  willfully  or  maliciously  sets  fire  to,  or  attempts 
to  set  fire  to  any  of  the  buildings  or  other  property  mentioned  in 
sections  thirteen  and  fifteen  above,  with  intent  to  burn  or  destroy 
the  same,  shall  be  imprisoned  in  the  penitentiary  not  exceeding  two 
years,  and  fined  not  exceeding  five  thousand  dollars.     {Ihid,  §  16.) 

1 02.  If  the  owner,  lessee,  or  occupant  of  any  of  the  buildings 
or  property  mentioned  in  sections  thirteen  and  fifteen  of  this  act,  sets 
fire  or  attempts  to  set  fire  to  or  burn  the  same,  with  intent  to  set 
on  fixe  or  burn  the  building  or  property  of  another,  he  shall  be 
deemed  guilty  as  if  the  property  so  set  on  fire,  or  attempted  to  be  set 
on  fire  or  burned,  were  owned  or  occupied  by  another.     {Ibid,  §  17.) 

103.  For  General  Provisions  relating  to  Corporation,  see  Ke- 
vised  Statutes,  1874,  pp.  285,  296 ;  Laws  of  1875,  pp.  65,  66. 


INDEX   TO   INDIANA. 


PAGE 

Agent — 

Embezzlement  by  (76) 191 

Of   Foreign  Companies  must  Furnisli 

Statement    and    Procure    Certificate 

(61,  G2) 186,  187 

Of  Foreign    Companies   mnst    lletain 

Funds  wtien  Losi  Occurs  ( 64 ) 188 

Annual  Keports  CiS,  57,61,62) 181,  185, 

183,187 
Arson — 

Crime  and  Penalty  of  (  7  -4 ) 190 

In  Case  of  Insured  Property  (75) 190 

Auditor — 

Fees  for  Certificate  (1  7j 180 

Fees  from  Foreign  Companies  (63) 188 

May  Deliver  Securities  wben  (71 ) 189 

Shall     Certify    concerning    Company, 

when  (15) 179 

Shall  have  Custody  ot  Securities  (18)..  180 
Shall  KegistiT  Stocks  and  Receive  Fees 

(27) 181 

Shall    Deliver    Securities    to  Receiver 

(32) 1S2 

Shall  Grant  Certificates  to  Agents  (.61,     . 

62) ]8J,  187 

To  Proceed  against  Company  in  Cer- 
tain Cases  (29) 182 

When  Capital  is  Increased  (25) 181 

When    Company    is    Unable    to    Pay 
Losses  (25) 181 


C.U>1TAL — 

Amount  of  (5) 

How  Paid  (14) 

Increase  of  (25) 

Certificate — 

Of  Incorporation,  Fees  for  (17) 

Of  Incorporation,  how  Secured  (16)... 

Of  Increase  of  Capital  (25) 

Charter,  Proceedings  as  to  Forfeiture  (29- 

31) 

Corporations- 
Dues  from,  How  Secured  (2) 

General  Provisions  Concerning  (77). .. 

Must  Organize  under  General  Laws  (1) 

Deposit  of  Securities  (15,1 8-21,  25,71) 

180,  181, 
Detective  Ins.  Cos.  Excepted  from  Certain 

Conditions  (61) 

Directors — 

Individual  Liability  of  (36,  38,  50, 

51) 182,  183,  18-1, 

Musi  Render  Triennial  Statements  (39) 


178 
179 
181 

180 
180 
181 

182 

178 
191 
178 

179, 
189 

186 


185 
183 


Dividends — 

Guarantee  Fund  must  be  Provided  from 
(20,  21,25) 180,181 

Of  Mutual  Foreign  Insurance  Compa- 
nies (56) 185 

When  Stock  is  not  Paid  in  (3  8) 1 83 

EiiUEZZLEiiENT,  Crime  and  Penalty  of  (76)  191 
Evidence,  Copies  of  Auditor's  Papers  (65).  188 

Fees  — 

For  Granting  Certificate  of  Incorpora- 
tion (17) 180 

From  Foreign  Companies  (63) 188 

Of  Auditor  as  Custodian  of  Securities 

(27) 181 

Foreign  Insurance  Companies— 

Atrent  must  Furnish  Statement   (61, 

62) 186,  187 

Agent  must  Retain  Funds  when  Loss 

Occurs  (64) 188 

Annual  Statement  (61,  62) 186,187 

Capital  of  (61,  62) 186,187 

Charter  and  Statement  must  be  Filed 

(61,62) 186,187 

Evidence  Concerning  (65) 188 

Fees  (63) 188 

Shall    not    Insert   Certain    Conditions 
(66) 188 

Guarantee  Fund- 
How  Formed  (16-21)  180 

When  Unable  to  Pay  Losses  (25) 181 

Horse  Insurance  Companies  Excepted  from 

Certain  Provisions  (61) 196 

INSOLVKNCV,  Proceedings  in  Case  of  (29, 

34) 182 

Insurance  Company — 

Amount  of  Capital  (5) 178 

Auditor  shall  Certify,  when  (15) 179 

Annual  Statement  (28) 181 

Appointment   and  Duty   of    Receiver 

(31-34) 182 

Capital,  How  Paid  (14) 179 

Corporate  Powers  (12) 179 

Charters  not  Organized  Repealed  (58).  186 
Deposits  with  Auditor  (16,  18,  19)..  180 

Depreciation  of  Deposit  (21) 180 

Directors,    when    Individually    Liable 

(36,38) 182,183 

Directors  mnst  Render  Triennial  State- 
ments (39) 183 

Directors  and  Ofiicers  (6-9) 178,  179 


INDEX   TO   INDIANA. 


177 


PAGE 

Insurance  Company  (Continued) — 

Fees  for  Certificate  (17) 180 

Forfeiture  of  Charter  (29,  30> 182 

Guarantee  t'und,  how  Formed  (29)...  182 
How  Created— Subscriptions  to  Stock 

(3,  5) 178 

Increase  of  Capital  (25) 181 

Limitation  of  Risk  (37) 183 

Losses,  how  Settled  (23-25) 181 

May  Insure,  what  (22) 180 

May  Reinsure  and  Close  Business  (70- 

72) 189 

May  not  Trade  in,  what  (26) 181 

Purchase  and  Sale  of  Real  Estate  (13)  179 

Policies,  how  Made  (23) 181 

Quorum  (11) 179 

Special  Meetings  (10) 179 

Secretary  of  State  Certificate  (16) 180 

Shall  not  Issue  Bank  Notes  (35) 183 

(See   Mutual   and   Foreign    Insurance 

Companies) 

Insured  Property — 

Crime  and  Penalty  for  Burning  (75). . .  190 
Crime  and  Penalty  for  Fraudulent  Loss 

Proofs  (76) 191 

Losses— 

Agent  must  Retain  Funds  (6-1) 188 

Crime    and    Penalty    for    Fraudulent 

Proofs  of  (73) 190 

How  Settled  (23,  21:) 181 

Policies  shall  not  Contain  Certain  Pro- 

■visions  (66) 188 

When  Company  is  Unable  to  Pay  (25).  181 

MnTUAL  Fire  Insurance  Companies — 

Annual  Report  (57) 185 

Cash  Accumulation  mnst  be  Made  (56)  185 

Dividends  may  be  Declared  (56) 185 

Directors,  Liability  of  (50) 184 

Directors  and  OflScers,  Election  of  (4 1 , 

43) 183 

Funds,  how  Invested  (48) 184 

Liability  on  Premium  Note  (47) 184 

May  Insure  what  (44) 183 

May  Commence  Business,  when  (44)  ..  183 

Must  keep  Records  (42) 183 

Powers  and  Duties  (40) 183 


PAGE 

Mutual  Fire  Insurance  Cos.  (Continued) — 

Policy  shall  be  a  Lien  (53) 185 

Premium  Notes,  when  Assessed  (48, 

49) ]f4 

Premium,  how  Paid  (47) ]  84 

Policies,  how  Made  (45) 184 

Recovery  on  Lieu  (54,  55) 185 

Recovery  trom  Directors  or  Treasurer 

(51) 185 

Treasurer,  when  Liable  (52) 185 

Who  shall  bo  Members  (46,  47) 184 

(See  Insurance  Companies) 

Mutual  Life,  Health,  and  Accident  Cos. — 

How  Organized  (59) 186 

May  Insure  what  (58,  59) lg() 

May  Receive  full  Amount  of  Premiums 

(59) 186 

Penalty — 

For  Embezfilement  (76) 191 

For  Injuring  Insured  Property  (75).. .   190 
For  Making  False  Statement  of  Loss 

('3'3) 190 

For  Violation  of  Act  by  Agent  (67)...  189 

Policies — 

How  Made  (23,  45) 181,  184 

Of  Mutual  Companies,  a  Lien  (53-55)  195 
Premium  Notes  to  be  Given  for  (47) . . .  184 
Shall  not  Contain  Certain  Conditions 
(66) 188 

Premium  Notes- 
Amount  Required  by  Mutual  Cos.  (44)  183 

Assessment  of  (48,  49) 184 

Liability  in  case  of  Non-payment  (4  7).  184 

Policies,  a  Lien  to  Secure  (53-55) 185 

To  be  Given  for  Policies  (47) 184 

Real  Estate,  Purchase  and  Sale  of  (1  3) . . .  179 
Receiver,  Appointment  and  Duties  of  (31- 

34) 182 

Reinsurance  to  Wind  up  Business  (70-72)  189 
Risk,  Limitation  of  (37^ 183 

Seceetart  of  State- 
Fees  of  (1 7 ) 188 

Shall  Grant  Certificate  (16,  25)..  180,  181 

Stocks,  Auditor  shall  Keep  Registry  of  (27)  181 

Winding  up  of  BusinesB  (70-72) 189 


12 


INSURANCE  STATUTES  OF  INDIANA. 


Revised  by  John  A.  Finch,  Esq.,  of  the  Indianapolis  Bar. 


CDNSTITUTIOI^AL  PROVISIONS  CONCERNING  CORPORA- 
TIONS. 

1.  Corporations  other  than  banking  shall  not  be  created  by 
special  act,  but  may  be  formed  under  general  laws.     {Art.  11,  §  13.) 

S.  Dues  from  corporations  other  than  banking  shall  be  secured 
by  such  individual  liability  of  the  corporators,  or  other  means,  as 
may  be  prescribed  by  law.     {Art.  11,  §  14.) 

3.  When  any  number  of  persons,  not  less  than  nine,  shall  as- 
sociate themselves  together  for  the  purpose  of  organizing  an  insur- 
ance company,  they  shall  designate  three  persons  to  act  as  commis- 
sioners, to  superintend  and  receive  subscriptions  to  the  capital 
stock  of  such  company,  and  such  commissioners  shall  first  give 
twenty-one  days'  notice  in  one  or  more  newspapers  published  in  the 
counties  where  the  subscription  books  are  proposed  to  be  opened, 
stating  therein  the  time  and  place,  or  places  of  receiving  such  sub- 
scriptions.    {Revised  Statutes,  1  G.  d;  K,  18G2,  p.  389,  §  1.) 

4.  The  capital  stock  of  any  insurance  company  organized  un- 
der this  act  shall  not  be  less  than  one  hundred  thousand  dollars,  in 
shares  of  fifty  dollars  each  ;  but  such  capital  stock  maybe  increased 
to  an  amount  not  exceeding  five  hundred  thousand  dollars,  by  a 
vote  of  two-thirds  of  the  directors.     {Ibid,  §  2.) 

5.  The  commissioners  shall  attend  at  the  time  and  place  or 
places  specified  in  such  notice,  and  open  books  for  subscription  of 
stock,  and  any  person,  company,  or  corporation  may  subscribe  the 
same,  and  shall  pay  at  the  time  of  such  subscription,  two  dollars  on 
each  share.  The  books  may  be  closed  when  the  whole  of  the  capital 
stock  is  subscribed,  but  not  otherwise,  and  when  a  board  of  directors  is 
elected,  as  hereinafter  provided,  said  commissioners  shall  deliver  to 
such  board  tfie  books  and  money  paid  in  upon  subscriptions  as  afore- 
said.    {Ibid,  §  3.) 

6.  The  business  of  every  such  company  shall  be  managed  and 
conducted  by  not  less  than  seven,  nor  more  than  thirteen  dirrectors, 
who  shall  also  be  stockholders,  one  of  whom  shall  be  president  of 
the  company ;  and  they  shall  hold  offices  for  one  year,  and  until 
others  are  chosen  and  qualified  in  their  stead.     {Ibid,  p.  390,  §  4.) 

7.  Such  companies  shall  elect  annually,  or  oftener,  a  secretary, 
who  shall  be  clerk  of  the  comi)any,  and  shall  be  sworn  to  the  faith- 
ful discharge  of  his  duty ;  and  he  shall,  in  addition  to  his  other  offi- 
cial duties,  keep  a  true  record  of  all  the  votes  of  the  stockholders 
and  of  the  directors,  and  a  true  list  of  the  stockholders,  and  the 
number  of  shares  held  by  each  one,  and  shall  make  proper  entries 
of  every  transfer  of  shares,  in  a  book  to  be  by  him  kept  for  that  pur- 
pose.    {Ibid,  §  5.) 


INDIANA.  179 

8.  The  directors  shall  be  chosen  by  the  stockholders  once  in 
each  year,  at  such  time  and  place,  and  in  such  manner  as  shall  be 
provided  in  the  by-laws  of  the  company ;  all  elections  slnill  be  by  bal- 
lot ;  absent  stockholders  may  vote  by  proxy,  authorized  in  writing ; 
twenty  days'  notice  shall  be  given  of  all  elections,  and  of  annual  or 
special  meetings.     {Ibid,  §  0.) 

9.  The  directors  shall  choose  from  their  humber,  one  person  to  be 
president,  and  one  to  be  vice-president,  who  shall  be  sworn  to  perform 
faithfully  the  duties  of  then-  respective  offices,  and  every  vacancy  in 
the  ofUce  of  president,  or  vice-president,  and  directors,  that  may 
occur  shall  be  tilled  by  a  new  election,  as  hereinbefore  prescribed. 
(Ibid,  §  7.) 

10.  Special  meetings  shall  be  called  by  the  secretary  or  clefk 
of  the  company,  upon  the  written  application  of  the  owners  of  one- 
tifth  of  the  capital  stock,  to  be  held  at  such  time  and  place  as  he 
shall  direct  for  the  i)uri)oses  set  forth  in  such  application.    [Ibid,  §  8.) 

11.  A  ma-jority  of  the  directors  shall  constitute  a  quorum  to 
do  business ',  and  all  questions,  unless  otherwise  provided,  shall  be 
decided  by  a  majority  vote  of  those  present.     {Ibid,  §  9.) 

12.  All  i)ersons  who  are  stockholders  in  any  such  insurance 
company  are  hereby  constituted  and  declared  a  body  politic  and 
corporate,  by  such  name  and  style  as  the  company  may  adopt,  to 
continue  thirty  years  from  and  after  the  organization  of  the  same. 
{Ibid,  §  10.) 

1 ;{.  Such  company  may  acquire  and  hold  real  estate  necessary 
for  the  transaction  of  its  business,  to  an  amount  at  any  time  not 
exceeding  thirty  thousand  dollars,  and  may  take  and  hold  real  estate 
or  securities  mortgaged  or  pledged  for  the  payment  of  any  debt 
due  or  becoming  due ;  and  also  purchase  on  sales  made  by  virtue  of 
any  judgment  or  decree  of  any  court,  in  such  comi^any's  favor ;  and 
may  take  and  receive  real  estate  in  payment,  or  in  part  satisfaction 
of  any  debt  previously  contracted  or  due ;  but  all  real  estate  other 
than  that  retained  for  the  transaction  of  its  business  shall  be  sold 
and  converted  into  money  or  stocks,  as  soon  as  the  same  can  be 
done  advantageously ;  Provided,  Such  company  shall  be  required  to 
offer  said  real  estate  once  in  every  two  years  at  j)ublic  auction  to 
the  highest  bidder.     {Ibid,  §  11.) 

14.  The  capital  stock  of  such  company  shall  be  paid  in  within 
eighteen  months  Irom  the  time  of  its  subscription,  in  such  sums  as 
the  directors  may  require ;  and  such  stock  shall  be  transferable 
and  assignable  on  the  books  of  the  company,  in  such  manner  as  the 
by-laws  may  prescribe.     {Ibid,  p.  391,  §  12.) 

15.  Whenever  the  president  and  directors,  or  a  majority  of 
them,  shall  certify'  under  oath,  before  an  officer  entitled  to  adminis- 
ter the  same,  that  one-half  of  the  capital  stock  is  actually  paid  in, 
and  a  moiety  of  said  half  has  been  invested  in  solvent  stocks,  and 
shall  produce  the  subscription  books,  verified  by  the  oath  of  the 
commissioners  superintending  such  subscriptions,  the  Auditor  of 
the  State,  if  upon  inspection  of  such  books,  certificate,  and  stock 
securities,  and  all  other  matters  connected  therewith,  shall  be  satis- 
fied that  the  requirements  of  this  act  have  been  complied  with, 
upon  the  deposit  of  the  stock  securities  aforesaid  in  his  oflBce,  shall 
give  a  certified  statement,  directed  to  the  Secretary  of  State,  setting 
forth  the  name  of  the  company,  the  amount  of  its  capital  stock, 
the  amount  and  descrii)tion  of  its  stock  securities,  and  the  principal, 
place  of  business  of  such  company.     {Ibid,  §  13.) 


180  hine's  insurance  statutes. 

1 6.  Siicli  statement  shall  be  filed  in  tlie  office  of  tlie  Secretary 
of  State,  and  that  officer  shall  give  to  such  company  or  authorized 
agent  thereof  a  certificate  of  incorporation,  under  his  seal  of  office, 
declaring  the  corporate  name  of  such  company,  the  amount  of  their 
capital  stock,  and  of  securities  deposited,  and  shall  authorize  such 
company,  from  and  alter  the  date  thereof,  to  issue  policies  of  insur- 
ance, according  to  tbe  true  intent  and  meaning  of  this  act;  and 
such  certificate  shall  be  conclusive  evidence  of  the  validity  of  its 
organization.     {Ihid,  §  14.) 

I'S^.  The  Auditor  shall  be  entitled  to  five  dollars  for  the  exami- 
nation and  statement,  and  the  Secretary  to  two  dollars  for  the  cer- 
tificate of  incorporation,  which  shall  be  paid  b}^  the  coii.pany. 
{Ibid,  §  15.) 

1  !*i.  The  stocks  thus  deposited  shall  remain  in  the  office  of  the. 
Auditor  of  State,  who  is  hereby  charged  with  the  custody  of  the 
same,  and  shall,  upon  the  application  of  the  company  entitled 
thereto,  give  powers  of  attorney  to  receive  the  interest  or  dividends 
of  such  securities  when  due  or  made,  except  as  hereinafter  provided. 
The  company  holding  the  same  may  withdraw  a  portion  of  such 
stocks  upon  substituting  other  securities  of  like  class  or  nature, 
with  the  consent  of  the  Auditor.     {Ihid,  §  16.) 

1  li^.  Such  securities  shall  constitute  a  gimrantee  fund,  which 
shall  be  for  the  benefit  of  tbe  insured  in  such  company,  and  the 
proceeds  of  the  sale  thereof  shall  be  a^jplied  as  herein  named,  and 
in  the  following  order  and  for  no  other  purpose  whatever : 

First. — To  the  i)ayment  of  losses  inciuTed  by  the  assiu^ed,  under 
any  policy  made  by  such  company. 

Second. — The  payment  of  laborers,  artificers,  and  other  persons  in 
tbe  employ  of  such  company. 

Third.— The  payment  of  the  trusts  held  and  reduced  to  possession 
by  such  company. 

Fourth.— The  payment  of  all  other  debts  and  liabilities  owing 
from  such  company,  but  the  proceeds  of  such  securities  sball  in  all 
cases  be  applied  ratably  to  the  class  first  in  order,  and  the  remain- 
der, if  any,  to  the  other  classes  in  their  succession,  as  herein  defined, 
and  not  otberwise.     {Ibid,  §  17.) 

20.  Such  company  shall,  before  any  dividends  declared  upon 
the  capital  stock  thereof  are  paid  over  to  the  holders  of  the  same, 
retain  five  per  ceut.  on  all  such  dividends,  and  ^vithin  six  months 
thereafter  shall  cause  the  sum  thus  retained  to  be  invested  in  solvent 
stocks,  as  heretofore  provided,  and  deposit  them  with  the  Aiulitor  of 
State.  Such  stocks  shall  be  added  to  and  constitute  a  part  of  the 
guarantee  fund,  but  shall  not  be  considered  any  portion  of  the 
capital  stock  of  such  company.     {Ibid, p.  392,  §  18.) 

S 1 .  Whenever  any  of  the  stocks  thus  deposited  have,  in  the 
estimation  of  the  Auditor  of  State,  fallen  below  the  value  at  which 
they  were  received,  such  officer  shall  give  notice  to  the  comijany 
making  such  deposit  of  such  depreciation,  and  require  the  said 
company  within  sixty  days  from  the  date  thereof,  to  deposit  other 
stock  securities  to  an  amount  equal  to  such  depreciation  or  defi- 
ciency.    {Ibid,  §  19.) 

Q*2.  Every  such  company  may  make  insurances  upon  vessels, 
freight,  money,  goods,  and  effects,  on  the  lii'e  or  health  of  any 
person,  or  on  money  lent,  upon  bottomry  or  respondentia;  and 
they  may  also  make  insurance  against  fire  on  any  dwelling-house  or 
other  building,  merchandise,  or  other  property  within  the  United 
States.     {Ibid,  §  20.) 


INDIANA.  181 

2J{.  All  policies  of  insurance  made  by  sucli  companies,  shall  be 
subscribed  by  the  jiresident,  or  if  he  be  dead,  or  unable  i'rom  any 
cause,  then  by  the  vice-president,  and  countersigned  by  the  secre- 
tary thereof.  All  losses  arising  under  any  policies  so  executed  shall 
be  adjusted  and  settled  by  the  president  and  board  of  directors. 
{Thid,  §  21.) 

24.  WTienever  such  company  shall  be  notified  of  any  loss  sus- 
tained on  a  policy  of  insurance  issued  by  them,  the  company  shall 
pay  the  amount  so  lost  within  sixty  days  after  such  notice,  under  a 
penalty  of  ten  per  centum  damages  for  every  thirty  days  such  loss 
remains  unpaid  thereafter.     [Ihid,  §  22.) 

•25.  Whenever  the  cash  means  of  such  company  are  insufficient 
to  pay  the  losses  incurred  on  any  policy  of  insurance,  the  secretary 
thereof  f^hall  immediately  notify  the  Auditor  of  State  of  such  fact, 
and  such  Auditor  shall,  within  thirty  days  after  such  notice,  if 
practicable,  sell  at  either  public  or  i^rivate  sale  so  much  of  said 
stock  as  shall  be  required  to  pay  the  losses  as  aforesaid.  Such 
company  shall  not  declare  any  dividends  thereafter  until  the  defi- 
ciency created  by  such  sale  has  been  made  good  by  the  net  earnings 
of  the  corporation,  and  the  same  is  converted  into  stocks  and 
deposited  with  the  Auditor  as  hereinbefore  provided;  but  such 
Auditor  or  any  stockholder  of  such  company  shall  not,  directly  or 
indirectly,  be  the  purchaser  of  any  of  the  stocks  sold  in  conformity 
to  the  provisions  of  this  act.  Whenever,  by  a  vote  of  the  directors, 
as  specified  in  section  second,  the  capital  stock  in  such  company  is 
increased,  one-half  of  such  increase  shall  be  invested  in  stocks  as 
aforesaid  and  deposited  with  the  Auditor  of  State,  within  twelve 
montlis  from  the  date  of  the  order  or  resolution  of  such  board  of 
directors,  and  such  deposit  shall  be  accompanied  with  a  statement 
under  oath,  signed  by  a  majority  of  such  directors,  that  the 
increased  capital  is  paid  into  the  treasury  of  such  company,  or 
secured  to  be  paid  in,  and  it  shall  be  the  duty  of  the  Auditor  in  like 
manner  as  ui)on  the  original  deposit  and  statement  of  such  com- 
pany-, to  certify  the  same  to  the  Secretary  of  State,  whose  certificate 
shall  be  evidence  of  the  increase  of  such  capital  stock.     {Ibid,  §  23.) 

36.  Such  companies  shall  not,  directly  or  indirectly,  deal  or 
trade  in  buying  or  selling  goods,  wares,  merchandise  (stocks),  or 
other  commodities  whatever,  except  as  herein  i^rovided.  {Ibid, 
p.  393,  §  24.) 

27.  The  Auditor  of  State  shaU  keep  a  registry  of  stocks,  in 
which  he  shall  note  the  date,  description,  to  whom,  and  by  what 
company  issued,  the  amount  thereof  and  value  of  the  same.  He 
shall  receive  for  his  services  one  dollar  for  every  x)ower  of  attorney, 
and  the  half  of  one  per  cent,  on  all  the  stocks  sold  by  him,  and  ten 
cents  per  hundred  words  for  all  copies  of  records,  and  all  records 
made  in  the  pertbrmance  of  the  duties  herein  enjoined,  which  fees 
shall  be  i)aid  him  by  the  proper  company.     {Ibid,  §  25.) 

28.  The  board  of  directors  of  every  such  company  shall,  bj^ 
the  first  Monday  in  January  of  each  year,  file  with  the  Auditor  of 
State  a  statement  verified  by  oath  and  signed  by  a  majority  of 
them,  which  shall  be  attested  by  the  secretary,  setting  forth  the 
amount  of  capital  stock  and  how  the  same  is  invested  ;  the  number 
of  policies  issued  and  the  amount  insured ;  the  nature  and  kind  of 
risks  taken ;  the  losses  sustained  and  the  condition  of  the  guaran- 
tee fund  ;  and  shall  imblish  the  same  in  some  paper  printed  m  the 
State  nearest  to  their  prmcipal  office  in  business.     {Ibid,  §  20.) 

29.  If  such  company  fail  to  report  as  provided  in  the  i)reced- 


182  hine's  insurance  statutes. 

ing  section,  or  shall  fail  to  deposit  additional  stock  securities  as 
herein  before  provided,  when  notified  so  to  do  by  the  Auditor  of 
State,  or  to  deposit  stocks  created  by  the  five  per  cent,  assessment 
upon  dividends,  as  required  by  section  eighteen,  or  if  such  company 
shall  lad  to  pay  losses  to  the  assured  upon  any  policy  of  insurance 
issued  by  tliem,  within  sixty  days'  notice  of  the  same,  unless  the 
payment  is  contested,  or  the  Auditor  is  properly  notified  of  the 
insufficiency  of  cash  means  to  pay  such  losses  as  hereinbefore  pro- 
vided; or  if  the  guarantee  fund  is  exhausted  or  inadequate  to  meet 
losses,  the  Auditor  of  State  shall,  in  either  such  case  of  neglect  or 
failure  or  cause  specified,  notify  the  prosecuting  attorney  of  the 
circuit  court  in  the  county  in  which  the  principal  office  of  such 
company  is  situate  of  the  facts  in  relation  thereto.     {Ihkl,  §  27.) 

30.  Such  prosecuting  attorney  shall  file  an  information  in  the 
name  of  the  State  of  Indiana  with  the  clerk  of  the  circuit  court 
in  such  county,  requiring  such  company  to  show  cause  why  their 
rights  of  incorporation  herein  derived  shall  not  be  forfeited ;  and 
notice  of  such  proceedings  shall  be  given  by  proper  process  upon 
the  secretary  of  such  company  at  least  ten  days  prior  to  the  term 
of  such  court,  or  in  his  absence  upon  the  president  thereof,  or  if  the 
president  be  absent,  then  by  publication  of  notice  for  three  weeks 
successively  before  the  commencement  of  such  term  in  any  news- 
paper printed  in  such  county,  or  if  none,  then  in  a  newspaper  in 
this  State  nearest  thereto.     {Ibid,  §  28.) 

31.  Upon  the  hearing  of  such  cause,  if  the  court  shall  give 
judgment  against  the  company,  such  court  shall  appoint  some  dis- 
interested person  as  receiver,  who  shall  give  bond  with  sureties  in 
the  x>enal  sum  as  the  court  may  direct,  and  thereupon  shall  imme- 
diately take  possession  of  the  assets,  both  real  and  personal,  of 
such  company.     {Ibid,  p.  394,  §  29.) 

3*S.  The  Auditor  of  State  shall,  upon  the  proper  demand  of  the 
receiver,  deliver  to  him  the  stocks  of  such  company  deposited  in 
his  office,  but  the  order  of  such  delivery  shall  be  made  by  the  court, 
and  a  copy  of  such  order,  certified  by  the  clerk  thereof,  shall  be  first 
served  upon  such  Auditor  by  the  receiver.     {Ibid,  §  30.) 

33.  The  court  shall  make  such  order,  fi^om  time  to  time  in  the 
premises,  not  inconsistent  with  this  act,  for  the  conversion  of  such 
assets  into  money,  and  the  distribution  thereof,  among  the  creditors 
of  such  company,  as  shall  best  conduce  to  justice  and  right ;  but 
such  distribution  shall  conform  to  the  provisions  of  section  seven- 
teen, and  the  entire  assets  shall  be  jmid  to  creditors  in  the  order 
there  directed.     {Ibid,  §  31.) 

34.  The  receiver  shall  make  report  at  each  and  every  term  of 
the  said  circuit  court  of  his  doings  in  all  matters  relating  to  his 
trust,  and  shall  at  the  term  next  following  his  appointment,  report 
specifically  the  kind  and  amount  of  all  assets  in  his  hands,  and 
their  probable  value.  In  the  final  settlement  of  his  account  the 
court  shall  direct  the  payment  to  him  of  such  sums  out  of  the  as- 
sets as  shall  be  deemed  an  equitable  compensation  for  his  services. 
{Ibid,  §  32.) 

3*5.  I^othing  in  this  act  shall  confer  in  any  insurance  company 
the  right  to  issue  notes  similar  to  bank  notes  for  the  i^urpose  of  a 
circulating  medium.     {Ibid,  §  33.) 

315.  If  any  company  shall  be  under  liability  for  losses,  to  an 
amount  equal  to  three-fourths  of  their  capital  stock,  and  the  presi- 
dent and  directors,  with  knowledge  of  the  same,  shall  make  new  or 


INDIANA.  183 

further  insurance,  the  estates  of  such  assenting  directors  shall  be 
iointly  and  severall}'  liable  for  the  amount  of  any  loss  which  shall 
take  place  under  such  insurance,  and  whenever  the  means  of  such 
company  are  exhausted,  the  estates  of  stockholders  shall,  for  all 
losses,  be  liable  to  an  amount  equal  to  their  respective  shares  of 
capital  stock.     {Ibid,  §  34.) 

37.  No  company  shall  take  on  any  (me  risk,  of  whatever 
nature,  a  sum  exceeding  one-tenth  part  of  their  capital  actually 
paid  in.     [Ibid,  §  35.) 

38.  In  case  of  any  loss  whereby  the  capital  stock  of  any  com- 
pany shall  be  lessened  before  all  the  installments  are  paid  in,  each 
stockholder's  estate  shall  be  held  liable  for  the  installments  thus 
unpaid,  at  the  time  of  such  loss  ;  and  no  dividend  shall  hereafter 
be  made,  until  a  sum  arising  from  the  profits  out  of  tlie  business 
of  the  company,  or  otherwise  contributed,  equal  to  such  diminution, 
shall  have  been  added  to  the  capital.     {Ibid,  §  36.) 

39.  Once  in  every  three  years,  and  oftener  if  required  by  the 
stockholders,  the  directors  shall  lay  before  them  at  a  meeting,  an 
exact  and  detailed  statement  of  the  profits,  if  any  there  be,  particu- 
larizing the  losses  sustained,  and  dividends  made,  and  deducting 
them  therefrom.     {Ibid,  2).  395,  §  37.) 

MUTUAL  FIEE  INSURANCE  COMPANIES. 

40.  All  mutual  fire  insurance  companies,  and  all  officers  by 
them  elected,  may  exercise  the  powers,  and  shall  be  subject  to  the 
duties  and  liabilities  contained  in  the  foregoing  sections  of  this  act, 
except  as  herein  pro\ided.     {Ibid,  §  38.) 

4 1 .  Every  such  corporation  shall  annually  elect  a  secretary  and 
not  less  than  five  directors,  and  the  directors,  in  like  manner,  shall 
elect  a  president  and  vice-president,  as  heretofore  provided  in  the 
case  of  other  insurance  companies,  and  shall  also  elect  a  treasurer, 
who  shall  give  bond  in  such  sum  as  such  directors  shall  order.  No 
one  member  shall  be  allowed  more  than  five  votes  at  any  election, 
but  absent  members  may  vote  by  proxy,  authorized  in  writing,  ana 
that  the  officers  of  the  company  may  have  time  to  examine  the  list 
of  policy-holders  and  see  who  are  members,  and  the  number  of 
votes  each  proxy  is  entitled  to.  Such  proxy  shall  set  forth  the 
number  of  policy,  and  the  amount  insured  by  the  same,  and  such 
policy,  [proxj\]  or  a  duplicate  of  the  same,  shall  be  placed  on  file 
with  the  secretary  of  the  company  at  least  ten  days  in^evious  to  the 
day  of  any  election.     {Ibid,  §  31),  as  amended  by  hues  of  1SG5,2J.  112.) 

4*1.  There  shall  be  kept  a  true  record  of  all  the  votes  of  the 
corporation,  and  of  the  directors,  and  of  all  the  policies  issued  by 
the  company,  and  of  all  assignments  of  such  policies  assented  to  by 
them,  which  shall  be  open  to  the  inspection  of  any  person  interested 
therein.     {Ibid,  §  40.) 

43.  All  the  officers  of  such  corporations  shall  hold  their  offices 
one  year,  and  until  others  are  chosen  and  qualified,  and  vacancies 
may  be  filled  by  a  special  election.     {Ibid,  §  41.) 

44.  When  applications  for  insur.ance,  in  which  there  shall  be 
taken  not  less  than  fifty  thousand  dollars,  in  bona  ji'le  premium 
notes,  by  any  such  company,  and  proof  of  the  same  is  furnished  to 
the  Auditor  of  State,  the  books  containing  the  same,  verified  by  the 
secretary  of  the  company,  and  examined  and  a])provrd  by  him,  as 
evidence  by  his  certificate,  such  company  may  issue  policies  of  in- 
surance and  renewals  on  the  same,  for  a  term  not  exceeding  seven 


184  hike's  insurance  statutes. 

years,  against  loss  or  damage  by  fire,  lightning,  or  tornado,  upon 
any  dwelling-bouse  or  other  buildings,  merchandise,  or  other  pro- 
perty, within  the  United  States.  {Ibid,  §  42,  as  amended  by  laics  of 
18G5,i).  113.) 

45.  All  policies  of  insurance  made  by  such  corporation  shall  be 
subscribed  by  the  president,  and  countersigned  by  the  secretary, 
and  shall  be  binding  upon  the  corporation  as  if  executed  under  theii* 
corporate  seal.     {Ibid,  §  43.) 

46.  Every  person  insured  by  any  such  company  shall  be  a 
member  thereof  as  long  as  he  shall  be  so  insured.     {Ibid,  §  44.) 

47.  Every  j)erson  who  shall  become  a  member  of  such  com- 
pany shall,  before  receiving  a  policy,  deposit,  his,  her,  or  their  pro- 
missory note,  as  a  premium  note,  and  shall  pay  such  further  consid- 
eration, on  or  before  receiving  the  policy,  as  may  be  agreed  upon, 
and  such  note  shall  be  payable,  in  whole  or  in  part,  when,  on  any 
assessment,  the  directors  may  require  the  same.  But  should  any 
person  insuring  in  such  company  so  desire,  they  can  pay  a  definite 
consideration  in  lieu  of  giving  a  premium  note,  and  in  this  case,  the 
person  so  insured  shall  not  be  deemed  a  member,  nor  entitled  to 
participate  in  the  accumulations  of  the  company,  and  such  company 
may,  if  it  so  desire,  take  a  promissory  note  for  the  cash  premium,  for 
such  length  of  time,  on  any  policy,  as  may  be  agreed  upon,  and  if 
such  i)romissory  note  shall  remain  unpaid,  and  it  becomes  due,  the 
comj)any  shall  not  be  held  responsible  for  any  loss  or  damage  that 
may  take  place  under  any  policy  for  which  such  note  was  given. 
{Ibid,  §  45,  as  amended  by  laws  of  1865,  p.  113.) 

48.  The  funds  of  every  such  corporation  shall  be  invested  in 
stocks,  or  loaned  on  security,  as  the  directors  may  order,  and  shall 
be  appropriated,  first,  to  pay  the  expenses  of  the  corporation  ;  and 
then  to  pay  the  damages  which  any  member  may  be  entitled  to 
recover  in  his  policy  ;  and  if  any  member  shall  have  a  just  claim  on 
the  corporation,  founded  on  a  policy  issued  by  them,  exceeding  the 
amount  of  their  then  existing  funds,  exclusive  of  deposit  notes  given 
by  the  members,  the  directors  shall  forthwith  assess  such  sum  as 
may  be  necessary  to  pay  the  same,  upon  the  members,  in  i>roportion 
to  the  amount  of  their  premiums  and  deposits  severally  for  seven 
years ;  but  no  member  shall  be  liable  to  pay  in  the  w^hole  more  than 
the  amount  of  his  premium  and  deposit  note.     ( Ibid,  §  4G.) 

49.  Before  the  company  shall  make  any  assessment  on  the 
premium  notes  for  alleged  losses,  the  president  and  a  majority  of  the 
directors  shall  make  a  statement  v^erified  by  their  oath,  exhibiting 
the  amount  and  nature  of  the  loss  sustained ;  of  cash  means  and 
premium  notes  on  hand,  and  the  gross  amount  of  the  assessment 
proposed  to  be  levied.     {I  bid,  p.  39G,  §  47.) 

50.  Whenever  sufficient  goods  or  estate  of  any  such  corpora- 
tion can  not  be  found  to  satisfy  an  execution  issued  against  them 
upon  a  judgment  recovered  on  a  j)olicy  by  them  made,  and  the  said 
corporation  have  goods  or  estate  to  satisfy  such  execution,  and  the 
directors  shall  neglect  or  refuse  to  pay  the  same,  or  if  the  directors 
shall  for  thirty  days  after  the  rendition  of  such  judgment,  refuse  or 
neglect  to  make  such  an  assessment  as  they  may  be  authorized  to 
make  therefor,  and  to  deliver  the  same  to  the  treasurer  for  collection, 
or  fail  to  apply  such  assessment,  when  collected,  towards  satisfying 
such  execution  ;  then,  in  either  of  the  cases  aforesaid,  the  directors 
shall  be  personally  liable  for  the  whole  amount  of  said  execution. 
{Ibid,  §  48.) 


INDIANA.  185 

5 1 .  Whenever  the  directors  or  treasurer  shall  be  liable  by  the 
provisions  of  the  two  previous  sections,  the  judgment  creditor  or 
claimant  may  recover  the  same  in  an  action  at  law,  in  courts  having 
jurisdiction  ;  and  any  director  who  shall  voluntarily,  or  by  compul- 
sion, pay  such  judgment  or  claim,  shall  have  an  action  at  law  for 
a  contribution  against  any  other  dii^ector,  for  his  due  projiortion 
thereof.     {Ibid,  §  49.) 

52.  Whenever  the  treasurer  of  such  corporation  shall  neglect 
or  refuse  to  collect  any  assessments  in  his  hands  for  that  purj)ose, 
and  to  apply  the  proceeds  of  the  same  to  discharge  the  claim  for 
which  such  assessment  was  made,  he  shall,  in  his  [private]  cai)acity, 
be  liable  to  the  complainant  for  the  aggregate  amount  of  such  as- 
sessment.    {Ibid,  §  50.) 

53.  Every  policy  made  by  such  corporation  shall  of  itself  cre- 
ate a  lien  on  the  interest  of  the  person  insured,  in  the  building  so 
insui'ed,  and  in  the  land  upon  which  the  same  is  situate,  for  securing 
the  payment  of  his  deposit  note,  any  sums  which  he  may  be  assessed 
on  account  of  such  x^olicy;  Provided,  The  extent  of  such  liability, 
and  the  intention  of  the  corporation  to  rely  upon  such  lien,  is  ex- 
pressed in  the  policy  ;  or  upon  the  alienation  of  the  estate  to  a  bona 
fide  purchaser,  the  lien  shall  cease,  as  to  all  losses  which  shall  there- 
after happen,  unless  the  policy  is  continued  in  force  by  consent  of 
the  purchaser.     {Ibid,  §  51.) 

54.  If  it  shall  become  necessary  to  resort  to  such  lien  for  the 
payment  of  any  sum  secured  thereby,  the  treasurer  of  the  corpora- 
tion shall  demand  [payment]  thereof  from  the  assured,  or  his  legal 
representatives,  and  also  from  any  tenant  in  possession  of  the  in- 
sured ijremises,  setting  forth  in  writing  the  sum  due ;  and,  if  the 
same  is  not  paid,  the  corporation  may  institute  an  action  at  law, 
and  levy  any  execution  issued  on  such  action  upon  the  estate  sub- 
ject to  the  lien.     {Ibid,  p.  397,  §•  52.) 

55.  The  officer  making  the  levy  may  sell  first  the  rents  and 
profits  for  not  more  than  five  years,  the  whole,  or  any  part  thereof, 
at  such  execution  sale,  and  shall  pay  over  the  balance,  if  any,  after 
satisfying  the  judgment  and  costs  of  execution,  to  the  defendant  in 
such  action ;  but  the  owner  shall  have  the  right  to  redeem  the  same 
within  one  year  thereafter,  by  tendering  to  the  treasurer  of  the  com- 
l)any  the  amount  of  judgment  and  costs,  and  interest  accruing 
thereon.     (Ibid,  §  53.) 

56.  The  cash  accumulations  of  such  company,  over  and  above 
the  losses  and  expenses,  shall  be  added  to  its  capital  and  held  by 
the  company  for  the  prote.ction  of  its  policy-holders,  until  such  cash 
accumulation  shall  reach  the  sum  of  one  hundred  thousand  dollars, 
and  after  this  sum  shall  have  been  accumulated,  the  Board  of  Di- 
rectors may,  for  any  additional  cash  accumulations  thereafter,  de- 
clare a  dividend  once  in  five  years,  pt'o  rata,  in  proportion  to  the 
amount  paid  by  the  then  existing  policy-holders,  and  pay  the  sum 
to  them  on  the  renewals  for  five  or  seven  years  of  their  policies 
then  in  force  in  said  company.  {Ibid,  §  51,  as  amended  by  laics  of 
1865,  p.  114.) 

57.  The  directors  of  such  company  or  a  majority  of  them,  shall, 
in  January  of  each  year,  make  a  report,  verified  by  their  oath  and 
and  attested  by  the  secretary  of  such  company,  stating  in  full  the 
amount  of  their  capital  stock,  of  premium  notes,  and  the  assess- 
ments made  thereon,  of  cash  means  on  hand  other  than  premium 
notes ;  of  the  amount  insured,  and  losses  on  the  same,  and  generally 


186  hine's  insurAjStce  statutes. 

of  the  indebtedness  and  resources  of  the  company,  and  file  the 
same  with  the  Auditor  of  State,  and  publish  a  copy  of  the  same  in 
a  newspaper  printed  in  that  State  and  nearest  their  principal  office 
of  business.  If  such  company  shall  fail  to  make  such  report,  the 
same  proceedings  shall  be  had  as  in  case  of  other  insurance  compa- 
nies.    (Ibid,  §  55.) 

58.  That  all  special  acts  of  incorporation  for  insm^ance  com- 
panies heretofore  enacted,  and  under  which  no  such  company  has 
been  organized,  nor  measures  taken  to  effect  an  organization  under 
the  same,  be  and  they  are  hereby  repealed.     (Ibid,  p.  398,  §  57.) 

59.  Mutual  insui'ance  companies  may  be  organized  for  the 
insurance  of  the  lives  or  health  of  persons,  or  against  accident  to  per- 
sons, upon  the  same  conditions  and  subject  to  the  same  duties  and 
liabilities  now  regulating  mutual  fire  insurance  companies,  so  far  as 
the  same  may  be  applicable ;  Frovided,  That  any  such  company  may, 
at  the  time  of  issuing  a  policy,  receive  the  full  amount  of  premiums 
agreed  upon,  in  which  case  the  assured  shall  not  be  liable  to  any 
assessment  on  account  of  losses,  nor  entitled  to  participate  in  the 
profits  accruing  to  such  companies.  And  provided  further,  That 
policies  issued  may  be  for  the  life  of  the  person  or  persons  applying 
for  insurance,  or  for  any  determinate  i^eriod,  and  upon  such  amount 
or  value  as  may  be  agreed  upon  by  the  parties  and  those  life  insur- 
ance companies  organized  under  said  law  shall  be  perpetual.  {Be- 
vised  Statutes,  vol.  3,  1870,  j).  311,  §  1.) 

CiO.  No  company  organized  under  and  by  virtue  of  this  act 
shall  insure  property  of  any  kind  or  take  any  fire  risks.    {Ibid,  §  2.) 


FOEEING  INSURANCE  COMPANIES. 

61.  It  shall  not  be  lawful  for  any  agent  or  agents  of  any  in- 
surance company  incorporated  by  any  other  State  than  the  State  of 
Indiana,  directly  or  indirectly,  to  take  risks  or  transact  any  business 
of  insurance  in  this  State,  without  first  producing  a  certificate  of 
authority  fi'om  the  Auditor  of  State ;  and  before  obtaining  such 
certificate,  such  agent,  or  agents,  shall  fiu^nish  the  said  Auditor  with 
a  statement,  under  oath,  of  the  president  or  secretary  of  the  com- 
pany for  which  he  or  they  may  act,  which  statement  shall  show : 

First. — The  name  and  locality  of  the  companj". 

Second. — The  amount  of  its  capital  stock. 

Third. — The  amount  of  its  capital  stock  paid  up. 

Fourth. — The  assets  of  the  company,  including : 

1.  The  amount  of  cash  on  hand,  and  in  the  hands  of  agents 
or  other  persons ; 

2.  The  real  estate  unincumbered ; 

3.  The  bonds  owned  by  the  company,  and  how  they  are  se- 
cured, with  the  rate  of  interest  thereon ; 

4.  Debts  to  the  company  secured  by  mortgage ; 

5.  Debts  otherwise  secured  ; 
G.  Debts  for  i)remiums  ; 

7.  All  other  securities. 
Fifth. — The  amount  of  liabilities  due,  or  not  due,  to  banks  or 
other  creditors,  by  the  company. 
Sixth. — Losses  adjusted  and  due. 
Seventh.— Tiosses  adjusted  and  not  due. 
Eighth. — Losses  unadjusted. 


INDIANA.  187 

Xinth. — Losses  in  suspense,  waiting  for  further  proof. 

Tenth.  -  AH  other  claims  against  the  company. 

Ekventk. — The  greatest  amount  insured  in  any  one  risk. 

Twelfth. — The  greatest  amount  allowed  by  the  rules  of  the  com- 
pany to  be  insured  in  any  one  city,  town,  or  village. 

Thirteenth.— The  gxeatest  amount  allowed  to  be  insured  iu  any 
one  block. 

Fourteenth. — The  act  of  incorporation  of  such  company  ;  which 
statement  shall  be  filed  in  the  office  of  said  Auditor,  together  with  a 
written  instrument,  under  the  seal  of  the  company,  signed  by  the 
13resident  and  the  secretary,  authorizing  such  agent  to  acknowledge 
service  of  process,  for  and  in  behalf  of  such  companj- ;  consenting 
that  service  of  process  upon  such  agent  shall  be  taken  and  held  to 
be  as  valid  as  if  served  upon  the  company  according  to  the  laws  of 
this  State,  or  any  other  State,  and  waiving  all  claim  of  error  by 
reason  of  such  service.  And  no  insurance  company,  or  agent,  or 
agents  of  any  insurance  company,  incorporated  by  any  other  State, 
shall  transact  any  business  of  insurance  in  this  State,  unless  such 
company  is  possessed  of  at  least  one  hundred  thousand  dollars  of 
actual  capital,  invested  in  the  stocks,  or  bonds,  of  some  one  or  more 
of  the  States  of  this  Union,  or  of  the  United  States,  at  the  current 
market  value  thereof  at  the  date  of  such  statement,  or  in  bonds  or 
mortgages  of  real  estate  worth  double  the  amount  for  which  the 
same  is  mortgaged,  and  free  from  any  x)rior  incumbrance ;  and  upon 
the  filing  of  the  aforesaid  statement  and  instrument  with  the  Audi- 
tor of  State,  and  furnishing  him  with  satisfactory  evidence  of  such 
investment,  as  aforesaid,  it  shall  be  the  duty  of  said  Auditor  to 
issue  a  certificate  thereof,  with  authority  to  transact  the  business  of 
insurance,  to  the  agent  or  agents  applying  for  the  same  ;  and  said 
statement,  instrument,  and  evidence  shall  be  renewed  semi-annually 
in  the  months  of  January  and  July  of  each  year  ;  and  the  Auditor 
of  State,  on  being  satisfied  that  the  capital,  securities,  and  invest- 
ments remain  secure,  as  at  first,  shall  fiu-nish  a  renewal  of  certifi- 
cate as  aforesaid,  and  the  agent  or  agents  obtaining  such  certificates, 
shall  file  the  same,  together  with  a  certified  copy  of  the  statement 
on  which  it  was  obtained,  in  the  ofSce  of  the  clerk  of  the  circuit 
court  of  the  county  in  which  such  agency  is  established,  botlf  of 
which  documents  shall  be  carefidly  preserved  for  public  inspection, 
by  said  clerk;  Provided,  That  the  provisions  of  this  section  shall 
not  be  construed  to  extend  to,  include,  or  embrace  horse  insurance, 
and  detective  companies  insuring  against  thieves.  {Revised  iStatutes, 
vols,  1870,;).  312,  §  1.) 

62.  It  shall  be  unlawful  for  any  agent,  or  agents,  of  any  in- 
surance comijany,  incorporated  by  any  government  foreign  to  the 
United  States,  to  transact  any  business  of  insurance  in  this  State, 
without  i)rocimng  a  certificate  of  authority  from  the  Auditor  of 
State  ;  such  agent,  or  agents,  having  first  filed,  in  the  office  of  said 
Auditor,  a  statement,  under  the  oath  of  the  president,  secretary,  or 
secretary  resident  in  the  United  States,  of  such  company,  setting 
forth  the  charter,  or  act  of  incorporation  of  the  company,  and  the 
matters  required  to  be  specified  by  the  first  section  of  this  act,  and 
furnished  evidence  to  the  satisfaction  of  the  Auditor  of  State,  that 
such  company  has  invested  in  the  stocks  or  bonds  of  some  one  or 
more  of  the  States  of  this  Union,  or  of  the  United  States,  the  sum 
of  one  hundred  thousand  dollars,  estimated  at  the  current  market 
value  thereof  at  the  date  of  such  statement,  and  that  such  stocks 


186  niNE'S  INSURANCE   STATUTES. 

or  bonds  are  lield  within  the  United  States  by  a  citizen  or  citizens 
thereof,  as  the  agent  or  agents,  trnstee  or  trnstees  of  such  company, 
and  are  not  pledged  or  otherwise  incumbered,  but  are  held  and 
remain  for  the  protection  and  benefit  of  the  policy-holders  of  such 
company ;  and  the  said  agent  or  agents  of  such  company,  filing 
said  statement,  and  furnishing  evidences  of  investment,  as  afore- 
said, shall  be  entitled  to  a  certificate  of  authority,  in  like  manner 
as  is  provided  for  in  the  first  section  of  this  act.    \lhid,  p.  313,  §  2.) 

63.  The  Auditor  of  State  shall  charge  and  collect  for  the  State 
of  Indiana  the  sum  of  five  dollars  in  each  and  every  case  for  the 
examinatiou  of  the  statement  and  investigation  of  evidence  of  in- 
vestment, and  two  dollars  for  each  certificate  of  authority  issued 
under  the  provisions  of  this  act,  to  be  paid  by  the  agent  or  agents 
applying  for  the  same,  and  the  Auditor  of  State  shall,  on  the  first 
Tuesday  in  April,  June,  September,  and  December,  of  each  year, 
make  to  the  Treasurer  of  State  a  sworn  statement  of  the  number  of 
statements  filed  in  his  oftice,  and  of  the  number  of  certificates  issued 
under  the  jirovisions  of  this  act,  and  of  the  entire  receipts  therefor 
since  his  last  report,  and  shall  i)ay  over  to  the  Treasurer,  to  go  into 
the  general  fund  of  the  State,  the  entire  amount  of  such  receipts, 
less  twentv-five  per  cent,  thereon,  which  he  may  retain  for  his  ser- 
vices in  collecting  the  same.  {Ibid,  §  3,  as  amended  by  laws  of 
Special  Session,  1875,  p.  51,  §  1.) 

64.  Whenever  any  loss  may  occur,  of  any  property  insured  by 
any  company  authorized  to  take  risks  under  this  act,  it  shall  be  the 
duty  of  the  agent  by  whom  the  insurance  was  made,  to  retain  in 
his  possession  all  moneys  belonging  to  such  company,  which  may 
then  be  or  may  thereafter  come  into  his  possession,  until  such  loss 
is  adjusted  and  paid  ;  Provided,  That  if  suit  shall  be  commenced  by 
the  party  insured,  against  such  company,  the  agent  may  deposit  in 
court  double  the  amount  mentioned  in  the  policy,  to  abide  the  event 
of  the  suit;  or  if  the  party  shall  not  commence  suit  within  ninety 
days  after  the  agent  shall  have  given  written  notice  to  such  party 
that  the  loss  will  not  be  paid,  the  agent  may  thereafter  [pay  over] 
to  persons  entitled,  the  moneys  of  said  company ;  and  if  any  person 
insured  by  such  company,  meeting  with  a  loss,  shall  notify  any 
other  agent  of  such  company  thereof,  it  shall  be  the  duty  of  such 
agent  to  retain  all  moneys  belonging  to  such  company,  which  may 
then  be,  or  may  thereafter  come  into  his  possession,  as  hereinbefore 
required  of  the  agent  with  whom  the  insurance  was  effected.  {Ibid^ 
§4) 

65.  The  copies  of  all  papers  required  by  this  act  to  be  de- 
l^osited  in  the  office  of  the  Auditor  of  State,  certified  under  the 
hand  of  such  Auditor  to  be  true  and  correct  copies  of  such  papers, 
shall  be  received  as  evidence  in  all  courts  and  j^laces,  in  the  same 
manner,  and  have  the  same  force  and  effect,  as  the  originals  would 
have  if  produced.     {Ibid,  p.  3] 5,  ^  5.) 

66.  Ko  such  insurance  company  shall  insert  any  condition,  in 
any  policy  hereafter  issued,  requiring  the  insured  to  give  notice 
forthwith,  or  within  the  period  of  time  less  than  five  days,  of  the 
loss  of  the  insured  property  ;  nor  shall  any  condition  be  inserted  in 
such  policy,  requiring  the  insured  to  procure  the  certificate  of  the 
nearest  justice  of  the  peace,  mayor,  judge,  clergyman,  or  other 
official,  or  person,  of  such  loss,  or  the  amount  of  such  loss,  and  any 
provision  or  condition  contrary  to  the  i^rovisions  of  this  section,  or 
any  condition  in  said  j)olicy,  inserted  to  avoid  the  provisions  of  this 


INDIANA.  189 

section,  sliall  be  void,  and  no  condition  or  agreement,  not  to  sue  for 
a  period  less  than  three  years,  shall  be  valid.     [Ibid,  §  fi.) 

67.  Any  ptrson  or  persons  violating  the  provisions  of  this 
act,  shall,  upon  conviction  thereof,  in  any  court  of  competent  juris- 
diction, be  fined,  in  any  sum  not  exceeding  one  thousand  dollars,  or 
imprisonment  in  the  county  jail  not  more  than  thirty  days,  or  both, 
at  the  discretion  of  the  court.  Violations  of  the  provisions  of  this 
act  may  be  prosecuted  by  information  filed  by  the  prosecuting  at- 
torney of  the  proi)er  countv,  or  by  indictment  of  the  grand  jury. 
{Ibid,  §  7.) 

TAXATION. 

68.  Every  insurance  company  not  organized  under  the  laws  of 
this  State,  and  doing  business  therein,  shall,  in  the  months  of  Janu- 
ary and  July  of  each  year,  report  to  the  Auditor  of  State,  under 
oath  of  the  president  and  secretary,  the  gross  amount  of  all  receipts 
received  in  the  State  of  Indiana,  on  account  of  insurance  premiums 
for  the  six  months  last  preceding,  ending  on  the  last  days  of  De- 
cember and  June  of  each  year,  and  shall,  at  the  time  of  making 
such  report,  pay  into  the  treasury  of  the  State  the  sum  of  three 
dollars  on  everv  one  hundred  doUars  of  such  receipt,  less  losses  ac- 
tually paid  within  the  State.     {Laivs  of  1873,  p.  208,  §  8.) 

69.  Any  such  insurance  company  failing  or  refusing  for  more 
than  thirty  days  to  render  an  accurate  account  of  its  premiimi  re- 
ceipts, as  in  the  preceding  sections  provided,  and  pay  the  required 
tax  thereon,  shall  forfeit  one  hundred  dollars  for  each  additional 
day  such  report  and  payment  shall  be  delayed,  to  be  recovered  in 
the  name  of  the  State  of  Indiana,  on  the  relation  of  the  Auditor  of 
State,  in  any  court  of  competent  jurisdiction ,  and  it  shall  be  the 
duty  of  the  Auditor  of  State  to  revoke  all  authority  of  any  such 
defaulting  company  to  do  business  within  this  State.     {Ibid,  §  9.) 

70.  Any  insurance  company  organized  under  the  laws  of  this 
State  may  reinsiu-e,  by  and  with  the  consent  of  the  insured,  all  their 
outstanding  risks  in  any  joint  stock  insurance  company  authorized 
to  transact  the  business  of  insurance  in  Indiana,  and  such  policy 
and  contract  of  reinsurance  shall  be  as  binding  upon  the  company 
making  the  same,  and  its  liability  to  the  party  whose  property  is 
insured  shall  be  the  same  as  if  the  original  policies  had  been  issued 
by  such  com]>any.     {Revised  Statuies,  vol.  3,  1870,  j;.  311,  §  1.) 

7 1 .  Any  such  insurance  company  having  reinsured  all  of  its 
outstanding  risks,  or  canceled  the  same  and  returned  the  unearned 
premiums  thereon  to  the  party  insured,  to  the  satisfaction  and  ap- 
proval of  the  Auditor  of  State,  and  having  filed  in  the  said  Audi- 
tor's office  a  sworn  statement  of  a  majority  of  the  directors  of  such 
company  that  such  company  has  fully  paid  and  satisfied  all  claims, 
debts,  and  demands,  of  whatsoever  character,  against  it,  the  Audi- 
tor of  State  shall  deliver  to  such  comi:)any  all  securities  belonging 
to  such  company  and  on  deposit  in  his  office,  and  a  certificate  that 
such  company  has  compUed  with  the  i)rovisions  of  this  act.  {Ibid, 
p.  312,  §  2.) 

7*2.  It  shall  not  be  lawful  for  any  such  company,  after  having 
complied  with  the  provisions  of  this  act,  to  transact  the  business  of 
insurance.     {Ibid,  §  3.) 


190  hine's  insurance  statutes. 


FRAUD  AND  FALSE  SWEARING. 

73.  Any  person  who  shall  present,  or  cause  to  be  presented, 
any  false  or  traudulent  claims,  or  any  proof  in  support  of  any  such 
claim,  upon  any  contract  of  insurance  for  the  payment  of  any  loss, 
or  who  shall  prepare,  make,  or  subscribe  any  account,  certificate, 
survey,  affidavit,  proof  of  loss,  or  other  book,  paper,  or  writing, 
with  intent  to  present  or  use  the  same,  or  allow  it  to  be  presented 
or  used  in  support  of  any  such  claim,  shall  be  deemed  guilty  of  a 
felony,  and  upon  conviction  thereof  in  any  court  haying  jurisdiction 
thereof,  shall  be  punished  by  imprisonment  in  the  State  prison  for 
a  term  not  exceeding  three  years,  or  by  a  fine  not  exceeding  one 
thousand  dollars,  or  both.  {Revised  statutes,  vol.  3,  1870,  p.  316, 
§2.) 

ARSON  AND  INCENDIARISM. 

74.  Every  person  who  shall  willfully  and  maliciously  set  fire 
to  the  dwelling-house,  out-house,  barn,  stable,  boat,  water  craft, 
mill,  mill-house,  distillery,  manufactory,  mechanic's  or  artificer's 
shop,  store-house,  or  room  occupied  as  a  shop  or  office  for  i)rofes- 
sional  business,  or  building  of  any  kind,  or  printing  office  of  another, 
or  any  public  bridge,  court-house,  jail,  market-house,  church,  or 
meeting-house,  seminary  or  college  edifice,  or  building  thereto  be- 
longing, or  to  any  cord- wood  in  piles,  or  ricks  or  stacks  or  shocks  of 
grain,  or  hay,  or  any  fence,  or  growing  grain,  of  the  value  of  twen- 
ty dollars ;  or  to  any  house,  shop,  wood-house,  water  station,  or 
other  public  building  connected  with  any  railroad,  or  shall  in  like 
manner  set  fire  to  any  bridge,  or  any  part  of  the  structure  of  any 
railroad ;  and  every  i)erson  who  shall  set  fire  to  any  building  or 
structure,  whether  finished  or  unfinished,  whatever,  or  any  goods, 
wares,  merchandise,  or  other  chattels  which  shall  be,  at  the  time, 
insured  against  loss  or  damage  by  tire,  with  intent  to  defraud  the 
Insurer,  whether  such  person  be  the  owner  of  the  i^roperty  burnt  or 
not,  shall  be  deemed  guilty  of  arson  and,  upon  conviction,  be  fined 
not  exceeding  double  the  value  of  the  property  destroyed,  and  be 
imprisoned  in  the  State  prison  not  less  than  one  nor  more  than  ten 
years ;  and  shoidd  the  life  of  any  person  be  lost  thereby,  such 
ofiender  shall  be  deemed  guilty  of  mui'der  in  the  first  degree,  and 
suffer  death,  or  imi)risonment  in  the  State  prison  during  life.  {Re- 
vised Stattites,  1870,^;.  255.) 

75.  Every  person  who  shall  willfully  burn,  or  in  any  other 
manner  injure  or  destroy  any  i)roperty  whatever,  which  is  at  the 
time  insured  against  loss  or  damage  by  fixe  or  any  other  casualty, 
with  intent  to  defraud  or  prejudice  the  insm-er,  whether  the  same 
be  the  property  or  in  possession  of  such  person  or  of  any  other, 
shall  be  deemed  guilty  of  a  felony,  and  upon  conviction  thereof,  in 
any  court  having  jurisdiction  thereof,  shall  be  punished  by  impris- 
onment in  the  State  prison  for  a  term  not  exceeding  fourteen  years 
and  not  less  than  one  year,  and  by  fine  not  to  exceed  double  the 
amount  of  property  so  destroyed.  {Revised  Statutes,  vol.  3,  1870, 
i>.  315,  §  1.) 

76.  Every  president,  director,  cashier,  secretary,  treasurer, 
teller,  clerk,  bookkeeper,  agent,  or  other  employe  of  any  bank, 
banking  company,  corporation,  or  association,  and  every  president, 


INDIANA.  191 

director,  secretary,  treasurer,  conductor,  book-keeper,  clerk,  agent, 
or  other  employe  of  any  railroad  company,  corporation,  or  associa- 
tion, or  of  any  insurance  company,  turnpike  or  plank  road  company, 
or  of  any  telegraph  company,  or  association,  and  every  clerk,  treas- 
urer, cashier,  book-keeper,  or  other  person  in  the  employment  of  any 
merchant,  trader,  manufacturer,  or  person,  company,  or  association, 
of  persons  engaged  in  any  business  whatever,  who,  while  in  such 
employment  as  aforesaid,  shall  purloin,  secrete,  or  in  any  way  what- 
ever fraudulently  api^ropriate  to  his  or  her  own  use,  or  to  the  use  of 
others,  or  knowingly  permit  any  other  person  to  take,  purloin,  se- 
crete, or  in  any  way  to  appropriate  to  his  or  her  own  use,  or  to  the 
use  of  others,  any  of  the  moneys,  coins,  bills,  notes,  credits,  choses 
in  action,  or  other  proi^erty  or  article  of  value  belonging  to  or  de- 
posited with  any  such  bank,  banking  company,  or  association,  or 
any  such  railroad  company,  corporation,  or  association,  or  any  such 
insurance  company,  telegraph  company,  turnpike  or  plank  road 
company,  or  association,  or  any  such  merchant,  trader,  manufac- 
turer, or  person,  company,  or  association  of  persons  engaged  in 
business  as  aforesaid,  in  whose  employment  he  or  she  may  be,  shall 
be  deemed  guilty  of  embezzlement,  and  upon  conviction  thereof  and 
presentment  or  indictment,  shall  be  fined  in  any  sum  not  less  than 
one  nor  more  than  five  hundred  dollars,  and  be  imprisoned  at  hard 
labor  in  the  State  prison  not  less  than  two  nor  more  than  twenty 
years.     {Revised  Statutes,  1870,  jp.  256.) 

77.     For  General  Provisions  relating  to  Corporations  see  Re- 
vised Statutes,  1862,  pp.  267-272. 


INDEX  TO   IOWA. 


194 


PAGE 

Agest  of  Forei^  Fire  Insurance  Co.— 

Must  Accept  Process  (26) 202 

Must  Advertise  (27) 203 

Must  Procure  Certificate  (27) 203 

May  not  Act, -when  (26) 202 

Penalties  for  Procuring  Unauthorized 

Insurance  (29) 203 

"When  Company  is  Unsound  (34) 205 

Agent  of  Foreign  Life  Insurance  Co.— 

May  not  Act,  when  (47) 2C8 

Must  Accept  Process  (48) 208 

Must  Procure  Certificate  (49) 208 

Annual  Statement- 
Must  be  Published  (40)  206 

Of  Fire  Insurance  Companies  (23,  25, 

3  .y  >    200,  202,  206 

Of  Foreign  Companies  (26,37).-.-  202,  206 
Of  Life  Insurance  Companies  (48-51, 

59,67) 2(8-10,212,213 

Arson,  Crime  and  Penalty  of  i68-76).  -214,215 
Attorney-General  shall  Examine  Certificate 

(4,  5) 

Auditor— 

Expenses  of  Examination  (38) 206 

May  Inquire  of  Fire  Companies  (24)  . .  202 
May  Examine  Companies  (31,  34)  203,  205 
Mav  Amend  Form  of  Annual  Statement 

(51) - 210 

Shall  Examine  Certificate  (4,  5) 194 

Shall  Examine  Assets  (13) 197 

Shall  Grant  Certificates  to  Agents  (28)  203 
Shall  Grant  Certificates  to  Life  Com- 
panies (45,  46.  53. 207,211 

Shall  Furnish  Blank  Statements  (.39)..  206 

Shall  Publish  Statement  (40) 206 

Shall  Value  Life  Policies  (52) 210 

Shall  Report  to  General  Assembly  (59)  212 
Shall  Keport  to  General  Assembly  when 
Assets  are  Impaired  (31-34) 203-5 

CAPrr.\.L  of  Fire  Insurance  Companies—  (6)  195 

Auditor  shall  Examine  (.13/ 197 

How  Invested  (12) ^^^ 

Increase  of  (1 7) 1^^ 

Capital  of  Foreign  Companies  (26) 202 

Capital  of  Life  Insurance  Cos.  (45-47)..  207 
Certificates- 
Must  be  Published  (37)  206 

To  Foreign  Companies  (28) 205 

To  Fire  Insurance  Companies  (4,  5)  .-  194 
To  Life  Insurance  Companies  (45,  46, 

49,  53,67) 207,208,211,213 

Corporations — 

Assembly  may  Amend  Laws  (3) 194 


PAGE 

Corporations  (Continued) — 

General  Provii-ions  Concerning  (77)  .-  215 
Must  be  Created  under  General  Laws 

(1,  3) 194 

Property  shall  be  Subject  to  Taxation 

(2) 


194 


Deposit— 

;Xotes— (See  Premium  Xotes.) 

Of  Life  Insurance  Companies  (45-47, 

52,  56-58) 207,210,212 

Directors — 

And  Officers,  how  Chosen  (8-11) 196 

Liability  of  (32) 204 

Dividends    of  Fire   Insurance   Companies 

(18) 193 

Fees— 

Of  Foreign  Fire  Insurance  Companies 

(35,  36) 205 

Of  Life  Insurance  Companies  (66) 213 

Fire  Insurance  Companies- 
Amount  of  Capital  or  Premium  Xotes 

(6) 195 

Auditor  shall  Examine  Assets  (13) 197 

Auditor  may  In(inire  of  (2 4) 202 

Auditor  may  Examine  (31) 203 

Annual  Statement  (23,  25) 200,202 

Dividends,  how  Made  (18) 198 

Election  of  Directors  and  Officers  (8, 

11) 196 

Expenses  of  Examination  (38) 206 

Funds,  how  Invested  (12) 196 

Hove  Formed  (4,  5) 194 

Increase  of  Capital  (17) 198 

Liability  on  Premium  ^otes  (20,  21).  199, 

200 

May  Insure,  what  (14) 197 

May  Change  Charter  and  By-laws  (29).. 203 

Must  be  Stock  or  Mutual  (41) 206 

Must  Publish  Certificate  and  Statement 


(37). 


198 

Mutual,  Limited  Associations  Permitted 

(42) 206 

Penalties  for  Violation  of  Law  (29)  ...  203 

Policies,  how  Made  (15) 198 

Policies,  must  Show  whether  Mutual  or 

Stock  (22) 200 

Purchase  and  Sale  of  Real  Estate  (19)  .  199 
Proceedings   when    Assets     Impaired 

(31-33) 203,205 

Requisition  on  Stockholders  (32) 204 

Subscription  Books,  how  Opened  (7)-..  195 
Transfers  of  Stock  (16) 198 


INDEX  TO   IOWA. 


193 


PAGR 

Fire  Insurance  Companies  (Continued) — 
Transfers  of  Stocks,  Pending  Investiga- 
tion (33^ 205 

(See  Foreign  Insurance  Companies) 

Foreign  Fire  Insurance  Companies — 

Annual  Statement  (28) 203 

Agentsmust  Advertise  (30) 203 

Agents  must  Procure  Certificate  (27).  203 

Auditor  may  Examine  ? 211 

Conditions  Required  to  Transact  Busi- 
ness (26) 202 

Expense  of  Examination  (38) 206 

Fees  (35,  36) 205 

ilust  Publish  Certificate  and  Statement 

(37) 20G 

Premium  Notes,  ■when  not  Collectable 

(28) 203 

Proceedings,  when  Unsound  (34) 203 

Taxes  (4  3) 207 

Foreign  Life  Insurance  Companies — 

Annual  Statement  (48,  67) 208,213 

Agent  must  Procure  Certificate   (49, 

67) 208,  213 

Auditor  shall  Furnish  Certificate  (53)-  211 

Auditor  may  Examine  (55) 21) 

Capital  and  Deposit  of  (4  7,  52)  ...207,210 
Deposit  shall  Vest  in  State,  when   (5  6)  2(2 

Deposit  may  be  Changed  (5  7) 212 

Fees  (66) 213 

Funds,  how  Invested  (62) 212 

Interest  on  Deposits  (58) 212 

Must  Appoint  Attorney  to  Accept  Pro- 
cess (48) 208 

Penalty  for   not  Filing   Statement    or 

Making  Deposit  (54) 211 

Proceedings  in  Case  of  Insolvency  (55, 
56) 211 

Inland  Insurance  Companies^(See  Fire  In- 
surance Companies  ) 
Insolvency  of  Life  Companies  (55,  56) 2)1 

Life  Insurance  Companies — 

Annual  Statement  (50,51,67)20!),  210,  213 
Applications    and   Deposit    of    Mutual 

Companies  (46) 207 

Auditor  may  Examine  (55) 211 

Auditor  shall  Furnish  Certificate  (53, 

67) 211,  213 

Capital  and  Deposit  Eequired  (45,  52)  207 
Deposit  shall  Vest  in  State,  when  (56)  2)1 

Deposit  may  be  Changed  (57) 212 

Fee3(66) 213 

Funds,  how  Invested  (62) 212 

Interest  of  Deposits  (58) 212 

Proceedings  in  Case  of  Insolvency  (55, 

66) 211 

13 


PAGE 

Life  Insurance  Companies  (Continued) — 
Purchase  and  Sale  of  Real  Estate  (63, 

64) 213 

Penalty  for   not   Filing  Statement  or 

Making  Deposit  (54) 211 

(See  Foreign  Life  Insurance  Cos.) 
Losses,  Liability  of  Premium  Notes  (20, 

21) 199,  2C0 

Mauink  Insurance  Companies — (See  Fire 
Insurance  Companies.) 

Mutual  Insurance  Companies — (See  Fire  In- 
surance Companies.) 

Mutual     Limited   Associations  Permitted 

(42) 206 

Name  of  Insurance  Company  (4,  5)    . .  .194,  195 

Penalty— 

For  Illegal  Dividends  (18) 198 

For  Illegal  Insurance  (29) 203 

For  not  Filing  Statement  and  Making 

Deposit  (54) 211 

For  doing  Business  without  Certificate 

(60) 213 

Remitted  in  Certain  Cases  (67) 213 

Suits  to  Recover  (61) 212 

Policies— 

Must  Show  whether  Stock  or  Mut.:al 

(22) 200 

Of    Fire   Insurance    Companies,    how 

Made(15)  198 

Valuation  of  (52) 210 

Wives'  (65) 212 

Premium — 

Notes  of  Foreign  Companies  (28) 203 

Notes  of  Mutual  Companies  (6) 195 

Notes  of  Mutual  Companies,  Liability  of 

(21) 200 

Notes  of  Mutual  Companies  must   be 

Certified  to  Auditor  (1 3) 197 

Real  Estate,  Purchase  and  Sale  of  (19, 

63,  64) 199,  213 

Reciprocal,  Fees  and  Taxes  (36) 205 

Subscription  Books,  how  Opened  (7) 195 

Taxation  of  Corporations  (2) 194 

Taxes— 

And  Fees  (35,  36) 205 

Of  Foreign  Companies  (43) 206 

Transfer  of  Stock,  how  Made  (16) 198 

Valuation  of  Life  Policies  (52) 210 

Wives'  Policies  (65) 213 


NSURANCE  STATUTES  OF  IOWA. 


CONSTITUTIONAL  PROVISIONS  CONCERNIISG  CORPOKA- 

TIONS. 

1.  No  corporation  shall  be  created  by  special  laws,  but  the 
General  Assembly  shall  pro%'ide  by  general  laws  for  the  organization 
of  all  corporations  hereafter  to  be  created,  except  as  hereinafter 
provided.     {Art.  8,  §  1.) 

3.  The  property  of  all  corporations  for  pecuniary  profit  shall 
be  subject  to  taxation,  the  same  as  that  of  individuals.  (Art.  8,  §  2.) 

3.  Subject  to  the  provisions  of  this  article,  the  General  Assem- 
bly shall  have  power  to  amend  or  rej^eai  all  laws  for  the  organiza- 
tion or  creation  of  corporations,  or  granting  of  special  or  exclusive 
privileges  or  immunities,  by  a  vote  of  two-thirds  of  each  branch  of 
the  General  Assembly  ;  and  no  exclusive  privileges,  except  as  in  this 
article  j)rovided,  shall  ever  be  granted.    {Art.  8,  §  12.) 


FIRE  INSURANCE  COMPANIES. 

4.  When  any  number  of  persons  associate  themselves  together 
for  the  purpose  of  forming  an  insurance  comijany,  or  for  any  other 
purpose  than  life  insurance,  under  the  provisions  of  chai^ter  one  of 
this  title,  they  shall  publish  a  notice  of  such  intention,  once  in  each 
week,  for  four  weeks,  in  some  public  newspaper  in  the  county  in 
which  such  insurance  company  is  proposed  to  be  located ;  and  they 
shall  also  make  a  certificate,  under  their  hands,  specifying  the  name 
assrmied  by  such  company,  and  by  which  it  shall  be  known,  the  ob- 
ject for  which  said  company  shall  be  formed,  the  amoimt  of  its  cap- 
ital stock,  and  the  place  where  the  principal  oflice  of  said  company 
shall  be  located  ;  which  certificate  shall  be  acknowledged  before  and 
certified  by  some  notary  public  or  clerk  of  a  court  of  record,  and 
forwarded  to  the  Auditor  of  State,  who  shall  submit  the  same  to  the 
Attorney-General  for  examination,  and  if  it  shall  be  found  by  the 
Attorney -General  to  be  in  accoitlance  with  the  provisions  of  this 
chapter,  and  not  in  conflict  with  the  constitution  and  laws  of  the 
ITnite<l  States,  and  of  this  State,  he  shall  make  a  certificate  of  the 
fact  and  return  it  to  the  Auditor  of  State,  who  shall  reject  the  name 
or  title  applied  for  by  any  company  when  he  shall  deem  the  same 
too  similar  to  any  one  already  appropriated  by  any  other  company, 
or  bkely  to  mislead  the  public.     {Code,  1873,  p.  193,  §  1122.) 

5.  ^YIlen  the  certificate  of  said  company  shall  have  received 
the  approval  of  the  Attorney-General  and  Auditor  of  State,  the 
company  shall  cause  the  same  to  be  recorded  as  required  by  law  for 
recording  articles  of  incorporation;  and  said  persons,  wheu  incor- 
porated, and,  having  in  all  respects  complied  with  the  provisions  of 
ttiis  chajiter,  are  hereby  authorized  to  carry  on  the  business  of  in- 
surance as  named  in  such  certificate  of  incorporation,  and  by  the 
name  and  style  provided  therein,  and  shall  be  deemed  a  body  cor- 


IOWA.  195 

porate  with  succession ;  they  and  their  associates,  successors,  and 
assigns,  to  have  the  same  general  corporate  powers,  and  be  subject 
to  all  the  obligations  and  restrictions  of  said  chaj)ter  one  of  this 
title  except  as  may  be  herein  otherwise  i)rovided.  {Ibid,  ^>.  194, 
§  1123.) 

6.  No  joint  stock  companj'  shall  be  incorporated  under  the  pro- 
visions of  this  chapter,  with  a  smaller  capital  than  lifty  thousand 
dollars,  or  a  larger  one  than  one  million  dollars,  as  may  be  specified 
in  the  certificate  of  incor[)oration,  which  stock  shall  be  divided  into 
shares  of  one  hundred  dollars  each,  of  which  capital  not  less  than 
twenty-five  per  cent.,  and  in  no  case  less  than  twenty-five  thousand 
dollars  shall  be  paid  np  in  cash.  The  balance  of  the  capital  of  said 
company  may  consist  of  the  bonds  or  notes  of  the  stockholders ; 
nor  shall  an}-  company,  on  the  plan  of  mutual  insurance,  commence 
business  in  this  State  until  agreements  have  been  entered  into  for 
insurance  with  at  least  two  hundred  ap])licants,  the  premiums  upon 
which  shall  amount  to  not  less  than  twenty-five  thousand  dollars  ', 
of  which  at  least  five  thousand  dollars  shall  have  been  paid  in  ac- 
tual cash,  and  for  the  remainder  of  which  notes  of  solvent  parties, 
founded  upon  actual  api)lication  for  insurance  made  in  good  faith, 
shall  have  been  received.  No  one  of  the  notes  received  as  aforesaid, 
shall  amount  to  more  than  five  hundred  dollars;  and  no  two  thereof 
shall  be  given  for  the  same  risk,  or  made  by  the  same  person  or 
firm,  except  where  the  whole  amount  of  such  notes  does  not  exceed 
the  sum  of  five  hundred  dollars ;  nor  shall  any  note  be  regarded  or 
represented  as  capital  stock,  unless  a  policy  be  issued  upon  the  same 
within  thirty  days  after  the  organization  of  the  company  taking  the 
same,  ui)ou  a  risk  that  shall  be  for  no  shorter  period  than  twelve 
months.  Each  of  said  notes  shall  be  payable,  in  whole  or  in  part, 
at  any  time  when  the  directors  shall  deem  the  same  requisite  for  the 
Ijayraent  of  losses  by  fire  or  inland  navigation,  and  such  incidental 
expenses  as  may  be  necessary  for  transacting  the  business  of  said 
company.  And  no  note  shall  be  accepted  as  part  of  such  capital  stock, 
unless  the  same  shall  be  accompanied  by  a  certificate  of  a  justiceof  the 
peace,  notary  public,  or  clerk  of  the  district  court  of  the  county  in 
which  the  person  executing  such  note  shall  reside,  that  the  person 
making  the  same  is,  in  his  opinion,  pecuniarily  good  and  responsible 
for  the  same,  in  property  not  exempt  from  execution  by  the  laws  of 
their  State ;  and  no  such  note  shall  be  surrendered  Avhile  the  policy 
for  which  it  was  given  continues  in  force.     {Ibid,  §  1124.) 

7.  Having  published  the  notice,  and  filed  the  publisher's  affida- 
vit of  the  publication  thereof  with  the  Auditor  of  State,  together 
with  the  certificate  recpiired  by  section  eleven  hundred  and  twenty- 
two  of  this  cha])ter,  the  persons  named  in  the  certificate  of  incorpora- 
tion, or  a  majority  of  them,  shall  be  commissioners  to  open  books  for 
the  subscription  of  stock  to  the  company,  at  such  times  and  places 
as  to  them  nuiy  seem  convenient  and  proper,  and  shall  keep  the  same 
open  until  the  full  amount  specified  in  the  certificate  is  subscribed ; 
or,  in  case  the  business  of  said  comj^anyis  proposed  to  be  conducted 
on  the  plan  of  mutual  insurance,  then  to  open  books  to  receive 
propositions  and  enter  into  agreements  in  the  manner  and  to  the 
extent  specified  in  section  eleven  hundred  and  twenty-four  of  this 
chapter.     {Ibid,  p.  195,  ^  1125.) 

H.  The  aflairs  of  any  company  organized  under  the  provisions 
of  this  chapter  shall  be  managed  by  not  more  than  twenty-one,  nor 
by  less  than  five  directors,   all  of  whom  shall  be    stockholders.. 


196  nixE's  Ixs^EA^'CE  statutes. 

Within  thirty  days  after  the  subscription  book  shall  have  been 
filled,  a  majority  of  the  subscribers  shall  hold  a  meeting-  for  the  elec- 
tion of  directors — each  share  entitling  the  holder  thereof  to  one 
vote ;  and  the  directors  then  elected  shall  contimie  in  office  until 
their  successors  have  been  duly  chosen  and  have  accepted  the  trust. 
[Ibid,  §  112G.) 

9.  The  annual  meetings  for  the  election  of  directors  shall  be 
holden  dimag  the  mouth  of  January,  at  such  time  as  tbe  by-laws  of 
the  comi>auy  may  direct ;  Provided^  however,  That  if  for  any  cause 
the  stockholders  shall  fail  to  elect  at  any  annual  meeting,  then  they 
may  hold  a  special  meeting  some  day  subsequent  thereto  for  that 
purpose,  b}'  giving  thirty  days'  notice  thereof  in  some  newspaper  in 
general  circulation  in  the  county  in  which  the  principal  office  of  the 
company  shall  be  located,  and  the  directors  chosen  at  any  such  an- 
nual or  special  meeting,  shall  continue  iu  office  until  the  next  annual 
meeting  and  until  their  successors,  duly  elected,  shall  have  accepted. 
{Ibid,  f  1127.) 

1  i}.  The  directors  shall  choose,  by  ballot,  a  president  from  their 
own  number,  and  shall  till  all  vacancies  which  shall  arise  in  the 
Board  or  in  the  presidency  thereof;  and  the  Board  of  Directors  thus 
constituted,  or  a  majority  of  them,  when  convened  at  the  office  of  the 
company,  shall  be  competent  to  exercise  all  the  powers  vested  in 
them  by  this  chapter.     {Ibid,  p.  19G,  §  1128.) 

1  i .  The  directors  of  any  such  company  shall  have  power  to  ap- 
point a  secretary,  and  any  other  officers  or  agents  necessary  for 
transat-ting  the  business  of  the  company,  paying  such  salaries,  and 
taking  such  securities  as  they  may  deem  reasonable ;  they  may 
ordain  and  establish  such  bj'-laws  and  regulations,  not  incon- 
sistent with  this  chapter,  or  with  the  constitution  and  laws  of  the 
United  States  and  of  this  State,  as  shall  appear  to  them  necessary 
for  regulating  and  conducting  the  business  of  the  company ;  and  they 
shall  keep  fuU  and  correct  entries  of  their  transactions,  which  shall, 
at  all  times,  be  oi)en  to  the  inspection  of  the  stockholders,  and  to 
the  inspection  of  i)ersons  invested  by  law  with  the  right  thereof. 
{Ibid,  §  1129.) 

I'ii.  It  shall  be  lawful  for  any  insm-ance  company  organized 
under  this  chapter  to  invest  its  capital  and  the  lunds  accumulated 
iu  the  course  of  its  business,  or  any  part  thereof,  iu  bonds  and  mort- 
gages on  uneucumbered  real  estate  within  the  State  of  Iowa,  worth 
double  the  suui  loaned  thereon,  exclusive  of  buildings,  unless  such 
buildings  are  insured  iu  some  responsible  company,  and  the  policy 
transferred  to  said  company,  and  also  in  stocks  of  this  State,  or 
stocks  or  treasury  notes  of  the  United  States,  in  the  stocks  or 
bonds  of  any  county  or  incorporated  city  in  this  State  authorized  to 
be  issued  by  the  legislature  of  this  State  ;  and  to  lend  the  same,  or 
any  i)art  thereof,  on  the  security  of  such  stocks  or  bonds,  or  treas- 
ury notes,  or  upon  bonds  and  mortgages  as  aforesaid,  and  not 
otherwise;  and  to  change  and  reinvest  the  same  in  hke  securities 
as  occasion  may,  from  time  to  time,  require  ;  but  auy  surplus  money 
over  and  above  the  paid-up  capital  stock  of  any  such  compauy  or- 
ganized under  this  chapter,  or  incorporated  under  any  law  of  this 
State,  may  be  invested  in  or  loaned  upon  the  pledge  of  the  public 
stock  or  bonds  of  the  United  States,  or  any  one  of  tbe  States,  or  the 
stocks,  bonds,  or  other  evidences  of  indebtedness  of  any  solvent, 
divideud-i)aying  institutions  incorporated  under  the  laws  of  this 
State  or  of  the  United  States,  except  their  own  stock  ;  if  the  current 


IOWA.  197 

market  value  of  siicli  stock,  bonds,  or  other  evidences  of  indebted- 
ness, shall  be  at  all  times,  during-  the  continuance  of  such  loans, 
at  least  ten  per  cent,  more  than  the  sum  loaned  thereon.  [Ibid, 
§  1130.) 

13.  Upon  receiving-  notification  that  the  requirements  of  the 
preceding-  sections  have  been  complied  with,  the  Auditor  of  State 
shall  make  an  examination,  or  cause  one  to  be  made  by  some  disin- 
terested person  officially  appointed  by  him  for  that  purpose  ;  and  if 
it  shall  be  found  that  the  capital  herein  required  of  the  company 
named,  according  to  the  nature  of  the  business  proposed  to  be  trans- 
acted by  such  company,  has  been  paid  in  and  is  [)ossessed  by  it  in. 
money,  or  in  such  stock,  notes,  bonds,  and  mortgages  as  are  re- 
quired by  sections  eleven  hundred  and  twenty-four  and  eleven 
hundred  and  thirty  of  this  chapter,  then  he  shall  so  certity ;  ard  if 
the  examination  be  made  by  any  other  than  the  Auditor,  then  the 
finding  shall  be  certified  under  oath ;  or,  if  it  is  proposed  to  be  a 
mutual  insurance  company,  such  certificate  shall  be  to  the  ettect  that 
it  has  received  and  is  in  actual  possession  of  the  capital,  premiums, 
or  actual  engagements  of  insurance  or  other  securities,  as  the  case 
may  be,  to  the  extent  and  value  required  by  sections  eleven  hundred 
and  twenty-four  and  eleven  hundred  and  thirty  of  this  chapter.  The 
najie  and  residence  of  the  maker  of  each  premium  note  forming  part 
of  the  capital  of  any  such  proposed  mutual  insurance  company,  and 
the  amount  of  such  note,  shall  be  returned  to  the  Auditor.  Tlie  cor- 
j)orators  or  officers  of  any  such  company,  or  proposed  company,  shall 
l3e  required  to  certify,  under  oath,  to  the  Auditor  of  State,  that  the 
capital  exhibited  to  the  person  making-  the  examination  directed  in 
this  section,  was,  actually  and  in  good  faith,  the  property  of  the 
company  so  examined.  The  certificates  above  contemj)Iated  shall 
be  filed  in  the  office  of  said  Auditor,  who  shall  thereupon  deliver  to 
such  company  a  certified  copy  of  the  same,  with  his  written  permis- 
sion for  them  to  commence  the  business  proposed  in  their  written 
certificate  of  incorporation,  which,  being  recorded  by  theKecorder  of 
the  county  in  which  the  company  is  to  be  located,  in  a  book  pre- 
pared by  him  for  the  purpose,  shall  be  their  authority  to  commence 
business  and  issue  policies ;  and  such  certified  copy  of  said  cer- 
tificates may  be  used  in  evidence  for  or  against  said  company  with 
the  same  ettect  as  the  originals.     (Ibid,  §  1131.) 

14,  It  shall  be  lawful  for  any  comiiany  organized  under  this 
chapter,  or  doing  business  in  this  State  : 

1.  To  insure  houses,  buildings,  and  all  other  kinds  of  pro- 
perty against  loss  or  damage  by  fire  or  other  casualty,  and  to 
make  all  kinds  of  insurance  on  goods,  merchandise,  or  other 
property  in  the  course  of  transportation,  whether  on  land  or  on 
water,  or  any  vessel  or  boat,  wherever  the  same  may  be. 

2.  To  make  insurance  on  the  health  of  individuals,  and 
against  the  personal  injury,  disablement,  and  death,  resulting 
from  traveling,  or  general  accidents  by  land  or  water. 

3.  To  insure  the  fidelity  of  persons  holding  places  of  private 
or  public  trust. 

4.  To  receive  on  deposit  and  insure  the  safe  keeping  of 
books,  papers,  moneys,  stocks,  bonds,  and  all  kinds  of  personal 
property. 

5.  To  insure  horses,  cattle,  and  other  live  stock  against  loss, 
or  damage  by  accident,  theft,  or  any  unknown  or  contingent 
event  whatever  which  may  be  the  subject  of  legal  insurance ;  to 


198  HINE'S  INSUEANCE   STATUTES. 

leud  money  on  bottomry  or  respondentia,  and  to  canse  itself  to 
be  insured  against  any  loss  or  risk  it  may  have  incurred  in  the 
conrse  of  its  business,  and  upon  the  interest  which  it  may  have 
in  any  property,  by  means  of  any  loan  which  it  may  have  made 
on  mortgage,  bottonry,  or  respondentia,  and  generally  to  do  and 
perform  all  other  matters  and  things  proper  to  promote  these 
objects. 
But  no  company  shall  be  organized  to  issue  policies  of  insurance 
for  more  than  one  of  the  above  five  mentioned  purijoses,  and  no 
company  that  shall  have  been  organized  for  either  one  of  said  pur- 
poses, shall  issue  policies  of  insurance  for  any  other;  and  no  com- 
pany organized  under  this  chapter,  or  transacting  business  in  this 
State,  shall  ex])ose  itself  to  loss  on  any  one  risk  or  hazard  to  an 
amount  exceeding  ten  per  cent,  on  its  ])aid-up  capital,  unless  the 
excess  shall  be  reinsured  by  the  same  in  some  other  good  and  reli- 
able company.     But  the  restrictions  as  to  the   amount  of  risk  any 
comijany  shall  assume,  shall  not  apply  to  any  companies  organized 
to  guarantee  the  tidelity  of  persons  in  places   of  public  or  private 
trust,  nor  to  comp  inies  that  receive  on  deposit  and  guarantee  the 
safe  keeping  of  books,  papers,  moneys,  and  other  i^ersonal  ])roperty. 
[Ibid,  p.  197,  §  11M2.) 

15.  All  policies  or  contracts  of  insurance  made  or  entered  into 
by  the  company,  may  be  made  either  with  or  without  the  seal  of 
said  company ;  but  said  policies  shall  be  subscribed  by  the  presi- 
dent, or  such  other  officers  as  may  be  designated  by  the  directors 
for  that  purpose,  and  shall  be  attested  by  the  secretary  thereof. 
{Ibid,})'  198,  §  1133.) 

1 6.  Transfers  of  stock  may  be  made  by  any  stockholder,  or  his 
legal  representative,  subject  to  such  restrictions  as  the  directors 
shall  establish  in  their  by-laws,  except  as  hereinafter  provided. 
(Ibid,  §  1131.) 

17.  Whenever  any  company  organized  under  this  chapter, 
with  less  than  the  maximum  capital  limited  in  section  eleven 
hundred  and  twenty-foiu"  hereof,  shall,  in  the  opinion  of  the  directors 
thereof,  require  an  increased  amount  of  capital,  they  shall,  if  author- 
ized by  the  holders  of  a  majority  of  the  stock  to  do  so,  file  with  the 
Auditor  of  State  a  certificate  setting  forth  the  amount  of  such 
desired  increase,  not  exceeding  said  maximum,  and  thereafter  such 
company  shall  be  entitled  to  have  the  increased  amount  of  capital 
fixed  by  said  certificate,  and  the  examination  of  securities  compos- 
ing the  capital  stock  thus  increased,  shall  be  made  in  the  same  man- 
ner as  provided  in  section  eleven  hundred  and  thirty-one  of  this 
chajDter  for  the  capital  stock  first  paid  in.     {Ibid,  §  1135.) 

18.  The  directors,  trustees,  or  managers  of  any  insurance  com- 
pany organized  under  this  chapter,  or  incorporated  under  any  law 
of  this  State,  shall  not  make  any  dividends,  except  from  the  surplus 
profit  arising  from  their  business  ;  and,  in  estimating  such  profits, 
there  shall  be  reserved  therefrom  a  sum  equal  to  forty  per  cent,  of 
the  amount  received  as  premiums  on  unexpired  risks  and  policies, 
which  amount,  so  reserved,  is  hereby  declared  to  be  unearned  pre- 
miums ;  and  there  shall  also  be  reserved  all  sums  due  the  corjwra- 
tion  on  bonds  and  mortgages,  bonds,  stocks,  and  book  account,  of 
which  no  part  of  the  principal  or  interest  thereon  has  been  paid 
during  the  year  preceding  such  estimate  of  profits,  and  upon  which 
suit  for  foreclosure  or  collection  has  not  been  commenced,  or  which, 
after  judgment  has   been  obtained  thereon,  shall  have  remained 


IOWA.  199 

more  thau  two  years  unsatisfied,  and  on  wliieli  interest  shall  'not 
have  been  paid;  and,  in  case  of  any  such  Judgment,' the  interest 
due  or  accrued  thereon,  and  remaining-  unpai(I,  shall  also  be  re- 
served. Any  dividends  made  contrary  to  these  provisions  shall 
subject  the  company  making  it  to  a  forfeiture  of  their  charter.  {Ihui^ 
§  1130.) 

19.  Ko  company  organized  under  this  chapter  shall  purchase, 
hold,  or  convey  any  real  estate,  save  for  the  piu'poses  and  in  the 
manner  herein  set  forth  : 

1.  Such  as  shall  be  requisite  for  its  convenient  accommoda- 
tion in  the  transaction  of  its  business. 

2.  Such  as  shall  have  been  mortgaged  to  it  in  good  faith  by 
way  of  security  for  loans  previously  contracted,  or  for  money  due. 

3.  Such  as  shall  have  been  conveyed  to  it  in  satisfaction  of 
debts  previously  contracted  in  the  legitimate  business  of  the 
company,  or  for  money  due. 

4.  Such  as  shall  have  been  purchased  at  sales  upon  judg- 
ments, decrees,  or  mortgages  obtained  or  made  for  such  debt ; 
and  it  shall  not  be  lawful  for  any  such  company  to  purchase, 
hold  or  convey  real  estate  in  any  other  case,  or  for  any  other 
purpose,  or  acquired  in  any  other  manner,  except  that  it  may 
convey  real  estate  which  shall  be  found  in  the  course  of  its 
business  not  necessarj'  for  its  convenient  accommodation  in  the 
transaction  thereof;  and  all  such  last  mentioned  real  estate  shall 
be  sold  and  conv^eved  within  three  vears  after  the  same  has 
been  deemed  by  the  Auditor  of  State  unnecessary  for  such  ac- 
commodation, unless  the  company  shall  procure  a  certificate 
from  the  said  Auditor  that  the  interest  of  said  company  will 
materially  suffer  by  a  forced  sale,  in  which  event  the  sale  may 
be  postponed  for  such  a  period  as  the  said  Auditor  may  direct 
in  such  certificate.     {Ibid, p.  199,  §  1137.) 

20.  All  notes  deposited  with  any  mutual  insurance  company  at 
the  time  of  its  organization,  as  provided  in  section  eleven  hundred 
and  twenty-four  hereof,  shall  remain  as  security  for  all  losses  and 
claims  until  the  accumulation  of  the  profits  invested,  as  required  by 
section  eleven  hundred  and  thirty  of  this  chapter,  shall  equal  the 
amount  of  cash  capital  required  to  be  possessed  by  stock  companies 
organized  under  this  chapter,  the  liability  of  each  note  decreasing 
proportionately  as  the  profits  are  accumulating;  but  an  j'  note  which 
may  have  been  deposited  with  any  mutual  insurance  company  sub- 
sequent to  its  organization,  in  addition  to  the  cash  premiums  on  any 
insurance  effected  with  such  company,  may,  at  the  expiration  of  the 
time  of  such  insurance,  or  upon  the  cancellation  l)y  the  company  of 
the  policy,  be  relinquished  and  given  up  to  the  maker  thereof,  or  his 
legal  representatives,  upon  his  paying  his  pro[)ortion  of  losses  and 
expenses  which  may  have  accrued  thereon  during  such  term.  The 
directors  or  trustees  of  any  such  company  shall  have  the  right  to 
determine  the  amount  of  the  note  to  be  given,  in  addition  to  the 
cash  premium,  by  any  person  insured  in  such  comjiany ;  and  e\'ery 
person  effecting  insurance  in  any  mutual  company,  and  also  his 
heirs,  executors,  administrators,  and  assigns,  continuing  to  be  so 
insured,  shall  thereby  become  members  of  said  company  during  the 
period  of  insurance,  and  shall  be  bound  to  pay  for  losses,  and  such 
necessary  expenses  as  aforesaid,  accruing  to  said  company  in  pro- 
portion to  his  or  their  deposit  note.  But  any  person  insured  in  any 
mutual  company,  except  in  the  case  of  notes  required  by  this  chajx- 


200  hick's  insurance  statutes. 

ter  to  be  deposited  at  the  time  of  its  organization,  may,  at  any  time 
retm^n  liis  policy  for  cancellation,  and,  upon  payment  of  the  amount 
due  at  such  time  upon  his  premium  note  shall  be  discharged  from 
further  liability  thereon.     {Ibid,  §  1138.) 

21.  The  directors  shall,  as  often  as  they  deem  necessary,  after 
receiving  notice  of  any  loss  or  damage,  settle  and  determine  the  sums 
to  be  paid  by  the  several  membert^  thereof  as  their  respective  por- 
tion of  such  loss,  and  publish  the  same  in  such  manner  as  they  shall 
deem  proper,  or  the  by-laws  shall  have  prescribed  ;  but  the  sum  to 
be  i)aid  by  each  member  shall  always  be  in  proportion  to  the  origi- 
nal amount  of  his  deposit  note,  and  shall  be  paid  to  the  officers  of 
the  company  within  thirty  days  after  the  publication  of  said  notice ; 
and  if  any  member  shall,  for  the  space  of  thirty  days  after  personal 
demand,  or  by  letter,  for  i^ayment  shall  have  been  made,  neglect  or 
refuse  to  pay  the  sum  assessed  upon  him  as  his  proportion  of  any 
loss  iiforesaid,  the  directors  may  sue  for  and  recover  the  whole 
amount  of  his  deposit  note,  with  costs  of  suit ;  but  execution  shall 
issue  for  assessments  and  costs  as  they  accrue  only,  and  every  such 
execution  shall  be  accompanied  by  a  list  of  losses  for  which  the  as- 
sessment was  made.  If  the  whole  amount  of  deposit  notes  shall  be 
insufficient  to  pay  the  loss  occasioned,  the  sufferers  insured  by  said 
company  shall  receive,  toward  making  good  their  lespective  losses, 
a  proportionate  share  of  the  whole  amount  of  said  notes,  according 
to  the  sums  to  them  respectively  insured  ;  but  no  member  shall  e\eT 
be  re(inired  to  pay  for  any  loss  more  than  the  whole  amount  of  his 
deposit  note,     {Ibid,}}'  200,  §  1139.) 

23.  Every  insurance  company  hereafter  organized  as  provided 
in  this  chapter,  shall,  if  it  be  a  mutual  company,  embody  the  word 
"  mutual "  in  its  title,  which  shall  appear  upon  the  first  page  of 
every  policy  and  renewal  receipt ;  and  every  comjiany  doing  busi- 
ness as  a  cash  stock  company,  shall  upon  the  face  of  its  policies 
express  in  some  suitable  manner  that  such  policies  were  issued  by 
stock  comi^anies.     (Ibid,  §  1140.) 

SJJ.  The  president,  or  the  vice-president  and  secretary,  of  each 
company  organized  under  this  chapter,  or  incorporated  under  any 
law  of  this  State,  or  doing  business  in  tbis  State,  shall  annually,  on 
the  first  day  of  January  of  each  year,  or  within  thirty  days  there- 
after, prepare,  under  oath,  and  deposit  in  the  office  of  the  Auditor 
of  State,  a  full,  true,  and  complete  statement  of  the  condition  of 
such  c(mipany  on  the  last  day  of  the  month  preceding  that  in  which 
such  statement  is  tiled,  which  last  statement  shall  exhibit  the  follow- 
ing items  aiul  facts  in  the  following  form,  to  wit : 

First. — The  amount  of  capital  stock  of  the  company. 

Second. — The  name  of  the  officers. 

Third. — The  name  of  the  company,  and  wdiere  located. 

Fourth. — The  amount  of  its  capital  stock  paid  up. 

Fifth.— The  ])roperty  or  assets  held  by  the  company,  specifying : 

1.  The  value,  as  nearly  as  may  be,  of  the  real  estate  owned 
by  such  com])uuy ; 

2.  The  amount  of  cash  on  hand  and  deposited  in  banks  to 
the  credit  of  the  comi^any,  and  in  what  bank  the  same  is  de- 
posited ; 

3.  The  amount  of  cash  in  the  hands  of  agents,  and  in  the 
coui'se  of  transmission  ; 

4.  The  amount  of  loans  secured  by  first  mortgage  on  real 
estate,  with  the  rate  of  interest  thereon  j 


IOWA.  201 

5.  The  amount  of  all  other  bonds  and  loans,  and  how  secured, 
with  the  rate  of  interest  thereon  ; 

0.  The  amount  due  the  company  on  which  judgment  has  been 
obtained ; 

7.  The  amount  of  stocks  of  this  State,  of  the  United  States, 
of  any  incor])orated  city  of  this  State,  and  of  any  other  stocks 
owned  by  the  company,  s])ecifying  the  amount,  number  of 
shares,  and  par  and  market  value  of  each  kind  of  stock; 

8.  The  amount  of  stock  held  by  such  company  as  collateral 
seciu'ity  for  loans,  with  amount  loaned  on  each  kind  of  stock, 
its  par  and  market  value ; 

9.  The  amount  of  assessments  on  stock  and  premium  notes, 
paid  and  unpaid ; 

10.  The  amount  of  interest  actually  due  and  unpaid; 

11.  All  other  securities  and  their  value; 

12.  The  amount  for  which  premium  notes  have  been  given  on 
which  policies  have  been  issued. 

Sixth. — Liabilities  of  such  company,  specifying: 

1.  The  losses  adjusted  and  due ; 

2.  The  losses  adjusted  and  not  due ; 

3.  Losses  unadjusted  ;  ^ 

4.  Losses  in  suspense  and  the  cause  thereof; 

5.  Losses  resisted  and  in  litigation  ; 

6.  Dividends,  either  in  script  or  cash,  specifying  amount  of 
each,  declared  iDut  not  due ; 

7.  Dividends  declared  and  due  ; 

8.  The  amount  required  to  reinsure  all  outstanding  risks,  on 
the  basis  of  forty  per  cent,  of  the  i)remium  on  all  unexpired 
risks ; 

9.  The  amount  due  banks  or  other  creditors; 

10.  The  amount  of  money  borrowed  and  the  security  therefor ; 

11.  All  other  claims  against  the  company. 

Seventh. — The  income  of  the  company  during  the  previous  year, 
specifying: 

1.  The  amount  received  for  premiums,  exclusive  of  premium 
notes ; 

2.  The  amount  of  premium  notes  received ; 

3.  The  amount  received  for  interest ; 

4.  The  amount  received  for  assessments,  or  calls  on  stock 
notes,  or  x>remium  notes  ; 

5.  The  amount  received  from  all  other  sources ; 

Eighth. — The  expenditures  during  the  preceding  year,  specifying : 

1.  The  amount  of  losses  paid  during  said  term,  stating  how 
much  of  the  same  accrued  i)rior,  and  how  much  subsequent  to 
the  date  of  the  preceding  statement,  and  the  amount  at  which 
losses  were  estimated  in  such  statement ; 

2.  The  amount  paid  for  dividends ; 

3.  The  amount  paid  for  commissions,  salaries,  expenses,  and 
other  charges  of  agents,  clerks,  and  other  employes ; 

4.  The  amount  paid  for  salaries,  fees,  and  other  charges  of 
officers  and  directors ; 

5.  The  amount  paid  for  local.  State,  national,  internal  revenue, 
and  other  taxes  and  duties ; 

6.  The  amount  paid  for  all  other  expenses,  expenditures, 
including  printing,  stationery,  rents,  furniture,  etc. 

Ninth. — The  largest  amount  insured  in  any  one  risk. 


202  hine's  insurance  statutes. 

Tenth. — The  amoiiut  of  risks  written  during  the  year  then  ending. 

Eleventh.— The  amount  of  risks  in  force,  having  less  tlian  one 
year  to  run. 

Twelfth.— The  amount  of  risks  in  force,  having  more  than  one, 
and  not  over  three  years  to  run. 

Thirteenth. — The  amount  of  risks  having  more  than  three  years 
to  run. 

Fourteenth. — The  following  question  must  be  answered,  viz. : 
Are  dividends  declared  on  premiums  received  for  risks  not  termi- 
nated ? 

Fifteenth. — Each  accident  insurance  company,  or  company  insur- 
ing against  accidents  in  this  State,  shall  keep  a  register  of  tickets 
sold  by  its  offlcers  or  agents,  which  register  shall  show  the  name 
and  residence  of  the  person  insured,  the  amount  of  such  insurance, 
the  date  of  issue  of  such  ticket,  and  the  time  the  same  will  remain 
in  force,  and  every  such  company  shall  file  in  the  office  of  the 
Auditor  of  State,  in  January  in  each  year,  a  report,  sworn  to  by  the 
president  or  secretary  of  the  company,  showing  the  above  items  of 
the  business  of  such  company  during  the  preceding  year,  and  the 
Auditor  of  State  shall  withhold  tlie  certificate  of  authority  from  any 
such  company  neglecting  or  failing  to  comply  with  the  provisions 
of  this  section.     (Ibid,  ^  114,1.) 

54.  The  Auditor  of  State  is  hereby  authorized  and  empowered 
to  address  any  inquiries  to  any  insurance  company  in  relation  to 
its  doings  and  condition,  or  any  other  matter  connected  with  its 
transactions,  which  he  may  deem  necessary  for  the  public  good,  or 
for  a  proper  discharge  of  his  duties,  and  any  comi^any  so  addressed 
shall  promptly  reply  in  writing  thereto.     {Ibid,  p.  202.  §  1142.) 

55.  The  statement  of  any  company,  the  capital  of  which  is 
composed,  in .  whole  or  in  i)art,  of  notes,  shall,  in  addition  to  the 
foregoing,  exhibit  the  amount  of  notes  originally  forming  the 
capital,  and  also  what  proportion  of  said  notes  is  still  held  by  such 
comi)any  and  considered  capital.     {Ibid,  §  1143.) 

SS.  No  insurance  company,  association,  or  partnershi}),  organ- 
ized or  associated  for  any  of  the  purposes  specified  in  this  chapter, 
incorporated  by,  or  organized  under  the  laws  of  any  other  State  or 
any  foreign  government,  shall,  directly  or  indirectly,  take  risks  or 
transact  any  business  of  insurance  in  this  State,  unless  possessed  of 
two  hundred  thousand  dollars  of  actual  paid-up  capital,  exclusive  of 
any  assets  of  any  such  company  deposited  in  any  other  States  or 
Territories,  for  the  special  benefit  or  security  of  the  insured  therein ; 
and  any  such  comi)any  desiring  to  transact  any  such  business  as 
aforesaid,  by  an  agent  or  agents  in  this  State,  shall  file  with  the 
Auditor  of  State  a  written  instrument,  duly  signed  and  sealed, 
authorizing  any  agent  or  agents  of  such  company  in  this  State 
to  acknowledge  service  of  process  for  and  in  behalf  of  such  com- 
pany in  this  State,  consenting  that  service  of  process,  original, 
mean,  or  final,  upon  any  such  agent  or  agents,  shall  be  taken  and 
held  as  valid  as  if  served  upon  the  company  according  to  the  laws 
of  this  or  any  other  State,  and  waiving  all  claim  or  right  of  error, 
by  reason  of  such  acknowledgment  or  service ;  and  also  a  certified 
copy  of  their  charter  or  deed  of  settlement,  together  with  a  state- 
ment, under  oath,  of  the  president  or  vice-president,  or  other  chief 
officer,  and  the  secretary  of  the  company  for  which  they  may  act, 
stating  the  name  of  the  company  and  the  place  where  located,  the 
amount  of  its  capital,  with  a  detailed  statement  of  the  facts  and 


IOWA.  203 

items  retiuirecl  from  companies  org-anized  under  the  laws  of  this 
State,  as  per  section  ele\en  hundred  and  forty-one  hereof;  also  a 
copy  of  the  hist  annual  report,  if  any,  made  under  any  law  of  the 
State  by  which  such  company  was  incorporated  ;  and  no  agent  shall 
be  allowed  to  transact  business  for  any  company  whose  capital  is 
impaired  by  liabilities  as  stated  in  section  eleven  hnndi-ed  and 
forty-one  of  this  chapter,  to  the  extent  of  twenty  per  cent,  thereof, 
while  such  deficiency  shall  continue.     {Ibid,  j).  203,  §  1144.) 

Sr.  Xo  agent  shall  act  for  any  insurance  company  referred  to 
herein,  directly  or  indirectly,  in  taking  risks  or  transacting  busi- 
ness of  insurance  in  this  State,  without  procuring  from  the  Auditor 
of  State  a  certificate  of  authority,  stating  that  such  company  has 
complied  with  all  the  reqidsitions  of  this  chapter.     {Ibid.  §  1145.) 

28.  The  statements  and  evidences  of  investment  required  of 
foreign  companies  as  above  shall  be  renewed  annually,  in  such 
manner  and  form  as  required  hereby  and  as  said  Auditor  may  di- 
rect, with  any  additional  statement  of  the  amount  of  the  losses  in- 
curred or  premiums  received  in  this  State  during  the  preceding 
period,  so  long  as  such  agency  continues.  And  the  said  Auditor, 
on  being  satisfied  that  the  capital,  securities,  and  investments  re- 
main secure,  as  hereinbefore  i^rovided,  shall  furnish  a  renewal  of 
his  certificates  as  aforesaid.  All  notes  taken  for  policies  of  insur- 
ance in  any  company  doing  business  in  this  State  shall  state  upon 
then-  face  that  they  have  been  taken  for  insiu-ance,  and  shall  not 
be  collectable  unless  the  company  and  its  agents  have  fully  complied 
with  the  laws  of  this  State  relativerto  insurance.     {Ibid,\  114G.) 

"3I>.  Every  insurance  company  organized  under  the  laws  of,  or 
doing  business  in,  this  State,  shall  conform  to  all  the  provisions  of 
this  chapter  applicable  thereto,  and,  when  necessary,  any  existing 
company  shall  change  its  charter  and  by-laws,  so  as  to  conform 
hereto,  by  a  vote  of  a  majority  of  its  board  of  directors ;  and  any 
president,  secretary,  or  other  officer  of  any  company  organized  un- 
der the  laws  of  Iowa,  or  any  officer  or  person  doing,  or  attempting 
to  do,  business  in  this  State  for  any  insurance  company  organized 
without  this  State,  failing  to  comply  with  any  of  the  requirements 
of  this  chapter,  or  violating  any  of  the  provisions  thereof,  shall  be 
deemed  guilty  of  a  misdemeanor,  and,  upon  conviction  thereof,  shall 
be  fined  in  a  sum  not  exceeding  one  thousand  dollars,  and  be  im- 
prisoned in  the  county  jail  for  a  period  not  less  than  thirty  days  nor 
more  than  six  months.     (Ibid,  p.  204,  §  1147.) 

30.  Every  agent  of  any  insurance  company  shall,  in  all  adver- 
tisements of  such  agency,  publish  the  location  of  the  company, 
giving  the  name  of  the  city,  town,  or  village  in  which  the  company 
is  located,  and  the  State  or  government  under  the  laws  of  which  it 
is  organized.  The  term  agent,  used  in  the  foregoing  sections,  shall 
include  any  other  person  who  shall,  in  any  manner,  directly  or  indi- 
rectly, transact  the  insurance  business  of  any  insurance  company 
not  incorporated  by  the  laws  of  this  State.  The  provisions  of  the 
foregoing  sections  relative  to  foreign  companies  shall  apply  to  all 
such  companies,  partnerships,  associations,  or  individuals,  whether 
incorporated  or  not.     {Ibid,  §  1148.) 

31.  The  Auditor  of  State  shall,  whenever  he  deems  it  expe- 
dient so  to  do,  appoint  one  or  more  persons,  not  officers,  agents,  or 
stockholders  of  any  insurance  company  doing  business  in  this  State, 
to  examine  into  the  aft'airs  and  condition  of  any  insurance  company 
incorporated  or  doing  business  in  this  State,  or  to  make  such  ex- 


% 


204  niKE'S  IXSUEANCE   STATUTES. 

aminatioii  liimself;  aud  the  officers  or  agents  of  sucli  company  or 
com[)anies  shall  cause  their  books  to  be  opened  for  the  inspection 
of  the  Auditor,  or  the  person  or  persons  so  appointed,  and  otherwise 
facilitate  such  examination  so  far  as  may  be  in  tlieir  power  so  to  do ; 
and  for  the  purpose  of  arriving  at  the  truth  in  such  case,  the  Audi- 
tor, or  the  person  or  persons  so  appointed  by  him,  shall  have  power 
to  examine,  under  oath,  the  officers  or  agents  of  any  company,  or 
others  if  necessary,  relative  to  the  business  and  condition  of  said 
company;  and  whenever  theAuditor  shall  deem  it  best  for  the  interest 
of  the  public  so  to  do,  he  shall  publish  the  result  of  such  investiga- 
tion in  one  or  more  papers  in  this  State;  and  whenever  it  shall  ap- 
pear to  the  Auditor,  from  such  examination,  that  the  assets  and 
funds  of  any  company  incorporated  in  this  State  are  reduced  or 
impaired  by  the  liabilities  of  said  company,  as  described  under  the 
head  of  liabilities  in  the  statement  required  by  this  chapter,  more 
than  twenty  per  cent,  below  the  paid-up  capital  stock  required 
hereby,  he  may  direct  the  officers  thereof  to  require  the  stockholders 
to  pay  in  the  amount  of  such  deficiency,  within  such  a  period  as  he 
may  designate  in  such  requisition,  or  he  shall  communicate  the  fact 
to  the  Attorney-General,  who  shall  ap])ly  to  the  district  or  circuit 
court,  or,  if  in  vacation,  to  one  of  the  judges  thereof,  for  an  order 
requiring  said  comi^any  to  show  cause  why  tlieir  business  should 
not  be  closed ;  and  the  court,  or  judge,  as  the  case  may  be,  shall 
thereupon  proceed  to  hear  the  allegations  and  proofs  of  the  respec- 
tive parties ;  and  in  case  it  shall  appear  to  the  satisfaction  of  said 
court,  or  judge,  that  the  assets  and  funds  of  said  company  are  not 
sufficient  as  aforesaid,  or  that  the  interest  of  the  public  requires  it, 
the  said  court,  or  judge,  shall  decree  a  dissolution  of  said  company 
and  a  distribution  of  its  eifects.  The  said  court,  or  judge,  shall 
have  power  to  refer  the  application  of  the  Attorney-General  to  a 
referee,  to  inquire  into  and  report  upon  the  facts  stated  therein. 
{Ibid,  §  1149.) 

3^.  Any  company  receiving  the  aforesaid  requisition  from  the 
Auditor,  shall  forthwith  call  upon  its  stockholders  for  such  amounts 
as  will  make  its  paid-up  capital  equal  to  the  amount  fixed  by  this 
chapter,  or  the  charter  of  said  company ;  and  in  case  any  stock- 
holder shall  refuse  or  neglect  to  jjay  the  amount  so  called  for,  after 
notice  personally  given,  or  by  advertisement  in  such  time  aud 
manner  as  said  Auditor  shall  approve,  it  shall  be  lawful  for  the 
said  company  to  require  the  return  of  the  original  certificate  of 
stock  held  by  such  stockholder,  and  in  lieu  thereof  to  issue  new 
certificates  for  such  number  of  shares  as  the  said  stockholder  may 
be  entitled  to  in  the  proportion  that  the  ascertained  value  of  the 
funds  of  said  comjiauy  may  be  found  to  bear  to  the  original  capital 
of  the  said  company ;  the  value  of  such  shares  for  which  new  cer- 
tificates shall  be  issued  to  be  ascertained  under  the  direction  of  the 
said  Auditor,  the  company  paying  for  the  fractional  i^arts  of 
shares ;  and  it  shall  be  lawful  for  the  directors  of  such  company 
to  create  new  stock  and  dispose  of  the  same,  and  to  issue  new  cer- 
tificates therefor,  to  an  amount  sufficient  to  make  up  the  original 
cai)ital  of  the  company.  And  in  the  event  of  any  additional  losses 
accruing  upon  new  risks,  taken  after  the  expiration  of  the  period 
limited  by  the  said  Auditor  in  the  aforesaid  requisition  for  the  fill- 
ing up  of  the  deficiency  in  the  capital  of  such  comjiany,  and  before 
said  deficiency  shall  have  been  made  up,  the  directors  shall  be  in- 
dividually liable  to  the  extent  thereof.     {Ibid,  p.  205,  §  1150.) 


^■ 


IOWA.  ,  205 


33.  If,  upon  sucli  examination,  it  shall  appear  to  the  Auditor 
that  the  assets  of  any  company,  chartered  upon  the  phm  of  mutual 
insurance  under  this  chapter,  are  insufiticient  to  justify  the  continu- 
ance of  such  company  in  business,  he  shall  proceed  in  relation  to 
such  comijany  in  the  same  manner  as  herein  required  in  regard  to 
joint-stock:  companies ;  and  the  trustees  or  directors  of  such  com- 
pany are  made  personally  liable  for  any  losses  which  may  be  sus- 
tained upon  risks  taken  after  the  expiration  of  the  period  limited  by 
the  Auditor  for  filliug-  up  the  deficiency  in  the  ca])ital,  and  before 
such  deficiency  shall  have  been  made  up.  Any  transfer  of  tlie  stock 
of  any  company  organized  under  this  chapter,  made  diunng  the 
pend-^ng  of  any  investigation  required  above,  shall  not  release  the 
party  making  the  transfer  from  his  liability  for  losses  which  may 
have  accrued  previous  to  such  transfer.     {Ibid^  §  1151.) 

34.  The  x\.uditor  of  State  shall  be  authorized  to  examine  into 
the  condition  and  aiiViirs  of  any  insurance  company,  as  provided  for 
in  this  chapter,  doing  business  in  this  State,  not  organized  under 
the  laws  of  this  State,  or  cause  such  examination  to  be  made  by 
some  i>erson  or  persons  a])pointed  by  him,  having  no  interest  in  any 
insurance  company;  and,  whenever  it  shall  appear  to  the  satisfac- 
tion of  said  Auditor  that  the  affairs  of  any  such  company  are  in  an 
unsound  condition,  he  shall  revoke  the  certificates  granted,  in  behalf 
of  such  company,  and  shall  cause  a  notification  thereof  to  be  pub- 
lished in  some  newspaper  of  general  cii'culation  i)ublished  in  the 
city  of  Des  JMoines,  and  the  agent  or  agents  of  such  company  are, 
after  such  notice,  required  to  discontinue  the  issuing  of  any  new 
l)olicy,  or  the  renewal  of  any  previouslv  issued.  {Ibid,  p.  L'Ot), 
§  1152.) 

3d.  There  shall  be  j)aid  by  every  company  doing  business  in 
this  State,  except  companies  organized  under  the  laws  of  this  State, 
the  following  fees: 

Upon  filing  declaration,  or  certified  copy  of  charter,  twenty-five 
dollars ; 

Upon  filing  the  annual  statement,  twenty  dollars  ; 

For  each  certificate  of  authority,  and  certified  copy  thereof,  two 
dollars ; 

For  every  copy  of  any  paper  filed  in  the  department,  the  sum  of 
twenty  cents  per  folio,  and  fur  affixing  theofiicial  seal  to  such  copy, 
and  certifying  the  s-r'me,  one  dollar  ; 

For  valuing  policies  of  life  insurance  companies,  ten  dollars  per 
million  of  insurance  or  for  any  fraction  thereof; 
.     For  official  examinations  of  companies  under  this  act,  the  actual 
expense  incurred. 

And  companies  organized  under  the  law  of  this  State,  shall  pay 
the  following  fees : 

For  filing  and  examination  of  the  first  application  of  any  com- 
pany, and  the  issuing  of  the  certificate  of  license  thereon,  ten 
dollars ; 

For  filing  each  annual  statement,  and  issuing  the  renewal  of 
license  required  by  law,  three  dollars; 

For  each  certificate  of  authority  to  its  agents,  fifty  cents.  {Ibid, 
§  1153.) 

30.  When,  by  the  laws  of  any  other  State,  any  taxes,  fines, 
penalties,  licenses,  fees,  deposits  of  moneys  or  of  securities,  or  other 
obligations  or  prohibitions,  are  imposed,  or  Avould  be  Lmi)Osed,  on 
insurance  comi^anies  of  this  State,  doing,  or  that  might  seek  to  do, 


206  hixe's  insurance  statutes. 

business  in  such  other  State,  or  upon  their  agents  therein,  so  long 
as  such  kiws  continue  in  force,  the  same  obligations  and  prohibi- 
tions, of  whatev'er  kind,  shall  be  imposed  upon  all  insurance  com- 
panies of  such  other  State  doing  business  within  this  State,  or  upon 
their  agents  here.     {Ibid,  §  lloi.) 

S7.  Every  iusiu'ance  company  of  the  kind  pro\nded  for  in  this 
chapter,  doing  business  in  this  State,  organized  under  the  laws  of 
this  State  or  any  other  State  or  country,  shall  publish,  annually,  in 
two  newspapers  of  general  circulation,  one  of  which  shall  be  pub- 
lished at  the  capital  of  this  State,  and  in  case  of  any  company  organ- 
ized in  the  State  of  Iowa,  one  of  which  shall  be  published  in  the 
county  where  the  principal  office  is  located,  a  certificate  from  the 
Auditor  of  State  that  such  company  has,  in  all  respects,  complied 
with  the  laws  of  this  State  relating  to  insmance.  Said  certificate 
shall  also  contain  a  statement,  under  the  oath  of  the  president  or 
secretary"  of  such  insurance  company,  of  the  actual  amount  of  paid- 
uj)  capita],  tbe  aggregate  amount  of  assets  and  liabilities  at  the  date 
of  such  certificate,  together  with  the  aggregate  income  and  expendi- 
tures of  such  company  for  the  year  preceding  the  date  of  such  cer- 
tificate.    {Ibid,  §  1155.) 

88.  The  necessary  expenditure  of  any  examination  made,  or 
ordered  to  be  made,  by  the  Auditor  of  State  under  this  chapter, 
shall  be  certified  to  by  him  and  paid  on  his  requisition,  by  the  com- 
pany which  is  the  subject  of  such  examination.  {Ibid,  p.  207, 
§  115G.) 

3!>.  The  Auditor  of  State  shall  cause  to  be  prepared  and  fur- 
nished to  each  company  organized  under  the  laws  of  this  State,  and 
to  the  attorney  or  agent  of  each  company  incorporated  by  other 
States  and  foreign  governments,  who  may  apply  for  the  same, 
printed  forms  of  statements  required  by  this  chapter,  and  he  may, 
from  time  to  time,  make  such  changes  in  the  forms  of  these  state-* 
ments  as  shall  seem  to  him  best  adapted  to  elicit  from  the  companies 
a  true  exhibit  of  their  condition,  in  respect  to  the  several  points 
hereinbefore  enumerated.     {Ibid,  §  1157.) 

40.  The  Auditor  of  State  shall  cause  the  information  con- 
tained in  the  statements  required  of  the  companies  organized  in 
this  State  to  be  arranged  in  a  tabular  form,  and  prepare  the  same 
in  a  single  document  for  printing,  which  report  shall  be  made  on  or 
before  the  first  day  of  May  of  each  year,  and  fifteen  hundred  copies 
shall  be  i^rinted  for  the  use  of  the  Auditor,  who  shall  furnish  a  copy 
to  each  member  of  the  General  Assembly  and  one  to  each  news- 
paper printed  in  the  State.     {Ibid,  §  1158.) 

41.  No  company  organized  upon  the  mutual  plan  shall  do 
business  or  take  risks  upon  the  stock  plan  ;  neither  shall  a  company 
organized  as  a  stock  company  do  business  upon  the  plan  of  a 
mutual  insurance  company.     {Ibid,  §  1159.) 

43.  i^othing  in  this  chapter  shall  be  so  construed  as  to  prevent 
any  number  of  persons,  not  exceeding  two  thousand,  from  making 
mutual  i)ledges  and  giving  valid  obligations  to  each  other  for  theii" 
own  insurance  from  loss  by  fire  or  death ;  but  such  association  of 
persons  shall  in  no  case  insure  any  property  not  owned  by  one  of 
their  own  number,  and  no  life  except  that  of  their  own  members, 
nor  shall  the  provisions  of  this  chapter  be  applicable  to  such  asso- 
ciations or  companies;  but  such  associations  or  companies  shall 
receive  no  premiums  nor  make  any  dividends.     {Ibid,  §  1100.) 

43,     Every  insurance  company  doing  business  in  this  State, 


IOWA.  207 

except  joint  stock  and  mutual  companies  organized  under  the  laws 
of  tills  State,  shall,  at  the  time  of  making  the  annual  statements  as 
required  l)y  law,  pay  into  the  State  treasury  as  taxes,  two  and  one- 
half  per  cent,  of  the  gross  amount  of  jnemiums  received  in  this 
State  during  the  preceding  year,  taking  duplicate  receipts  therefor, 
one  of  which  shall  be  filed  with  the  Auditor;  and  upon  the  filing  of 
said  receipts,  and  not  till  then,  the  said  Auditor  shall  issue  the 
annual  certificate  as  provided  by  law  ;  and  the  said  sum  of  two  and 
one-half  per  cent,  shall  be  in  full  for  all  taxes,  State  and  local. 
{Ibid,  p.  135,  §  807.) 

44.  Every  company  formed  for  the  purpose  of  insuiing  the 
lives  of  indi\iduals,  whether  organized  under  the  laws  of  this  State 
or  of  any  other  State,  or  foreign  country,  shall,  before  issuing  any 
policies' on  lives  mthin  this  State,  comply  with  the  conditions  and 
restrictions  of  this  chapter.     {Ibid,  p.  208,  §  1101.) 

45.  Joint-stock  companies,  organized  under  the  laws  of  this 
State,  shall  have  not  lei«is  than  one  hundred  thousand  dollars  of 
capital  stock  subscribed,  twenty-five  per  cent,  of  which  shall  be  paid 
up  and  invested  in  stocks  of  the  United  States,  or  of  this  State,  or 
in  bonds  and  mortgages  upon  unincumbered  real  estate  in  the  State 
of  Iowa,  worth,  exclusive  of  improvements,  at  least  double  the  sum 
loaned  thereon,  which  said  securities  shall  be  deposited  with  the 
Auditor  of  State,  and  upon  said  deposit,  and  upon  satisfactory  evi- 
dence to  the  Auditor  that  the  capital  stock  is  all  subscribed  in 
good  faith,  he  shall  issue  to  said  company  the  certificate  hereinafter 
provided  for.  But  no  part  of  the  twenty-five  per  cent,  aforesaid 
shall  be  loaned  to  any  stockholder  or  officer  of  the  company ;  the 
remainder  of  such  stock  shall  be  paid  in  such  time  as  the  directors 
or  trustees  of  the  comi^any  may  direct,  and  the  same  shall  be 
secured  by  the  notes  of  the  stockholders  of  said  company.  jSTo  note 
shall  be  accepted  as  part  of  such  capital  stock,  unless  the  same 
shall  be  accompanied  by  a  certificate  of  a  justice  of  the  peace, 
notary  public,  or  clerk  of  the  district  court  of  the  county  in  which 
the  person  executing  such  note  shall  reside,  that  the  person  making 
the  same  is,  in  his  opinion,  pecuniarily  good  and  responsible  for  the 
same  in  property  not  exempt  from  execution  by  the  laws  of  this 
State.     (i^i(/,§  1162.) 

4t>.  Companies  organized  under  the  laws  of  this  State  upon 
the  mutual  plan,  shall,  before  issuing  any  policies,  have  actual  ap- 
plications on  at  least  two  hundred  and  fifty  individual  lives,  for  an 
average  amount  of  one  thousand  dollars  each,  a  list  of  whicli  appli- 
cations, giving  the  name,  age,  residence,  amount  of  insurance,  and 
annual  premium  of  each  applicant,  shall  be  filed  with  the  Auditor 
of  State,  and  a  dei^osit  made  with  said  Auditor  of  an  amount  equal 
to  three-fifths  of  the  whole  annual  ijremium  on  said  applications, 
either  in  cash  or  the  securities  required  by  the  foregoing  section, 
and,  on  compliance  with  said  provisions,  the  said  Auditor  shall 
issue  to  said  mutual  company  the  certificate  hereinafter  prescribed. 
{Ibid,  §  1103.) 

47.  ^o  person  shall  act  within  this  State  as  agent,  or  other- 
wise, in  receiving  or  procuring  applications  for  insurance,  or  in  any 
manner  to  aid  in  transacting  the  business  of  insurance  referred  to 
in  section  eleven  hundred  and  sixty-one  hereof,  for  any  company  or 
association  incorporated  by,  or  organized  under,  the  laws  of  any 
State  or  government,  unless  such  company  is  possessed  of  the 
amount  of  actual  capital  required  of  any  company  in  this  State,  and 


208  HINE'S  rN^SUEANCE  STATUTES. 

the  same  is  invested  in  stocks  or  treasury  notes  of  tlie  United 
States,  or  this  State,  or  of  interest  paying  bonds  of  the  State  in 
which  said  company  is  located,  or  where  said  deposits  are  made,  or 
in  bonds  and  mortgages  ou  unincumbered  real  estate  within  the 
State  where  such  company  is  located,  but  all  mortgages  deposited 
by  any  company  under  this  section,  shall  be  upon  unincumbered  real 
estate  worth  double  the  amount  loaned  thereon  ;  which  stock  and 
securities  shall  be  deposited  with  the  Auditor,  Controller,  or  chief 
finaucial  oflticer  of  the  State  by  whose  laws  said  company  is  incor- 
porated, or  some  other  State,  and  the  Auditor  of  this  State  fur- 
nished with  a  certificate  of  such  Auditor,  Controller,  or  chief  fluan- 
cial  officer  aforesaid,  under  his  hand  and  official  seal,  that  he,  as 
such  Auditor,  Controller,  or  chief  financial  officer  of  such  State, 
holds  in  trust  and  on  deposit,  for  the  beuefit  of  all  the  policy-hold- 
ers of  such  company,  the  security  before  mentioned,  which  certifi- 
cate shall  embrace  the  items  of  security  so  held,  and  that  he  is 
satisfied  that  such  securities  are  worth  one  hundred  thousand  dol- 
lars ;  but  nothing  herein  contained  shall  be  coustrued  to  invalidate 
the  agency  of  any  company  incorporated  in  another  State,  by 
reason  of  such  company  having  from  time  to  time  exchanged  the 
securities  so  deposited  with  the  Auditor,  Controller,  or  chief  finan- 
cial officer  of  the  State  in  which  such  company  is  located  for  other 
stock  or  securities  authorized  by  this  chajiter,  or  by  reason  of  such 
companj'  having  drawn  its  interest  and  dividends  from  time  to 
time,  for  such  stocks  and  securities.     {Ibid,  §  1104.) 

48.  Such  company  shall  also  appoint  an  attorney  or  agent  in 
each  county  in  this  State,  in  which  the  company  has  an  agency,  on 
whom  process  of  law  can  be  served,  and  such  company  shall  file 
with  the  Auditor  of  State  a  certified  copy  of  the  charter  or  articles 
of  incorporation  of  said  company,  and  also  a  certified  copy  of  the 
certificate  of  apj^ointment  of  such  agent,  or  agents,  which  appoint- 
ment shall  continue  until  another  agent  or  attorney  be  substituted. 
And  in  case  any  insurance  corporation  shall  cease  to  transact  busi- 
ness in  this  State  according  to  the  laws  thereof,  the  agents  last 
designated,  or  acting  as  such  for  such  corporation,  shall  be  deemed 
to  continue  agents  for  such  corporation  for  the  purj)ose  of  ser^dng 
process  for  commencing  actions  upon  any  policy  or  liability  issued 
or  contracted  while  such  corporation  transacted  business  in  this 
State ;  and  service  of  such  process  for  the  causes  aforesai<l  upon 
any  such  agent  shall  be  deemed  a  valid  personal  service  upon  such 
corporation,  and  such  company  shall  also  file  a  statement  of  its  con- 
dition and  aliairs  in  the  olfice  of  the  Auditor  of  State,  in  the  same 
form  and  manner  required  for  the  annual  statements  of  similar 
companies  organized  under  the  laws  of  this  State.  {I  hid,  p.  209, 
§  1105.) 

49.  Xo  agent  shall  act  for  any  company  referred  to  in  the 
foregoing  section,  directly  or  indirectly,  in  taking  risks,  collecting 
premiums,  or  in  any  manner  transacting  the  business  of  life  insur- 
ance in  this  State,  without  i)rocuring  from  said  Auditor  a  certificate 
of  authority,  stating  that  the  foregoing  requirements  have  been 
complied  with,  and  setting  forth  the  name  of  the  attorney  for  each 
company,  a  certified  coi)y  of  which  certificate  shall  be  filed  in  the 
county  recorder's  office  of  the  county  where  the  agency  is  to  be  es- 
tablished, and  shall  be  the  authority  of  such  company  and  agent  to 
commence  business  in  this  !State,  and  such  company,  or  its  agent  or 
attorney,  shall  annually,  by  the  first  day  of  April,  file  with  the 


IOWA.  209 

Auditor  of  State  a  statement  of  its  affairs  for  the  year  terminating? 
on  the  31st  day  of  December  preceding,  in  the  same  manner  and  t'oTiu 
])rovided  for  similar  companies  organized  in  this  State.  {Ibid, 
§  1100,  as  amended  by  laws  o/1874,  ^.  2,  §  1.) 

50.  The  president,  or  vice-president,  and  secretary  or  actuary, 
or  a  majority  of  the  trustees  or  directors  of  each  company  organ- 
ized under  this  chapter,  shall,  annually,  on  the  first  day  of  January, 
or  within  thirty  days  thereafter,  prepare,  uiKler  oath,  and  deposit 
in  the  oftice  of  the  Auditor  of  State,  a  statement,  showing : 

First. — Name  and  capital. 

1.  The  name  of  the  company  and  where  located; 

2.  The  name  of  the  officers ; 

3.  The  amount  of  capital  stock ; 

4.  The  amount  of  capital  stock  paid  in. 
Second. — Assets. 

1.  The  value  of  real  estate  owned  by  such  company ; 

2.  The  amount  of  cash  on  hand  ; 

3.  The  amount  of  cash  deposited  in  hank,  gi%ing  name  of 
bank  or  banks; 

4.  The  amount  of  cash  in  the  hands  of  agents,  and  in  the 
course  of  transmission ; 

5.  The  amount  of  bank  stocks,  with  the  name  of  each  bank, 
giving  par  and  market  value  of  the  same ; 

6.  The  amount  of  stocks  and  bonds  of  the  United  States,  and 
all  other  bonds,  giving  names  and  amounts,  with  the  par  and 
market  value  of  each  kind  ; 

7.  The  amount  of  loans  secured  by  first  mortgage  on  real 
estate ; 

8.  The  amount  of  all  other  bonds  and  loans,  and  how  secured, 
with  the  rate  of  interest ; 

9.  The  amount  of  premium  notes  on  policies  in  force ; 

10.  The  amount  of  notes  given  for  unpaid  stock,  and  how 
secured ; 

11.  The  amount  of  assessments  unpaid  on  stock  or  premium 
notes ; 

12.  The  amount  of  interest  due  and  unpaid ; 

13.  All  other  securities. 
Third. — Liabilities. 

1.  The  amount  of  losses  due  and  unpaid; 

2.  The  amount  of  losses  adjusted  but  not  due ; 

3.  The  amount  of  losses  unadjusted ; 

4.  The  amount  of  claims  for  losses  resisted ; 

5.  The  amount  of  money  or  evidences  of  investment  borrowed  ; 

0.  The  amount  of  dividends  unpaid; 

7.  The  amount  required  to  safely  reinsure  all  outstanding 
risks ; 

8.  AH  other  claims  against  the  company. 
Fourth.  —liiGome  during  the  year. 

1.  The  amount  of  net  cash  premiums  received  ; 

2.  The  amount  of  premium  notes  received  ; 

3.  The  amount  of  interest  received  from  all  sources ; 

4.  The  amount  received  from  all  other  sources. 
Fifth. — Expenditures  during  the  year. 

1.  The  amount  paid  for  losses ; 

2.  The  amount  of  dividends  paid  to  policy-holders  and  amount 
to  stockholders ; 

14 


210  iiixe's  insurance  statutes. 

3.  The  amount  of  commissions  and  salaries  paid  to  agents; 

4.  The  amount  paid  to  officers  for  salaries  and  other  perqui- 
sites ; 

5.  The  amount  paid  for  taxes ; 

6.  The  amount  of  all  other  payments  and  expenditures. 
Sixth . — Miscellaneous. 

1.  The  greatest  amomit  insured  on  any  one  life ; 

2.  The  amount  deposited  in  other  States  or  territories  as 
security  for  policy-hoklers  therein, "stating  the  amount  in  each 
State  or  territory ; 

3.  The  amount  of  premiums  received  in  this  State  during  the 
year; 

4.  The  amount  paid  for  losses  in  this  State  during  the  year ; 

5.  The  whole  number  of  policies  issued  during  the  year,  with 
the  amount  of  insurance  effected  thereby,  and  total  amount  of 
risk ; 

6.  All  other  items  of  information  necessary  to  enable  the 
Auditor  to  correctly  estimate  the  cash  A^alue  of  policies,  or  to 
judge  of  the  correctness  of  the  valuation  thereof.  {Ibid,  210, 
§  1167,  as  amended  by  laws  o/1874,  ^.  2,  §  2.) 

5 1 .  The  Auditor  of  State  is  authorized  to  amend  the  form  of 
annual  statement,  and  to  propose  such  additional  inquiries  as  he 
may  think  necessary  to  elicit  a  full  exhibit  of  the  standing  of  com- 
panies doing  business  in  this  State.     {Ibid, p.  211,  §  1168.) 

S'i.  As  soon  as  practicable  after  the  tiling  of  said  statement  of 
any  company  organized  or  doing  business  under  the  laws  of  this 
State,  in  the  office  ot  the  Auditor  of  State,  he  shall  j)roceed  to  ascer- 
tain the  net  cash  value  of  each  policy  in  force,  upon  the  basis  of 
American  Experience  Table  of  Mortality,  and  four  and  one-half  per 
cent,  interest,  or  Actuary's  Combined  Exijerience  Table  of  Mortality, 
with  interest  at  four  per  cent. ;  but  in  case  such  valuation  has  been 
made  in  New  York,  or  any  other  State,  upon  the  basis  above  speci- 
fied, a  certificate  of  the  Auditor,  Controller,  or  chief  financial  officer 
of  such  State,  shall  be  taken  by  the  Auditor  of  this  State  as  sufficient 
evidence  of  the  valuation  of  such  policies,  and  of  the  amount  so  re- 
(piired  for  such  reinsurance.  For  the  purpose  of  making  such 
valuations,  when  not  already  made  as  aforesaid,  the  Auditor  may 
employ  a  competent  actuary  to  do  the  same,  who  shall  be  paid  by 
the  company  for  which  the  service  was  rendered ;  but  nothing  here- 
in shall  prevent  any  company  from  making  said  valuation  herein 
contemplated,  which  shall  be  received  by  the  Auditor  upon  such  proof 
as  he  may  determine.  Upon  ascertaining  the  net  cash  value  of  poli- 
cies in  force  in  any  company  organized  unrler  the  laws  of  this  State, 
or  doing  business  in  this  State,  and  which  has  not  made  the  deposit 
required  in  section  eleven  hundred  and  sixty-four  of  this  chapter, 
the  Auditor  shall  notify  said  company  of  the  amount,  and  w'ithin 
thirty  days  atter  the  date  of  such  notification,  the  ofittcers  of  such 
company  shall  deposit  with  the  Auditor  the  amount  of  such  ascer- 
tained valuation  of  all  policies  within  this  State,  in  stocks  of  the 
United  States  or  of  this  State,  or  any  other  State,  or  in  bonds  and 
mortgages  on  real  estate  within  the  limits  of  this  State,  or  within 
the  State  where  such  company  is  located,  of  at  least  double  the  value 
loaned  thereon.  But  no  joint-stock  comj)any  organized  under  the 
laws  of  this  State,  or  doing  business  therein,  shall  be  required  to 
make  such  deposit  until  the  cash  value  of  the  policies  in  force,  as 
ascertained  by  the  Auditor,  exceeds  the  amount  deposited  by  said 


IOWA.  21  I 

company  ^mde^  section  eleven  hnudred  and  sixty-two  hereof.  For- 
eign companies  doing  bnsiuess  in  tliis  State  are  not  required  to  make 
deposit  in  this  State  ;  Provided,  Such  deposit  has  been  made  in  the 
State  where  located,  or  in  any  other  State,  when  they  shall  have 
complied  with  section  eleven  hundred  and  sixty-four  of  this  chapter. 
(//////,  §  11G9.) 

53.  On  receipt  of  the  deposit  and  statement  from  any  company 
as  provided  in  the  preceding  sections,  and  the  statement  and  evi- 
dence of  investment  according  to  law  o±  foreign  companies,  which 
shall  be  renewed  annually,  the  Auditor  shall  issue  a  certiticate  set- 
ting forth  the  corporate  name  of  the  company  ;  its  principal  office 
or  agency  in  the  State  ;  that  it  has  fully  complied  with  the  laws  of 
this  State  in  reUitiuu  to  life  insurance  companies,  and  is  authorized 
to  transact  the  business  of  life  insurance  for  twelve  months  from  the 
date  of  such  certiticate,  or  until  the  expiration  of  the  thirty  days' 
notice  given  by  the  Auditor  of  the  next  annual  valuation  of  its  poli- 
cies, said  certificate  to  expire  on  the  first  day  of  April  in  the  year 
following  after  it  is  issued.  {Ibid,  p.  212,  §  1170,  as  amended  by  laws 
0/187-1,^;.  2,  §3.) 

54.  Upon  the  failure  of  any  company  organized  in  this  State 
to  make  the  deposit,  or  file  the  statement  in  the  time  stated  herein, 
the  Auditor  shall  notify  the  Attorney-Greneral  of  the  default,  who 
shall  at  once  apply  to  the  district  or  circuit  court  if  in  session,  or, 
if  in  vacation,  to  any  judge  thereof  for  an  order  requiring  said  com- 
pany to  show  cause  why  its  business  shall  not  be  closed ;  and,  if 
upon  hearing,  the  company  shall  fail  to  show  sufficient  cause  for 
neglecting  to  make  the  deposit,  or  file  the  statement  required  by 
this  cha[)ter,  then  the  court  shall  decree  its  dissolution.  Companies 
oijganized  and  chartered  by  the  laws  of  any  foreign  State  or  country, 
failing  to  file  the  evidence  of  deposit  and  the  statement  within  the 
time  stated  herein,  shall  be  subject  to  the  penalties  prescribed  in 
section  1177.     [Ibid,  §  1171,  as  amended  by  laws  of  1«74,  p.  3,  §  4.) 

55.  The  Auditor  may  at  any  time  make  a  personal  examination 
of  the  books,  papers,  and  securities  of  any  life  insurance  company 
doing  business  in  this  State,  or  may  authorize  or  empower  any 
other  suitable  person  to  make  such  examination,  and  for  the  pur- 
pose of  securing  a  full  and  true  exhibit  of  its  affairs,  he,  or  the 
person  selected  by  him  to  make  such  examination,  shall  have  power 
to  examine  under  oath  any  officer  or  agent  of  said  company,  or 
others  if  necessary,  relative  to  its  business  and  management.  If, 
upon  such  examination,  the  Auditor  is  of  opinion  that  the  company 
is  insolvent,  or  that  its  condition  is  such  as  to  render  its  further 
proceedings  hazardous  to  the  public  or  to  the  holders  of  its  policies, 
he  shall  communicate  the  facts  to  the  Attorney-Greneral,  who  shall  at 
once  apply  to  a  judge  of  the  supreme  or  district  court  to  issue  an 
injunction,  restraining  such  company  from  transacting  further  busi- 
ness, except  the  payment  of  losses  already  ascertained  and  due, 
until  a  full  hearing  can  be  had.  It  shall  be  discretionary  with  the 
judge  either  to  issue  the  injunction  forthwith  or  to  give  notice  to 
the  company,  and  cause  a  hearing  to  be  had  as  in  ordinary  proceed- 
iugs  for  an  injunction.  Upon  the  final  hearing  of  the  cause,  he  may 
dissolve  or  modify  the  injunction,  or  make  it  i)erpetual,  and,  if  made 
l)erpetual,  shall  also  decree  what  disposition  shall  be  made  of  the 
deposit  of  the  company  in  the  hands  of  the  Auditor,  subject  to  the 
provisions  of  the  following  section.     {Ibid,  p.  213,  §  1172.) 

56.  The  securities  of  a  defaulting  or  insolvent  company,  on 


212  hike's  insurakce  statutes. 

deposit  with  the  Auditor  of  State,  shall  vest  in  tlie  State  for  the  be- 
nefit of  the  policies  on  which  such  deposits  were  made,  and  the  pro- 
ceeds of  the  same  shall,  upon  the  order  of  the  court,  be  divided 
among  the  holders  of  said  policies,  in  the  proportions  of  the  last  an- 
nual valuation  of  the  same,  or  applied  to  the  purchase  of  reinsur- 
ance for  the  benefit  of  the  policy-holders.     (Ibid,  §  1 173.) 

o7.  Companies  shall  have  the  right  at  any  time  to  change 
their  securities  on  deposit,  by  substituting  for  those  withdrawn  a 
like  amount  in  other  securities  of  the  character  provided  for  in  this 
chapter,  and  whenever  the  annual  valuation  of  policies  outstanding 
and  in  force  against  any  company  is  less  than  the  amount  of  secur- 
ity then  on  deposit  with  the  Auditor,  said  company  shall  have  the 
right  to  withdraw"  such  excess ;  but  twenty-five  thousand  dollars 
shall  remain  on  deposit.     {Ibid,  §  1174.) 

5^.  The  Auditor  shall  permit  companies,  having  on  deposit 
with  him  stock  or  bonds  as  security,  to  collect  the  interest  accruing 
on  such  deposits,  delivering  to  their  authorized  agents  respectively 
the  coupons  or  other  evidences  of  interest  as  the  same  become  due, 
but  upon  default  by  any  company  to  deposit  additional  security  as 
called  for  by  the  Auditor,  or  pending  any  proceedings  to  close  up  or 
enjoin  it,  he  shall  collect  the  interest  as  it  becomes  due,  and  add  the 
same  to  the  securities  in  his  hands  belonging  to  such  company. 
{lbid,2).2U,yill5.) 

59.  At  the  earliest  practicable  date  after  the  returns  are  re- 
ceived from  the  several  insurance  companies,  the  Auditor  shall  make 
a  report  to  the  General-Assembly,  of  the  general  conduct  and  con- 
dition of  the  corporations  visited  by  hini  since  his  last  annual  re- 
port, and  shall  include  therein  an  aggregate  of  the  cahjulated  value 
of  all  outstanding  policies  of  life  insurance,  and  in  connection  there- 
with, shall  prepare  an  abstract  of  all  the  returns  and  statements 
made  to  him  by  insurance  companies  and  agents,     {Ibid,  §  1176.) 

6®.  Any  company  doing  business  in  this  State  without  the 
certificate  required  by  section  (1170)  eleven  hunth'ed  and  seventy  of 
this  chapter,  shall  forfeit  one  hundred  dollars  for  every  day's  neg- 
lect to  procure  said  certificate.  Any  agent  making  insurance,  or 
soliciting  applications  for  any  company  having  no  certificate  ti-om 
the  Autlitor,  shall  forfeit  the  sum  of  three  hundred  dollars,  and  any 
person  acting  for  a  (;om])any  authorized  to  transact  business  in  this 
State,  without  having  the  certificate  prescribed  in  section  HOG,  is- 
sued by  the  Auditor  of  State,  in  his  possession,  shall  be  liable  to 
pay  twenty-five  dollars  for  each  day's  neglect  to  procure  such  cer- 
tificate.    {Ibid,  §  1177,  as  amended  by  laws  o/ 1874,  ^9.  3,  §  5.) 

<>1 .  >!uits  brought  to  recover  any  of  the  penalties  pro\ided  for 
in  this  chai)ter  shall  be  instituted  in  the  name  of  the  State  of  Iowa 
by  the  District  Attorney  of  the  district,  under  the  direction  and  by 
the  authority  of  the  Auditor  of  State,  and  may  be  brought  in  the 
district  or  circuit  court  of  any  county  in  which  the  comi^any  pro- 
ceeded against  is  engaged  in  the  transaction  of  business,  or  in  which 
the  agent  resides,  in  cases  in  which  the  ju-oceeding  is  against  the 
agent  indi^^dually.  Said  i^enalties  when  recovered  shall  be  paid 
iuto  the  State  treasury  for  the  use  of  the  school  fund.  {Ibid,  §  117<S, 
as  amended  by  laics  of  1874,  p.  3,  §  6.) 

6^.  No  company  organized  under  the  provisions  of  this  chap- 
ter shall  invest  its  funds  in  any  other  manner  than  in  the  stocks  of 
the  United  States,  of  this  State,  or  any  other  State,  if  at  or  above 
par;  in  bonds  and  mortgages  on  unincumbered  real  estate  within 


IOWA.  213 

this  State,  or  iu  the  State  in  whicli  siieh  ('ouii)aiiy  is  located,  worth 
at  least  twice  the  amount  loaned  thereon,  exclusive  of  improve- 
ments ;  and  all  stocks,  bonds,  or  mortgages  owned  or  held  by  any 
comi)any  doing  business  under  the  provisions  of  this  chapter, 
whether  organized  under  the  laws  of  this  State  or  not,  shall  be 
equal,  or  made  to  be  equal  to  six  per  cent,  stocks.    {Ihid,  §  1L79.) 

ttJI.  No  company  organized  under  this  chapter,  shall  be  })er- 
mitted  to  purchase,  hold,  or  convey  real  estate,  except  for  the  pur- 
poses and  the  manner  herein  set  forth  : 

1.  Such  as  shall  be  requisite  for  its  immediate  accommoda- 
tion in  the  transaction  of  business  ;  or, 

2.  Such  as  shall  have  been  mortgaged  to  it  iu  good  faith  by 
way  of  security  for  loans  previously  contracted,  or  for  moneys 
due;  or, 

3.  Such  as  shall  have  been  ccmveyed  to  it  iu  satisfaction  of 
debts  previously  contracted  in  the  course  of  its  dealings ;  or, 

4.  Such  as  shall  have  been  purchased  at  sales  uj ion  judg- 
ments, decrees,  or  mortgages  obtained  or  made  for  such  debts  ; 

and  no  company  incorporated  as  aforesaid  shall  purchase,  hold,  or 
convey  real  estate  in   any  other  case,  or  for  any  other  j)urpose. 

64.  All  such  real  estate  as  may  be  acquired  as  aforesaid,  and 
which  shall  not  be  necessary  for  the  accommodation  of  such  com- 
l)any  in  the  convenient  transaction  of  its  business,  shall  be  sold  and 
disposed  of  within  five  years  after  such  company  shall  have  acquired 
title  to  the  same ;  no  such  company  shall  hold  such  real  estate  for  a 
longer  period  than  that  above  mentioned,  unless  the  said  comi^any 
shall  procure  a  certificate  from  the  Auditor  of  State  that  the  inter- 
ests of  the  company  will  suffer  materially  by  a  forced  sale  of  such 
real  estate,  in  which  event  the  time  for  the  sale  may  l)e  extended  to 
such  time  as  the  said  Auditor  shall  direct  in  said  certificate.  [Ibid, 
p.  215,  §  1181.) 

6.5.  A  x)olicy  of  insurance  on  the  life  of  an  individual,  in  the 
absence  of  an  agreement  or  assignment  to  the  contrary,  shall  inure 
to  the  separate  use  of  the  husband  or  wife  and  children  of  said  in- 
di\idual,  independently  of  his  or  her  creditors  ;  and  an  endowment 
policy,  payable  to  the  assured  on  attaining  a  certain  age,  shall  be 
exemi)t  from  liability  for  any  of  his  or  her  debts.   {Ihidj  §  1182.) 

66.  Each  company  contemplated  in  this  cha])ter  shall  pay  the 
same  fees,  and  be  liable  to  the  same  obligations  as  provided  in  sec- 
tions eleven  hundred  and  fifty-three  and  eleven  hundred  and  fifty- 
four  of  chapter  four  of  this  title.     {Ibid,  §  1183.) 

«»7.  In  all  cases  in  which  any  of  the  life  insurance  companies 
doing  business  in  this  State,  or  their  agents,  have  heretofore  failed 
to  file  the  statements  with  the  Auditor  of  State,  and  to  procure  the 
certificates  required  by  the  provisions  of  chapter  173  of  the  acts  of 
the  twelfth  General  Assembly,  and  of  chapter  (5)  five  of  title  nine 
(9)  of  the  Code  of  Iowa,  within  the  times  therein  limited,  but  have, 
iu  fact,  subsequently  filed  sucli  statements  and  procm-ed  certificates 
from  the  Auditor  of  State,  such  filing  of  said  statements  and  pro- 
curing of  certificates  shall  be  taken  and  deemed  to  be  a  fulfillment 
of  the  requirements  and  provisions  of  said  acts  above  named,  on 
the  part  of  said  companies  and  their  agents,  and  shall  have  the 
same  force  and  efiect  as  though  such  statements  had  been  filed  and 
the  certificates  had  been  issued  within  the  times  limited  and  fixed 
in  said  chapter  173  of  the  acts  of  the  twelfth  (12)  General  Assem- 


214  hine's  insurance  statutes. 

bly,  and  chapter  five  (5)  of  title  nine  (9)  of  the  Code  of  Iowa,  and 
no  fine,  penalty,  or  forfeiture  shall  be  held  or  deemed  to  have  been 
incurred  by  any  of  said  companies,  or  their  agents,  pre\"ious  to  the 
issuing  of  the  said  certificates  by  the  Auditor  of  State ;  and  all  for- 
feitures, fines,  and  penalties  heretofore  incurred  by  any  of  said  life 
insurance  companies,  or  by  the  agents  thereof,  be  and  the  same  are 
hereby  released,  remitted,  and  discharged.    [Lmcs  o/1874, 2>.  3,  §  7.) 


ARSON  a:nd  incendiarism. 

68.  If  any  person  willfully  or  maliciously  burn,  in  the  night 
time,  the  inhabited  building,  boat,  or  vessel  of  another,  or  willfully 
and  maliciously  set  fire  to  any  other  building,  boat,  or  vessel 
owned  by  himself  or  another,  by  the  burning  whereof  such  in- 
habited building,  boat,  or  vessel  is  burnt  in  the  night  time,  he  shall 
be  punished  by  imprisonment  in  the  penitentiary  for  life  or  any 
term  of  years.     {Code,  1873,  p.  603,  §  3880.) 

<I9.  If  any  i^erson  willfully  or  maliciously  burn,  in  the  day 
time,  the  inhabited  building,  boat,  or  vessel  of  another,  or  any 
building,  boat,  or  vessel  adjoining  thereto;  or  willfully  and  ma- 
liciously set  fire  to  any  building,  boat,  or  vessel  owned  by  himself 
or  another ;  by  the  burning  whereof  such  inhabited  building,  boat, 
or  vessel  is  burnt  in  the  day  time ;  or  in  the  day  time  willfnlly  and 
maliciously  set  fire  to  anj'  building,  boat,  or  vessel  owned  by  him- 
self or  another,  by  the  burning  of  which  any  such  inhabited  build- 
ing, boat,  or  vessel  is  burnt  in  the  night  time,  he  shall  be  punished 
'"'  by  imprisonment  in  the  penitentiary  for  a  term  not  exceeding  thirty 
years.     {Ibid,  §  3881.) 

y©.  If  any  person  willfully  and  maliciously  burn,  in  the  night 
time,  any  uninhabited  dwelling-house,  boat,  or  vessel  belonging  to 
another,  or  any  courthouse,  jail,  college,  church,  or  any  building 
erected  for  x)ublic  use  ;  or  any  other  building,  boat,  or  vessel,  by  the 
burning  whereof  any  building,  boat,  or  vessel  mentioned  in  this  sec- 
tion is  burnt  in  the  night  time,  he  shall  be  pimished  by  imprison- 
ment in  the  penitentiary  not  exceeding  twenty  years.  {Ibid,  p.  604, 
§  3882.) 

71.  If  any  person  wilifully  and  maliciously  burn,  in  the  day 
time,  any  building,  boat,  or  vessel  mentioned  in  the  preceding  sec- 
tion, he  shall  be  punished  by  imprisonment  in  the  penitentiary  not 
exceeding  fifteen  years,     (i  hid,  §  3883.) 

TiB.  If  any  i»erson  willfully  and  maliciously  burn,  either  in  the 
night  or  day  time,  any  warehouse,  store,  manufactory,  mill,  railroad 
depot,  bani,  stable,  shop,  office,  out-house,  or  any  building  what- 
soever of  another,  other  than  is  mentioned  in  the  preceding  sections 
of  this  chai)ter,  or  any  bridge,  lock,  dam,  or  flume,  he  shall  be  pun- 
ished by  imprisonment  in  the  penitentiary  not  exceeding  ten  years. 
{Ibid,  §'3884.) 

7;i.  If  any  person  set  fire  to  any  building,  boat,  or  vessel  men- 
tioned in  the  preceding  sections  of  this  chapter,  or  to  any  material, 
with  intent  to  cause  any  such  building,  boat,  or  vessel  to  be  burnt, 
he  shall  be  punished  by  imi)risonment  in  the  penitentiary  not  ex- 
ceeding five  years,  or  by  fine  not  exceeding  one  thousand  dollars 
and  imprisonment  in  the  county  jail  not  more  than  one  year.  {Ibid, 
§  3885.) 

74.     If  any  person  willfully  and  maliciously  burn,  or  otherwise 


IOWA.  215 

destroy'  or  injure  any  pile  or  i)arcel  of  wood,  boards,  timber,  or  lum- 
ber, or  any  fence,  bars,  or  gate,  or  any  grain,  hay,  or  other  vegeta- 
ble product  severed  from  the  soil,  or  any  standing  tree,  grain,  grass, 
or  other  standing  product  of  the  soil,  the  property  of  another,  he 
shall  be  punished  by  imprisonment  in  the  penitentiary  not  more 
than  five  years,  or  by  fine  not  exceeding  five  hundred  dollars,  and 
imprisonment  in  the  county  jail  not  exceeding  one  year.  {Ibid, 
§  3886.) 

75.  If  any  person  willfully  burn  any  building,  goods,  wares, 
merchandise,  or  other  chattels,  which  are  insured  against  loss  or 
damage  by  fire,  or  willfully  cause  or  procure  the  same  to  be  burned, 
with  intent  to  injure  the  insurer,  whether  such  person  be  the  owner 
of  such  property  or  not,  he  shall  be  jjunished  by  imprisonment  in 
the  penitentiary  not  exceeding  ten  years.     {Ibid,  §  3888.) 


EMBEZZLEMEKT. 

76.  If  any  officer,  agent,  clerk,  or  servant  of  any  incorporated 
company ;  or  if  any  clerk,  agent,  or  servant  of  a  copartnership ;  or 
if  any  person  over  the  age  of  sixteen  years  embezzle  and  fraudu- 
lently convert  to  his  own  use,  or  take  and  secrete  with  intent  to  con- 
vert to  his  own  use,  without  the  consent  of  his  employer  or  master, 
any  money  or  property  of  another  which  has  come  to  his  possession 
or  is  under  his  care  by  virtue  of  such  eaiployment,  he  is  guilty  of 
larceny,  and  shall  be  punished  accordingly.  {Code,  3873,  p.  608, 
§  39090 

77.  For  General  Provisions  concerning  Corporations,  see  Code, 
1873,  pp.  183-187. 


INDEX  TO   KANSAS. 


PAGE 

Actions  against  Foreign  Cos.  (44,62)230,  236 

Agent- 
Embezzlement  by  (1 1  7) 247 

General,  Appointment  and  Powers  of 

(22) 234 

Must  be  Authorized  and  Licensed  (21)  224 

Of  Foreign  Companies  (61) 235 

Of  Mutual  Companies  (102) 245 

Annual  Statement — 

Must  be  Advertised  (84> 241 

Of  Companies  Other  than  Life  (42,  4  3)  229, 

230 

Of  Life  Companies  (60) 235 

Of  Foreign  Companies  (67,  68) 237 

Of  Mutual  Companies  (96,  97)  -  ■  -  243,  244 
Value  of  Mortgaged  Property  (85) 241 

Arson — 

Penalties  for  (116) 247 

Who  Guilty  of  (1 05-1 1  5) 245,  246 

Assets,  InsutHcient,  Action  of  Superintend- 
ent ( 1 2,  1 3)  220,  221 

Attorney  of  Foreign  Company  (44) 230 

Bond  of  Insurance  Commissioner  ((!) 219 

Beneficiary  of  Life  Policy  may  be  Changed 

(79) 240 

Benevolent  Societies  Excepted  (81) 241 

Capital— 

Of  Companies  Other  than  Life  (29) ... .  225 

Of  Companies,  how  Invested  (32) 226 

Of  Companies,  Ratio  of  Risk  (34) 227 

Of  Companies,  Increase  of  (39) 228 

Of  Life  Insurance  Companies  (5 1 ,  77)  232, 

239 
Of  Foreign  Companies  (44,  64)  ..230,  236 

Certificate  of  Authority— 

When  Revoked  (14) 221 

Duration  of  (27) 225 

Corporation — 

Defined  (3) 21S 

C  ivil  ^A  c  t  ion  against  Members  (72) 238 

General  Provisions  Concerning  (1 18).  247 

Liability  of  Stockholders  (2) 218 

Must  Organize  under  General  Laws  (1)  218 

Deposits— 

Of  Life  Companies  (50.  52) 232,233 

Of  Foreign  Companies  (6  5,  66) 237 

Dividend*  (40) 228 

Embezzlement  (117) 247 


page 
Examination  of  Cos.  (10-15,  94)..  -  220-1,  243 
Fees- 

Paid  by  Companies  (20)  223 

Paid  by  Mutual  Companies  (101) 245 

Foreign  Companies — 

Annual  Statement  (67,  68) 237 

Authority  to  do  Business,  how  Obtain. 

ed  (44,  62) 230,  2.35 

Attorney,   and  Actions  against    (44, 

62) 230,235 

Agents  of  (21,  22,  61) 224,235 

Deposits  of  (65,  66) 237 

Investment  of  Capital  (64) 236 

Must  File  Charter  and  Statement  (63).  236 
Organised  under  Laws  of  the  United 

States  (24) 224 

Penalty  for  not  Paying  Losses  (83) 241 

Revocation  of  License  (14) 221 

Taxes  (20) i23 

Withdrawal  of  (23) 224 

Incorporation  of  Companies  Other  than 

Life  (28-33) 225,  226 

Insurance  Companies  Other  than  Life — 

Amount  of  Single  Risk  (34) 227 

Annual  Statement  (42,43) 229,  230 

Dividen is  of  (40) 228 

Election  and  Duties  of  Directors  and 

Officers  (35,  36) 227 

Incorporation  of  (2  8-3  3 ) 225-6 

Investment  of  Capital  (32) 226 

Increase  of  Capital  (39) 228 

May  Insure,  what  (34,  73) 227,  238 

Kotes  of  Stockholders  (45) 231 

Policies  of  (37) 227 

Purchase  and  Sale  of  Real  Estate  (41).  228 
Transfer  of  Stock  (3  8) 228 

Insurance  Department,  Creation  and  Duties 

of  (4) 218 

Insurance  Superintendent — 

Appointment,  Powers,  and  Duties   (5- 

9) 218-20 

Annual  Report  (16) 221 

Deputy  and  Clerks  (7) 21!) 

Examination  of  Cos.  by  (10,  11) 220 

Expenses,  how  Paid  (7) 211) 

Fees  (20,  101) 223,  245 

May  Re voke  Authority  ( 1 4 ) 221 

May  Examine  Mutuals  (94) 243 

Must  be  Attorney  of  Foreign  Cos.  (44) .  234 


INDEX   TO   KANSAS. 


21^ 


PAGE 

Insurance  Superintendent  (^Continued) — 

Shall  Furnish  Blanlis  (18,  99)..-.  2->2,  245 

Valuation  of  Policies  (17) 222 

When  a  Company  Stops  Business  (23).  224 
"PThen  Assets  are  Insufficient  a  2,  13)220, 

221 

Life  Insurance  Companies — 

Annual  Statement  (60) 235 

By-laws  (58) 234 

Capital  of  (51) 232 

Deposit  of  (50,  52) 230,  233 

Election  of  Directors  (78) 240 

General  Provisions  for  Forming  (47- 

49) 231-2 

Investments  of  (5  7) 234 

May  Take  what  Risks  (69,  71,  73)  .  238 

May  Amend  Charter(75) 239 

May  Increase  Capital  (77) 239 

May  Change  Beneficiary  (79) 240 

Purchase  and  Sale  of  Real  Estate  (74)  -  239 

Registration  of  Policies  (53-56) 233-4 

Vote  by  Proxy  (70) 238 

"Wives' Policies  (80) 240 

Losses,  Penalty  for  not  Paying  (83) 241 

Mortgaged  Property,  Value  must  be  Stated 

(85) 241 

Mutual  Insurance  Companies — 

Agents  of  (102) 245 

Authority  to  Commence  (88,  94)   242,  243 

Annual  Statement  (96,  97) 243,  244 

By-laws  (95) 243 

Capital  (92) 243 

Directors  (93) 233 

Liability  of  Members  (90) 242 

May  Insure,  what  (86) 241 


I  PAGE 

I  Must  Wind  up,  when  (97,  98) 244 

Mutual  Insurance  Companies  (Continued)  — 

Organization  of  (86,  87) 241,  242 

Premium  Notes  (89) 242 

Repeal  of  Act  Inconsistent  (103) 245 

Suits  (91,  100) 242,245 

Shall  be  Subject  to  Law  of  Corporations 
(104)  245 

Net  Valuation  of  Policies  Required  (17)..  222 

Penalty — 

For  Arson  (116) 247 

For  Embezzlement  (117) 247 

For  Failure  to  File  Statement  (43) 230 

For  Mutuals  Continuing  ^98) 244 

For  Mutuals  Violating  Act  (99) 245 

For  not  Paying  Losses  (83) 241 

For  Unauthorized  Insurance  (21,  26). 
For  Violation  of  Act  (24,  25) 224,  225 

Policies — 

Registration  of  (5 3-5 6) 233-34 

Valuation  of  ( 1  7) 222 

Wives'  (80) 240 

Premium  Notes  of  Mutual  Companies  (89)  242 

Real  Estate,  Purchase  and  Sale  of  (41, 

74) 228,  239 

Repeal  of  Acts  Inconsistent  (83,  103)241,245 

Risks.  Ratio  of  to  Capital  (34) 223 

Reciprocal  Taxes  (20) 

Securities,  Deposit  of  ( 1 9) 223 

Transferof  Stock  during  Examination  (15)  221 
Taxes  and  Fees  (20,  101) 223,  243 

Wives  Policies  (80) 240 


INSURANCE  STATUTES  OF  KANSAS. 


Revised  by  Hon.  Orrin  T.  Welch,  Superintendent  of  Insurance. 


CONSTITUTIONAL  PROVISIONS  CONCERNING  CORPORA 

TIONS. 

1 .  The  legislature  shall  pass  no  special  act  conferring  corporate 
powers  5  corporations  may  be  created  under  general  laws,  but  all 
such  laws  may  be  amended  or  repealed.     {Art.  12,  §  1.) 

2.  Dues  from  corporations  shall  be  secured  by  individual  lia- 
bility of  the  stockholders  to  an  additional  amount  equal  to  the  stock 
owned  by  each  stockholder,  and  such  other  means  as  shall  be  pro- 
vided by  law.     [Art.  12,  part  o/  §  2.) 

3.  The  term  corporation,  as  used  in  this  article,  shall  include 
all  associations  and  joint  stock  companies  having  powers  and  privi- 
leges not  possessed  by  individuals  and  partnerships ;  and  all  cor- 
porations may  sue  and  be  sued  in  their  incorporate  name.  (Art. 
12,  §  6.) 

4.  That  there  is  hereby  established  a  separate  and  distinct  de- 
partment, to  be  known  as  the  Insurance  Department,  which  shall 
be  charged  with  the  execution  of  all  laws  now  in  force,  or  which 
shall  hereafter  be  passed,  in  relation  to  insurance  and  insurance 
companies  doing  business  in  the  State  of  Kansas.  {Laws  of  1871, 
p.  214,  §  1.) 

5.  There  shall  be  appointed  by  the  Governor,  by  and  with  the 
advice  and  consent  of  the  Senate  (if  in  session),  within  ten  days 
after  the  passage  of  this  act,  a  chief  officer  of  said  dei>artment,  who 
shall  be  styled  the  Superintendent  of  Insurance,  and  shall  hold  his 
office  for  the  term  of  four  years,  and  until  his  successor  is  duly  ap- 
pointed and  qualified,  from  the  third  Monday  in  March,  eighteen 
hundred  and  seventy-five,  and  shall  receive  for  his  services  the  sum 
of  two  thousand  five  hundred  dollars  per  annum ;  Provided,  however, 
That  the  person  first  appointed  Superintendent  under  this  act  shall 
enter  ui>on  the  duties  of  his  office  within  twenty  days  after  his  ap- 
pointment. The  person  so  appointed  shall  be  an  elector  of  this 
State,  and  shall  during  his  term  of  oflice  have  no  official  connection 
■with  any  insurance  company,  nor  be  employed  by  any  such  com- 
pany. He  shall  be  a  person  experienced  and  well  versed  in  the 
matters  of  insurance,  and  shall  give  his  personal  presence  and  at- 
tention to  the  discharge  of  the  duties  of  his  office.  If  this  appoint- 
ment is  made  after  the  adjournment  of  the  Senate,  the  Governor 
shall  report  the  name  of  the  appointee  to  the  Senate  for  confirma- 
tion within  ten  days  after  the  commencement  of  the  next  session. 
In  case  of  a  vacancy  in  said  office  by  death,  resignation,  removal, 
suspension,  or  otherwise,  the  Governor  shall  fill  the  vacancy  and  re- 
port the  name  of  such  appointee  to  the  Senate  (if  in  session). 


KANSAS.  219 

and  if  not,  within  ten  days  after  the  commencement  of  the  next 
session  thereafter;  and  such  api^ointee,  by  and  with  the  ad^^ce  and 
consent  of  the  Senate,  shall  hold  his  otfice  for  the  unexpired  term, 
and  until  his  successor  is  duly  appointed  and  qualified.  If  at  any 
time  the  Governor  shall  become  satisfied  that  the  Superintendent  is 
inefficient,  incompetent,  or  derelict  in  the  discharge  of  his  duties, 
he  is  hereby  authorized  and  required,  by  and  with  the  advice  and 
consent  of  the  Senate  (if  it  be  in  session),  to  remove  said  Superin- 
tendent from  office;  and  if  the  Senate  be  not  in  session,  to  suspend 
him  from  the  discharge  of  his  duties,  temporarily  filling  the  vacancy 
as  hereinbefore  provided,  and  reporting  the  fact  to  the  Senate  at  its 
next  session  thereafter,  for  its  action  thereon.  (7  hid,  §  2,  as  amended 
by  Laics  of  1875,  p.  166,  §  1.) 

6,  Before  entering-  upon  the  discharge  of  his  duties,  the  said 
Superintendent  shall  take  an  oath  or  affirmation  to  support  the 
constitution  of  the  United  States  and  the  constitution  of  the  State 
of  Kansas,  and  to  faithfully  and  honestly  discharge  the  duties  of 
his  said  office,  and  that  he  is  not  an  officer,  agent,  employee,  or 
stockholder  in  any  insurance  company;  and  shall  also  give  bond  to 
the  State  of  Kansas  in  the  sum  of  twenty  thousand  dollars,  with 
not  less  than  two  sureties,  to  be  api)roved  by  the  Governor  and  filed 
and  recorded  with  the  Secretary  of  State,  conditioned  for  the  faithful 
discharge  of  the  duties  of  hiis  office.  The  said  Superintendent 
shall  have  the  sole  and  exclusive  charge  of  and  control  over  said 
Insurance  Department,  under  the  laws  relating  thereto;  and  all 
powers,  duty  and  authority  now  conferred  by  law  upon  the  Auditor 
of  this  State  with  respect  to  insurance  companies  are  hereby  trans- 
ferred to  aiid  conferred  upon  the  said  Superintendent.  {Ibid, 
p.  215,  §  3.) 

7.  Said  SuiJerintendent  may  appoint  a  deputy,  who  shall  in  no 
way  be  interested  in  any  insurance  company,  except  as  a  policy- 
holder, whose  appointment  shall  be  evidenced  by  a  certificate 
thereof,  under  the  official  seal  of  the  Superintendent,  and  who  shall 
continue  in  office  during  the  pleasure  of  the  Superintendent;  and 
before  entering  upon  his  duties  he  shall  take  the  oath  of  office  here- 
inbefore prescribed  for  the  Superintendent,  who,  in  case  of  the 
absence  or  inability  of  the  Superintendent,  shall  act  as  his  deputy, 
and  shall  possess  the  powers  and  perform  the  duties  of  the  Superin- 
tendent. The  Suijerinteudent  shall  also  have  power  to  employ  such 
other  clerks  from  time  to  time  as  may  be  necessary  to  carry  on  the 
l)usiness  of  his  office  with  ]n'omptness  and  accuracy ;  Provided,  The 
salary  and  wages  of  such  deputy  and  clerks  sball  be  paid  by  the 
said  Superintendent  out  of  the  amount  hereby  fixed  by  law  as  the 
salary  of  the  Superintendent,  and  whenever  necessary  for  the  ex- 
amination into  the  business  and  affairs  of  any  insurance  company, 
may  emjtloy  one  or  more  skilled  and  comijetent  persons  to  make 
such  examination  and  report  thereon;  and  whenever  he  may  think 
necessary  he  shall  call  upon  the  Attorney-General  of  the  State  for 
legal  counsel  and  such  assistance  as  maybe  necessary  to  enforce  the 
])rovisions  of  this  act;  and  all  salaries,  payments,  and  expenditures 
for  said  Insurance  Department  authorized  by  this  act  shall  be  paid  on 
the  warrant  of  the  Auditor  of  State,  w^ho  shall  issue  such  warrant 
only  on  proper  vouchers  and  bills  filed  in  his  office  by  the  Superin- 
tendent of  the  Insurance  Department ;  Provided,  All  the  expenses 
of  the  department  hereby  created  shall  be  paid  out  of  the  fees  and 
allowances  named  in  this  act,  and  the  State  shall  not  in  any  manner 


220  hine's  insurance  statutes. 

become  responsible  for  auy  expense  growing  out  of  the  business  of 
this  department  or  any  charges  connected  therewith.  {Ibid,  §  4, 
as  amended  by  Laics  of  1815,  p.  107,  §  2.) 

8.  The  seal  of  the  Superintendent  of  Insurance  shall  be  one 
inch  and  three-fourths  in  diameter,  surrounded  by  the  words 
"  Superintendent  of  Insurance  of  Kansas,"  with  such  de\dce  as  the 
Governor  and  Superintendent  may  prescribe,  a  copy  of  which  shall 
be  tiled  in  the  oflBce  of  the  Secretary  of  State ;  and  every  certifi- 
cate, assignment,  or  authority  executed  by  said  Superintendent  in 
pursuance  of  any  authority  conferred  by  law,  and  sealed  with  his 
seal  of  office,  shall  be  received  as  evidence,  and  may  be  recorded  in 
the  proper  recording  offices  in  the  same  manner  and  with  like  effect 
as  a  deed  regularly  acknowledged  before  an  officer  authorized  by 
law  to  take  the  acknowledgment  of  deeds;  and  copies  of  any 
paper  or  record  in  the  office  of  said  Superintendent,  certified  by 
him,  and  authenticated  by  the  said  seal,  shall  in  all  case  be  evidence 
equally  and  in  like  manner  as  the  original.     {Ibid, p.  216,  §  5.) 

9.  All  books  and  documents,  and  all  other  papers  whatever,  in 
the  office  of  the  Auditor  and  Secretary  of  State,  relating  to  insur- 
ance, shall,  on  demand,  be  delivered  and  transferred  to  the  Super- 
intendent of  Insurance,  who  shall  give  a  receipt  for  the  same,  which 
shall  be  a  full  release  from  all  responsibility  iu  connection  with  such 
documents,  books,  and  papers ;  and  thereafter  such  books,  papers, 
and  documents  shall  be  and  remain  in  the  charge  and  keeping  of 
the  said  Suj^erintendent  in  his  said  office.     {Ibid,  §  6.) 

1 0.  It  shall  be  the  duty  of  the  Superintendent  of  Insurance, 
whenever  he  shall  have  good  reason  to  suspect  the  correctness  of 
any  annual  statement  of  any  insurance  company  incorporated  in 
this  State,  or  doing  business  by  its  agencies  in  this  State,  or  that 
the  affairs  of  any  company  making  such  statement  are  in  unsound 
condition,  to  make  or  cause  an  examination  to  be  made  into  the 
affairs  of  any  such  insurance  company ;  and  it  shall  be  the  duty  of 
the  officers  or  agents  of  any  insurance  company  doing  business  in 
this  State  to  cause  their  books  to  be  opened  for  the  inspection  of 
said  Superintendent,  or  the  person  or  persons  so  ap])ointed,  and 
otherwise  to  facilitate  such  examination,  so  far  as  it  maybe  in  their 
power  so  to  do.     {Ibid,}).  217,  §  7.) 

1 1 .  For  that  purpose  the  Superintendent,  or  the  person  or  per- 
sons so  appointed  by  him,  shall  have  power  to  examine,  under  oath, 
which  he  or  they  are  hereby  empowered  to  administer,  the  officers 
and  agents  of  any  company  relative  to  the  business  of  said  com- 
pany ;  and  whenever  the  Superintendent  shall  deem  it  for  the  inter- 
est of  the  public,  he  shall  publish  the  result  of  such  investigation 
in  some  news])aper  printed  in  Topeka,  and  of  general  circulation  in 
the  State.     {Ibid,  §  8.) 

12.  Whenever  it  shall  appear  to  the  said  Superintendent, 
from  such  examination,  that  the  assets  of  any  life  insurance  com- 
pany are  insufficient  to  reinsure  its  outstanding  risks,  as  i)rovided 
by  this  act ;  or  that  the  assets  of  any  insurance  comjiany  other 
than  life,  doing  business  in  this  State,  are  reduced  more  than 
twenty  per  cent,  below  the  capital  stock  required  by  this  act,  or  by 
its  charter,  he  shall  require  the  officers  thereof  to  direct  the  stock- 
holders to  pay  in  the  amount  of  such  deficiency  within  such  period 
as  he  may  designate  in  such  requisition ;  and  in  default  thereof,  he 
shall  communicate  the  fact  to  the  Attorney -General,  whose  duty  it 
shall  be  to  commence  and  prosecute  an  action  in  the  proper  court 


KANSAS.  221 

to  dissolve  said  insurance  company,  or  to  enjoin  the  same  from 
doing  or  transacting  business  in  this  State.  Every  such  action 
shall  be  governed  by  the  provisions  of  Article  twenty-nine  of  the 
Code  of  Civil  Procedure,  so  far  as  the  same  are  applicable. 
{Ibid,  §  9.) 

1  ;j.  In  case  it  shall  appear  to  the  satisfaction  of  said  court 
that  the  assets  of  said  company  are  not  sufficient,  as  aforesaid,  or 
that  the  interests  of  the  public  so  require,  the  said  court  shall  de- 
cree a  dissolution  of  the  said  company  and  a  tlistribution  of  its 
effects,  or  shall  enjoin  the  same  from  doing  or  transacting  any 
business  in  this  State  until  it  shall  comply  with  this  act,  and  be 
licensed  by  the  Superintendent  of  Insurance  to  resume  business. 
The  court  may  refer  the  case  to  a  referee,  to  inquire  into  and  report 
upon  the  facts  stated  therein.  After  the  Superintendent  shall 
have  issued  his  requisition  as  aforesaid,  it  shall  be  unlawful  for 
said  company  to  issue  any  new  policies  of  insurance,  or  transact 
any  new  business,  until  the  coui't  shall  have  rendered  its  decision 
in  the  case,  and  until  the  Superintendent  of  Insurance  shall  have 
issued  to  such  company  a  license  (if  said  comj)any  has  not  been 
dissolved),  which  license  shall  be  its  authority  to  resume  business. 
[Ibid,  p.  218,  §  10.) 

14.  Whenever  it  shall  appear  to  the  Superintendent  of  Insur- 
ance, from  the  rei)ort  of  the  person  appointed  by  him,  or  other 
satisfactory  e\idence,  that  the  affairs  of  any  company,  partnership, 
or  association,  not  organized  under  the  laws  of  this  State,  are  in  an 
unsound  condition,  he  shall  revoke  the  authority  granted  to  such 
company  to  do  business  in  this  State,  and  cause  a  noiice  thereof  to 
be  published  in  at  least  one  newspaper  published  in  the  city  of 
Toi)eka ;  and  after  the  publication  of  such  notice,  it  shall  not  be 
lawful  for  the  agents  of  such  company  to  i^rociu-e  any  new  applica- 
tions for  insurance  or  to  issue  any  new  policies.  The  expenses  of 
any  examination  made  under  this  act  shall  be  paid  by  the  com- 
pany examined,  if,  in  the  opinion  of  the  Superintendent,  reason- 
able cause  existed  for  such  examination.     {Ibid,  §  11.) 

15.  Any  transfer  of  stock  of  any  company  organized  under  the 
laws  of  this  State,  made  diuing  the  pendency  of  any  such  investiga- 
tion, shall  not  release  the  i>arty  making  the  transfer  from  his  liabil- 
itv  for  losses  which  may  have  accrued  i)revious  to  the  transler. 
{ibid,  J).  219,  §  12.) 

10.  The  said  Superintendent  shall  annually  make  a  report  to 
the  Governor  of  the  general  conduct  and  condition  of  the  insurance 
com])anies  doing  business  in  this  State,  with  such  suggestions  as  he 
deems  expedient,  including  also  the  information  contained  in  the 
statements  required  of  the  said  companies,  and  the  result  of  the  offi- 
cial valuations  of  life  policies,  to  be  arranged  in  tabular  form,  in 
two  separate  reports,  one  pertaining  to  life  insurance  companies, 
and  the  other  to  fire  and  all  insurance  companies  other  than  life. 
He  shall  also  report  the  names  and  comi)ensation  of  the  clerks  em- 
ployed by  hiin,  and  the  whole  amount  of  income,  and  the  source 
whence  derived,  and  of  the  expenses  in  detail  during  the  year  end- 
ing upon  the  thirty-first  day  of  the  preceding  December.  One 
thousand  copies  of  each  of  the  said  reports  shall  be  printed  and 
bound  for  the  use  of  the  legislature  and  Superintendent  on  or  be- 
fore the  first  day  of  .Inly  in  each  year.  The  Superintendent  shall 
keep  and  preserve  in  a  jjermanent  form  a  full  record  of  his  proceed- 


222  hike's  insurance  statutes. 

ings,  including'  a  concise  statement  of  the  condition  of  each  com- 
pany reported,  visited,  or  examined  by  him.     {Ihid,  §  13.) 

17.  It  shall  be  the  duty  of  the  said  Superintendent,  once  in 
three  years,  to  make  or  cause  to  be  made  net  valuations  of  all  the 
outstanding  i>olicies,  additions  thereto,  unpaid  dividends,  and  all 
other  obligations  of  every  life  insurance  comi^auy  transacting  busi- 
ness in  this  State  ;  and  for  the  purpose  of  such  valuations,  and  for 
making  special  examinations  of  the  condition  of  life  insurance  com- 
panies, as  provided  in  the  laws  of  this  State  relating  to  life  insur- 
ance companies,  and  for  valuing  all  policies  of  whatever  descrip- 
tion, and  for  any  purpose  whatever,  the  rate  of  interest  shall  be 
four  and  one-half  per  cent,  per  annum,  and  the  rate  of  mortality  shall 
be  established  by  the  tables  known  as  the  American  Experience 
Tables;  Provided,  That  whenever  the  laws  of  any  other  State  of  the 
United  States  shall  authorize  a  valuation  of  life  insurance  policies 
by  some  designated  State  officer,  according  to  the  same  standard 
as  herein  provided,  or  some  other  standard  which  will  require  a  re- 
serve not  less  than  the  standard  herein  ijrovided,  the  valuation 
made  according  to  the  said  standard  by  such  officer  of  the  policies 
and  other  obligations  of  any  life  insurance  company  not  organized 
under  the  laws  of  this  State,  and  certified  by  said  officer,  may  be  re- 
ceived as  true  and  correct,  and  no  further  valuation  of  the  same 
shall  be  required  of  such  company  by  the  Superintendent  of  Insur- 
ance. The  Superintendent  may,  in  his  discretion,  value  policies  in 
groups,  and  use  approximate  averages  for  portions  of  years  and 
otherwise,  but  he  shall  in  all  cases  calculate  values  by  net  i^re- 
miums.  The  Superintendent  may,  in  his  discretion,  vary  the  above 
standard  of  interest  and  mortality  in  cases  of  companies  from  for- 
eign countries,  and  in  particular  cases  of  invalid  lives  or  other  extra 
hazards.  It  shall  be  the  duty  of  the  Suj)erintendent  of  Insurance, 
whenever  requested  so  to  do  by  any  life  insurance  company  organ- 
ized under  the  law  of  this  State,  to  make  annual  valuations  of  all 
outstanding  policies  and  additions  thereto,  of  every  such  company, 
and  deliver  to  said  company  certificates  of  such  valuation,  specify- 
ing the  amount  of  the  company's  reserve  on  i)olicies  thus  valued, 
and  such  valuation  shall  be  made  upon  such  table  of  mortality  an(l 
interest  as  such  company  may  request;  Provided,  The  valuation 
thus  required  shall  not  place  the  company's  reserve  below  the  legal 
standard  of  this  State.  {Ibid,  §  14,  as  amended  by  Laws  of  1873, 
p.  189,  §  1.) 

18.  The  Superintendent  shall  annually,  in  September,  furnish 
to  the  insurance  companies  doing  business  in  this  State  two  or  more 
printed  copies  of  the  forms  of  statements  required  by  this  act  to  be 
made  by  them,  and  he  may  make  such  changes  from  time  to  time  in 
the  form  of  the  same,  and  such  additions  thereto,  as  shall  seem  to 
him  best  adapted  to  eli(;it  from  said  companies  a  true  exhibit  of 
their  condition  in  respetjt  to  the  several  points  enumerated  in  the 
insurance  laws  of  Kansas.     {Ibid,  p.  220,  §  15.) 

1 9.  All  securities  deposited  pursuant  to  the  j)rovisions  of  this 
act  shall  be  deposited  with  the  Treasurer  of  State,  who,  with  his 
sureties,  shall  be  responsible  for  the  safe  keeping  thereof ;  and  the 
said  Treasurer  shall  give  a  receipt  therefor  in  duplicate,  showing  the 
kind  and  amount  of  such  securities  so  deposited,  one  copy  of  which 
shall  be  filed  with  the  Sui^erintendent  of  Insurance;  ami  said  Treas- 
urer shall  only  deliver  such  securities  or  coupons  attached  thereto 
upon  the  written  order  of  the  Superintendent  of  Insurance.  {Ibid, 
§16.) 


KANSAS.  223 

30.  There  sball  be  paid  to  the  Superintendeut  of  Insurance  by 
every  insurance  company  doing  business  in  this  State  the  following 
fees,  to  wit :  For  the  tiling  and  examination  of  the  charter  of  any 
insurance  company,  and  issuing  the  certiticate  of  authority  there- 
upon, the  sum  of  lifty-five  dollars;  for  tiling  the  annual  statement 
required,  fifty  dollars;  for  each  license  granted  to  agents,  two  dol- 
lars ;  for  every  copy  of  a  paper  filed  in  his  office,  the  sum  of  twenty 
cents  per  folio  ;  and  for  affixing  the  seal  of  office  and  certifying  any 
paper,  one  dollar.  There  shall  be  paid  also  by  every  life  insurance 
company  not  organized  under  the  laws  of  this  State,  annually,  by 
way  of  comi)ensation  for  the  valuation  of  its  policies,  in  case  no  cer- 
tified valuation  of  the  same  has  been  fiu-uished  to  the  Superintend- 
ent of  Insurance,  as  provided  in  section  thirteen  of  this  act,  one 
cent  on  every  thousand  dollars  issued  by  it  on  lives.  All  the  afore- 
said fees  shall  be  paid  by  the  Suiierin  ten  dent  into  the  State  treas- 
ury, for  an  insurance  fund,  within  thirty  days  after  receiving  the 
same,  and  shall  be  used  for  the  purpose  of  defraying  the  expenses 
of  the  Insurance  Department.  The  fetate  Treasurer  shall  give  dupli- 
cate receipts  for  all  moneys  thus  paid  into  the  State  treasury  by 
the  Superintendent  of  Insui-ance,  one  of  w^hich  shall  be  delivered  to 
the  Auditor  of  State,  and  the  other  to  be  filed  in  the  Insurance  De- 
partment. In  case  the  expenses  of  this  Department  shall  exceed 
the  amount  collected  under  the  provisions  of  this  act,  the  Suj)eriii- 
tendeut  shall  annually  assess  upon  all  insurance  companies  doing 
business  in  this  State  a  sum  equal  to  such  excess,  which  he  shall 
collect  and  pay  into  the  State  treasury.  Such  assessment  shall  be 
for  equal  amount  upon  each  company.  Every  insm-ance  comi)any 
doing  business  in  this  State  shall,  in  addition  to  the  fees  required  in 
this  act,  pay  into  the  State  treasury,  for  the  benefit  of  the  annual 
school  fund,  the  sum  of  fifty  dollars  each  year.  Whenever  the  exist- 
ing or  future  laws  of  any  other  State  or  government  shall  require 
insurance  companies  organized  under  the  laws  of  this  State,  apply- 
ing to  do  business  by  agencies  in  such  other  State,  or  government,  or 
of  the  agents  thereof,  any  deposit  of  security  in  such  State  for  the 
protection  of  policy-holders  therein,  or  otherwise,  or  any  payment 
for  taxes,  fines,  penalties,  certificates  of  authority,  licenses,  fees,  or 
otherxN-ise,  greater  than  the  amount  required  for  such  x)urposes  from 
insurance  companies  of  other  States  by  the  then  existing  laws  of 
this  State,  then,  and  in  every  case,  all  companies  of  such  States  or 
governments  establishing  agencies  in  this  State  shall  make  the 
same  deposit,  for  a  like  purpose,  with  the  Superintendent  of  Insur- 
ance of  this  State,  and  pay  to  said  Superintendent  for  taxes,  fines, 
penalties,  certificates  of  authority,  licenses,  fees,  or  otherwise,  an 
amount  equal  to  the  amount  of  such  charges  and  payments  imposed 
by  the  laws  of  such  other  State  or  government  upon  the  companies 
of  this  State  and  the  agents  thereof.  All  insurance  companies, 
partuershij)s,  and  associations,  organized  under  any  foreign  govern- 
ment engaged  in  the  transaction  of  the  business  of  insurance  in 
this  State,  as  provided  for  in  this  act,  shall  annuaUy,  on  or  before 
the  first  day  of  March  in  each  year,  pay  to  the  Superintendent  of 
Insurance  two  per  cent,  on  all  premiums  received  in  cash  or  other- 
wise by  their  attorneys  or  agents  in  this  State  during  the  year  end- 
ing on  the  preceding  thirty -first  day  of  December,  which  sum  shall 
be  paid,  in  addition  to  its  other  license  fees,  into  the  State  treasury 
for  the  insurance  fund.  In  case  of  neglect  or  refusal  by  any  com- 
pany to  pay  said  sum,  the  Superintendent  of  Insurance  shall  revoke 


224  niXE'S  INSUEANCE   STATUTES. 

the  authority  or  license  granted  such  company.     {Ibid,  §  17,  «* 
amended  by  laws  o/1875,  p.  168,  §  3.) 

21.  It  shall  be  unlawful  for  any  person,  company,  or  corpora- 
tion in  this  State,  either  to  procure,  receive,  or  forward  applications 
for  insurance  in  any  company  or  companies  not  organized  under 
the  laws  of  this  State,  or  in  any  manner  to  aid  in  the  transaction 
of  the  business  of  insurance  with  any  such  company,  unless  duly 
authorized  hy  such  company  and  licensed  by  the  Superintendent  of 
Insurance,  in  conformity  to  the  pro\isions  of  this  act ;  and  any  per- 
son violating  the  provisions  of  this  section  shall  be  liable  to  a  pen- 
alty of  five  hundred  dollars  for  each  offense,  to  be  collected  as  other 
penalties  under  this  act.     (Ibid,  p.  222,  §  18.) 

23.  Any  insurance  company  not  organized  under  the  laws  of 
this  State  may  appoint  one  or  more  general  agents  in  this  State, 
with  authority  to  appoint  other  agents  of  said  company  in  this 
State.  A  certified  copy  of  sucb  appointment  shall  be  filed  with  the 
Superintendent  of  Insurance;  and  agents  of  such  company,  ap- 
pointed by  such  general  agent,  shall  be  held  to  be  the  agents  of 
such  company  as  fully,  to  all  intents  and  purposes,  as  if  they  were 
appointed  directly  by  the  company.  Agents  for  any  such  company 
in  this  State  may  be  appointed  by  the  president,  vice-president, 
chief  manager,  or  secretary  thereof,  in  writing,  with  or  without  the 
seal  of  the  company  ;  and  when  so  appointed,  shall  he  held  to  be 
the  agents  of  sucli  com[)any  as  fully  as  if  appointed  by  the  board  of 
directors  or  managers  in  the  most  formal  mode.     [Ibid,  §  19.) 

23.  When  any  comj)any  transacting  business  of  insurance 
under  this  act,  within  the  State  of  Kansas,  shall  desire  to  discon- 
tinue its  business,  the  Superintendent  shall,  upon  application  of 
such  company  or  association,  give  notice  of  such  intention  in  a 
pai)er  published  and  having  general  circulation  in  the  county  in 
which  said  company  or  its  general  agency  is  located,  at  least  once 
a  week  for  six  weeks,  the  exijenses  of  publication  to  be  paid  by  the 
State  Superintendent  at  the  exjjense  of  such  company.  After  such 
Ijublicatiou.  the  said  Superintendent  shall  deliver  up  to  such  company 
or  association  the  securities  held  by  him  belonging  to  them,  on  be- 
ing satisfied  by  the  exhibition  of  the  booljs  and  papers  of  such  com- 
pany or  association,  and  on  examination  to  be  made  by  himself  or 
some  competent  disinterested  person  or  persons,  to  be  appointed 
by  him,  and  upon  the  oath  of  the  president  or  principal  officer,  and 
the  secretary  or  actuary  of  the  same,  that  all  debts,  judgments,  and 
liabilities  of  every  kind  are  paid  and  extinguished  that  are  due,  or 
that  may  become  due,  upon  any  contract  or  agreement  made  with 
any  citizen  or  resident  of  the  United  States.  And  the  said  Super- 
intendent may  also,  from  time  to  time,  deliver  up  to  such  company 
or  association,  or  its  assigns,  any  portion  of  said  securities,  on  be- 
ing satisfied  that  an  equal  proportion  of  the  debts  and  liabilities  of 
every  kind  that  are  due  or  may  become  due  upon  any  contract  or 
agreement  made  with  any  citizen  or  resident  ©f  the  United  States, 
by  said  com^iany  or  association,  has  been  satisfied  j  Provided,  The 
amount  of  securities  retained  by  him  shall  not  be  less  than  twice 
the  amount  of  remaining  liabilities.     {Ibid,  p.  223,  §  20.) 

24.  All  the  provisions  of  this  act,  relating  to  insurance  com- 
panies organized  under  the  laws  of  any  other  State  of  the  United 
States,  shall  apply  to  any  company  organized  under  the  laws  of  the 
United  States,  for  any  of  the  purposes  specified  in  this  act;  and 
all  the  provisions  of  this  act,  relating  to  agents  of  companies  organ- 


KANSAS.  225 


izetl  under  the  laws  of  any  such  State,  shall  apply  to  the  agents  of 
such  companies  organized  under  the  laws  of  the  United  States. 
And  any  violation  of  the  provisions  of  this  act  bj^  any  person  or 
agent  in  the  employment  of  any  such  company,  organized  under  the 
laws  of  the  United"  States,  shall  subject  thf  offender  to  the  same 
penalties  provided  by  this  act  for  any  violation  of  its  provisions  by 
persons  acting  for  similar  companies  organized  under  the  laws  of 
any  other  State  of  the  United  States.     {Ibid,  §  21.) 

"35.  Every  violation  of  the  provisions  of  this  act  shall  subject 
the  party  violating  the  same  to  a  penalty  of  not  less  than  one  hun- 
dred nor  more  than  live  hundi'ed  dollars  for  each  violation,  w^hich 
shall  be  sued  for  and  recovered  in  the  name  of  the  State  of  Kansas, 
by  the  county  attorney  of  the  county  in  which  the  company  is  lo- 
cated, or  the  agent  or  agents  so  violating  shall  reside;  and  one-half 
of  such  penalty,  when  collected,  shall  be  paid  into  the  treasury  of 
said  county,  for  the  use  of  the  county,  and  the  other  half  to  the 
informer.  In  case  of  tlie  non-payment  of  such  penalty,  the  party 
so  offending  shall  moreover  be  liable  to  prosecution  in  any  court  of 
competent  jurisdiction,  and  on  conviction  thereof  shall  be  im- 
prisoned for  any  period  not  exceeding  six  months,  in  the  discretion 
of  the  court.     [Ibid,  p.  224,  §  22.) 

?2I>.  The  provisions  of  tliis  act  shall  apply  to  individuals  and 
partners,  and  to  all  companies  and  associations,  whether  incorpo- 
rated or  not,  now  or  hereafter  engaged  in  the  business  of  insurance. 
It  shall  be  unlawful  for  any  company,  corporation,  or  association, 
whether  organized  in  this  State  or  elsewhere,  either  directl}"  or  in- 
directly to  engage  in  the  business  of  insurance,  or  to  enter  into  any 
contracts  substantially  amounting  to  iusiu-ance,  or  in  any  manner 
to  aid  therein,  in  this  State,  without  first  having  comi)lied  with  all 
the  provisions  of  this  act.  And  any  corporation,  company  or  asso- 
ciation, ^iolating  the  provisions  of  this  section,  and  any  individual, 
company,  association  or  corporation  aiding  in  any  manner,  either 
as  agent  or  otherwise,  in  such  violation,  shall  be  liable  to  a  penalty 
of  five  hundred  dollars,  to  be  collected  as  otSer  penalties  under  this 
act.     {Ibid,  §  23.) 

^7.  All  certificates  and  licenses  granted  under  this  act  shall 
continue  in  force  until  the  last  day  of  February  next  after  their 
date,  unless  suspended  or  revoked  by  the  Superintendent  of  Insur- 
ance.    {Ibid,  §  24.) 

INSUEANCE  OTHER  THA:N^  LIFE. 

28.  Hereafter  when  any  number  of  persons  shall  associate  to 
form  an  insurance  company  for  any  other  purpose  than  life  insur- 
ance, and  become  incorporated  in  accordance  Avith  the  provisions 
of  chapter  twenty-three  of  the  General  Statutes  of  1SG8,  relating  to 
private  corporations,  they  shall  publish  a  notice  of  such  intention 
once  in  each  week  for  at  least  four  weeks,  in  a  public  newspaper 
in  the  county  in  which  such  insm-ance  company  is  proposed  to  be 
located,  before  executing  tlieir  charter  as  in  said  act  provided. 
Every  such  company  heretofore  or  hereafter  organized  shall  file 
with  the  Superintendent  of  Insurance  a  copy  of  its  charter,  duly 
certified  by  the  Secretary  of  State.     {Ibid,  p.  225  §  25.) 

29.  No  such  joint  stock  company  shall  hereafter  be  incorpo- 
rated with  a  smaller  capital  than  one  hundred  thousand  dollars,  as 
may  be  specified  in  the  certificate  of  incorporation,  which  stock 

15 


226  hike's  insurance  statutes. 

shall  be  divided  into  shares  of  one  hundred  dollars  each,  except  as 
herein  pro\T[ded.     {Ibid.  §  2G.) 

tH^.  Having  filed  a  copy  of  its  charter  as  aforesaid  with  the 
Superintendent  of  Insurance,  the  persons  named  in  the  certiticate 
of  incorporation,  or  a  majority  of  them,  shall  be  commissioners  to 
open  books  for  the  subscri])tion  of  stock  in  the  company,  at  such 
times  and  places  as  they  shall  deem  convenient  and  proper,  and 
shall  keep  the  same  open  until  the  full  amount  specified  in  the  cer- 
tificate [of  incorporation]  is  subscribed.     {Ibid,  §  27.) 

31.  The  affairs  of  auy  such  company  [hereafter]  organized 
under  the  laws  of  this  State,  shall  be  managed  by  not  more  than 
twenty  five  nor  less  than  five  directors,  all  of  whom  shall  be  stock- 
liolders.  Within  one  month  after  the  subscription  books  shall  have 
been  filled,  a  majority  of  the  subscribers  shall  hold  a  meeting  for 
the  election  of  directors,  each  share  entitling  the  holder  thereof 
to  one  vote;  and  the  directors  then  elected  shall  continue  in  office 
for  the  term  of  one  year,  as  the  by-laws  of  the  company  may  di- 
rect, and  until  others  have  been  chosen  to  succeed  them  in  the 
trust,  and  have  accepted  the  same.     {Ibid,  §  28.) 

J§!2.  It  shall  be  lawful  for  any  insurance  company  incorijorated 
under  the  laws  of  this  State  fur  any  purpose  other  than  life  insur- 
ance, to  invest  its  caijital,  and  the  funds  accumulated  in  the  course 
of  its  business,  or  auy  j)art  thereof,  in  bonds  and  mortgages  on  real 
estate  Avorth  fifty  per  cent,  more  than  the  sum  loaned  thereon  over 
and  above  all  incumbrances,  exclusive  of  buildings,  unless  such 
buildings  are  insured,  and  the  policy  transferred  to  said  company; 
and  also  in  the  stocks  of  this  State,  or  stocks  or  treasury  notes  of 
the  United  States ;  and  also  in  the  stocks  and  bonds  of  auy  county, 
school  district,  or  incorporated  city  in  this  State  authorized  to  be 
issued  by  the  legislature;  and  to  lend  the  same,  or  any  part  thereof, 
on  the  security  of  such  stocks  or  bonds,  or  treasury  notes,  or  upon 
bonds  or  mortgages  as  aforesaid,  and  to  change  and  reinvest  the 
same  as  occasion  may  from  time  to  time  require  ;  but  any  sm*plus 
money  over  and  above  the  capital  stock  of  any  such  insurance  com- 
pany may  be  invested  in  or  loaned  upon  the  pledge  of  the  pubhc 
stock  or  bonds  of  the  United  States,  or  any  one  of  the  States,  or 
the  stocks,  bonds,  or  other  evidences  of  indebtedness  of  any  solvent 
dividend-paying  institutions  incorporated  under  the  laws  of  the 
State  or  of  the  United  States ;  Provided  always,  That  the  current 
market  value  of  such  stocks,  bonds  or  other  evidences  of  indebted- 
ness shall  be  at  all  times,  during  the  continuance  of  such  loans,  at 
least  twenty  per  cent,  more  than  the  sum  loaned  thereon.  {Ibid, 
§  29.) 

513.  Upon  the  complying  with  the  foregoing  provisions  by  any 
such  insurance  company,  the  Superintendent  of  Insurance  shall 
cause  an  examination  to  be  made,  either  by  himself  or  some  dis- 
interested person  specially  appointed  by  him  for  that  purpose,  who 
shall  certify  u.nder  oath  that  the  capital  herein  required  of  the  com- 
pany named,  according  to  the  nature  of  the  business  proposed  to 
be  transacted  by  such  company,  has  been  paid  in  and  is  possessed 
by  it  in  money,  or  in  such  stocks  and  bonds  and  mortgages  as  are 
required  by  the  twenty-ninth  section  of  this  act,  in  an  amount  not 
less  than  one  hundred  thousand  dollars.  Such  certificate  shall  be 
tiled  in  the  office  of  the  said  Sui)eriutendent,  who  shall  thereupon 
deliver  to  such  company  a  certified  copy  of  said  certificate,  which, 
on  being  recorded  in  the  office  of  the  register  of  deeds  of  the  county 


KANSAS.  227 

where  the  company  is  to  be  located,  in  a  book  provided  for  that 
purpose,  shall  be  their  authority  to  commence  business  and  issue 
policies ;  and  such  certified  copy  of  such  certificate  may  be  used  in 
evidence  for  or  against  said  company  with  the  same  effect  as  the 
original.     {Ibid,  p.  226,  §  30.) 

•14,  It  shall  be  lawful  for  any  such  company,  organized  under 
the  laws  of  this  State,  first,  to  insure  houses,  buildings,  and  all  other 
kinds  of  property,  against  loss  or  damage  by  tire,  and  fire  and  light- 
ning, in  and  out  of  the  IState ;  and  to  make  all  kinds  of  insurance 
on  goods,  merchandise,  and  other  property,  in  the  course  of  trans- 
portation, whether  on  land  or  water,  or  on  any  vessel  or  boat, 
wherever  the  same  may  be ;  second,  to  make  insurance  on  the 
health  of  individuals,  and  against  personal  injury,  disablement  or 
death,  resulting  from  traveling,  or  general  accidents  by  land  or 
water;  tliird,  to  insure  horses,  cattle,  and  other  live  stock  against 
loss  or  damage  by  accident,  theft  or  death,  or  any  unknown  or  con- 
tingent event  whatever,  which  may  be  the  subject  of  legal  insur- 
ance; and  generally  to  do  and  to  perform  all  other  matters  and  things 
proper  to  promote  these  objects ;  Provided,  That  no  company  shall 
be  organized  to  issue  policies  of  insurance  for  more  than  one  of  the 
above  three  mentioned  puri^oses;  and  no  company  that  shall  have 
been  organized  for  either  one  of  said  purposes  shall  issue  policies  of 
insurance  for  any  other ;  and  no  such  insurance  company  transact- 
ing business  in  this  State  shall  expose  itself  to  loss,  on  any  one  risk 
or  hazard,  to  an  amount  exceeding  five  per  cent,  on  its  paid-up 
capital,  unless  the  excess  shall  be  reinsured  by  the  same  in  some 
other  good  and  reliable  company.     {Ibid,  p.  227,  §  31.) 

35.  The  annual  meeting  for  the  election  of  directors  shall  be 
holden  at  such  time  and  place  as  the  by-laws  of  the  company  may 
direct,  except  as  provided  in  section  21  of  chapter  23  of  the  general 
laws  of  1808  aforesaid ;  and  the  directors  chosen  at  any  annual  or 
special  meeting  shall  continue  in  office  until  the  next  annual  meet- 
ing, and  until  their  successors  are  duly  elected  and  qualified. 
{Ibid,  §  32.) 

36.  The  directors  shall  elect,  by  ballot,  a  president,  vice-pres- 
ident, secretary,  treasurer,  and  such  other  officers  as  they  shall 
prescribe  in  their  by-laws,  and  the  board  of  directors,  or  a  majority 
of  them,  when  convened  at  the  office  of  the  company,  shall  be  com- 
l)etent  to  fill  any  vacancy  that  exists  among  its  officers  or  board  of 
directors.  They  shall  also  have  power  to  appoint  any  agents  neces- 
sary for  transacting  the  business  of  the  company,  paying  such  sala- 
ries and  taking  such  securities  as  they  may  judge  reasonable;  they 
may  ordain  and  establish  by-laws  and  regulations,  not  inconsistent 
with  this  act,  or  with  the  constitution  and  laws  of  this  State  and  of 
the  United  States,  as  shall  appear  to  them  necessary  for  regulating 
and  conducting  the  business  of  the  company;  and  it  shall  be  their 
duty  to  keep  full  and  correct  entries  of  their  transactions,  which 
shall  at  all  times  be  open  to  the  inspection  of  the  stockholders. 
{Ibid,  §  33.) 

3^.  All  policies  or  contracts  of  insurance  made  or  entered  into 
by  any  such  company  organized  under  the  laws  of  this  State,  may 
be  made  either  with  or  without  the  seal  thereof  They  shall  be  sub- 
scribed by  the  president  or  such  other  officer  as  may  be  designated 
in  their  by-laws  for  that  purpose,  and  shall  be  attested  by  the  secre- 
tary;  and  being  so  subscribed  and  attested,  they  shall  be  obligatory 
on  the  company.     {Ibid, p.  228,  §  34.) 


228  hike's  insueance  statutes. 

38.  Transfers  of  stock  may  be  made  by  any  sbareliolder,  or 
his  legal  representative,  subject  to  such  restrictions  as  the  directors 
shall,  from  time  to  time,  make  and  establish  in  their  by-laws,  except 
as  provided  in  section  twelve  of  this  act.     {Ibid,  §  35.) 

;fi9.  Whenever  any  company,  heretofore  or  hereafter  organized 
under  the  laws  of  the  ^tate  of  Kansas,  shall  increase  the  amount  of 
its  capital,  as  provided  by  section  14  of  chapter  23  of  the  General 
Laws  of  1808,  it  shall  tile  with  the  Superintendent  of  Insurance  a  cer- 
tified copy  of  the  certificate  so  filed  with  the  Secretary  of  State,  and 
thereafter  such  company  shall  be  entitled  to  have  the  increased 
amount  of  capital  fixed  by  said  certificate,  and  the  examination  of 
securities  composing  the  capital  stock  thus  increased  shall  be  made 
in  the  same  manner  as  is  i)rovided  in  section  thirty  of  this  act  for 
capital  stock  originally  paid  in.     {IMdj  §  36.) 

4t>.  It  sliall  not  be  lawful  for  the  directors,  trustees,  managers, 
or  officers  of  any  insurance  company  other  than  life,  organized 
under  any  of  the  laws  of  this  State,  directly  or  indirectly,  to  make 
or  pay  any  dividend,  or  pay  any  interest,  bonus,  or  other  allowance 
in  lieu  of  dividends,  exce])t  from  surplus  profits  arising  from  their 
business;  and  in  estimating  such  profits  there  shall  be  reserved 
therefrom  a  sum  equal  to  forty  per  cent,  of  the  amount  received  for 
premiums  on  unexpired  risks  and  policies,  which  shall  be  held  to  be 
the  amount  of  unearned  premiums,  and  shall  be  held  and  regarded 
as  an  absolute  liability  of  the  company.  And  there  shall  also  be 
reserved  all  interest  due  or  accrued  and  unj^aid,  and  the  amount  of  all 
bonds,  mortgages,  notes,  stocks,  book  accounts,  and  judgments  due  to 
or  held  by  the  company  on  which  no  part  of  the  principal  or  interest 
shall  have  been  paid  during  the  year  previous.  And  any  division 
or  payment  made  contrary  to  the  provisions  of  this  section  shall 
subject  the  company  making  the  same  to  a  forfeiture  of  its  charter. 
{Ibid,  p.  229,  §  37.) 

41.  No  such  company  organized  under  the  laws  of  this  State 
shall  purchase,  hold,  or  convey  real  estate,  except  for  the  purposes 
and  in  the  manner  herein  set  forth,  to  wit: 

First. — Such  as  shall  be  requisite  for  its  convenient  accommoda- 
tion in  the  transaction  of  its  business ;  or, 

Second.  — Such  as  shall  have  been  mortgaged  to  it  in  good  faith, 
by  way  of  security  for  loans  previously  contracted  or  tor  money 
due ;  or. 

Third.— Such  as  shall  have  been  conveyed  to  it  in  satisfaction  of 
debts  previously  contracted  in  their  legitimate  business,  or  for 
money  due ;  or, 

Fourth. — Such  as  shall  have  been  purchased  at  sales  upon  judg- 
ment, decrees,  or  mortgages  obtained  or  made  for  such  debts ;  and 
it  shall  not  be  lawful  for  any  such  company  to  j)urchase,  hold,  or 
convey  real  estate  in  any  other  case,  or  for  any  other  puri)ose;  and 
all  such  real  estate  as  may  be  acquired  as  aforesaid,  and  which  shall 
not  be  necessary  for  the  accommodation  of  such  company  in  the 
transaction  ol'  its  business,  shall  be  sold  and  disposed  of  within  five 
years  after  such  company  shall  have  acquired  title  thereto,  unless 
the  company  shall  procure  a  certificate  from  the  Superintendent  of 
Insurance  that  the  interests  of  the  company  will  suffer  materially 
by  a  forced  sale  thereof,  in  which  event  the  sale  may  be  postponed 
for  such  i)eriod  as  the  said  Superintendent  shall  direct  in  said  cer- 
tificate.    {Ibid,  §  38.) 

4'2.     It  shall  be  the  duty  of  the  president  or  vice-president  and 


KANSAS.  229 

secretary  of  each  such  insurance  company  organized  or  iucor- 
l)oratefl  under  the  laws  of  this  State,  annually,  on  the  first  day  of 
January,  or  within  two  mouths  thereafter,  to  pre})are,  under  oath, 
and  deposit  in  the  office  of  the  Superintendent  of  Insurance,  a  state- 
ment of  the  condition  of  such  company  on  the  thirty-first  day  of 
December  then  next  preceding,  exhibiting  the  following  focts  and 
items  in  the  following  form,  namely : 

First. — The  amount  of  the  capital  stock  of  the  company. 

Second. — The  property  or  assets  held  by  the  company,  specify- 
ing: 

1.  The  value,  or  as  nearly  as  may  be,  of  the  real  estate  held 
by  such  company. 

2.  The  amount  of  cash  on  hand  and  deposited  in  banks  to 
the  credit  of  the  company',  specifying  in  what  banks  the  same 
is  de])osited. 

3.  The  amount  of  cash  in  the  hands  of  agents  and  in  course 
of  transmission. 

4.  The  amount  of  loans  secured  by  bonds  and  mortgages  on . 
real  estate  worth  double  the  amount  of  all  incumbrances,  on 
which  there  shall  be  less  than  one  year's  interest  due  or  owing. 

5.  The  amount  of  loans  on  which  interest  shall  not  have  been 
paid  within  one  year  previous  to  such  statement. 

6.  The  amount  due  the  company  on  which  judgments  have 
been  obtained. 

7.  The  amount  of  stocks  of  this  State,  the  "United  States,  of 
any  incorporated  city  of  this  State,  and  of  any  other  stocks 
ow'ned  by  the  company,  specifying  the  amount,  number  of 
shares,  and  par  and  market  value  of  each  kind  of  stock. 

8.  The  amount  of  stocks  held  thereby  as  collateral  security 
for  loans,  with  the  amount  loaned  on  each  kind  of  stock,  its  par 
value  and  market  value. 

9.  The  amotint  of  assessment  on  stock,  paid  and  unpaid. 

10.  The  amount  of  interest  actually  due  and  unpaid. 

11.  The  number  of  policies  in  force. 

12.  The  amount  insured  thereby. 

13.  The  amount  of  premiums  received  thereon. 
Third. — The  liabilities  of  such  company,  specifying: 

1.  The  amount  of  losses  due  and  yet  unpaid. 

2.  The  amount  of  claims  for  losses  resisted  by  the  company. 

3.  The  amount  of  losses  incurred  during  the  year,  including 
those  claimed  and  not  yet  due,  and  of  those  reported  to  the 
company  upon  which  no  action  has  been  taken. 

4.  The  amount  of  dividends  declared  and  due  and  remaining 
unpaid. 

5.  The  amount  of  di\idends,  either  cash  or  scrip,  declared, 
but  not  yet  due. 

G.  The  amount  of  money  borrowed  and  security  given  for  the 
payment  thereof. 

7.  The    amount  of   all    other  existing  claims  against  the 
company. 
Fourth. — The  income  of  the  company  during  the  preceding  year, 
specifying : 

1.  The  amount  of  cash  i^remiums  received. 

2.  The  amount  of  notes  received  for  premiums. 

3.  The  amount  of  interest  money  received. 

4.  The  amount  of  income  received  from  other  sources. 


230  niNE'S  INSURANCE   STATUTES. 

Fifth. — The  expenditures  during  the  preceding  year,  specifying: 

1.  The  amount  of  losses  paid  during  the  year,  stating  how 
much  of  the  same  accrued  prior,  and  how  much  subsequent  to 
the  date  of  the  [next]  preceding  [annual]  statement,  and  the 
amount  at  which  losses  were  estimated  iu  such  preceding  state- 
ment. 

2.  The  amount  of  dividends  paid  during  the  year. 

3.  The  amount  of  expenses  paid  during  the  year,  including 
commissions  and  fees  to  agents  and  officers  of  the  company. 

4.  The  amount  of  all  other  payments  and  expenditures. 
{Ibid,  p.  230,  §  39.) 

4:3.  Every  insurance  company  organized  under  any  law  of  this 
State,  failing  to  make  and  deposit  such  statement,  or  to  reply  to  any 
inquiry  of  the  said  Su])eriutendent,  shall  be  subject  to  a  penalty  of 
five  hundred  dollars,  and  an  additional  five  hundred  dollars  for 
every  month  that  such  company  shall  continue  thereafter  to  trans- 
act any  business  of  insurance ;  and  in  the  annual  report  required  to 
be  made  by  section  thirteen  of  this  act,  said  Superintendent  shall 
state  what  companies  have,  a7id  what  companies  have  not  complied 
with  the  foregoing  section,  and  he  shall  also  make  such  suggestions 
as  to  the  condition  and  management  of  any  company  or  companies 
as  he  shall  deem  best.     [Ibid,  p.  232,  §  40.) 

44.  It  shall  not  be  lawful  for  any  insurance  company,  associa- 
tion, or  partnership,  incorporated,  organized,  or  associated  under 
the  laws  of  any  other  State  of  the  United  States,  or  any  foreigTi 
government,  for  any  of  the  purposes  mentioned  in  this  act,  directly 
or  indirectly  to  transact  any  business  of  insurance  in  this  State 
without  first  procuring  from  the  Superintendent  of  Tnsirrauce  a  cer- 
tificate of  authority  so  to  do ;  stating  also  that  said  company  has 
complied  with  all  the  requisitions  of  this  act  applicable  to  such 
company;  nor  shall  it  be  lawful  for  any  insirrance  company,  associ- 
ation, or  partnership  mentioned  in  this  sectioi>,  directly  or  indi- 
rectly to  take  risks,  or  transact  any  business  of  insurance  in  this 
State,  unless  possessed  of  the  amount  of  actual  capital  required 
of  similar  companies,  organized  under  the  laws  of  this  State.  Every 
such  company,  on  applying  for  admission  and  authority  to  transact 
business  in  this  State,  and  as  a  condition  precedent  to  obtaining 
any  such  autliority,  shall  file  in  the  insurance  department  its 
written  consent,  irrevocable,  that  actions  may  be  commenced 
against  such  coinpany  in  the  proper  court  of  any  county  in  this 
State  in  which  the  cause  of  action  shall  arise,  or  in  which  the 
plaintiff  may  reside,  by  the  service  of  i^rocess  on  the  Superintendent 
of  Insurance  of  this  State,  and  stipulating  and  agreeing  that  such 
servi«;e  shall  be  taken  and  held  in  all  courts  to  be  as  valid  and  bind- 
ing' as  if  due  service  had  been  made  upon  the  president  or  chief 
officer  of  such  corporation.  Such  consent  shall  be  executed  by  the 
president  and  secretary  of  the  company,  authenticated  bj^  the  seal 
of  the  corporation,  and  shall  be  accompanied  by  a  duly  certified 
copy  of  the  order  or  resolution  of  the  board  of  directors,  trustees,  or 
managers,  authorizing  the  said  president  and  secretary  to  execute 
the  same.  Actions  against  any  such  insurance  company  may  be 
brought  in  any  county  where  the  cause  of  action  arose,  or  in  which 
the  plaintiff  may  reside.  The  summons  shall  be  directed  to  the 
Superintendent  of  Insurance,  and  shall  require  the  defendant  to 
answer  by  a  certain  day,  not  less  than  forty  days  from  its  date. 
Said  summons  shall  be  forthwith  forwarded  by  the  clerk  of  the 


KANSAS.,  231 

court  to  the  Superintendent  of  Insurance,  who  shall  iimiiedialely 
forward  a  copy  thereof  to  the  secretary  of  the  company  sued,  an<l 
another  copy  to  the  general  agent  of  said  company,  if  any  such 
agent  reside  in  this  State  ;  and  thereupon  said  Superintendent  sliall 
make  return  of  said  summons  to  the  court  whence  it  issued,  showing 
the  date  of  its  receipt  by  him,  the  date  of  forwarding  such  copies, 
and  the  name  and  address  of  each  person  to  whom  he  forwarded 
such  copy.  Such  return  shall  be  under  his  hand  and  seal  of  office, 
and  shall  have  the  same  force  and  effect  as  a  due  and  sufficient 
return  made  by  the  sheriff  on  process  directed  to  him.  The  said 
Superintendent  shall  keep  a  suitable  record  book,  in  which  he 
shall  docket  every  action  commenced  against  insurance  corpora- 
tions, the  time  when  commenced,  the  date  and  manner  of  service ; 
also,  the  date  of  the  judgment,  its  amount  and  costs,  and  the  date 
of  payment  thereof,  which  sliall  be  certified  from  time  to  time  by 
the  clerk  of  the  court.  And  every  such  company  shall  also  tile  a 
certified  copy  of  its  charter,  or  deed  of  settlement,  with  said  Super- 
intendent, together  with  a  statement,  under  the  oath  of  the  presi- 
dent or  vice-president,  or  other  chief  officer,  and  the  secretary  of  the 
company,  for  wuich  he  or  they  may  act,  stating  the  name  of  the 
company  and  the  place  where  located;  the  amount  of  its  capital, 
with  a  detailed  statement  of  the  facts  and  items  required  from 
companies  organized  under  the  laws  of  this  State,  as  per  section 
thirty-nine  and  forty  of  this  act;  also  a  copy  of  the  last  annual 
report,  if  any  was  made,  under  any  law  of  the  State  by  which  such 
company  was  incorporated,  (i  hid,  §  41,  as  amended  by  laics  of  1875, 
p.  169,  §  4.) 

45.  Any  company  heretofore  organized  under  any  law  of  this 
State,  for  any  of  the  purposes  mentioned  in  [section  31  of]  this  act, 
which  has  taken  notes  or  obligations  of  its  stockholders  for  any 
portion  or  portions  of  the  amount  subscribed  by  them  to  its  capital 
stock,  shall  retain  all  dividends  declared  to  such  stockholders,  their 
heirs  or  assigns,  and  apply  the  same  as  a  credit  upon  such  stock, 
notes,  or  unj^aid  subscriptions,  until  such  notes  or  unpaid  subscrip- 
tions shall  be  fully  paid  ;  and  the  whole  amount  now  or  hereafter 
payable  to  any  such  company  on  stock,  notes,  obligations,  or  uni)aid 
subscriptions,  shall  be  invested  by  said  company  in  the  manner  re- 
quired by  the  twenty-ninth  section  of  this  act.     {Ibid,  p.  233,  §  42.) 

4<».  All  insurance  companies  heretofore  organized  under  any 
law  of  this  State,  shall  be  allowel  one  year  from  the  last  day  of 
February,  A.  D.  1S71,  to  comply  with  the  foregoing  sections  of  this 
act.     [Ibid,  p.  234,  §  43.) 


LIFE   INSURANCE. 

47.  Every  company  or  corporation  formed  or  organized  pursu- 
ant to  chapter  23  of  the  General  Statutes  of  1 8G8,  for  the  purpose  of 
making  insurance  on  the  lives  of  individuals,  shall  tile  in  the  office 
of  Superintendent  of  Insurance  a  copj^  of  its  charter,  duly  certified 
by  the  Secretary  of  State,  and  it  shall  also  file  a  copy  of  its  by- 
laws, which  shall  set  forth  the  number  of  its  directors  or  trustees, 
which  shall  not  be  less  than  five  nor  more  than  twenty-five,  and  the 
manner  of  electing  the  same,  and  their  term  of  office  respectively,  a 
majority  of  whom  shall  be  citizens  of  this  State,  the  times  of  hold- 
ing elections,  and  manner  of  filling  vacancies.     And  every  sucli 


232  hi^'e's  i^'sukakc;e  statutes. 

company  shall  thereafter  have  the  power  to  make  insurance  on  the 
lives  of  iudividnals,  and  every  assurance  ijertaining  thereto  or  con- 
nected therewith,  and  to  grant,  purchase,  and  dispose  of  annuities 
and  endowments  of  every  kind  and  description  whatever.  [Ibid, 
§44.) 

48.  Whenever  the  corporators  shall  file  such  charter  and  by- 
laws with  the  Superintendent  of  the  Insurance  Department,  they 
shall  cause  notice  of  their  incorporation,  and  the  names  and  resi- 
dence of  theh'  directors  and  their  place  of  business,  to  be  published 
in  a  paper  of  general  circulation  in  the  county  in  which  the  office  of 
the  company  is  to  be  located  for  four  weeks  successively.  They 
may  then  proceed  to  open  books  for  subscription  to  the  cai)ital  stock 
of  the  company,  and  keep  the  same  open  till  the  whole  amount 
specified  in  the  charter  is  subscribed ;  but  it  shall  not  be  lawful  for 
such  company  to  issue  policies  or  transact  any  business  of  any  kind 
or  natiu-e  whatsoever,  until  they  have  fully  comi^lied  with  all  the 
requirements  of  this  act,  which  fact  shall  be  certified  by  the  Super- 
intendent of  the  Insurance  Department.     {Ibid,  §  45.) 

411.  Upon  being  notified  that  the  capital  stock  named  in  the 
charter  has  been  subscribed,  and  one  hundred  thousand  dollars 
thereof  paid  in,  the  Superintendent  shall  make  an  examination,  or 
cause  the  same  to  be  made  by  some  disinterested  person  specially 
appointed  by  him  for  that  purpose  ;  and  if  it  shall  be  found  by  him- 
self, or  if  the  person  so  appointed  shall  certify-  under  oath  that  the 
provisions  of  this  act  have  been  complied  with  by  said  company  so 
far  as  applicable  thereto,  which  certificate,  when  made,  shall  set 
forth  the  particulars  of  such  compliance,  then  the  Superintendent 
shall  so  certify.  The  corporators  or  officers  of  such  company  shall 
be  requii'ed  to  certify,  under  oath,  to  the  person  making  such  ex- 
amination, that  the  money,  notes,  stocks,  bonds,  mortgages,  and 
deeds  of  trust  and  obligations  exhibited  to  him  are  the  bona  fide 
property  of  said  company.     {Ibid,  p.  2o5,  §  40.) 

5i>.  When  the  corporators  have  fully  complied  with  the  re- 
quirements of  the  preceding  sections,  and  said  corporation  has  de- 
posited with  the  Treasm^er  of  State  [$100,000]  the  amount  of  cap- 
ital required  to  be  deposited  by  the  i)rovisious  of  this  act,  it  shall 
be  the  duty  of  the  Superintendent  of  Insurance  to  furnish  the  com- 
pany a  certificate  of  such  deposit,  and  a  certificate  of  authority  for 
it  to  commence  the  business  proposed  in  its  charter,  which,  on  be- 
ing filed  and  recorded  in  the  office  of  the  Register  of  Deeds  of  the 
county  in  which  the  company  is  to  be  located,  shall  be  its  authority 
to  commence  business  and  issue  policies ;  and  such  certified  copies 
of  the  declaration  and  certificate  of  deposit  may  be  used  in  evidence 
for  or  against  said  company,  with  the  same  effect  as  the  originals. 
{Ibid,  §  47.) 

51.  No  company  formed  under  the  laws  of  this  State,  for  the 
purpose  of  insurance  on  the  lives  of  individuals,  shall  commence  or 
hereafter  continue  to  do  business  or  issue  policies,  unless  upon  an 
actual  capital  of  at  least  one  hundred  thousand  dollars ;  nor  shall 
any  such  company  commence  or  hereafter  continue  to  do  any  busi- 
ness unless  the  fiill  amount  of  capital  stock  named  in  its  charter  or 
articles  of  association  shall  have  been  in  good  faith  subscribed,  nor 
until  such  company  shall  have  at  least  one  hundred  thousand  dollars 
of  its  capital  paid  in  and  invested  in  stocks  or  bonds  of  the  State  of 
Kansas,  or  in  treasury  notes  or  stocks  of  the  United  States,  or  in 
notes  or  bonds  secured  by  mortgages  or  deeds  of  trust  on  unincum- 


KANSAS.  233 

bered  real  estate,  worth  at  least  double  the  amount  loaned  tbereou  ; 
nor  until  it  holds  for  the  balance  unpaid  on  all  its  capital  stock  sub- 
scribed for,  the  notes  of  the  respective  subscribers,  with  good  aud 
sufficient  secui'itj'  therefor,  other  than  the  stock  of  said  company ; 
Frovided,  That  existing  life  insurance  comj)anies  shall  be  allowed 
six  months  from  the  passage  of  this  act  within  which  to  comply  with 
the  provisions  hereof  relating  to  such  companies.     {Ibid,  §  48.) 

5!i2.  No  company  formed  under  the  laws  of  this  State  for  the 
purpose  of  insurance  on  the  lives  of  individuals,  shall  commence  or 
hereafter  continue  to  do  business  until  such  company  has  deposited 
with  the  Treasurer  of  State,  as  providetl  by  section  sixteen  of  this 
act,  for  the  security  of  its  policy-holders,  the  sum  of  one  hundred 
thousand  dollars  in  stock,  or  in  notes  or  bonds  secured  by  mortgages 
or  deeds  of  trust  of  the  description  mentioned  in  the  forty-eighth 
section  of  this  act,  and  in  all  cases  to  be  or  to  be  made  to  be  equal 
to  stock  producing  six  per  cent,  per  annum,  and  not  to  be  received 
at  a  rate  above  their  par  value,  nor  above  their  current  market 
value ;  such  securities  shall  be  held  by  said  Treasurer  as  seciu'ity  for 
the  policy-holders  of  said  company,  and  for  no  other  purpose ;  but 
so  long  as  any  company  so  depositing  shall  continue  solvent  he  may 
permit  such  comijany  to  collect  the  interest  or  dividends  on  its  se- 
cuiities  so  deposited,  and  from  time  to  time  to  withdraw  any  of 
such  securities,  or  change  the  same  on  replacing  other  securities  of 
like  value  of  those  withdrawn,  and  of  the  character  of  which,  by 
the  provisions  of  this  act,  said  company  is  allowed  to  invest  its 
funds.     {Ibid,  p.  236,  §  491.) 

5S.  Whenever  any  such  company  shall  deposit  with  the  said 
Treasurer  the  amount  of  the  net  present  value  of  any  i)olicy  or  an- 
nuity bond  valued  by  the  American  Table  of  Mortality,  interest  at 
four  and  one-half  per  cent.,  in  securities  of  the  character  in  which 
by  the  provisions  of  this  act  insurance  companies  may  invest  their 
funds,  it  shall  be  the  duty  of  said  Superintendent  to  issue  to  said 
company  registered  policies  of  insui'ance  or  annuity  bonds  of  such 
denomination  or  amounts  as  the  said  company  may  require.  Such 
policies  and  annuity  bonds  shall  bear  upon  their  face  the  words, 
"  This  policy,  among  a  limited  number,  is  secured  by  pledge  of 
public  stock,  or  bonds  and  mortgages,"  with  the  seal  of  said  depart- 
ment, and  shall  be  countersigned  by  the  Superintendent  or  his  au- 
thorized deputy.     {Ibid,  §  50.) 

54.  The  said  Superintendent  of  the  Insurance  Department  shall, 
on  delivering  said  policies  or  annuity  bonds  to  any  life  insurance 
company,  charge  to  said  company  the  amount  of  the  net  present 
value  of  such  policies  or  annuity  bonds  valued  as  aforesaid,  accord- 
ing to  the  amount  and  number  of  premiums  paid  annually,  semi- 
annually and  quarterly  thereon,  aud  the  terms  thereof  On  the 
first  day  of  January  of  each  and  every  year,  or  within  sixty  days 
thereafter,  the  said  companies  shall  make  a  return  to  the  Super- 
intendent of  the  Insurance  Department,  under  oath  of  the  president 
and  secretary  and  actuary,  of  the  exact  condition  of  the  registered 
policies  received  from  the  said  department,  and  of  the  premium  ac- 
count of  the  said  policies,  and  shall  deposit  with  the  said  Treasui'er 
additional  and  similar  securities  to  an  amount  equal  to  any  increase 
of  value  of  the  policies  heretofore  issued,  and  which  shall  remain  in 
force,  valued  by  the  same  rule  as  upon  the  issue  thereof;  and  the 
securities  thus  de])osited  shall  be  held  by  the  said  Treasurer  in  trust 
until  the  obligations  of  the  said  depositing  life  insurance  companies, 


234  hine's  insurance  statutes. 

respectively,  under  the  said  registered  policies  and  annuity  bonds 
shall,  to  the  satisfaction  of  the  said  Superintendent,  be  fully  liqui- 
dated, canceled,  or  annulled;  and  when  any  registered  policy  ceases, 
by  lapse  or  otherwise,  to  become  an  obligation,  in  whole  or  in  part, 
the  amount  held  on  deposit  to  the  credit  of  such  policy  shall  be  re- 
turned to  said  company,  in  proportion  as  said  policy  has  ceased  to 
be  an  obligation  as  aforesaid.     {Ibid,  p.  237,  §  51.) 

55.  The  said  depositing  companies  may  at  any  time  withdraw 
any  excess  of  securities  above  the  net  present  value  hereinbefore 
specified,  upon  satisfying  the  said  Superintendent  by  written  proof, 
to  be  tiled  in  the  said  department,  that  such  excess  exists,  and  shall 
be  allowed  to  receive  the  interest  on  all  securities  deposited,  and  to 
exchange  such  securities  by  substituting  other  securities,  such  as, 
by  the  provisions  of  this  act,  said  company  is  authorized  to  invest 
its  funds  in.     {Ibid,  §  52.) 

511.  The  said  companies  shall  deliver  to  the  Superintendent  of 
the  Insurance  Department  the  policies  and  annuity  bonds  engraved 
and  printed,  or  printed  and  written  in  such  manner  as  the  said 
company  and  applicant  for  insurance  may  agree.  On  the  receipt 
by  the  Superintendent  he  shall  cause  them  to  be  duly  registered  in 
proper  books  kept  for  that  purpose,  in  consecutive  numbers,  corre- 
sponding to  the  numbers  on  said  policies  and  annuity  bonds,  shall 
cause  his  name  or  the  name  of  his  deputy  to  be  inscribed  on  the 
policies  and  bonds,  and  affix  the  seal  of  the  department  to  the 
same,  and  shall  return  the  original  policies  to  the  said  dej)ositing 
companies  respectively.  It  shall  be  the  duty  of  the  said  Suiierin- 
tendent  to  receive  and  destroy  mutilated  policies  and  annuity  bonds 
issued  to  the  said  companies,  and  deliver  in  lieu  thereof  other  poli- 
cies and  bonds  of  like  tenor  and  date.     {Ibid,  p.  238,  §  53.) 

57.  Any  life  insurance  company,  or  any  trust  or  loan  company, 
heretofore  or  hereafter  organized  under  any  law  of  this  State,  may,  by 
the  direction  and  consent  of  two-thirds  of  their  resi)ective  boards 
of  directors,  or  finance  committee,  purchase  or  invest  by  loan  or 
otherwise,  any  of  their  funds  in  bonds,  or  notes  and  mortgages  in 
unincumbered  real  estate  worth  fifty  per  cent,  more  than  the  sum 
so  loaned  thereon,  or  in  stocks  or  bonds  of  the  United  States  or  of 
this  State,  or  any  other  State,  or  in  bonds  issued  by  any  county, 
city,  town,  village  or  school  district  of  this  State,  pursuant  to  any 
law  of  this  State,  anything  in  the  charter  of  either  of  said  com- 
panies to  the  contrary  notwithstanding.     {Ibid,  §  54.) 

5S.  The  corporators  or  directors  of  any  life  ipsitrance  company 
heretofore  or  hereafter  organized  under  any  law  of  this  State,  shall 
have  i)ower  to  adopt  a  seal  and  make  such  by-laws,  not  inconsistent 
with  this  act  or  the  constitution  and  laws  of  this  State,  as  they 
may  deem  necessary  for  the  regulation  and  management  of  its  af- 
fairs, and  the  distribution  of  its  siu'plus  and  investment  of  its 
funds.    {Ibid,  §  55.) 

59.  Every  such  life  insurance  comi)any  shall  have  two  chief 
officers,  one  of  whom  shall  be  known  as  the  president,  and  the  other 
as  the  secretary,  and  such  other  officers  as  the  corporators  or  direc- 
tors of  the  company  may  designate  in  the  bj'-laws.  All  contracts 
made  by  the  comjiany  shall  be  signed  by  both  the  president  and 
secretary.  Every  such  company  shall  have  one  or  more  vice-presi- 
dents and  an  assistant  secretary,  who,  in  the  absence  of  the  presi- 
dent and  secretary,  shall  have  all  the  powers  and  perform  all  the 
duties  of  the  president  and  secretary.    Every  such  company  may  in 


KANSAS.  235 

its  bj'-laws  specify  what  number  of  its  directors,  not  being  less  than 
five,  shall  constitute  a  quorum.     {Ibid^p.  239,  §  56.) 

60.  It  shall  be  the  duty  of  the  president,  or  vice-president  and 
secretary,  or  actuary,  of  every  life  insurance  company  organized 
under  the  laws  of  this  State,  annually,  on  the  first  day  of  January, 
or  within  sixty  days  thereafter,  to  prepare  under  oath,  and  deposit 
in  the  office  of  the  Superintendent  of  the  Insurance  Department,  a 
statement,  showing: 

First. — The  number  of  policies  issued  dui'ing  the  year. 

Second. — The  amount  of  assurance  effected  tbereby. 

Third. — The  amount  of  premiums  received  during  the  year. 

Fourth. — The  amount  received  for  interest,  and  all  other  receipts 
during  the  year,  classifying  the  items. 

Fifth. — The  amount  of  losses  paid  during  the  year. 

Sixth. — The  amount  of  losses  unpaid,  giving  the  reason  for  non- 
payment. 

Seventh. — The  amount  of  expenses,  classifying  the  items. 

Eighth. — The  whole  number  of  policies  in  force,  specifying  the 
description  and  amount  of  each  policy. 

Ninth. — The  amount  of  liabilities  or  risks  thereon,  and  all  other 
liabilities. 

Tenth. — The  amount  of  capital  stock,  and  how  invested. 

Eleventh. — The  amount  of  assets  other  than  capital,  and  the 
manner  in  which  they  are  invested ;  what  amount  is  invested  in 
real  estate,  in  stocks,  promissory  notes  and  other  securities,  and 
what  amount  is  loaned  on  bonds  and  mortgages  or  deeds  of  trust, 
stocks,  policies  of  the  company  and  other  securities,  specifying  the 
kinds  and  amount. 

Ticelffh. — The  amount  of  dividends  declared  to  stockholders  and 
policy-holders  respectively,  and  how  much  remains  unpaid. 

Thirteenth. — A  tabular  statement  of  the  j)olicies  in  force  for  the 
whole  term  of  life,  showing  what  number  for  each  age  of  life,  and 
for  what  amount  of  risks  Avere  issued  or  continued  in  force  the  first 
year  of  the  existence  of  the  company,  during  the  second  year,  and 
so  on  up  to  the  time  of  making  the  statement. 

Fourteenth. — A  tabulur  statement  of  the  policies  in  force  for  a 
shorter  period  than  the  whole  term  of  life,  showing  what  number  of 
each  age  of  life,  and  for  what  amount  of  risks  were  issued  or  con- 
tinued in  force  during  the  first  year  of  the  company's  existence, 
during  the  second  year,  and  so  on  up  to  the  time  of  making  such 
statement.  It  shall  be  the  duty  of  the  Superintendent  of  the  Insur- 
ance Department  to  arrange  the  information  contained  in  the  above 
statements  in  a  tabular  form,  or  in  abstracts,  and  the  same  shall  be 
published  in  his  annual  report.     {I  hid,  §  57.) 

COMPAJ!^IES  NOT    0EGANIZP:D    UNDEE    THE    LAWS   OF 

THIS  STATE. 

61.  It  shall  not  be  lawful  for  an  j-  person  to  act  within  this  State 
as  agent  or  otherwise,  in  receiving  or  procuring  appli(;ations  for  in- 
surance, or  in  any  manner  to  aid  in  transacting  business  for  any  life 
insurance  comi^any  or  association  incorporated  by  or  organized 
under  the  laws  of  the  United  States,  or  any  other  State  of  the 
United  States,  or  any  foreign  government,  unless  such  company  is 
possessed  of  the  amount  of  capital  and  of  actual  paid-up  capital 


230  hine's  insurance  statutes. 

required  of  life  iusurance  companies  formed  under  the  laws  of  this 
State.     (JW<?,i).  240,  §  58.) 

6tJ.  No  such  company  mentioned  in  the  preceding'  section  shall 
transact  any  such  business  unless  it  shall  file  in  the  insurance  de- 
partment its  written  consent,  irrevocable,  that  actions  may  be  com- 
menced against  such  company,  in  the  proper  court  of  any  county  in 
this  State  in  which  the  cause  of  action  shall  arise,  or  in  which  the 
jjlaintiff  may  reside,  by  the  service  of  process  on  the  Superintendent 
of  Insurance  of  this  State,  and  stipulating  and  agreeing  that  such 
service  shall  be  taken  and  held  in  all  courts  to  be  as  valid  and  bind- 
ing as  if  due  service  had  been  made  upon  the  i>resident  and  secre- 
tary of  the  comi)any,  authenticated  by  the  seal  of  the  corjioration, 
and  shall  be  accompanied  by  a  duly  certified  copy  of  the  order  or 
resolution  of  the  board  of  directors,  trustees,  or  managers,  author- 
izing the  said  president  and  secretary  to  execute  the  same.  Actions 
against  any  such  insurance  company  may  be  brought  in  any  county 
where  the  cause  of  action  arose,  or  in  which  the  plaintiff  may  reside. 
The  summons  shall  be  directed  to  the  Superintendent  of  Insurance, 
and  shall  require  the  defendant  to  answer  by  a  certain  day,  not  less 
than  forty  days  from  its  date.  Said  summons  shall  be  forthwith 
forwarded  by  the  clerk  of  the  court  to  the  Sui)erintendent  of  Insur- 
ance, who  shall  immediately  forward  a  copy  thereof  to  the  secretary 
of  the  company  sued,  and  another  copy  to  the  general  agent  for 
said  company,  if  any  such  agent  resides  in  this  State ;  and  there- 
upon said  Superintendent  shall  make  return  of  said  summons  to  the 
court  whence  it  issued,  showing  the  date  of  its  receipt  b}"  him,  the 
date  of  forwarding  such  copies,  and  the  name  and  address  of  each 
person  to  whom  he  forwarded  such  copy.  Such  return  shall  be 
under  his  hand  and  seal  of  office,  and  shall  have  the  same  force  and 
effect  as  a  due  and  sufficient  return  made  by  the  sheriff  on  process 
directed  to  him.  The  said  Superintendent  shall  keep  a  suitable 
record  book,  in  which  he  shall  docket  every  action  commenced 
against  insurance  corporations,  the  time  when  commenced,  the  date 
and  manner  of  service,  also  the  date  of  the  judgment,  its  amount 
and  costs,  and  the  date  of  payment  thereof,  which  shall  be  certified 
from  time  to  time  by  the  clerk  of  the  court.  {I bid,  §  59,  as  amended 
by  laws  of  1S75,  p.  171,  §  5.) 

OS.  No  such  company,  mentioned  in  the  fifty  eighth  section  of 
this  act,  shall  transact  any  business  as  aforesaid  by  any  agent  or 
agents  in  this  State,  unless  it  shall  first  file  in  the  office  of  the  Suj)er- 
intendeutof  the  Insurance  Department  a  certified  copy  of  its  charter 
or  act  of  incorporation,  together  with  a  statement,  under  the  oath 
of  the  president  and  secretary  of  such  company-,  showing  the  condi- 
tion of  the  affairs  of  said  company  on  the  first  clay  of  January  next 
preceding  the  date  of  such  oath.  The  statement  shall  be  in  the 
same  form,  and  shall  set  forth  the  same  particulars,  as  the  annual 
vStatement  required  of  companies  organized  under  the  laws  of  this 
State  by  the  fifty-seventh  section  of  this  act.  Such  company  shall 
also  file  a  copy  of  its  last  annual  report,  made  in  compliance  with 
any  law  of  the  State  or  country  by  which  said  company  was  incor- 
porated, if  any  such  report  shall  have  been  made.  {Ibid,  p.  2-^1, 
§60.) 

64.  It  shall  not  be  lawful  for  any  life  insurance  company  or- 
ganized or  incorporated  under  the  laws  of  the  United  States,  or  of 
any  other  State  of  the  United  States,  to  transact  in  this  State  any 
business  unless  one  hundred  thousand  dollars  of  the  capital  or  assets 


KANSAS.  2o7 

of  such  company  be  invested  in  treasury  notes  or  stocks  of  the 
United  States,  or  in  bonds  of  the  State  of  Kansas,  or  of  the  State 
under  the  laws  of  which  such  company  is  incorporated,  or  loaned  on 
notes  or  bonds  secured  by  mortgages  or  deeds  of  trust  on  unincum- 
bered real  estate  worth  at  least  double  the  amount  loaned  thereon  ; 
nor  unless  securities  of  the  kind  or  kinds  aforesaid,  to  the  actual 
value  of  one  hundred  thousand  dollars,  shall  have  been  deposited 
for  the  security  of  its  policy-holders  with  the  Superintendent  or 
Commissioner  of  Insurance,  or  chief  financial  officer  of  the  State, 
and  under  or  by  the  laws  of  the  State  in  which  such  comjiany  is 
incorporated;  or  if  such  company  is  incorporated  under  the  laws  of 
the  United  States,  with  some  financial  officer  of  the  United  States  ; 
Provided,  That  any  such  company  not  having  such  deposit  made  in 
the  State  in  which  it  is  organized,  or  with  some  officer  of  the  United 
States,  may  make  such  deposit  in  this  State  in  the  manner  and  sub- 
ject to  the  provisions  set  forth  in  the  forty -ninth  sectien  of  this  act. 
{Ibid,  p.  241,  §  01.) 

65.  It  shall  not  be  lawful  for  any  such  company  mentioned  in 
the  preceding  section,  unless  such  company  has  made  a  deposit  in 
this  State  as  in  said  section  provided,  to  transact  in  this  State  any 
business  mentioned  in  section  forty-four  of  this  act,  until  it  shall 
have  filed  with  the  Superintendent  of  the  Insurance  Department  of 
this  State  the  certificate  of  the  Commissioner,  or  Superintendent, 
or  chief  financial  officer  aforesaid,  under  his  hand  and  official  seal, 
certifying  that  he  holds  in  trust  and  on  deposit  for  the  benefit  of 
all  policy-holders  of  such  company  the  notes,  ^stocks,  and  securities 
before  mentioned,  and  stating  the  kinds  of  such  notes,  stocks,  and 
seciu'ities,  and  the  amount  of  each  specifically ;  when  issued,  when 
and  where  payable,  and  the  rate  of  interest ;  and  that  he  is  satis- 
fied they  are  worth  one  hundred  thousand  dollars.     {Ibid,  §  02  ) 

<}6.  No  life  insurance  company  incorporated  by,  or  organized 
under  the  laws  of  any  foreign  government,  shall  transact  business 
in  this  State,  unless  it  shall  first  deposit  with  the  Treasurer  of  this 
State,  as  provided  in  section  sixteen  of  this  act,  for  the  benefit  of 
the  policy-holders  of  said  company,  citizens  or  residents  of  the 
United  States,  bonds  or  securities  to  the  amount  of  one  hundred 
thousand  dollars  of  the  kind  required  of  similar  companies  organ- 
ized under  the  laws  of  the  State,  and  subject  to  all  the  provisions  of 
this  act;  Provided,  That  if  such  deposit  has  been  made  in  any 
other  State  of  the  United  States,  under  the  laws  thereof,  in  such  a. 
manner  as  to  secure  equally  the  policy-holders  of  such  company, 
citizens  and  residents  of  the  United  States,  no  deposit  shall  be 
required  in  this  State,  but  a  certificate  of  such  deposit  shall  be  filed 
with  the  Superintendent  of  the  Insurance  Department,  as  required 
hy  the  provisions  of  this  act,  in  regard  to  companies  organized  un- 
der the  laws  of  the  United  States,  and  of  other  States  of  the  United 
States.     {Ibid,  j).  243,  §  03.) 

67.  Every  life  insurance  company  incorporated  by,  or  organ- 
ized under  the  laws  of  the  United  States,  or  any  other  State  of  the 
United  States,  and  doing  business  in  this  State,  shall  annually,  on 
the  first  day  of  January,  or  within  sixty  days  thereafter,  file  with 
the  Superintendent  of  the  Insurance  Department  of  this  State  a 
statement  of  its  affairs,  in  the  same  manner  and  form  as  herein- 
before provided  for  similar  companies  organized  under  the  laws  of 
this  State.     {Ibid,  §  04.) 

6S.  Every  such  company  incorporated  by,  or  organized  under. 


238  hine's  insurance  statutes. 

the  laws  of  any  foreign  government,  and  doing  business  in  this 
State,  shall  annually,  on  the  first  day  of  January,  or  within  sixty 
days  thereafter,  tile  with  the  Superintendent  of  the  Insurance  De- 
partment a  statement  of  its  affairs,  in  the  same  manner  and  form 
as  provided  in  this  act  for  the  annual  statements  of  similar  compa- 
nies organized  in  this  State.  Said  statements  shall  be  made  up  for 
the  year  ending  on  the  preceding  thii^tieth  of  June,  and  shall  be  ac- 
companied by  a  supplementary  annual  statement,  certified  to  under 
oath  by  some  oflQcer  or  agent  of  the  company,  giving  first  a  de- 
tailed description  of  the  policies  issued  and  of  those  which  have 
ceased  to  be  in  force  during  the  year  throughout  the  United  States; 
second,  the  amount  of  premiums  received,  and  claims  and  taxes 
paid  in  this  State  and  in  the  United  States,  for  the  year  ending  on 
the  thirty -first  day  of  the  ijreceding  December.  Such  supplement- 
ary statements  shall  also  contain  a  description  of  the  investments 
of  such  company  in  the  United  States,  and  such  other  information 
as  may  be  required  by  said  Superintendent.    (Ibid,  §  05.) 

ttO.  Every  life  insurance  company  organized  under  any  law  of 
this  State,  may  make  and  enter  into  all  manner  of  contracts  per- 
taining to  the  business  of  such  company,  or  connected  with  the 
management  of  the  same ;  and  any  such  company  or  association 
may  cause  itself  to  be  wholly  or  partially  reinsured  against  loss 
arising  from  any  risk  which  it  may  have  undertaken,  and  in  like 
manner  may  reinsirre  or  guarantee  any  other  corporation  against 
loss  arising  from  any  risk  of  the  character  mentioned  in  section 
forty-four  of  this  act,  and  that  shall  have  been  or  may  be  under- 
taken by  such  corporation,  or  may  join  with  any  such  cori^oration 
in  any  such  risk,  and  may  make  and  enter  into  all  manner  of  con- 
tracts relating  to  such  reinsurance  and  joint  insurance,  and  the 
terms  upon  which  the  same  shall  be  conducted.     {Ibid,  p.  244,  §  GO.) 

70.  Every  stockholder  legally  entitled  to  vote  at  any  election 
of  any  life  insurance  company  organized  under  the  laws  of  this 
State  may  cast  such  vote  by  proxy,  and  the  authority  to  cast  such 
vote  shall  be  written  and  not  printed,  and  shall  state  the  name  of 
the  person  authorized  to  cast  such  vote,  and  the  date  of  the  meet- 
ing at  which  such  vote  shall  be  cast.     {Ibid,  §  07.) 

71.  No  lite  insurance  company  organized  or  incorporated  by 
or  under  the  laws  of  this  State,  or  of  any  other  State  of  the  United 
States,  or  of  any  foreign  government,  transacting  the  business  of 
life  insurance  in  this  State,  shall  be  permitted  or  allowed  to  take 
any  other  kind  of  risks  except  those  connected  with  or  appertain- 
ing to  making  assurance  on  life,  and  the  granting,  purchasing,  and 
disposing  of  annuities  and  endowments;  nor  shall  the  business  of 
life  assurance  in  this  State  be  in  any  wise  conducted  or  transacted 
by  any  com{)any  which  in  this  or  any  other  State  or  country  makes 
insurance  on  marine,  fire,  inland,  or  any  other  risks.     {Ibid,  §  05.) 

72.  Civil  action  may  be  maintained  by  any  corporation  formed 
under  the  laws  of  this  State  against  any  of  its  members  or  stock- 
holders for  any  cause  relating  to  the  business  of  such  company. 
Civil  action  may  also  be  prosecuted  and  maintained  by  any  member 
of  such  corporation  against  the  corporation  for  losses  which  have 
accrued  on  any  risks,  if  payment  is  withheld  for  more  than  two 
months  after  such  losses  shall  have  become  due.  {Ibid,  p.  245, 
§09.) 

73.  No  insurance  company  of  any  kmd,  organized  under  the 
laws  of  this  State,  shall  directly  or  indirectly  deal  or  trade  in  any 


KANSAS.  239 

goods,  wares,  mercliandi'se,  or  other  commodities  whatsoever,  ex- 
cept as  provided  in  this  act.     {Ibid,  §  70.) 

74.  iS'o  life  insurance  company  organized  under  the  laws  of 
this  State  shall  be  permitted  to  purchase,  hold,  or  convey  real 
estate,  excepting  for  the  purposes  and  in  the  manner  herein  set 
forth,  to  wit : 

First. — Such  as  shall  be  requisite  and  convenient  for  its  accom- 
modation in  the  transaction  of  its  business ;  or,  * 

Second. — ISuch  as  shall  have  been  mortgaged  in  good  faith  by 
way  of  security  for  loans  previously  contracted  for  moneys  due ;  or, 

Third. — Such  as  shall  have  been  conveyed  to  it  in  satisfaction  of 
debts  previously  contracted  in  the  course  of  its  deahngs;  or, 

Fourth. — Such  as  shall  have  been  purchased  at  sales  upon  the 
judgments,  decrees,  or  mortgages  obtained  or  made  for  such  debts. 
And  it  shall  not  be  lawtul  for  any  company  incorporated  as  afore- 
said to  purchase,  hold  or  convey  real  estate  in  any  other  case,  or  for 
any  other  purpose ;  and  all  such  real  estate  as  may  be  acquired  as 
aforesaid,  and  which  shall  not  be  requisite  or  convenient  for  the  ac- 
commodation of  such  company  in  the  convenient  transaction  of  its 
business,  shall  be  sold  and  disposed  of  within  five  jears  after  such 
company  shall  have  acquired  absolute  title  to  the  same;  and  it  shall 
not  be  lawful  for  such  company  to  hold  such  real  estate  for  a  longer 
period  than  that  above  mentioned,  unless  the  said  company  shall 
procure  a  certificate  from  the  Superintendent  of  the  Insurance  De- 
partment that  the  interests  of  the  company  will  suffer  materially  by 
a  forced  sale  of  such  real  estate,  in  which  event  the  time  for  the  sale 
may  be  extended  to  such  time  as  the  Saperintendent  of  the  Insurance 
Department  shall  direct  in  such  certificate.     {Ibid,  §  71.) 

75.  Any  life  insurance  company,  formed  under  any  law  of  this 
State,  may  accept  any  and  all  of  the  provisions  hereof,  and  may 
amend  its  charter  or  articles  of  incorporation  in  the  manner  pre- 
scribed in  chapter  twenty-three  of  the  General  Statutes,  of  1868, 
aforesaid,  so  as  to  be  entitled  to  all  the  privileges  and  subject  to  all 
the  regulations  of  this  act;  but  every  such  amendment  shall  be  cer- 
tified by  the  Secretary  of  State,  and  filed  with  the  Sui)erintendent  of 
Insurance  in  the  manner  hereinbefore  provided  respecting  its  charter; 
and  when  so  filed,  the  Superintendent  of  the  Insurance  Department 
shall  deliver  to  such  company,  under  the  seal  of  his  office,  a  certifi- 
ficate  of  the  tiling  of  said  amendment  in  his  office.  {Ibid,  p.  246, 
§72.) 

76.  Every  existing  company  incorporated  under  the  laws  of 
this  State  for  the  purpose  of  transacting  the  business  of  life  insur- 
ance, shall  be  subject  to  all  the  requirements  and  provisions  of  this 
act.     {Ibid,  §  73.) 

77.  Life  insurance  companies  organized  under  any  law  of  this 
State  may,  by  the  vote  of  a  majority  of  its  stockholders,  and  in  com- 
pliance with  the  laws  of  this  State,  increase  its  capital  stock  to  any 
amount  not  exceeding  one  million  dollars,  or  decrease  it  to  any 
amount  not  less  than  one  hundred  thousand  dollars ;  Provided,  That 
by  so  doing  the  ijrevious  reserve  shall  be  in  no  manner  impaired. 
{Ibid,  §  71.) 

78.  All  life  insurance  companies  organized  under  the  laws  of 
this  State  shall  hold  annual  meetings,  at  such  times  as  may  be  pro- 
vided by  its  by-laws  for  the  election  of  directors,  for  the  term  and 
in  the  order  following,  viz. : 

First. — One-fifth  of  their  number  for  five  years. 


240  niNE's   INSURANCE  STATUTES. 

Secoml. — One-fiftli  of  their  number  for  four  years. 

Third. — One-fifth  of  their  number  for  three  years. 

Fourth.— Oiie-Mth  of  their  number  for  two  years. 

Fifth. — One  fifth  of  their  number  for  one  year. 

And  at  each  annual  election  thereafter  the  directors  elected  shall 
be  only  one-fifth  the  whole  number,  and  for  the  term  of  five  years, 
except  in  elections  to  fill  vacancies,  in  which  case  the  election  shall 
be  for  the  unexi)ired  term.  The  directors  shall  be  elected  by  ballot, 
and  in  all  stock  comi)anies  each  share  shall  be  entitled  to  one  vote. 
Shares  may  be  voted  by  written  proxy,  signed  by  the  party  holding 
the  shares  to  be  voted.  The  directors  shall  elect  from  their  number, 
at  their  annual  meeting,  a  president,  vice-president,  and  secretary 
and  actuary,  and  such  other  officers  as  they  by  their  by-laws  may 
designate.     {Ibid^  §  75.) 

7J>.  In  case  any  life  insurance  company  organized  under  the 
laws  of  this  State  shall  have  issued,  or  may  hereafter  issue,  any 
policy  of  insurance  upon  the  life  of  any  person  or  persons  for  an- 
other's benefit,  and  such  beneficiary  dies  during  the  lifetime  of  the 
person  or  persons  whose  life  or  lives  are  assured  by  said  insurance 
policy  or  policies,  then  it  shall  be  lawful  for  such  company  to  receive 
from  the  person  or  persons  whose  lives  are  assured,  an  affidavit 
setting  forth  the  facts  in  the  case,  and  if  it  shall  appear  from  such 
affidavit  that  the  affiants  have  heretofore  paid  the  annual  premium 
on  such  policy  or  poli(;ies,  and  intended  thereby  to  insure  for  the 
benefit  of  the  person  or  persons  named  in  such  policy  or  policies  as 
beneficiary,  that  such  person  or  persons  are  dead,  and  that  said 
policy  or  policies  have  not  been  assigned  or  transfered  to  any  per- 
son or  persons,  and  nominating  or  appointing  some  other  person  or 
persons  as  beneficiary,  in  place  of  the  said  deceased  in  said  policy  or 
policies  named  ;  it  shall  then  be  the  duty  of  said  insurance  company 
to  take  up  and  cancel  said  policies  at  the  request  of  said  assured, 
and  issue  in  like  terms  another  policy  or  policies  upon  the  life  or 
lives  of  said  insured  for  the  benefit  of  the  beneficiary  in  said  afli- 
davit  nominated.     {Ibid,  p.  247,  §  76.) 

8t^.  In  case  any  life  insurance  company  organized  under  the 
laws  of  this  State  shall  have  issued  or  shall  hereafter  issue,  any 
policies  of  insurance  upon  the  life  of  any  individual,  or  upon  the  life 
of  any  i)erson  expressed  to  be  for  the  benefit  of  any  woman,  whether 
married  or  unmarried,  or  for  the  benefit  of  minor  children,  or  for  the 
benefit  of  any  invalid,  aged  or  infirm  person,  whether  the  same  be 
effected  by  themselves  for  themselves,  or  by  any  other  person  or 
persons  in  their  behalf,  all  such  policies  and  their  reserves,  or  the 
present  value  thereof,  shall  be  payable  according  to  the  terms 
thereof,  and  shall  inure  to  the  sole  and  separate  use  and  benefit  of 
the  beneficiary  named  therein,  and  shall  be  free  from  the  claims  of 
the  husband,  or  any  creditor  or  representative  of  the  husband,  and 
shall  also  be  free  from  the  claims  of  the  person  or  persons  effecting 
such  insurance,  their  creditors  and  representatives,  and  shall  also 
be  free  from  all  taxes,  and  the  claims  or  judgment  of  the  creditors 
and  representatives  of  the  person  or  persons  whose  life  or  lives  are 
so  insured  ;  but  such  policy  of  insurance,  reserve  or  present  value 
thereof  thus  exempt  shall  not  exceed  in  amount  a  sum  that  may  be 
purchased  at  the  age  of  thirty  years  on  the  continuous  payment  life- 
rate,  American  mortality,  interest  four  and  one-half  i)er  cent.,*net 
premium  five  hundred  dollars  ($500),  and  no  more.  [Ibidy  p.  248, 
§  77,  ds  amended  by  laies  of  1873,  j).  190,  §  1.) 


KANSAS.  241 

8 1 .  The  provisions  of  tliis  act  shall  not  be  construed  so  as  to 
prevent  any  masonic,  odd  fellow,  religious,  or  benevolent  society  of 
this  State  from  issuing  indemnity  to  any  one  against  loss  by  death 
of  any  of  its  members.  {Ibid,  §  78,  as  amended  by  laics  of  1875, 
p.  172,  §  6.) 

8^.  All  acts  and  parts  of  acts  inconsistent  with  the  provisions 
of  this  act  are  hereby  repealed ;  Provided^  Nothing  in  this  act  shall 
be  construed  to  affect  the  corporate  existence,  or  the  rights  as  such, 
of  any  corporations  now  existing,  and  heretofore  organized  under 
any  general  or  special  law  of  this  estate.     {Ibid,  §  79.) 

8JI.  AVhenever  any  insurance  company  incorporated  under  the 
laws  of  any  other  State  or  country  shall  become  liable  to  pay  any  loss 
to  any  person  in  this  State,  and  shall  neglect  or  refuse  for  three  months 
after  final  judgment  to  pay  the  same,  and  all  costs  of  suits  incuiTcd 
in  prosecuting  the  claim  of  the  insured  to  judgment,  the  said  com- 
])any  may  be  perpetually  enjoined  from  doing  any  business  in  the 
State  until  said  claim  and  costs  shall  be  fully  paid.  The  proceed- 
ings to  so  enioin  said  company  shall  be  the  same  as  that  [those]  pre- 
scribed in  sections  nine  and  ten  of  this  act,  so  far  as  the  same  is 
[are]  applicable.     (Ibid,  §  80.) 

84.  Every  company  doing  business  in  this  State,  whether  life  or 
tire,  shall,  by  itself  or  authorized  agent,  publish  a  synopsis  of  its  last 
])receding  annual  statement  made  to  the  Insurance  Superintendent 
of  this  State,  in  some  newspaper  of  general  circulation  in  the  county 
where  the  siud  agent  is  doing  business.  Said  synopsis  of  statement 
shall  show  the  assets  and  liabilities  of  said  company,  and  shall  be 
published  within  sixty  days  after  said  company  shall  have  made  its 
statement  as  aforesaid,  if  said  company  has  an  agent  doing  luisiness 
in  any  county  in  this  State  at  such  time;  if  not,  then  at  any  time 
thereafter  during  the  year  that  such  agent  does  any  business  in  any 
such  county.     {Laics  of  1815,  p.  172,  §  7.) 

85?.  It  shall  be  the  duty  of  insurance  companies  to  furnish  to 
the  Superintendent  of  Insurance  a  certificate  from  the  county  clerk 
of  any  county  in  which  any  piece  of  mortgaged  property  returned 
as  a  part  of  the  security  of  an;y  insurance  companies  [company]  may 
be  situated,  containing  a  statement  of  the  real  value  in  his  opinion, 
of  the  property  so  mortgaged,  and  also  the  last  assessed  value  of 
said  ijroperty.     {Ibid,  §  8.) 


MUTUAL  INSURANCE  COMPANIES. 

86.  That  any  number  of  persons  not  less  than  five  may  asso- 
ciate themselves  together  for  the  purpose  of  mutual  protection 
against  loss  or  damage  by  fire  or  lightning  or  tornado,  under  the 
provisions  of  this  act,  which  property  to  be  insured  shall  be  classi- 
fied as  follows : 

First. — To  include  all  dwelling-houses,  barns,  sheds,  out-build- 
ings and  cribs  and  their  contents;  farm  implements,  hay,  grain, 
wool  and  other  i^roducts;  live  stock,  wagons,  carriages,  harness, 
household  goods,  wearing  apparel,  provisions,  musical  instruments 
and  libraries,  being  upon  farms  as  farm  jiroperty,  or  in  dwellings, 
or  in  accompanying  out  buildings  that  constitute  detached  risks  in 
villages,  and  belonging  to  the  members. 

Second. — To  include  all  risks  on  buildings  used  for  merchandising 
and  manufacturing,  and  the  goods,  wares,  machinery,  and  imple- 
16 


242  hine's  insurance  statutes. 

meuts  contained  therein,  and  all  other  property  not  included  in  the 
first  class.  The  business  of  each  class  shall  be  conducted  separately 
and  independently  of  the  other,  and  in  no  case  shall  an  assessment 
be  made  by  the  company  or  association  upon  the  premium  notes  of 
one  class  to  pay  the  losses  or  expenses  of  the  other,  and  any  com- 
pany or  association  doing  business  under  this  act  may  elect  to  con- 
line  their  business  to  either  the  first  or  second  class,  or  to  embrace 
both ;  and  whenever  any  change  is  made  in  the  character  of  their 
business  under  this  act,  it  shall  be  done  by  resolution  of  the  direc- 
tors, which  shall  be  filed,  with  tbe  by-laws,  in  the  office  of  the  Secre- 
tary of  State.     {Laics  q/"1875,  ^j.  159,  §  1.) 

87.  Such  persons  so  associatiug  shall  file  in  the  office  of  the 
Superintendent  of  insm^ance  a  statement  signed  by  all  the  corpora- 
tors, stating  their  purpose  of  forming  a  company  for  the  transaction 
of  the  business  of  insurance,  as  expressed  in  the  first  section  of  this 
act,  which  statement  shall  also  comprise  a  copy  of  the  charter,  made 
in  accordance  with  the  statutes  of  eighteen  hundred  and  sixty-eight 
and  the  amendments  thereto,  and  a  coi)y  of  the  articles  of  associa- 
tion and  by-laws  proposed  to  be  adopted  by  them,  and  shall  publish 
a  notice  of  such  intentions  once  in  each  week  for  at  least  foiu"  suc- 
cessive weeks  in  a  public  newspaper  in  the  county  in  which  the 
jirincipal  office  of  such  company  is  ])roposed  to  be  located  {Ibid., 
p.  160,  §  2.) 

88.  ^o  company  formed  for  the  purpose  of  doing  the  business 
of  fire  insurance  upon  the  mutual  plan  shall  have  power  to  issue 
policies  until  applications  in  good  faith  have  been  received  for  in- 
surance, to  the  amount  of  at  least  fifty  thousand  dollars,  and  pre- 
mium notes  have  been  received  in  advance  for  the  same.  Such 
notes  shall  be  negotiable  and  collectable  for  the  purpose  of  paying 
any  loss  which  may  accrue,  or  defray  expenses,  as  provided  in  the 
charter  and  by-laws  of  such  companies.     {IbicJ,  §  3.) 

89.  The  premium  notes  taken  by  the  company  or  association 
for  the  assured,  in  part  payment  of  the  premium,  shall  become  a 
lien  upon  the  property  insured  to  the  amount  of  such  notes  and 
costs  and  interest  due  thereon,  and  if  a  farm  building,  also  upon 
the  land  thereto  belonging,  not  exceeding  one  hundred  and  sixty 
acres,  upon  which  the  building  shall  be  standing ;  or  if  in  a  city  or 
town,  then  also  upon  the  lot  upon  which  said  building  is  erected, 
frouj  the  date  of  filing  in  the  office  of  the  Register  of  Deeds  in  the 
county  in  which  the  property  may  be  situated,  an  abstract  giving : 

First. — The  name  of  the  maker,  date,  amount,  and  maturity  of 
the  note. 

Second. — The  date  of  the  expiration  of  the  ])olicy  of  insurance, 
with  a  description  of  the  property  insured. 

And  such  premium  note  shall  be  liable  to  assessment  by  the 
(company  or  association  at  such  times  and  in  such  amounts,  not  ex- 
ceeding in  all  the  principal  and  interest  of  said  notes,  as  shall  be 
necessary  to  pay  the  losses  and  defray  the  expenses  of  the  company. 
{Ibid,  §  4.) 

90.  The  members  of  any  company  or  association  formed  under 
this  act  shall  be  liable  to  such  company,  or  to  any  other  person, 
only  to  an  additional  amount  equal  to  the  principal  and  interest  of 
the  premium  note  given  when  effecting  insurance.    (Ibid,  p.  161,  §  5.) 

9  I .  Suits  for  the  collection  of  any  assessment  made  upon  the 
premium  note  of  the  insured,  may  be  brought  before  a  justice  of  the 
peace  in  the  county  in  which  the  insured  resides.     {Ibid,  §  (i.) 


KANSAS.  243 

9S.  The  cash  premiums,  fees,  and  premium  notes  of  any  mutu- 
al insurance  company  sliall  constitute  the  capital  of  the  same. 
{Ibid,  §  7.) 

93.  All  persons  insuring  upon  the  mutual  plan,  in  any  com- 
pany organized  in  accordance  with  the  provisions  of  this  act,  shall 
constitute  its  members  and  stockholders.  No  person  shall  be  eligi- 
ble to  the  office  of  director,  except  he  hold  in  such  comijany  a  policy 
in  his  own  right,  on  property  to  the  amount  of  at  least  five  huudi-ed 
dollars.     {Udd,  §  8.) 

94.  The  charter  and  by-laws  to  be  filed  by  the  corporation 
shall  be  examined  by  the  Attorney-General,  and  if  found  to  be  in 
accordance  with  the  requirements  of  this  act,  he  shall  certify  the 
same  to  the  Superintendent  of  Insurance  ;  and  said  Superintendent 
of  Insurance  may  appoint  three  disinterested  persons,  residents  of 
the  county  wherein  such  corporation  is  proposed  to  be  formed,  who 
shall  certify  under  oath  that  it  has  received  and  is  in  actual  pos- 
session of  the  premium  notes  to  the  full  extent  required  in  this  act: 
Provided,  however,  The  Superintendent  of  Insui-ance  may  make  such 
examination  personally  or  by  his  deputy.  It  shall  then  be  the  duty 
of  the  Superintendent  to  furnish  the  corporation  with  a  certificate, 
which  shall  be  their  authority  to  commence  business  and  issue 
policies,  and  the  same  may  be  used  in  evidence  for  or  against  such 
corporation.     {Ibid,  §  9.) 

95.  The  corporators,  or  the  trustees  or  directors,  as  the  case 
may  be,  of  any  company  organized  under  this  act,  shall  have  power 
to  make  such  by-laws,  not  inconsistent  with  the  constituticn  or  laws 
of  this  State,  as  may  be  deemed  necessary  for  the  government  of  its 
officers  and  members,  and  the  conduct  of  its  aifairs.  Any  company 
organized  in  accordance  with  the  provisions  of  this  act  shall  have, 
and  is  hereby  invested  with,  full  power  and  authority  to  make  any 
by-law  or  by-laws  whereby  any  member  of  said  company,  failing  to 
pay  any  interest  or  any  assessment  legally  made  on  his,  itei',  or  their 
premium  note  or  notes,  accordmg  to  the  constitution  and  by-laws  of 
said  company,  may  be  excluded  from  all  benefit  of  insurance  during 
all  the  time  in  which  he,  she,  or  they  may  be  so  in  default;  and  said 
company  shall  have  full  power  and  authority  to  rescind  or  revoke 
any  policy  of  insurance  by  them  issued,  whenever  they  shall  deem 
it  for  the  interest  of  said  company  so  to  do ;  Provided,  The  person 
whose  policy  is  sought  to  be  revoked  is  in  default  for  paj^ment  of 
premiums  on  his,  her,  or  their  policy.     {Ibid,  p.  IG2,  §  10.) 

96.  It  shall  be  the  duty  of  the  president,  or  vice-president,  and 
secretary  of  each  company  organized  under  this  act,  annually,  on 
the  first  day  of  January,  or  within  sixty  days  thereafter,  to  prepare 
and  to  deposit  in  the  office  of  the  Superintendent  of  Insurance,  a 
statement  of  the  condition  of  such  company  on  the  thirty-first  day 
of  December  then  next  preceding,  exhibiting  the  following  facts  and 
items,  such  statement  to  be  made  under  oath  of  the  secretary,  pres- 
ident, or  vice-president : 

First. — The  number  of  members  on  the  thirty-first  day  of  De- 
cember of  the  previous  year ;  the  number  of  members  added  during 
the  year ;  the  number  of  members  who  have  withdrawn,  or  whose 
policies  have  been  canceled  during  the  year,  and  the  number  of 
members  belonging  to  the  company. 

Second. — The  amount  of  property  at  risk  on  the  thirty-first  day 
of  December  of  the  previous  year;  the  amount  of  risks  added  during: 


244  hlne's  insurance  statutes. 

the  year ;  the  amount  of  risks  canceled,  withdrawn,  or  terminated 
during  the  year,  and  the  net  amount  at  risk  by  tlie  company. 

Third. — The  amount  of  premium  or  deposit  notes  in  force ;  the 
amount  of  cash  actually  on  hand  5  the  amount  of  outstanding  as- 
sessments not  collected;  the  nature  and  amount  of  all  other  re- 
sources; the  total  amount  of  resources. 

Fourth. — The  claims  for  losses  due  and  payable ;  the  claims  for 
losses  not  matured;  the  claims  for  losses  resisted;  the  nature  and 
amount  of  all  other  claims  due  or  accrued,  and  the  total  amount  of 
liabilities. 

Fifth. — The  amount  of  cash  jiremiums  received  during  the  year; 
the  amount  collected  on  assessments  which  were  levied  during  the 
year;  the  amount  collected  during  the  year  on  assessments  which 
were  levied  in  prior  years;  the  amount  received  from  membership 
or  policj'  fees,  or  trom  any  other  sources,  constituting  an  expense  to 
the  insured;  the  amount  received  from  percentage  on  increased  or 
decreased  insurance;  the  income  from  all  other  sources,  and  the 
total  income. 

Sixth.~The  amount  paid  for  losses  during  the  year,  stating  the 
amount  of  same  which  was  for  losses  of  previous  years  ;  the  amount 
of  salaries  and  fees  paid  to  officers  and  directors ;  the  amount  of  all 
other  expenditures  during  the  year,  and  the  total  expenditures 
during  the  year.     {Ibid,  §  11.) 

®7.  A  copy  of  every  such  sworn  statement,  as  filed  in  the 
office  of  the  Superintendent  of  Insurance,  shall  be  published  at  least 
twice  during  the  month  of  January  or  February,  in  a  newspaper 
printed  in  the  county  in  which  the  principal  office  is  situated ;  and 
the  persons  or  officers  making  such  sworn  statement  or  report  to  be 
filed  in  the  office  of  the  Superintendent  of  Insurance  as  aforesaid, 
shall  make  and  annex  theieto  and  file  therewith  in  the  office  of  the 
Superintendent  of  Insurance  an  additional  affidavit,  showing  that 
such  report  and  statement  has  been  published  ;  and  if,  upon  exam- 
ination of  such  annual  statement,  or  the  examination  ot  the  compa- 
ny, hereafter  provided  for,  it  shall  appear  to  the  Superintendent  of 
Insurance  that  the  losses  and  expenses  of  any  company  chartered 
under  this  act  have,  during  the  year,  exceeded  the  cash  premiums 
and  assessments  collected  to  such  an  extent  as  to  impair  the  sol- 
vency of  said  company,  it  shall  be  the  duty  of  said  Superintendent 
of  Insurance  to  serve  a  notice  upon  the  officers  of  .such  mutual  com- 
pany, requiring  them,  at  the  expiration  of  sixty  days  from  the  date 
of  such  notice,  to  discontinue  the  issuing  of  policies,  and  proceed  to 
wind  up  its  business,  unless  within  that  time  the  directors  of  such 
company  shall  collect  assessments  and  pay  such  losses  and  debts. 
{Ibid,  p.  1G3,  §  12.) 

H^.  In  case  any  company  shall  continue  to  issue  policies  after 
the  exiiiration  of  sixty  days,  they  having  failed  to  comply  with  the 
requirements  of  the  Superintendent  of  Insurance  in  said  notice,  or 
if  any  company  having  failed  to  make  their  annual  rei>ort  to  the 
Superintendent  of  Insurance  at  the  time  and  in  the  manner  herein 
prescribed  therefor,  shall  thereafter  issue  any  policy  or  make  any 
insurance,  it  shall  be  the  duty  of  the  Superintendent  of  Insurance 
to  notify  the  prosecuting  attorney  of  the  county  where  such  com- 
pany is  located,  whose  duty  it  shall  then  be  to  commence  legal  pro- 
ceedings against  such  officers,  and  enjoin  the  company  from  doing 
or  transacting  their  business.     [Ibid,  p.  164.  §  13.) 

99.     It  shall  be  the  dut^^  of  the  Superintendent  of  Insurance, 


KA.NSAS.  245 

on  or  before  the  first  clay  of  December  in  each  year,  to  furnish  all 
companies  organized  under  this  act  with  blanks,  for  the  purpose  of 
making  thereon  the  statement  hereby  required  to  be  filed,  which 
blanks  shall  be  used  by  the  proper  officers  in  making  said  state- 
ment, which  statements  shall  be  full  and  in  accordance  with  the  re- 
quirements heretofore  set  forth ;  and  he  may,  from  time  to  time, 
make  such  changes  in  the  forui  of  such  statements  as  shall  seem  to 
him  best  adapted  to  elicit  from  the  companies  a  true  exhibit  of  their 
condition  in  respect  to  the  several  points  hereinbefore  mentioned. 
And  in  case  the  officers  and  directors  of  any  company  sliall  fail, 
neglect,  or  refuse  to  perform  any  of  the  duties  required  of  them  by 
law,  or  shall  in  any  manner  violate  any  of  the  provisions  of  this 
act,  then,  and  in  every  such  case,  every  officer  or  person  so  offend- 
ing shall  be  liable  to  a  ])enalty  of  not  more  than  one  thousand  dol- 
lars nor  less  than  five  hundred  dollars.     {Ibid,  §  14.) 

1<>@.  Suits  at  law  may  be  maintained  by  any  corporation 
formed  under  tliis  act  against  any  of  its  members  for  any  cause  re- 
lating to  the  business  of  such  corporation  ;  also,  suit  at  law  may  be 
prosecuted  and  maintained  by  any  member  against  such  corpora- 
tions for  claims  which  may  have  accrued,  if  payments  are  withheld 
more  than  sixt}'  days  after  such  claims  shall  have  become  due. 
{Ibid,  §  15.) 

101.  There  shall  be  paid  to  the  Superintendent  of  Insurance, 
by  every  mutual  insurance  company  doing  business  in  this  State, 
the  following  fees,  to  wit :  For  the  filing  and  examination  of  the 
charter  and  accompanying  papers  required  by  this  act  of  any  mu- 
tual insurance  company,  and  issuing  the  certificate  of  authority 
thereupon,  the  sum  of  twenty-five  dollars;  for  filing  the  annual 
statement  required,  ten  dollars  ;  for  every  coi)y  of  a  paper  filed  in 
his  office,  the  sum  of  ten  cents  per  folio.     {Ibid,  §  16.) 

103.  Any  mutual  insurance  company  organized  under  this 
act  ma^'  a[)point  one  or  more  agents.  Such  agents  may  be  appoint- 
ed by  the  president,  vice-president,  or  secretary  thereof,  in  writing, 
stamped  with  the  seal  of  the  company,  and  when  so  appointed  shall 
be  held  to  be  the  agents  of  such  comi)any  as  fully  as  if  appointed 
by  the  board  of  directors  in  the  most  formal  mode.  {Ibid,]).  105, 
§17.) 

lOII.  Nothing  in  the  act  entitled  ''  An  act  to  establish  an  in- 
surance department  in  the  State  of  Kansas,  and  to  regulate  the 
companies  doing  business  therein,"  approved  March  first,  eighteen 
hundred  and  seventy-one,  shall  be  so  construed  as  to  in  any  manner 
affect  the  provisions  of  this  act,  or  to  apply  to  companies  organized 
under  the  provisions  of  this  act.     {Ibid,  §  18.) 

104.  All  companies  formed  under  this  act  shall  be  deemed 
bodies  corporate  and  politic  in  fact  and  name,  and  shall  be  subject 
to  all  the  provisions  of  the  statute  in  relation  to  corporations  so  far 
as  they  are  applicable.     {Ibid,  §  19.) 

ARSON  AND   INCENDIARISM. 

105.  Every  person  who  shall  set  fire  to  or  burn,  in  the  night 
time,  any  dwelling-house  in  which  there  shall  be  at  the  time  some 
human  being,  or  who  shall  willfully  set  fire  to  or  burn,  in  the  night 
time,  any  boat  or  vessel  in  which  there  shall  be  at  the  time  some 
human  being,  shall,  upon  conviction,  be  adjudged  guilty  of  arson  in 
the  first  degree.     {General  Statutes,  1808,  p.  321,  §  49.) 


246  HENTi'S  INSUBANCE  STATUTES. 

10®.  Every  house,  prison,  jail,  or  other  edifice,  which  shall 
have  been  usually  occupied  by  persons  lodging  therein  at  night, 
shall  be  deemed  a  dwelling-house  of  any  person  ha^^ng  charge 
thereof,  or  so  lodging  therein;  but  no  warehouse,  barn,  shed,  or 
other  outhouses  shall  be  deemed  a  dwelling-house,  or  part  of  a 
dwelling-house,  within  the  meaning  of  this  section  or  the  last  sec- 
tion, unless  the  same  be  joined  to,  or  immediately  connected  with, 
and  part  of,  a  dwelling-house,     {ihidj  §  50.) 

107.  Every  person  who  shall  willfully  set  fire  to  or  burn,  in 
the  day  time,  any  inhabited  dwelling-house,  boat,  or  vessel,  which, 
if  done  in  the  night  time,  would  be  arson  in  the  first  degree,  shall, 
upon  conviction,  be  adjudged  guilty  of  arson  in  the  second  degree. 
{Ibid,  §  51.) 

108.  Every  person  who  shall  willfully  set  fire  to  or  burn,  in 
the  night  time,  any  shop,  warehouse,  office,  storehouse,  or  other 
building,  not  being  the  subject  of  arson  in  the  first  degree,  but  ad- 
joining to,  or  within  the  curtilage  of,  any  inhabited  dwelling-house, 
so  that  such  dwelling  shall  be  endangered  by  such  firing,  shall,  upon 
conviction,  be  adjudged  guilty  of  arson  in  the  second  degTee.  {Ibid, 
p.  328,  §  52.) 

lOI>.  Every  jierson  who  shall  willfully  set  fire  to  or  burn,  in 
the  night  time,  any  building  in  which  shall  be  kept  or  deposited  at 
the  time  any  records,  or  the  papers  of  any  j)ublic  office,  shall,  on 
conviction,  be  adjudged  guilty  of  arson  in  the  second  degree.  {Ibid, 
§  53.) 

11©.  Every  person  who  shall  willfully  set  fire  to  or  burn,  in 
the  day  time,  any  shop,  warehouse,  or  other  building,  which,  if  done 
in  the  night  time,  would  be  arson  in  the  second  degTee,  shall,  on 
conviction,  be  adjudged  guilty  of  arson  in  the  third  degxee.  {Ibid, 
§54.) 

111.  Every  person  who  shall  willfully  set  fire  to  or  burn,  in 
the  night  time,  any  house,  building,  barn,  stable,  boat,  or  vessel  of 
another,  or  any  house  of  public  worship,  college,  academy  or  school- 
house,  or  building  used  as  such,  or  any  i)ublic  building  belonging  to 
the  United  States  or  this  State,  or  to  any  county,  city,  town  or  xi\- 
lage,  not  the  subject  of  arson  in  the  first  or  second  degree,  shall,  on 
conviction,  be  adjudged  gTiilty  of  arson  in  the  third  degree.  {Ibid, 
§  55.) 

11^.  Every  person  who  shall  willfully  set  fire  to  or  burn,  in 
the  night  time,  any  brewery,  distillery,  grist-mill,  paper-mill,  full- 
ing-mill, saw-mill,  carding-machine,  or  other  machinery  for  manu- 
facturing purposes,  or  any  building  containing  the  same,  or  erected 
or  used  as  a  manufactory,  shall,  on  conviction,  be  adjudged  guiltj' 
of  arson  in  the  third  degree.     {Ibid,  §  56.) 

113.  Every  i^erson  who  shall  burn  any  building,  boat,  or  ves- 
sel, or  any  goods,  wares,  or  merchandise,  or  other  chattels,  which 
shall  at  the  time  be  insured  against  loss  or  damage  by  fire,  with  in- 
tent to  defraud  or  prejudice  the  insurer,  whether  the  same  be  the 
property  of  such  ])erson  or  any  other,  shall  be,  upon  couN-iction,  ad- 
judged guilty  of  arson  in  the  third  degree.     {Ibid,  §  57.) 

114.  Every  person  who  shall,  in  the  day  time,  willfully  set 
fire  to  or  burn  any  dwelling-house  or  other  building,  or  any  machine, 
or  any  boat  or  vessel,  which,  if  done  in  the  night  time,  would  be 
arson  in  the  third  degree,  shall,  upon  conviction,  be  adjuged  guilty 
of  arson  in  the  fourth  degree.     {Ibid,  p.  .329,  §  58.) 

115.  Every  person  who  shall,  in  the  day  or  night  time,  will- 


KANSAS.  2'47 

fully  set  fire  to  or  burn  any  goods,  wares,  merchandise,  or  other 
chattels  of  another,  not  the  subject  of  arson  in  the  third  degree,  or 
any  stock  of  grain,  of  any  kind,  belonging  to  another,  or  any  grain, 
grass,  or  herbage,  growing  or  standing  in  the  field,  or  any  nursery 
or  orchard  of  fruit  trees,  or  any  fence  belonging  to  another,  or  any 
toll  bridge  or  other  public  bridge,  shall,  on  conviction,  be  adjudged 
guilty  of  arson  in  the  fourth  degree.     {Ibid,  §  59.) 

116.  Every  person  who  shall  be  convicted  of  any  degree  ot 
arson,  shall  be  punished,  by  confinement  to  hard  labor,  as  follows: 

First. — In  the  first  degree,  by  confinement  and  hard  labor  not 
less  than  ten  years  nor  more  than  twenty-one  years. 

Second. — In  the  second  degree,  by  confinement  and  hard  labor 
not  less  than  seven  nor  exceeding  ten  years. 

Third. — In  the  third  degree,  by  confinement  and  hard  labor  not 
less  than  five  nor  more  than  seven  years. 

Fourth. — In  the  fourth  degree,  by  confinement  and  hard  labor 
not  more  than  four  years,  or  by  imprisonment  in  the  county  jail  not 
less  than  six  months.     {Ibid,  §  60.) 


EMBEZZLEMENT. 

117.  If  any  clerk,  apprentice,  or  servant  of  any  private  per- 
son, or  of  any  co-partnership,  except  clerks,  apprentices,  and  ser- 
vants within  the  age  of  sixteen  years,  or  if  any  officer,  agent,  clerk, 
or  servant  of  any  incorporation,  or  any  person  employed  in  such 
capacity,  shall  embezzle  or  convert  to  his  own  use,  or  shall  take, 
make  way  with,  or  secrete  with  intent  to  convert  to  his  own  use 
without  the  assent  of  his  employer,  any  goods,  rights  in  action,  or 
valuable  security,  or  effects  whatsoever  belonging  to  any  person, 
copartnership,  or  corporation,  which  shall  have  come  into  his  pos- 
session or  under  his  care  by  virtue  of  such  employment  or  office,  he 
shall,  upon  conviction  thereof,  be  punished  in  the  manner  prescribed 
by  law  for  stealing  property  of  the  kind  or  value  of  the  articles  so 
embezzled,  taken,  or  secreted,  or  if  any  agent  shall  neglect  or  refuse 
to  deliver  to  his  employer  or  employers  on  demand,  any  money, 
promissory  notes,  evidences  of  debt,  or  other  property  which  may 
have  come  into  his  possession  by  virtue  of  such  employment,  after 
deducting  his  fees  as  attorney,  charges  as  agent,  or  stipulated  com- 
mission for  making  collection  of  such  money,  unless  the  same  shall 
have  been  lost  by  means  beyond  his  control  before  he  had  opportun- 
ity to  make  delivery  thereof  to  his  employer  or  employers,  or  the 
employer  or  employer's  have  permitted  him  to  use  the  same,  he  shall, 
upon  conviction  thereof,  be  punished  in  the  manner  provided  in  this 
section  for  unlawfully  converting  such  money  or  other  i^roperty  to 
his  own  use.     {Laws  of  1873,  p.  177,  §  1.) 

118.  For  General  Provisions  relating  to  Corporations  see 
General  Statutes,  1868,  pp.  190-201;  Laws  of  1871,  p.  171;  Laws  of 
1872,  pp.  238-239 ;  Laws  of  1873,  pp.  137-140  ;  Laws  of  1874,  pp. 
86-87 ;  Laws  of  Special  Session,  1874,  p.  7. 


INDEX  TO  KENTUCKY. 


PAGE 

Actuary   to   have   Charge   of    Insurance 

Bureau  (2) 251 

A  dyertisements — 

Must  Name  Location  of  Co.  (47) 264 

Accident  Insurance  by  Domestic  Cos.  (28)  257 
Agent- 
Defined  (47,  107^ 264.280 

Embezzlement  by  (133) 287 

General  may  Report  Premiums  for  Taxa- 
tion (60) 268 

Must  be  Licensed  Annually  (45,  46, 

102) 264,  279 

Must  Advertise  Xame  of  Co.  (47) 264 

Of  Life  Companies  (98) 277 

Penalty  for  Continuing  Business  (52, 

93) 266,  276 

Penalty  for  Neglect  to  Keport  for  Tax- 
ation (104)  279 

State  or  Manager  to  Return  Premiums 

for  Taxation  (103) 279 

Annual — 

Report  to  be  Made  and  Published  (14)  253 

Statement  of  Domestic  Cos.  (39) 260-2 

Statement  of  other  State  and  Foreign 

Companies  (44,  46) 262-64 

Statement,  Form  may  be  Changed  (42, 

8 Oj 26-',  274 

Statement,  Life  Co.'s,  Details  of  (7  9)..  273 
Statement,   Time   for   Extended  (43, 

81) 262  274 

Arson  and  Incendiarism  (128) 287 

Assessments  of  Stockholders  (50) 265 

Attorney-General,  Duties  and  Compensation 

(11,  21,  49,69,  109)252,255,264,269,230 
Auditor,  Duties  of  (2,  5,9,  14,17,18, 
21,  45,  69) -.251,  252,  253,  254,  255,264,  269 

BURExn  of  Insurance — 

Established,    Object    of   Same,    Clerks 

Appointed,  Salaries  Fixed,  etc.  (1). .  -  25V 
Records  open  to  Public  (16) 253 

Capital— 

Required  for  Domestic  Cos.  (23,  27).  .255, 

257 
Required  for  Cos    of  other  States  and 

Countries  (44) 263 

Investment  of  (26) 256 

Increase  of  (34) 258 

Impairment  of  (44,  49) 262,  264 

Filling  up  Impairment  (50) 265 

Taxation  of  (62) 268 

01  Life  Cos.,  how  Invested  (75) 271 


PAGB 

Certificates  to  be  Revoked  (9,  10,  40, 

^  52,  59,99) 252,  262,  566,  268,  278 

Charter — 

Of  LifeCompany  (68) 263 

Copy  to  be  Filed  (44,  101)  262,  279 

Company — 

May  be  Examined  (8,  40) 252,  263 

To  do  only  One  Kind  of  Business  (28, 

66) 257,  269 

Of  other  States  and  Countries,  Capital 

Required  (44) 2(2 

Of  other  States  and  Cotmtries  Service 

of  Process  (44) 262 

Of  other  States  and  Countries  may  not 

Remove  Suit  to  Federal  Court  (44)..  262 
Of  other  States  and  Countries,  Charter 

to  be  Filed  (44) 263 

Of  other  States  and  Countries,  Annual 

Statement  (44,46) 262,  264 

Commissioner — 

Appointed  (2) 251 

Salary  (4) 251 

Deputy  (6) 251 

To  give  Bonds  (7) 2.jl 

May  Visit  and  Examine  Cos (8,  9, 

40,  49,  52,  70). -252.  262,  264,  266,  270 

To  Furnish  Annual  Blanks  (12) 2.52 

May  Amend  Annual  Blanks  (42) 262 

Shall  Value  Life  Policies  (13) 253 

Shall  make  Annual  Report  (14) 253 

Shall  keep  Record  of  Proceedings  (1 5)  253 

Deputy  Commissioner  Appointed  (6) 251 

Deposits — 

Of  Foreign  Companies  (44) 262-4 

Of  Life  Cos.  (54,  76,  100,  113)266,271, 

278,  281 

Of  Life  Cos.,  how  Liable  (77) 273 

Of  Life  Cos.,  how  Relinquished  (78). -  273 
Special  for  Registered  Policies  (113  to 
125) 281-S6 

Directors— 

Of  Domestic  Companies  (25,  29,  30, 

31,  37) 256,257,  258,  259 

Liability  of  (50) 265 

Dividends — 

Of  Domestic  Companies  (35) 259 

Applied  to  Stock  Subscrrptions  (5  7)-.  267 
Of  Life  Companies  (92) 276 

Domestic  Fire  and  Marine  Cos. — (21  to 

43) 25.5-262 

Directors  of  (25) 256 

To  File  Statement  (39) 250-262 


INDEX  TO   KENTUCKY. 


249 


PAGE 

ELEcnoN    of  Directors,  Home  Cotnpanies 

(25,  29,  30) 25G,  257,238 

Embezzlement  (133) 287 

Examination — 

OfCompaniea  (8,9,  40,49,52,70)251, 
252.  262,  2b'4,  266,  270 

How  Paid   for  ^56) 267 

Expense  of  Bureau  not  Chargeable  to  the 

State  (4) 251 

Fees  to  be  Paid  by  the  Companies  (19,  20)  254 
Fire  Insurance  Companies— (See  Company.) 

General  Agent— (See  Agent.) 

Statutory  Provisions  (126,  127).  286,  287 

Health  Insurance  may  be  Effected  (28). . .  257 
Home  Companies  to  Comply  with  uU  Regu- 
lations (5  7) 267 

INCEKDTARISM  and  ArsoD  (128) 287 

Impairment— 

Of  Capital  (44,  49) 262-4 

Of  Life  Funds  (93) 276 

Insolvency  of  Life  Companies  (83) 274 

Insurance  Commissioner  (2,  3) 251 

hxwa  — 

Enforced  by  Insurance  Bureau  (1) 251 

Eetaliatory  (55,  111) 267,  280 

Liabilities  ot  Domestic  Companies  (35). . . .  258 

Licenses  to  Agents,  Annual  Renewal  (46)  264 

Life  Insurance  Company — 

Annual  Statement  (Tit) 273 

Fees  to  be  Paid  (19,  20) 254 

How  Formed  and  Conducted  (65-97)269- 

277 

May  Reinsure  (67) 269 

May  be  Restrained  (84) 275 

May  be  Wound  Up  (85) 275 

Proceedings,  when  Insolvent  (83) 274 

Regulations  Concerning  (8  to  14). 252-253 

Life  Policy — 

ForBeneflt  of  Party  Named  (96) 277 

For  Wife  (94,  95) 276-277 

Registration  of  ( 1 1  3  to  125).-..  281,  286 
Policies  to  be  Valued  (13) 253 

Live  Stock  Insurance  (28) 257 

Losses  in  Mutual  Companies  (37) 259 

Manager — (See  Agent.) 

Marine  Insurance  Companies  (21-43)  255,  262 
Married  Woman's  Policy  (94,  95). . .  276,  277 
Mortgage  Deposits  for  Registered  Policies 

(113) 281 

Mutual  Fire  Insurance  Companies — 

Commencing  Business  (23) 255 

Closing  Business  (51) 266 

Premium  Notes  (23,  27,  37)255,  2f>7,  259 
Word  must  be  Printed  in  Documents 

(38) 260 

Life  Ins. Co.,  how  Formed  (71,72)270,271 

Name,  No  Two  Cob.  the  Same  (73) 271 

Notes  of  Mutual  Cos.  (23,  27,  37)  255,  257,  259 


PAGE 

Penalties— 

Agent  for  Continuing  Bu-iness   (52, 

93,  106) 266,276,  280 

Applicable  to  Home  Companies  (57)  --  267 

Arson  (128) 287 

Attempted     Arson     or     Incendiarism 

(132) 287 

Burning  Public  Buildings  (129) 287 

Burning  Powder  House  (130) 287 

Burning  Mercantile  or  Farm  Property 

(130) 287 

Burning  Vessel  (130) 287 

Burning  Dwelling  (131) 287 

Embezzlement  (132) 287 

False  Swearing  (61) 268 

Failure  to  Comply  (80) 276 

Failure  to  Pay  Taxes  (59,  105)  .  268,  279 
Failure  to  make  Annual  Statement  (41, 

47,  82) 262,254,274 

Failure  to  Pay  Penalty  (112) 280 

HowCollected  (52) 266 

Issuing  Policy  for  Unauthorized  Co.  (9)  252 

Making  Unlawful  Insurance  (110) 280 

Neglect  to  Report  for  Taxation  (104)  279 
Obstructing  Commissioner's  Examina- 
tion (10) 252 

One-half  to  the  Informer  (1 12) 281 

Treasurer  Defaulting  Deposits  (76)  ...  271 
Violation  by  Companies  of  other  States 

or  Countries  (47) 264 

Policies,  Registered  Life  (1 1  3  to  125)  281-86 

Premium  Notes-(23,  27,  37,  41) 255, 

257,  259,  262 

Taxation  of  (5 8-60) 267-8 

Public  Buildings,  Burning  of  (129) 287 

Real  Estate  by  Home  Cos.  (36,  97).  -259,  277 
Receiver—     . 

To  Report  (64,  87) 269,276 

Accounts  of  (86) 275 

Registration  of  Life  Policies  (1 13-125).281-6 

Reinsurance  Fund,  Domestic  (35) 258 

Report,  Annual,  to  be  Made  (14) 253 

Representation  and  Warranty  (127) 287 

Retaliatory  Law  (55,  111) 267,280 

Safe  Deposit  Privileges  (28) 257 

Seal  of  the  Department  (18) 254 

Sealed  Documents  Good  as  Evidence  (18).  254 

Service  of  Process  (44,99) 262-4,278 

Statement,  Annual — 

Home  Companies  (39) 260-2 

Other  Companies  (44,  46) 262^ 

State  Agents— (See  Agent.) 
Stock — 

Of  Domestic  Companies  (23,  24).  2.55,  2.56 
Policy,  Words  must  be  Printed  (38). .  -  260 
And  Mutual,  Forbidden  by  same  Com- 
pany (38) 260 

Notes,  how  Liquidated  (57) 267 

(See  Capital.) 
Stockholders,  Assessment  of  (50) 265 


250 


INDEX   TO   KENTUCKY. 


PAGE 

Taxation— 

Of  Capital  Stock  (62) 268 

Of  Capital  Stock  of  Life  Cos.  (90) 276 

Of  Premiums  (58,  60) 267,  268 

Oi  Premiums  of  Life  Companies  (105)  279 

Treasurer  of  State,  Allowance  to  (20) 254 

Trustees— (See  Directors.) 

Valuation— 

Of  Life  Policies  (13) 253 

At  rour  and  one-half  per  cent.  (93). . .  276 


PAGE 

Valuations  Interohangeable  between  States 

(16) 253 

"Warranty  and  Representation  (127) 287 

■Wifk's  Policy  (94) 276 

Transfer  of  (95) 277 

■Winding  up- 
Life  Companies  (85) 275 

Life    Companies,    under    Registrotion 
Act  (123-125) 286 


INSURANCE  STATUTES  OF  KENTUCKY. 


INSURANCE  BUREAU. 

1.  There  is  hereby  established,  in  connection  with  the  office  of 
Auditor  of  Public  Accounts,  a  bureau,  to  be  designated  the  "  Bureau 
of  Insurance,''  which  shall  be  charged  with  the  enforcement  of  the 
laws  heretofore  passed,  or  which  may  hereafter  be  passed,  relating 
to  insui'ance.     {Laws  of  1870,  p.  77,  §  1.) 

!3.  The  Auditor  shall  appoint  some  suitable  person,  skilled  as 
an  insurance  actuary,  to  take  charge  of  the  Bureau  of  Insurance, 
who  shall  be  designated  "  Insurance  Commissioner  of  the  State  of 
Kentucky,"  who  shall  hold  his  office  until  the  expiration  of  the  term 
for  which  the  Auditor  making  the  appointment  shall  have  been 
elected,  and  until  a  successor  has  been  a])pointed,  unless  sooner 
removed  by  the  Auditor,  with  consent  of  the  Governor.  He  shall 
not  be,  during  his  continuance  in  office,  interested  in  any  insurance 
company,  except  as  a  policy-holder.     {Ihidy  §  2.) 

3.  The  Insurance  Commissioner  shall  receive  an  annual  sal- 
ary of  $4,000.  There  shall  also  be  paid  the  sums  necessary  to  secure 
the  clerical  and  actuarial  assistance  necessary  to  the  discharge  of 
aU  the  duties  devolving  by  law  on  the  Bureau  or  the  Commissioner. 
(Ihid,  §  3.) 

4.  The  State  shall  not  be  responsible  for  the  expense  of  the  es- 
tablishment and  future  management  of  the  Insurance  Bureau,  but 
the  same  shall  be  provided  for  and  paid  by  the  fees  and  allowances 
named  in  this  act.     {Ibid,  §  4.) 

5.  The  Commissioner  may  appoint  a  clerk  to  assist  him  in  the 
duties  of  the  Bureau,  who  shall  receive  a  salary  of  $2,000  per  annum. 
The  salaries  of  the  Commissioner  and  his  clerk  shall  l3e  paid  monthly 
out  or  the  treasury  of  the  commonwealth,  out  of  the  insurance  fund, 
in  the  same  manner  as  other  salaries  are  paid.  The  Auditor  shall 
assign  other  clerks  to  aid  the  Commissioner  when  it  may  become 
necessary.     {Ibid,  p.  78,  §  5.) 

<».  The  Commissioner  shall  appoint  one  of  his  clerks  to  be  his 
deputy,  who  shall  possess  the  powers  and  perform  all  the  duties  at- 
tached by  law  to  the  office  of  principal,  during  a  vacancy  in  such 
office,  and  during  the  absence  or  inability  of  his  principal.  The 
principal  Commissioner,  and  his  deputy,  and  any  person  authorized 
by  them  to  perform  a  special  duty,  shall  be  empowered  to  admin- 
ister oaths  in  the  discharge  of  their  several  duties.     {Ibid,  §  6.) 

7.  The  Commissioner  and  his  deputy,  before  entering  on  the 
discharge  of  their  duties,  shall  take  and  subscribe  the  oath  of  office 
prescribed  by  the  constitution  and  laws  of  this  State,  which  shall  be 
filed  and  preserved  in  the  office  of  the  Secretary  of  the  State  ;  and 
the  Commissioner  shall  also  execute  a  bond,  with  sufficient  sureties, 
to  be  api)roved  by  the  Governor,  in  the  penal  sum  of  $20,000,  for  the 
faithful  discharge  of  all  the  duties  of  his  office.     {Ibid,  §  7.) 

8.  The  Commissioner  shall  visit  and  examine  any  insurance 
company  incorporated  in  this  State,  on  requisition  by  five  or  more 


252  HINE'S   EN'SUEANCE   STATU'lES. 

persons,  each  of  whom  is  a  stockholder  or  creditor,  or  pecuniarily 
interested  in  such  company  ;  which  requisition  shall  contain  a  state- 
ment, made  under  oath,  by  the  five  or  more  persons  making  it,  that 
they  believe  the  company  to  be  in  an  unsound  condition,  and  shall 
state  the  grounds  of  such  belief;  and  also  whenever  he  deems  an 
examination  necessary,  or  suspects  the  correctness  of  any  annual 
statement,  or  that  the  affairs  of  any  company  making  snch  state- 
ment are  in  an  unsound  condition.  At  such  times  he  shall  have 
access  to  its  books  and  papers,  and  shall  thoroughly  inspect  and 
examine  all  its  a&airs,  and  make  inquiries  such  as  are  necessary 
to  ascertain  its  condition  and  ability  to  fulfill  its  engagements,  and 
whether  it  has  complied  with  all  the  provisions  of  law  applicable  to 
its  transaction.     {Ibid,  §  8.) 

9.  He  may,  whenever  he  deems  it  necessary,  or  when  requested, 
as  in  the  preceding  section,  examine  into  the  affairs  and  condition 
of  any  insurance  company  doing  business  in  this  State,  not  organiz- 
ed under  the  laws  of  this  State,  or  cause  such  examination  to  be 
made  by  some  person  not  connected  with  any  insurance  company, 
appointed  by  him  ;  and  whenever  it  shall  appear  to  the  satisfaction 
of  the  Commissioner  that  the  affairs  of  any  such  company  are  in  an 
unsound  condition,  or  not  conformable  to  any  standard  adojDted  by 
this  Commonwealth,  or  if  any  such  company  shall  refuse  to  permit 
the  examination  herein  designated,  the  Auditor,  at  his  request,  shall 
revoke  all  certificates  granted  in  behalf  of  such  company,  and  shall 
cause  a  notification  thereof  to  be  published  in  some  newspaper  of 
general  circulation  published  in  this  State  ;  and  all  agents  of  such 
company  are,  after  such  notice,  required  to  discontinue  the  issuing 
or  delivering  of  any  new  policy,  or  the  renewal  of  any  previously 
issued,  or  the  effecting  in  any  form  of  any  new  insurance  for  or  on 
account  of  such  company,  under  a  penalty  of  fiv^e  hundred  dollars 
for  each  offense.    {I  hid,  §  9.) 

10.  He  may  summon  and  examine,  under  oath,  the  directors, 
officers,  and  agents  of  any  insurance  company,  and  such  other  per- 
son as  he  may  think  proper,  in  relation  to  the  affairs,  transactions, 
and  condition  of  said  compan,y.  Whoever,  without  justifiable  cause, 
refuses  to  appear  and  testify  when  so  required,  or  obstructs  the 
Commissioner  in  the  discharge  of  his  duty,  shall,  for  each  offense, 
be  punished  by  a  fine  not  exceeding  one  thousand  dollars,  or  by  im- 
prisonment not  exceeding  one  year ;  and  if  the  directors,  officers,  or 
agents  of  any  insurance  company  not  incorporated  by  the  Common- 
wealth of  Kentucky,  but  transacting  business  therein,  shall  refuse 
to  appear  and  testify  when  so  required,  the  Auditor  shall,  on  requi- 
sition of  the  Insurance  Commissioner,  revoke  the  certificate  of 
authority  and  license  of  such  companv  and  its  agents.  {I  hid,  p.  79, 
§  30.) 

1  I .  When,  in  his  opinion,  an  insurance  company,  its  officers, 
or  agents,  have  violated  any  law  of  this  State  relative  to  such  com- 
pany, the  Commissioner  shall  forthwith  report  the  facts,  with  the 
testimony  reduced  to  writing,  and  signed  by  the  witness,  upon 
which  his  opinion  is  founded,  to  the  Auditor,  who  shall  give  notice 
of  the  same  to  the  Attorney -General,  whose  duty  it  shall  be  at  once 
to  prosecute  such  company,  officer,  or  agent,  therefor ;  Provided, 
That,  upon  the  examination  of  the  testimony,  he  shall  deem  such 
prosecution  proper.     {Ihid,  §  11.) 

1»3.  He  shall  annually,  in  September,  furnish  to  the  insurance 
companies  of  this  State,  and  to  the  agents  of  insurance  companies 


KENTUCKY.  253 

not  incorporated  in  this  State,  and  doing  business  tlierein,  so  far  as 
their  agents  are  known  to  him,  two  or  more  printed  copies  of  the 
forms  of  aitnual  returns  to  be  made  to  him  by  all  such  companies. 
{Ibid,  §  12.) 

13.  Upon  some  day  in  each  year  designated  by  him,  the  Com- 
missioner shall  calculate  the  existing  values  of  all  outstanding  poli- 
cies of  life  insurance  in  companies  authorized  to  make  insurance  on 
lives  in  this  State,  according  to  the  standard  designated  and  estab- 
lished by  the  laws  of  this  State;  Provided,  hoicever,  Thut  if  any 
company  incorporated  by  any  State  where  a  regularly  organized 
Insurance  Bureau  or  department  exists,  shall  furnish  a  certificate 
under  seal,  in  due  form,  of  the  Insurance  Commissioner  or  Superin- 
tendent, setting  forth  the  existing  values  of  all  its  outstanding  pol- 
icies, such  certificate  shall  be  received  as  evidence  by  the  Insurance 
Commissioner  of  t])is  commonwealth,  and  no  valuation  of  the  poli- 
cies of  such  comi)any  shall  be  made  by  him.  The  cost  of  making 
every  valuation  under  this  section  shall  be  assessed  on  the  company 
whose  policies  are  so  valued.     {Ibid,  §  13.) 

14.  The  Commissioner  shall  annually,  at  the  earliest  prac- 
ticable date,  after  the  returns  are  received  from  the  several  insur- 
ance companies  doing  business  in  this  State,  make  a  report  to  the 
Auditor  of  their  condition,  with  such  suggestions  as  he  deems  ex- 
pedient, and  shall  include  therein  an  aggregate  of  the  calculated 
values  of  all  outvStandiug  policies  of  life  insurance  ascertained  by 
him,  in  the  manner  i^rescribed  in  the  preceding  section ;  and  in  con- 
nection therewith,  shall  prepare  an  abstract  ot  all  retiu-ns  and  state- 
ments made  to  him  by  such  insurance  companies  and  agents.  One 
thousand  copies  of  such  reports  shall  be  published  by  the  State, 
subject  to  the  order  of  the  Auditor,  and  at  the  expense  of  the  Insur- 
ance Bureau.  The  Auditor  shall  place  the  same  before  the  Legis- 
lature, with  an  account  of  the  receipts  and  expenses  of  the  Bureau. 
{Ibid.  p.  80,  §  14.) 

15.  The  Commissioner  shall  keep  and  preserve,  in  a  perma- 
nent form,  a  full  report  of  his  proceedings,  including  a  concise 
statement  of  the  condition  of  each  company  visited  or  examined  by 
him.     {Ibid,  §  15.) 

16.  The  records  of  the  said  Insurance  Bureau  shall,  at  all 
times,  be  oi)en  to  the  inspection  of  the  public,  subject  to  such  rules 
as  may  be  made  by  the  Commissioner  for  their  safe  keeping,  free 
from  any  charge  whatever ;  and  he  shall,  on  demand,  furnish  certi- 
fied coi)ies  of  any  i)aper,  report,  or  document  on  file  in  his  office,  to 
any  person  requesting  the  same,  upon  payment  of  the  fees  allowed 
by  law.     {Ibid,  §  10.) 

17.  The  said  Commissioner  shall,  immediately  upon  obtaining 
a  suitable  office,  which  the  Auditor  shall  provide  and  cause  to  be 
furnished  and  supplied  with  a  suitable  tire-proof  vault  and  burglar- 
proof  safe,  apply  to  the  Secretary  of  State,  Auditor,  and  Treasui-er, 
and  any  and  all  other  persons  or  officers,  for  all  books,  i)apers, 
documents,  and  records  i)ertaining  to  the  subject  of  insurance  now 
on  tile  or  kept  in  their  offices,  and  shall  deposit  and  safely  keep  the 
same  in  his  office.  In  case  any  of  the  records  are  contained  in 
books  devoted  to  other  purposes,  the  officer  having  charge  thereof 
shall  deliver  to  him  a  certified  copy  thereof;  and  every  Commis- 
sioner shall,  upon  retiring  from  office,  deliver  to  his  qualified  suc- 
cessor the  jiossession  of  his  office,  and  all  furniture,  i)apers,  and 
property  belonging  to  the  same.     {Ibid,  §  17.) 


254  hine's  insurance  statutes. 

1 8.  The  Auditor,  with  the  approval  of  the  Governor,  shall  de- 
vise a  seal,  with  suitable  inscription,  for  the  Bureau  of  Insurance; 
a  description  of  which,  with  a  certificate  of  approval  by  the  Gov- 
ernor, together  with  an  impression  thereof,  shall  be  filed  in  the 
ofiice  of  the  Secretary  of  State ;  Avhich  seal  shall  thereupon  be  and 
become  the  seal  of  the  Insurance  Bureau,  and  the  same  may  be  re- 
newed whenever  necessary.  Every  certificate,  assignmeut,  or  con- 
veyance, executed  by  the  Auditor  or  the  Commissioner,  relating  to 
the  business  of  insurance  or  an  insurance  company,  in  pursuance  of 
authority  conferred  by  law,  and  sealed  with  said  seal  of  ofdce,  shall 
be  received  as  evidence,  and  may  be  recorded  in  the  proper  record- 
ing ofiice,  in  the  same  manner  and  with  the  same  efl:ect  as  a  deed  reg- 
ularly acknowledged  or  proved  before  an  ofiicer  authorized  by  law 
to  take  the  proof  or  acknowledgment  of  deeds ;  and  all  copies  of 
papers  in  the  ofiice  of  said  Bureau,  certified  by  the  Auditor  or  In- 
surance Commissioner,  and  authenticated  by  the  said  seal,  shall  in 
all  cases  be  evidence  equally  and  in  like  manner  with  the  original. 
{Ibid,  p.  81,  §  18.) 

ly.     There  shall  be  collected  and  paid  to  the  Auditor  and  Com- 
missioner the  following  fees  and  allowances,  viz. : 

To  the  Auditor  for  ex-oflicio  services  to  be  rendered  by  him : 
For  filing  copy  of  charter  or  other  articles  of  association 
or  deed  of  settlement,  not  before  filed,  and  keeping  the 

same $10  00 

For  license  to  each  agent  of  fire  companies,  and  certifi- 
cate of  seal  of  ofiice  for  each 5  00 

And  for  license  to  each  agent  of  life  companies,  and  cer- 
tificate of  seal  of  ofiice  for  each 10  00 

To  the  Commissioner,  for  the  use  of  the  Treasury,  to 
defray  expenses  of  the  Bureau : 

For  filing  in  his  office  original  charter,  deed  of  settle- 
ment, or  other  articles  of  association,  each 40  00 

For  filing  declaration  of  intention  to  form  an  insurance 

company 50  00 

For  filing  annual  statement  of  condition,  etc.,  required 
to  be  made  in  forms  fui'uished  by  him,  as  per  section 

twelve,  each 40  00 

For  any  additional  or  supplemental  statement  for  the 

same  year 25  00 

For  seal  of  office  with  certificate 1  00 

For  copies  of  any  paper  on  file  or  deposit  with  the 
Treasurer  or  in  his  office,  20  cents  per  folio. 

For  original  deposit  of  securities  required  by  law 10  00 

For  any  change  of  securities  in  the  aggregate 1  00 

For  cost  of  making  valuations  under  section  thirteen, 
not  to  exceed  three  cents  on  every  one  thousaiul  dol- 
lars of  insurance  effected. 

And  the  said  Commissioner  is  authorized  to  assess  an  equal 
amount  upon  each  insurance  company  doing  business  in  this  com- 
monwealth to  provide  for  any  deficiency  for  defraying  the  expenses 
of  the  Bureau.     {Ibid,  §  19.) 

20.  In  addition  to  the  fees  allowed  to  the  Auditor  and  Com- 
missioner by  thenin[eteen]th  section  of  an  act  to  establish  an  Insur- 
ance Bureau,  the  Treasurer  shall  be  allowed  annually  the  sum  of 
SIX  hundred  doUars  for  the  services  required  of  him  by  an  act  for 
the  incoi'poration  and  regulation  of  life  insurance  companies,  to  be 


KENTUCKY.  255 

paid  in  the  same  manner  and  out  of  the  same  fund  which  the  In- 
surance Commissioner  is  paid.     {Ibid,  p.  90,  §  1.) 


INSURANCE  COMPANIES  OTHER  THAN  LIFE. 

21.  That  hereafter  any  number  of  persons,  not  less  than 
twelve,  may  associate  to  form  an  insurance  company  for  any  other 
purpose  than  life  insurance ;  they  shall  jiublish  a  notice  of  such  in- 
tention once  in  each  week  for  at  least  four  weeks,  in  a  public  news- 
paper in  the  county  in  which  such  insurance  company  is  proposed 
to  be  located,  or  published  in  this  commonwealth,  and  havino-  gen- 
eral circulation  in  said  county,  and  shall,  also,  under  their  hands 
and  seals,  make  a  certificate  specifying  the  name  assumed  by  such 
company  and  by  which  it  shall  be  known,  the  object  for  which  said 
company  shall  be  formed,  the  amount  of  its  proposed  capital  stock, 
and  the  place  where  the  principal  office  of  said  company  shall  be  lo- 
cated, which  certificate  shall  be  acknowledged,  certified,  and  for- 
warded to  the  Auditor,  who  shall  submit  the  same  to  the  Attorney- 
General  for  examination ;  and  if  found  by  him  to  be  in  accordance 
with  the  provisions  of  this  act,  and  not  inconsistent  with  the  con- 
stitution and  laws  of  this  State  and  of  the  United  States,  he  shall 
certify  the  same  and  deliver  it  back  to  the  said  Auditor,  who  shall 
have  the  right  to  reject  any  name  or  title  of  any  comjiany  applied 
for,  when  he  shall  deem  the  name  too  similar  to  one  already  appro- 
priated, or  likely  to  mislead  the  public.  For  the  examination  pro- 
vided for  in  this  section,  the  Attorney-General  shall  be  entitled  to  a 
fee  of  ten  dollars,  to  be  paid  by  the  corj^orators.  {Laics  of  1870,  p. 
42,  §  1.) 

22.  Upon  the  approval  of  said  certificate  by  the  Attorney- 
General  and  the  Auditor,  the  said  Auditor  shall  cause  it  to  be  re- 
corded in  a  book  to  be  kept  for  the  purpose,  in  the  office  of  the  Bu- 
reau of  Insurance ;  and  said  persons,  when  incorporated,  and  hav- 
ing procured  the  certificate  of  the  Insurance  Commissioner  of  this 
State  that  they  have,  in  all  respects,  complied  with  the  provisions 
of  this  act,  are  hereby  authorized  to  carry  on  the  business  of  insur- 
ance, as  named  in  such  certificate  of  incorporation;  and  by  the 
name  and  style  provided  therein,  shall  be  deemed  a  body  corporate, 
with  succession ;  they  and  their  associates,  successors,  and  assigns, 
to  have  the  same  general  corporate  powers,  and  be  subject  to  all 
the  obligations  and  restrictions  of  this  act,  and  of  the  general  laws 
of  this  commonwealth.    {Ibid,  p.  43,  §  2.) 

23.  No  joint  stock  company  shall  be  incorporated  under  this 
act  with  a  smaller  capital  than  one  hundretl  thoiLsand  dollars  nor 
more  than  one  million  dollars,  as  may  be  specified  in  the  certificate 
of  incorporation,  which  stock  shall  be  divided  into  shares  of  one 
hundred  dollars  each,  nor  shall  any  company,  on  the  plan  of  mutual 
insurance,  commence  business  in  this  State  until  agreements  have 
been  entered  into  for  insurance  with  at  least  two  hundred  appli- 
cants, the  premiums  on  which  shall  amount  to  not  less  than  one 
hundred  thousand  dollars,  of  which  at  least  fifty  thousand  dollars 
shall  have  been  paid  in  cash,  and  notes  of  solvent  parties,  founded 
on  actual  and  bona  fide  applications  for  assurance,  shall  have  been 
received  for  the  remainder.  No  one  of  the  notes  received  as  afore- 
said shall  amount  to  more  than  five  hundred  dollars,  and  no  two 
shall  be  given  for  the  same  risk,  or  be  made  by  the  same  person  or 


256  niNE's  INSURA^'CE  statutes. 

firm,  except  where  the  whole  amoimt  of  such  notes  shall  not  exceed 
five  hundred  dollars  ;  nor  shall  any  note  be  represented  as  capital 
stock  unless  a  policy  be  issued  upon  the  same  within  thirty  days  af- 
ter the  organization  of  the  company,  upon  a  risk  which  shall  be  for 
no  shorter  period  than  twelve  months.  Each  of  said  notes  shall  be 
payable  in  i)art  or  in  w^hole,  at  any  time  when  the  directors  shall 
deem  the  same  requisite  for  the  payment  of  losses  by  fire  or  inland 
navigation,  and  such  incidental  exijenses  as  may  be  necessary  tor 
transacting  the  business  of  said  company.  And  no  note  shall  be  ac- 
cepted as  part  of  such  capital  stock,  unless  the  same  shall  be  accompa- 
nied by  a  certificate  of  a  justice  of  the  jjeace  of  the  precinct  where 
the  person  making  such  note  shall  reside,  that  the  person  making 
the  same  is,  in  his  opinion,  pecuniarily  good  and  responsible  for  the 
same ;  and  no  such  note  shall  be  siu-rendered  during  the  life  of  the 
policy  for  which  it  was  given.     {Ibid,  §  3.) 

!24.  Having  published  the  notice  and  filed  publisher's  proof  of 
such  publication  with  the  Auditor,  together  with  the  certilicate  as 
required  by  the  first  secton  of  this  act,  the  persons  named  in  the 
certificate  of  incori>oration,  or  a  majority  of  them,  shall  be  commis- 
sioners to  open  books  for  the  subscription  of  stock  in  the  company, 
at  such  times  and  places  as  they  shall  deem  convenient  and  i)roper, 
and  shall  keep  the  same  open  until  the  full  amount  specified  in  the 
certificate  is  subscribed ;  or,  in  case  the  business  of  such  company 
is  proposed  to  be  conducted  on  the  plan  of  mutual  insurance,  then 
open  books  to  receive  j)ropositions  and  enter  into  agreements  in  the 
manner  and  to  the  extent  specified  in  the  third  section  of  this  act. 
{Ibid,  p.  44,  §  4.) 

^«3.  The  affairs  of  any  company  organized  under  this  act  shall 
be  managed  by  not  more  than  twenty-one  nor  less  than  five  direct- 
ors, all  of  whom  shall  be  stockholders  or  members,  as  the  case  may 
be.  Within  one  month  after  the  subscription  books  shall  have  been 
tiled,  a  majority  of  the  subscribers  shall  hold  a  meeting  for  the  elec- 
tion of  directors,  each  share  entitling  the  holder  thereof  to  one  vote ; 
and  the  directors  then  elected  shall  continue  in  office  until  the  first 
or  third  Monday  in  January  thereafter,  as  the  by-laws  of  the  com- 
pany may  direct,  and  until  others  have  been  chosen  to  succeed 
them  in  tne  trust,  and  have  accepted  the  same.     {Ibid,  §  5.) 

S6,  It  shall  be  lawful  for  any  insurance  company  organized 
under  this  act,  or  incorporated  under  any  law  of  this  State,  to  in- 
vest its  capital  and  the  funds  accumulated  in  the  coiu'se  of  its  busi- 
ness, or  any  part  thereof,  in  bonds  and  mortgages,  or  deeds  of  trust 
on  uuincumberd  real  estate  within  the  State  of  Kentucky,  worth 
fifty  per  cent,  more  than  the  sum  loaned  thereon,  exclusive  of  build- 
ings, unless  such  buildings  are  insured,  and  the  policy  transferred 
to  said  company,  and  continued  in  force  so  long  as  the  loan  contin- 
ues ;  and  also  in  the  bonds  of  this  State,  or  the  bonds  of  the  United 
States  ;  and  also  in  the  bonds  of  any  county  or  incorporated  city  or 
railroad  company  in  this  State,  authorized  to  be  issued  by  the 
legislature,  and  to  lend  the  same,  or  any  part  thereof,  on  the  secur- 
ity of  such  bonds,  or  of  bonds  and  mortgages  and  deeds  of  trust, 
as  aforesaid;  and  to  change  and  reinvest  the  same  as  occasion 
may,  from  time  to  time,  require;  Provided  ahcays,  That  the  current 
market  value  of  such  bonds,  or  other  evidences  of  indebtedness, 
shall  be  at  all  times,  during  the  continuance  of  such  loans,  at  least 
twenty  per  cent,  more  than  the  sum  loaned  thereon  :  And  provided, 
That  in  all  investments  made  upon  mortgage  securities,  the  evi- 


KENTUCKY.  257 

dence  of  the  debt  shall  accompany  the  mortgage  or  deed  of  trust. 
{Ibid,  §  6.) 

2:7.  Upon  receiving  notification  that  the  proceedings  required 
by  the  sections  foregoing  have  been  had,  the  Commissioner  of  In- 
surance shall  cause  an  examination  to  be  made,  and  certified  under 
oath  that  the  capital  herein  required  of  the  company  named,  accord- 
ing to  the  nature  of  the  business  proposed  to  be  transacted  by  such 
company,  has  been  paid  in,  and  is  possessed  by  it  in  money,  or  in 
such  bonds  and  mortgages  as  are  required  by  the  sixth  section  of 
this  act ;  or  if  a  mutual  company,  that  it  has  received,  and  is  in 
actual  possession  of,  the  capital,  premiums,  or  bona  fide  engage- 
ments of  insurance,  or  other  securities,  as  the  case  may  be,  to  the 
extent  and  value  required  by  the  sixth  section  of  this  act;  and  the 
name  and  residence  of  the  maker  of  each  premium  note  forming  part 
of  the  capital,  and  the  amount  of  such  note,  shall  be  returned  to  the 
said  Commissioner  ;  and  the  corporators  or  officers  of  such  company 
shall  be  required  to  certify,  under  oath,  that  the  capital  exhibited  to 
those  persons  is  bona  file  property  of  the  company.  Such  certificates 
shall  be  tiled  in  the  office  of  the  Insurance  Commissioner,  who  shall 
thereupon  deliver  to  such  company  a  certified  copy  of  said  certifi- 
cates, under  the  seal  of  the  Bureau,  which,  on  being  placed  on 
record  in  the  office  of  the  clerk  of  the  county  court  where  the  com- 
pany is  to  be  located,  by  the  said  clerk,  in  a  book  provided  for  that 
puri)Ose  by  him,  shall  be  their  authority  to  commence  business  and 
issue  policies ;  and  such  certified  copy  of  said  certificates  may  be 
used  in  evidence  for  or  against  said  company,  with  the  same  effect 
as  the  originals.     {Ibid,}).  45,  §  7.) 

28.  It  shall  be  lawful  for  any  company  organized  u.nder  this 
act,  first,  to  insure  houses,  buildings,  and  all  other  kinds  of  property, 
against  loss  or  damage  by  fire,  in  and  out  of  the  State  ;  and  to  make 
all  kinds  of  insurance  on  goods,  merchandise,  and  other  j>roperty, 
in  the  course  of  transportation,  whether  on  land  or  water,  or  on  any 
vessel  or  boat,  wherever  the  same  may  be ;  second,  to  make  insur- 
ance upon  the  health  of  individuals,  and  against  personal  injury, 
disablement,  or  death,  resulting  from  traveling  or  general  accidents 
by  land  or  water ,  third,  to  receive  on  deposit  and  insure  the  safe- 
keeping of  books,  papers,  moneys,  stocks,  bonds,  and  all  kinds  of 
personal  proi)erty ;  fourth,  to  insure  horses,  cattle,  and  other  live 
stock,  against  loss  or  damage  by  accident,  theft,  or  death,  or  any 
unknown  or  contingent  event  whatever,  which  may  be  the  subject  of 
legal  insurance  ;  and  to  cause  itself  to  be  insured  against  any  loss 
or  risk  it  may  have  incurred  in  the  course  of  its  business,  and  upon 
the  interest  which  it  may  have  in  any  property  by  means  of  any  loan 
or  loans  which  it  may  have  made  on  mortgage,  and  generally  to  do 
and  perform  all  other  matters  and  things  proper  to  promote  these 
objects ;  Provided,  That  no  company  shall  be  organized  to  issue 
policies  of  insurance  for  more  than  one  of  the  above  four  mentioned 
purposes ;  and  no  company  that  shall  have  been  organized  for  either 
of  said  purposes,  shall  issue  policies  of  insurance  for  any  other;  and 
no  company  organized  under  this  act,  or  transacting  business  in 
this  State,  shall  expose  itself  to  loss  on  any  one  risk  or  hazard,  to  an 
amount  exceeding  ten  per  cent,  on  its  paid-up  capital,  unless  the 
excess  shall  be  reinsured  by  the  sauie  in  some  good  and  reliable  com- 
pany.    {Ibid,  §  8.) 

iJ9.     The  annual  meeting  for  the  election  of  directors  shall  b(^ 
holden  on  the  fir«t  or  third  Monday  in  January,  and  called  meetings 
17 


258  hine's  insukance  statutes. 

at  snch  times  as  the  by-laws  of  the  company  may  direct ;  Provided, 
hoicever,  That  if,  for  any  cause,  the  stockholders  shall  fail  to  elect 
directors  at  any  annual  meeting,  they  may  hold  a  special  meeting 
on  some  subsequent  day  for  the  purpose,  by  giving  notice  thereof 
thii-ty  days  in  some  newspaper  in  general  circulation  in  the  county 
where  the  principal  office  of  the  company  shall  be  kept ;  and  the 
directors  chosen  at  any  such  annual  or  special  meeting  shall  con- 
tinue in  office  until  the  next  annual  meeting,  and  until  their  succes- 
sors duly  elected  shall  have  accepted.     {{Ibid,  p.  40,  §  9.) 

30.  The  directors  shall  choose  a  president  from  their  own 
number,  and  shall  fill  all  vacancies  that  may  arise  in  the  board  or 
in  the  presidency  thereof;  and  the  board  of  directors  thus  consti- 
tuted, or  a  majority  of  them,  when  convened  at  the  office  of  the 
(iompany,  shall  be  competent  to  exercise  all  the  powers  vested  in 
them  hj  this  act.     {Ibid,  §  10.) 

31 .  The  directors  of  any  such  company  shall  have  power  to  ap- 
j)oint  a  secretary,  and  any  other  officers  or  agents  necessary  for 
transacting  the  business  of  the  company,  paying  such  salaries,  and 
taking  such  securities  as  they  may  judge  reasonable ;  they  may 
ordain  and  establish  by-laws  and  regulations  not  inconsistent  with 
this  act,  or  with  the  constitution  and  laws  of  this  State  and  of  the 
I  Inited  States,  as  shall  api)ear  to  them  necessary  for  regiilating  and 
conducting  the  business  of  the  company;  and  it  shall  be  their  duty 
to  keep  full  and  correct  entries  of  their  transactions,  which  shall  at 
all  times  be  open  to  the  inspection  of  the  stockholders  and  the  In- 
surance Commissioner  of  this  State.     {Ibid,  §  11.) 

;{i3.  All  policies  or  contracts  of  insurance  made  or  entered  into 
by  the  company,  may  be  made,  either  with  or  without  the  seal 
thereof;  they  shall  be  subscribed  by  the  iiresident  or  such  other 
officer  as  may  be  designated  by  the  directors  for  that  purpose,  and 
shall  be  attested  by  the  secretary,  and  being  so  subscribed  and  at- 
tested, they  shall  be  obligatory  on  the  company.     {Ibid, p.  47,  §  12.) 

33.  Transfers  of  stock  may  be  made  by  any  shareholder,  or  his 
legal  representative,  subject  to  such  restrictions  as  the  directors 
shall,  from  time  to  time,  make  aud  establish  in  their  by-laws, 
except  as  provided  in  sections  thirty  and  thirty-one  of  this  act. 
{Ibid,  §  13.) 

34.  That  whenever  any  company  organized  under  this  act, 
with  less  than  the  maximum  capital  limited  in  section  three,  shall, 
in  the  oi)inion  of  the  directors  thereof,  require  an  increased  amount 
of  capital,  they  shall,  if  authorized  by  the  holders  of  a  majority  of 
the  stock,  file  with  the  Commissioner  a  certificate  setting  forth  the 
amouut  of  such  desired  increase,  not  exceeding  said  maximum,  and 
thereafter  such  company  shall  be  entitled  to  have  the  increased 
amount  of  capital  fixed  by  said  certificate ;  and  the  examination  of 
securities  composing  the  capital  stock  thus  increased  shall  be  made 
in  the  same  manner  as  is  provided  by  section  seven  of  this  act,  for 
capital  stock  originally  paid  in.     (Ibid,  §  14.) 

35.  It  shall  not  be  lawful  for  the  directors,  trustees,  or  man- 
agers of  any  insiu-ance  company  to  make  any  dividend,  exce])t  from 
the  surplus  profits  arising  fi'om  their  business ;  and  in  estimating 
such  profits  there  shall  be  reserved  therefrom  a  sum  equal  to  the 
amount  received  for  premiums  on  imexpii'ed  risks  and  policies, 
which  are  hereby  declared  to  be  unearned  premiums ;  and,  also, 
there  shall  be  reserved  all  sums  due  the  corporation  on  bonds  and 
mortgages,  bonds  aud  book  accounts,  or  other  securities,  of  which 


KENTUCKY.  259 

no  part  of  the  i)rincipal  or  interest  tliereon  has  been  paid  during  the 
last  year,  and  lor  wliich  foreclosure  or  suit  has  not  been  commenced 
for  collection,  or  which,  after  judgment  obtained  thereon,  shall  have 
remained  more  than  two  years  unsatisfied,  and  on  which  interest 
shall  not  have  been  paid ;  and,  also,  there  shall  be  reserved  all  in- 
terest due  or  accrued,  and  remaining  uni)aid.  Any  dividend  made 
contrary  to  these  provisions  shall  subject  the  company  making  the 
same  to  a  forfeiture  of  its  charter,  to  be  enforced  by  a  proceeding  in 
the  nature  of  a  quo  warranto^  which  shall  be  prosecuted  by  the  at- 
torney for  the  commonwealth  in  any  county  in  which  said  company 
has  au  office  or  transacts  business.     {Ibid,  §  15.) 

tin.  aSo  company  organized  under  this  act  shall  purchase,  hold, 
or  convej'  real  estate,  excepting  for  the  purposes  and  in  the  manner 
herein  set  forth,  to  wit : 

1.  Such  as  shall  be  requisite  for  its  convenient  accommoda- 
tion in  the  transaction  of  its  business  ;  or, 

2.  Such  as  shall  have  been  mortgaged  to  it  in  good  faith,  or 
conveyed  by  deed  of  trust,  by  way  of  security  for  loans  pre- 
viously contracted,  or  for  money  due ;  or, 

3.  Such  as  shall  have  been  conveyed  to  it  in  satisfaction  of 
debts  j)reviously  contracted  in  their  legitimate  business,  or  for 
money  due ;  or, 

4.  Such  as  shall  have  been  purchased  at  sales  upon  judg- 
ment, decrees,  or  mortgages,  or  deed  of  trust  obtained  or  made 
for  such  debts ;  and  it  shall  not  be  lawful  for  any  such  com- 
pany to  pmxhase,  hold,  or  convey  real  estate  in  any  other  case, 
or  for  any  other  purpose ;  and  all  such  real  estate  as  may  be 
acquired  as  aforesaid,  and  which  shall  not  be  necessary  for  the 
accommodation  of  such  company  in  the  transaction  of  its  busi- 
ness, shall  be  sold  and  disposed  of  within  five  years  after  such 
company  shall  have  acquired  title  thereto,  unless  the  company 
shall  procure  a  certificate  from  the  Commissioner  that  the  inter- 
ests of  the  company  will  sutfer  materially  by  a  forced  sale 
thereof,  in  which  event  the  sale  may  be  postponed  for  such 
period  as  the  said  Commissioner  shall  direct  in  said  certificate. 
{Ibid,p.4S,  §  16.) 

37.  All  notes  deposited  with  any  mutual  insurance  company 
at  the  time  of  its  organization,  as  provided  in  section  three,  shall 
remain  as  security  for  all  losses  and  claims  until  the  accumulation 
of  the  profits,  invested  as  required  by  the  sixth  section  of  this  act, 
shall  equal  the  amount  of  cash  capital  required  to  be  possessed  by 
stock  companies  organized  under  tbis  act,  the  liability  of  each  note 
decreasing  proportionately  as  the  profits  are  accumulated  ;  but  any 
note  which  may  have  been  deposited  with  any  mutual  insurance 
company,  subsequent  to  its  organization,  in  addition  to  the  cash 
premium  on  any  insurance  effected  with  such  company,  may,  at  the 
expiration  of  the  time  of  such  insurance,  be  relinquished  and  given 
up  to  the  maker  thereof,  or  his  representatives,  upon  his  paying  his 
proportion  of  losses  and  expenses  which  may  have  accrued  thereon 
during  such  term.  The  directors  or  trustees  of  any  such  company 
shall  have  the  right  to  determine  the  amount  of  the  note  to  be 
given  in  addition  to  the  cash  premium  by  any  person  insured  in 
such  company;  but  in  no  case  shall  the  note  be  more  than  four 
times  the  whole  amount  of  the  cash  i)remium.  And  every  person 
effecting  insurance  in  any  mutual  company,  and  also  their  heirs, 
executors,  administrators,  and  assigns  continuing  to  be  so  insured, 


260  hine's  insurance  statutes. 

vshall  thereby  become  members  of  said  corporation  during  the  period 
of  insurance,  and  shall  be  bound  to  -pay  for  losses  and  such  neces- 
sary expenses  as  aforesaid,  accruing  in  and  to  said  company,  in 
proportion  to  the  amount  of  his  deposit  note  or  notes.  The  direct- 
ors shall,  as  often  as  they  deem  necessary,  alter  receiving  notice  of 
any  loss  or  damage  by  fire  sustained  by  any  member,  and  ascertain- 
ing the  same,  or  after  the  rendition  of  any  judgment  against  said 
company  for  loss  or  damage,  settle  and  determine  the  sums  to  be 
paid  by  the  several  members  thereof  as  their  respective  portion  of 
such  loss,  and  publish  the  same  in  such  manner  as  thej'  shall  see 
fit,  or  as  the  by-laws  shall  have  presciibed ;  and  the  sum  to  be  paid 
by  each  member  shall  always  be  in  proportion  to  the  original 
amount  of  his  deposit  note  or  notes,  and  shall  be  i)aid  to  the  ofiicers 
of  the  company  within  thirty  days  next  after  the  publication  of  said 
notice.  And  if  any  member  shall,  for  the  space  of  thirty  days  next 
after  the  publication  of  said  notice,  and  after  personal  demand  for 
payment  shall  have  been  made,  neglect  or  refuse  to  pay  the  sum 
assessed  upon  him  as  his  proportion  of  any  loss  as  aforesaid,  in 
such  case  the  directors  may  sue  for  and  recover  the  whole  amount 
of  his  deposit  note  or  notes,  with  cost  of  suit ;  but  execution  shall 
only  issue  for  assessments  and  costs  as  they  accrue,  and  every  such 
execution  shall  be  accompanied  by  a  list  of  losses  for  which  the  as- 
sessment is  made.  If  the  whole  amount  of  deposit  notes  shall  be 
tnsufflcieut  to  pay  the  loss  occasioned  by  any  fire  or  fires,  in  such 
case  the  sufferers  insured  by  the  said  company  shall  receive,  to- 
wards making  good  their  respective  losses,  a  proportional  share  of 
the  whole  amount  of  said  notes,  according  to  the  sums  by  them  re- 
spectively insured ;  but  no  member  shall  ever  be  required  to  pay, 
for  any  loss  occasioned  by  fire  or  inland  navigation,  more  than  the 
whole  amount  of  his  deposit  note.     {Ibid,  §  17.) 

38.  Every  insurance  company  hereafter  organized  as  pro- 
vided in  this  act,  shall,  if  it  be  a  mutual  company,  embody  the 
word  "  mutual "  in  its  title,  which  shall  appear  upon  the  first  page 
of  every  policy  and  renewal  receipt ;  and  every  company  doing 
business  as  a  cash  stock  company  shall,  upon  the  face  of  its  policy, 
in  some  suitable  manner,  express  that  such  policy  is  a  stock  policy. 
Nor  shall  any  comj>any  transact  the  business  of  insurance  in  this 
commonwealth  on  both  the  stock  and  mutual  i)lans.  {Ibid,  p.  49, 
§18.) 

39.  It  shall  be  the  duty  of  the  president  or  vice-president  and 
secretary  of  each  company  organized  under  this  act,  or  incorporated 
under  any  law  of  this  State,  annually,  on  the  tenth  day  of  January, 
or  within  one  month  thereafter,  to  i)repare,  under  oath,  and  deposit 
in  the  office  of  the  Bureau  of  Insurance,  a  statement  of  the  condi- 
tion of  such  company  on  the  thirty-first  day  of  December  then  next 
preceding,  exhibiting  the  following  facts  and  items,  in  the  following 
form,  namely : 

First. — The  amount  of  the  capital  stock  of  the  company. 
Second. — The  property  or  assets  held  by  the  company,  specifying: 

1.  The  value,  as  nearly  as  may  be,  and  the  location,  of  the 
real  estate  held  by  such  company. 

2.  The  amount  of  cash  on  hand  and  deposited  in  banks  to 
the  credit  of  the  company,  specifying  in  what  bank  the  same  is 
deposited. 

3.  The  amount  of  cash  in  the  hands  of  agents  and  in  course 
of  transmission. 


KENTUCKY.  261. 

4.  The  amount  of  loans  secured  by  bonds  and  mortgages,  or 
deeds  of  trust,  constituting-  tlie  first  lieu  on  real  estate,  on 
which  there  shall  be  less  than  one  year's  interest  due  or  owing. 

5.  The  amount  of  loans  on  which  interest  shall  not  have 
been  paid  within  one  year  previous  to  such  statement,  and  how 
secured. 

6.  The  amount  due  the  company  on  which  judgments  have 
been  obtained. 

7.  The  amount  of  stocks  or  bonds  of  this  State,  of  the  United 
States,  of  any  incorporated  city  of  this  State,  and  of  any  other 
stocks  owned  by  the  company,  specifying  the  amount,  number 
of  shares,  and  par  and  market  value  of  each  kind  of  stock  or 
bonds. 

8.  The  amount  of  bonds,  mortgages,  aud  stocks  held  thereby 
as  collateral  security  for  loans,  with  the  amount  loaned  on  each 
kind  of  stock  or  bonds,  their  i)ar  value  and  market  value. 

9.  The  amount  of  assessments  on  stock  or  premium  notes, 
paid  and  unpaid. 

10.  The  amount  of  interest  actually  due  and  unpaid. 

11.  The  amount  of  i)remium  notes  on  which  policies  are  is- 
sued. 

Third. — The  liabilities  of  such  company,  specifying : 

1.  The  amount  of  losses  due  and  yet  unpaid,  and  how  much 
in  this  State. 

2.  The  amount  of  claims  for  losses  resisted  by  the  company, 
and  what  part,  if  any,  in  this  State. 

3.  The  amount  of  losses  incurred  during  the  year,  including 
those  claimed  and  not  yet  due,  and  of  those  reported  to  the 
company  upon  which  no  action  has  been  taken,  and  how  much 
thereof  in  this  State. 

4.  The  amount  of  dividends  declared  and  due  and  remaining 
unpaid. 

5.  The  amount  of  dividends,  either  cash  or  scrip,  declared 
but  not  yet  due. 

6.  The  amount  of  money  borrowed  and  security  given  for  the 
payment  thereof. 

7.  The  amount  of  all  other  existing  claims  agaiiistthe  com- 
pany. 

Fourth. — The  income  of  the  company  during  the  preceding  year, 
specifying : 

1.  The  amount  of  cash  premiums  received,  designating  the 
amount  received  in  this  State. 

2.  The  amount  ot  notes  received  for  premiums,  designating 
amount  on  business  in  this  State. 

3.  The  amount  of  interest  money  received. 

4.  The  amount  of  income  received  from  other  sources. 
Fifth. — The  expenditures  during  the  preceding  year,  specifying : 

1.  The  amount  of  losses  i)aid  during  the  year,  stating  how 
much  of  the  same  accrued  prior,  and  how  much  subsequent,  to 
the  date  of  the  preceding  statement,  and  the  amount  at  which 
losses  were  estimated  in  such  preceding  statement,  and  how 
much  thereof  occurred  in  tliis  State. 

2.  The  amount  of  dividends  paid  during  the  year. 

3.  The  amount  of  expenses  paid  during  the  year,  including 
commissions  aud  fees  to  agents,  and  salaries  to  officers  of  the 
company,  specifying  in  detail  each  item. 


262  niNE'S   INSURANCE   STATUTES. 

4.  The  amount  paid  in  taxes. 

5.  The  amount  of  all  other  payments  and  expenditures. 

6.  A  balance  sheet  of  the  business  of  the  company,  taking  as 
the  basis  the  net  assets  of  the  company  on  the  31st  day  of  De- 
cember of  the  year  preceding  that  for  wnich  the  statement  is 
made,  which  annual  statement  shall  be  brought  down  to  the 
31st  December  next  preceding  that  in  which  the  statement  is 
required  to  be  returned.     {Ibid,  p.  50,  §  19.) 

40.  The  lusurance  Commissioner  is  hereby  authorized  and 
empowered  to  address  any  inquiries  to  the  oflScers  of  any  insurance 
company,  in  relation  to  its  doings  and  condition,  or  any  other  mat- 
ter connected  Mith  its  transactions ;  and  it  shall  be  the  duty  of  any 
company  so  addressed  to  promptly  reply,  in  writing,  verified  by 
the  oath  of  oath  of  its  secretary  or  other  chief  officer,  to  any  such 
inquiries.     {Ibid,  ^.  51,  §  20.) 

41.  The  statemeut  of  any  company,  the  capital  of  which  is 
composed,  in  whole  or  in  part,  of  notes,  shall,  in  addition  to  the 
foregoing,  exhibit  the  amount  of  notes  originally  forming  the  capi- 
tal, and  also  what  proportion  of  said  notes  is  still  held  by  such 
company  and  considered  capital.  Every  insurance  company,  or- 
ganized under  any  law  of  this  State,  failing  to  make  and  deposit 
such  statement,  or  to  reply  to  any  inquiry  of  the  said  Commissioner, 
shall  be  subject  to  a  penalty  of  five  hundred  dollars  j  and  an  addi- 
tional five  hundred  dollars  for  every  month  that  such  company 
shall  continue  thereafter  to  transact  any  business  of  insurance. 
{Ibid,  p.  52,  §21.) 

4'^.  The  Insurance  Commissioner  is  hereby  authorized  to 
amend  and  revise  the  form  of  annual  statemeut  hereinbefore  pre- 
scribed, and  to  propose  such  additional  inquiries  as  are  necessary 
to  elicit  a  full  exhibit  of  the  business  and  standing  of  the  various 
insurance  companies  doing  business  in  this  Commonwealth.  {Ibid, 
§  22.) 

43.  The  Commissioner  may  extend  the  time  hereinbefore  pre- 
scribed for  filing  annual  statement  in  favor  of  any  company  for 
good  cause  shown,  but  not  more  than  sixty  days  next  after  the  limit 
hereinbefore  prescribed  for  filing  the  same.     {Ibid,  §  23.) 

44.  It  shall  not  be  lawful  for  any  insurance  com^iany,  associa- 
tion, or  partnership,  organized  or  associated  for  any  purposes  speci- 
fied in  this  act,  incorporated  by  or  organized  under  the  hiws  of  any 
other  State  of  the  United  States,  or  any  foreign  government  or  Gov- 
ernment of  the  United  States,  directly  or  indirectly,  to  take  risks  or 
transact  any  business  of  insiu-ance  in  this  State,  unless  possessed  of 
the  amount  of  one  hundred  and  fifty  thousand  dollars  of  actual 
capital  paid  up ;  and  any  such  company  desiring  to  transact  any 
such  business  as  aforesaid,  by  an  agent  or  agents  in  this  State,  shall 
file  Avitli  the  Commissioner  a  written  instrument,  duly  signed  and 
sealed,  authorizing  anj^  agent  or  agents  of  such  company  to  ac- 
knowledge service  of  process  for  and  in  behalf  of  such  company  in 
this  State,  consenting  that  service  of  process,  mesne  or  final,  upon 
any  such  agent,  shall  be  taken  and  held  to  be  as  valid  as  if  served 
upon  the  company  according  to  the  laws  of  this  or  any  other  State, 
and  waiving  all  claim  or  writ  of  error  by  reason  of  such  acknowl- 
edgment of  service ;  and  service  of  process  ujion  any  such  agent 
in  any  county  of  this  State  shall  be  deemed  good  and  valid,  and  au- 
thorize trial  of  the  cause  in  the  court  whence  such  process  issued. 
It  shall  be  the  duty  of  the  Clerk  of  the  Court,  in  which  suit  may 


KENTUCKY.  263 

be  brought  agaiust  any  such  insurance  company,  at  the  commence- 
ment of  the  action,  to  phice  in  the  post  otiice  a  copy  of  the  sum- 
mons or  other  process  which  may  be  issued  in  tlie  cause,  directed  to 
the  company  at  the  place  of  the  location  of  its  princi]>al  office,  post- 
age paid  ;  and  he  shall  make  a  note  or  memorandum  thereof  on  the 
papers  of  the  suit,  and  tax  the  costs,  postage  included,  as  other 
costs  of  the  suit ;  Frovideil,  That  such  notification  by  the  clerk  shall 
not  aftect  the  time  of  the  trial  of  the  cause.  If  any  such  insurance 
company  shall,  without  the  consent  of  the  other  parties  to  any  suit 
or  proceeding  against  it,  brought  or  to  be  brought  in  any  of  the 
courts  of  this  Commonwealth,  remove  the  said  suit  or  proceeding 
into  any  Federal  Court,  or  if  such  company  shall  hereafter  institute 
any  suit  or  proceeding  against  any  citizen  of  this  Commonwealth  in 
any  Federal  Court,  it  shall  be  the  duty  of  the  Auditor  forthwith  to 
revoke  all  authority  to  such  company  and  all  its  agents  to  do  busi- 
ness in  this  Commonwealth,  and  to  publish  such  revocation  in  som(; 
newspaper  published  in  this  Commonwealth.  In  case  any  such  in- 
surance company  shall  cease  to  transact  business  in  this  State,  ac- 
cording to  the  laws  thereof,  the  agents  last  designated,  or  acting  as 
such  for  such  corporation,  shall  be  deemed  to  continue  agents  for 
such  corporation  for  the  purpose  of  serving  process  for  commencing 
actions  u])on  any  policy  or  liability  issued  or  contracted  while  such 
corporation  transacted  business  in  this  State ;  and  they  shall  also 
file  a  certified  copy  of  their  charter  or  deed  of  settlement,  unless 
heretofore  filed,  together  with  a  statement,  to  be  made  annually  un- 
der the  oath  of  the  i^resident  or  vice  president,  or  other  chief  officer, 
and  the  secretary  of  the  company  for  which  he  or  they  may  act,  in 
the  same  manner  and  form  required  from  companies  organized  un- 
der the  laws  of  this  State,  as  per  sectioji  nineteen  ;  also  a  copy  of 
the  last  annual  report,  if  any  made  under  any  law  of  the  State  by 
which  such  company  was  incorporated ;  and  no  agent  shall  be  al- 
lowed to  transact  business  tor  any  company  whose  capital  is  im- 
paired to  the  extent  of  twenty  per  cent,  thereof,  while  such  de- 
ficiency shall  continue,  unless  said  deficiency  shall  be  repaired 
within  sixty  days.  And  any  company  incorporated  by  or  organized 
under  any  foreign  government  shall  file  with  the  Commissioner  th<' 
certificate  of  the  Auditor,  Comptroller,  or  other  chief  financial  of- 
ficer of  some  other  State  of  the  United  States,  under  his  hand  and 
official  seal,  that  he  holds  on  deposit,  and  in  trust  for  the  benefit  of 
all  the  policy-holders  of  such  company  in  the  United  States,  se- 
curities in  which  it  is  authorized  to  invest  its  capital  stock  by  the 
laws  of  the  State  in  which  such  deposit  is  made,  or  in  which  similar 
companies  in  this  State  may,  by  law,  invest  their  capital  and  accu- 
mulations, worth  at  least  two  hundred  thousand  dollars,  and  which 
shall  be  increased  in  case  of  any  depreciation  in  their  value.  But 
nothing  herein  contained  shall  be  construed  to  invalidate  the  agency 
of  any  such  company,  by  reason  of  such  company  having,  from 
time  to  time,  exchanged  the  securities  so  dejiosited  witli  such 
financial  officer  for  other  and  similar  securities,  or  by  reason  of 
such  company  having  drawn  its  interest  and  dividends,  from  time 
to  time,  for  such  stocks  and  securities ;  Provided,  That  companies 
organized  under  the  laws  of  any  foreign  government,  depositing  th<i 
amount  of  securities  aforesaid  ^^^th  the  Auditor  of  this  State,  wh(» 
shall  receive  the  same  in  his  official  capacity,  and  producing  and 
tiling  a  certificate  thereof  in  the  manner  provided  by  this  section, 
shall  be  held  to  have  complied  with  the  requirements  of  tliis  section, 


264  hike's  insurance  statutes. 

if  such  certificate  shall  state  that  the  aforesaid  deposit  is  for  the 
benefit  aud  protectiou  of  its  policv  holders  in  the  United  States. 
{Ibid,  §  24.) 

45.  It  shall  not  be  lawful  for  any  agent  of  any  insurance  com- 
pany not  incorporated  by  the  laws  of  this  State  to  do  business  of 
insurance  in  this  State,  without  first  obtaining  license  from  the 
Auditor  of  Public  Accounts.  Before  the  Auditor  shall  issue  such 
license  to  any  such  agent,  every  such  company  or  corporation  shall 
furnish  to  him  the  certificate  of  the  Commissioner  of  Insurance  that 
such  company  has  fully  complied  with  the  laws  of  this  State  respect- 
ing it,  and  has  the  required  capital  not  impaired  beyond  the  desig- 
nated limit,  and  is  in  a  sound  and  solvent  condition ;  whereupon 
the  Auditor  shall  furnish  to  such  agents  as  the  company  directs  a 
copy  of  the  Commissioner's  certificate,  to  be  prepared  by  the  Bureau 
of  Insurance,  and  licenses  to  transact  the  business  of  insurance  as 
agents  for  said  company.     {Ibid,  p.  54,  §  25.) 

46.  Licenses  to  agents  must  be  renewed  annually,  in  the  same 
manner  as  original  licenses  were  issued,  upon  the  certificate  of  the 
Commissioner  that  the  company  represented  by  the  agent  has  fully 
complied  with  the  law,  and  maintains  its  required  capital.  The 
annual  statements  required  in  preceding  section  may,  after  the  first, 
be  tiled  within  the  times  prescribed  for  filing  similar  statements  by 
the  companies  of  this  State.     {Ibid,  §  26.) 

47.  Any  violation  of  the  provisions  of  the  foregoing  sections 
relating  to  foreign  companies,  or  companies  of  other  States  or  of  the 
United  States,  shall  subject  the  party  violating  to  a  penalty  of  five 
hundred  dollars  for  each  violation,  and  of  the  additional  sum  of  one 
hundred  dollars  for  each  month  during  which  any  such  agent  shall 
neglect  to  file  such  affidavits  and  statements  as  are  herein  required. 
Every  agent  of  any  insurance  company  shall,  in  all  advertisements 
of  such  agency,  publish  the  location  of  the  company,  giving  the 
name  of  the  city,  town,  or  village  in  which  the  comj^any  is  located, 
and  the  State  or  Government  under  the  laws  of  which  it  is  organ- 
ized. The  term  agent  or  agents,  used  in  the  foregoing  sections, 
shall  include  an  acknowledged  agent  or  surveyor,  or  any  other 
person  or  persons,  who  shall,  in  any  manner,  directly  or  indirectly, 
aid  in  transacting  the  insurance  business  of  any  insurance  company 
not  incorporated  by  the  laws  of  this  State.  The  provisions  of  the 
foregoing  sections  shall  apply  to  all  foreign  companies,  partner- 
ships, associations,  and  individuals,  whether  incorporated  or  not. 
(i  bid,  §  27.) 

4N.  In  case  of  knowing  and  willfirl  neglect  or  refusal  by  any 
insurance  company  to  make  such  annual  statement,  as  aforesaid, 
whose  duty  it  shall  be  to  make  such  statement,  shall  be  subject  to 
the  same  penalties  provided  by  law  in  case  of  the  failure  of  any 
insurance  company,  organized  under  the  laws  of  this  State,  to  make 
an  annual  statement  as  now  provided  by  law;  and,  in  addition 
thereto,  shall  forfeit  the  right  to  do  business  in  this  State  till 
such  statement  is  made  and  the  law  complied  with.  {Ibid,  p.  bb, 
§  28.) 

49.  It  shall  be  the  duty  of  the  Insurance  Commissioner,  by 
himself  or  his  deputy,  or  whenever  he  shall  deem  it  expedient  so  to 
do,  at  his  option,  to  appoint  one  or  more  persons,  not  officers, 
agents,  or  employees  of  any  insurance  company,  who,  before  enter- 
ing upon  the  discharge  of  the  duty,  shall  take  an  oath  to  perform 
faithfidly  and  impartially  the  business  with  which  they  are  charged, 


KENTUCKY.  265 

to  examine  into  the  aftairs  of  any  insurance  company  incorporated 
in  this  State,  or  doing  business  by  its  agents  in  this  State;  and  it 
shall  be  the  duty  of  the  officers  or  agents  of  such  company  doing 
business  in  this  State  to  cause  their  books  to  be  opened  for  the 
inspection  of  the  Commissioner  or  his  deputy,  or  to  the  person  or 
persons  so  appointed,  and  otherwise  to  facilitate  such  examination 
so  far  as  it  may  be  in  their  power  to  do;  and  for  that  purpose  the 
said  Commissioner,  or  person  or  persons  so  appointed  by  him,  shall 
have  power  to  examine,  under  oath,  the  officers  and  agents  of  any 
company  relative  to  the  business  of  said  company ;  and  whenever 
the  said  Commissioner  shall  deem  it  for  the  interest  of  the  public  so 
to  do,  he  shall  publish  the  result  of  such  investigation  in  one  or 
more  papers  of  this  State ;  and  whenever  it  shall  appear  to  the 
Commissioner,  from  such  examination,  that  the  assets  of  any  com- 
pany incorporated  in  this  State  are  reduced  more  than  twenty  per 
cent,  below  the  capital  stock  required  by  this  act,  or  its  charter, 
after  reserving  fifty  per  cent,  of  the  amount  received  for  premiums 
on  any  paid  annual,  term,  or  short-risk  policies,  which  are  hereby 
declared  unearned  premiums,  he  may  direct  the  officers  thereof  to 
require  the  stockholders  to  pay  in  the  amount  of  such  deficiency 
within  such  period  as  he  may  designate  in  such  requisition,  not 
exceeding  sixty  days,  and  in  default  thereof  he  shall  communicate 
the  fact  to  the  Attorney-General,  whose  duty  it  shall  then  become 
to  apply  to  any  circuit  or  chancery  court  for  an  order  requiring 
them  to  show  cause  why  the  business  of  such  company  should  not 
be  closed,  and  the  court  shall  thereupon  proceed  to  hear  the  allega- 
tions and  proofs  of  the  respective  parties ;  and  in  case  it  shall 
appear  to  the  satisfaction  of  said  court  that  the  assets  and  funds  of 
said  company  are  not  sufficient,  as  aforesaid,  or  that  the  interests  of 
the  public  so  require,  the  said  court  shall  decree  a  dissolution  ot 
said  company  and  distribution  of  its  effects  upon  equitable  princi- 
ples. The  court  shall  have  power  to  refer  the  application  of  the 
Attorney-General  to  a  referee,  to  inquire  into  and  report  upon  the 
facts  stated  therein.     {Ibid,  §  29.) 

50.  Any  company  receiving  the  aforesaid  requisition  from  the 
said  Commissioner  shall  forthwith  call  upon  its  stockholders  for 
such  amounts  as  will  make  its  capital  equal  to  the  amount  fixed  by 
the  charter  of  said  company ;  and  in  case  any  stockholder  of  such 
company  shall  refuse  or  neglect  to  pay  the  amounts  so  called  for 
after  notice  personally  given  or  by  advertisement,  in  such  time  and 
manner  as  the  said  Commissioner  shall  approve,  it  shall  be  lawful 
for  the  said  company  to  require  the  return  of  the  original  certificate 
of  stock  held  by  such  stockholder,  and  in  lieu  thereof  to  issue  new 
certificates  for  such  number  of  shares  as  the  said  stockholder  may 
be  entitled  to,  in  the  proportion  that  the  ascertained  value  of  the 
funds  of  the  said  company  may  be  found  to  bear  the  original  capital 
of  the  said  company ;  the  value  of  such  shares  for  which  new  certifi- 
cates shall  be  issued  to  be  ascertained  under  the  direction  of  the 
said  Commissioner,  and  the  company  paying  for  the  fractional  parts 
of  shares ;  and  it  shall  be  lawful  for  the  directors  of  such  company 
to  create  new  stock  and  dispose  of  the  same,  and  to  issue  new  cer- 
tificates therefor,  to  an  amount  sufficient  to  make  up  the  original 
capital  of  said  company.  And  in  the  event  of  any  additional  losses 
accruing  upon  new  risks,  taken  after  the  expiration  of  the  period 
limited  by  the  said  Commissioner  in  the  aforesaid  requisition  for 
the  filling  up  of  the  deficiency  in  the  capital  of  such  company,  and 


266  niNES  INSURANCE   STATUTES. 

before  said  deficiency  sliall  have  been  made  up,  the  directors  shall 
be  individually  liable  to  the  extent  thereof.     {Ibid,  p.  56,  §  30.) 

51.  If,  upon  such  examination,  it  shall  appear  to  the  said 
Commissioner  that  the  assets  of  any  company  chartered  on  the  plan 
of  mutual  insurance  under  this  act  are  insufficient  to  justify  the 
continuance  of  such  company  in  business,  it  shall  be  his  duty  to 
proceed  in  relation  to  such  company  in  the  same  manner  as  herein 
requii'ed  in  regard  to  joint  stock  companies;  and  the  trustees  or 
directors  of  such  company  are  hereby  made  personally  liable  for  any 
losses  which  may  be  sustained  upon  risks  taken  after  the  expiration 
of  the  i)eriod  limited  by  the  said  Commissioner  for  filling  up  the 
deficiency  in  the  capital,  and  before  such  deficiency  shall  have  been 
made  up.  Any  transfer  of  the  stock  of  any  comi^any  organized 
under  this  act,  made  during  the  pending  of  any  such  investigation, 
shall  not  release  the  party  making  the  transfer  from  his  liability  for 
losses  which  may  have  accrued  preAaous  to  the  transfer.  {Ibid, 
p.  57,  §31.) 

53.  The  Insurance  Commissioner  shall  be  authorized  to  exam- 
ine into  the  condition  and  affairs  of  any  insurance  company,  as  pro- 
vided for  in  this  act,  doing  business  in  this  State,  not  organized 
under  the  laws  of  this  State,  or  cause  such  examination  to  be  made 
by  some  person  appointed  by  him ;  and  whenever  it  shall  api)ear  to 
the  satisfaction  of  said  Commissioner  that  the  affairs  of  any  such 
company  are  in  an  unsound  condition,  he  shall  notify  the  said 
Auditor,  who  shall  revoke  the  certificates  granted  in  behalf  of  such 
company,  and  shall  cause  a  notification  thereof  to  be  published  in 
one  or  more  newspapers  of  general  circulation,  and  to  be  mailed  to 
the  agents  licensed  by  the  Auditor;  and  the  agent  or  agents  of  such 
company  are,  after  such  notice,  required  to  discontinue  the  issuing 
of  any  new  policy,  or  the  renewal  of  any  pre^iously  issued;  and 
every  agent  or  other  person,  who  shall  willfully  continue,  in  any 
manner,  to  aid  or  engage  in  issuing  policies,  or  making  contracts 
for  any  such  company,  shall  be  liable  to  indictment  in  a  court  of 
competent  jurisdiction ;  and,  upon  conviction  thereof,  shall  be  con  - 
fined  in  the  penitentiary  for  not  less  than  six  nor  more  than  twelve 
months.     (Ibid,  §  32.) 

53.  Every  penalty  provided  for  by  this  act  shall  be  sued  for 
and  recovered  in  the  name  of  the  Commonwealth  of  Kentucky, 
by  the  commonwealth's  Attorney  of  the  County  in  which  the  com- 
pany or  the  agent  or  agents  so  violating  shall  be  situated  ;  and  said 
penalty,  when  recovered,  shall  be  paid  into  the  treasury  of  the 
State  ;  and  in  the  case  of  the  non-i)ayment  of  such  penalty',  the  party 
so  offending  shall  be  liable  to  imprisonment  for  a  period  not  exceed- 
ind  six  months,  in  the  discretion  of  any  comt  having  cognizance 
thereof.  Such  penalties  may  also  be  sued  for  and  recovered  in  the 
name  ot  the  Commonwealth  of  Kentucky,  by  the  Attorney-General ; 
and  when  sued  for  and  collected  by  him,  shall  be  paid  into  the  State 
treasiu-y,  less  thirty  per  cent,  to  be  paid  him  for  his  sevices,  {Ibid, 
§33.) 

54.  The  Auditor  of  Public  Accounts  of  this  commonwealth 
shall,  in  his  official  capacity,  take  and  hold,  on  deposit,  the  securities 
of  any  insurance  company,  other  than  life  insurance  companies  incor- 
porated imder  the  laws  of  this  State,  which  are  deposited  by  any  such 
company,  for  thepui'pose  of  comj^ljang  with  the  laws  of  other  States, 
in  order  to  enable  them  to  do  business  in  such  State,  and  give  a 
certificate  of  such  deposit  to  the  company  making  it.     The  company 


ICENTUCKY.  267 

making  sucli  deposit  shall  have  the  right  to  receive  the  income  of 
the  securities  deposited,  and  at  any  time  to  exchange  the  same  ac- 
cording to  the  laws  of  the  States  in  which  they  are  doing  business  ; 
Provided  always,  That  such  securities  shall  be  held  in  trust  for  the 
benefit  and  protection  of  all  the  policy-holders  and  creditors  of  the 
company  making  the  deposit  in  the  United  States,  and  shall  be 
subject  to  the  payment  of  any  forfeitures,  assessments,  or  taxes  due 
and  unpaid  to  this  State,  or  any  State  in  which  the  company  may 
do  business.     {Ibid,  p.  58,  §  34.) 

•15.  Whenever  the  existing  or  future  laws  of  any  other  States 
of  the  United  States  shall  require  of  insurance  companies  iucorjior- 
ated  by  or  organized  under  the  laws  of  this  State,  and  having  agen- 
cies in  such  other  States,  or  of  the  agents  thereof,  any  deposit  of 
secm-ities  in  such  State  for  the  protection  of  policy-holders  or  other- 
wise, or  any  payment  for  taxes,  fines,  penalties,  certificates  of  au- 
thority, license  fees,  or  otherwise,  gTeater  than  the  amount  required 
for  such  purposes  from  similar  companies  of  otber  States  by  the  then 
existing  laws  of  this  State,  then,  and  in  every  such  case,  all  compa- 
nies of  such  States  established  or  having  heretofore  established  an 
agency  or  agencies  in  this  State,  shall  be,  and  are  hereby,  required 
to  make  the  same  deposit  for  a  like  purpose  with  the  Auditor  of  this 
State,  and  to  pay  to  said  Auditor  and  Commissioner  for  taxes,  fines, 
penalties,  certificates  of  authority,  license  fees,  or  otherwise,  an 
amount  equal  to  the  amount  of  such  charges  and  payments  imposed 
by  the  laws  of  such  State  upon  the  companies  of  this  State  and  the 
agents  thereof     {Ibid,  §  35.) 

•iO.  The  necessary  expenditure  of  any  examination  made,  or  or- 
dered to  be  made,  by  the  Commissioner,  under  this  act,  shall  be  cer- 
tified to  by  him,  and  paid  by  the  compauy  examined.     {Ibid,  §  36.) 

57.  That  all  insiuance  companies  doing  any  business  provided 
for  under  section  one  of  this  act,  or  heretofore  incorijorated  by  the 
laws  of  this  Commonwealth,  are  required  to  make  all  the  returns 
and  perform  all  the  requirements  of  companies  organized  under  this 
act,  and  are  hereby  made  sulyect  to  all  the  penalties  and  are  enti- 
tled to  all  the  benefits  of  this  act  the  same  as  if  organized  there- 
under; Provided,  however,  That  where  the  capital  stock  of  such  com- 
panies shall  consist  in  part  of  stock  notes,  and  at  least  fifty  per  cent, 
of  the  capital  stock  of  such  companies  shall  have  been  paid  before 
the  first  day  of  July,  1870,  the  remainder  of  said  notes  may  continue 
to  be  held  until  they  shall  be  paid  up  by  the  dividends  of  such  com- 
panies, made  in  accordance  with  the  provisions  of  section  fifteen  of 
this  act ;  and  all  such  dividends  shall  be  appiied  to  their  i^ayment, 
until  said  stock  notes  are  fully  discharged  ;  and  it  shall  be  the  duty 
ot  said  comjianies  to  furnish  to  the  Commissioner,  in  connection 
^vith  their  annual  statement,  a  list  of  said  stock  notes,  with  names 
of  the  principals  and  sureties,  the  original  amounts,  and  the  amounts 
remaiiiing  unpaid,  with  the  certificate  of  a  justice  of  the  peace  of  the 
precinct  where  the  persons  makiug  such  notes  shall  reside  that  the 
persons  maliing  them  are,  in  his  opinion,  pecimiarily  good  and  re- 
sponsible for  the  same,  or  in  lieu  thereot  may  substitute  other  secu- 
rities satisfactory  to  the  Commissioner.     {Ibid,  §  37.) 

58.  That  hereafter  every  company,  association,  or  partnership, 
transacting  any  business  of  insurance  within  this  Commonwealth, 
organized  under  or  by  authority  of  any  other  State  or  country,  shall, 
on  the  first  Mondays  in  May  and  November  in  each  year,  report 
under  oath,  to  the  Auditor  of  Pabhc  Accounts,  the  total  amounts 


268  hine's  insurance  statutes. 

of  all  preniiums  received  within  the  six  montbs  next  preceding,  or 
since  the  last  returns  were  so  made,  and  shall  at  the  same  time  pay 
into  the  treasury  of  this  State  a  tax  of  two  dollars  and  fifty  cents 
upon  each  hundred  dollars  of  the  said  premiums  so  ascertained ; 
and  hereafter  no  clerk  of  any  county  court  shall  have  authority  to 
receive  or  receipt  for  any  such  taxes.     (J^M,^.  59,  §  38.) 

59.  That  any  president,  treasurer,  secretary,  company,  or  as- 
sociation, who  shall  neglect  or  ftiil,  for  the  space  of  thirty  days,  to 
report  or  pay,  as  required  by  the  thirty-eighth  and  forty-second  sec- 
tions of  this  act,  shall,  in  addition  to  the  tax,  forfeit  and  pay  one 
thousand  dollars  as  a  penalty  for  such  neglect  or  failure ;  and  the 
party  so  neglecting  or  failing  for  sixty  days,  shall  thereatter  be  de- 
barred trom  transacting  any  insurance  business  in  this  State,  either 
directly  or  indirectly,  until  such  taxes  and  ])enalties  are  fully  paid; 
and  the  Auditor  shall  revoke  the  certificate  of  authority  or  license 
granted  such  party  so  neglecting  or  failing,  for  sixty  days  after  the 
time  fixed  in  said  sections,  to  report  and  pay.     {Ibid,  §  39.) 

60.  That  nothing  in  the  thirty-eighth  section  of  this  act  shall 
be  construed  to  requii'e  any  report  to  the  Auditor,  or  any  i^ayment 
of  taxes  into  the  treasury,  on  premiums  received  by  general  agents, 
where  said  premiums  shall  have  been  received  throngh  local  agents 
of  their  company  or  companies  in  other  States,  nor  by  local  agents 
of  this  State,  where  said  local  agents  shall  have  already  made  re- 
turns of  amount  of  said  premiums  to  the  Auditor  and  paid  the  taxes 
thereon  ;  but  said  general  agents  shall  report  and  pay  taxes  on  all 
premiums  received  by  him,  or  by  his  solicitors  or  agents,  where  no 
previous  tax  shall  have  been  paid  thereon  in  this  State  ;  and  any 
general  agent  may  report  the  premiums  and  pay  the  taxes  for  any 
or  all  of  his  local  agents  or  solicitors  in  this  State,  in  which  case  he 
shall  give  the  name  and  location  of  each,  the  amount  of  premiums 
re(;eived,  the  deductions  made  for  returned  premiums  on  canceled 
policies,  and  amount  for  reinsurance,  balance  of  premiums,  and 
amount  of  tax  for  each  local  agent  or  solicitor.     {Ibid,  p.  00  §  40.) 

61.  That  if  any  president,  secretary,  agent,  attorney,  or  other 
person,  whose  duty  it  is  to  make  or  file  any  annual  or  other  state- 
ment, report,  or  other  instrument  in  writing,  requii'ed  by  the  pro- 
visions of  this  act,  shall  falsely  or  fraudulently  so  make  or  file  such 
statement,  report,  or  other  instrument,  he  shall  be  deemed  guilty  of 
Ijerjury,  and  upon  conviction  thereof,  shall  be  imprisoned  in  the 
county  jail  or  the  penitentiary,  as  may  be  determined  by  the  court 
or  jury,  for  a  period  of  not  less  than  three  nor  more  than  twelve 
months.     {Ibid,  §  41.) 

6!3.  It  shall  be  the  duty  of  the  president,  treasurer,  or  secre- 
tary of  any  insurance  company  organized  by  any  law  of  this  State, 
to  report,  under  oath,  to  the  Auditor  of  Public  Accounts,  on  or  be  - 
fore  the  tenth  day  of  July  in  each  year,  the  amount  of  its  capital 
stock  5  and  on  or  before  the  tenth  day  of  October  in  each  year  every 
such  company  shall  pay  into  the  treasury  a  tax  upon  the  full 
amount  of  such  capital  of  fifty  cents  upon  each  one  hundred  dol- 
lars ;  but  such  tax  shall  always  be  upon  an  amount  equal  to  the 
capital  stock  of  such  company.     {Ibid,  §  42.) 

6S.  This  act  shall  take  effect  from  its  passage  ;  Provided, 
That  agents  of  companies,  other  than  those  organized  under  the 
laws  of  this  State,  which  may  have  received  license  prior  to  the 
passage  of  this  act,  shall  not  be  obliged  to  renew  application  until 
such  license  shall  expire ;   but  such  companies,  and  companies  or- 


KENTUCKY.  200 

ganized  under  the  laws  of  this  State,  shall  be  subject  to  examina- 
tion at  the  discretion  of  the  Commissioner.     {Ibid,  §  43.) 

64.  All  receivers  of  insurance  companies  heretofore,  or  which 
may  hereafter  be  appointed,  shall  make  rei)orts  annually  to  the 
Commissioner,  and  as  much  oftener  as  he  may  require,  in  the  man- 
ner and  form  to  be  prescribed  by  him.     {Ibid,  p.  61,  §  44.) 


LIFE  INSURANCE  COMPANIES. 

65.  Any  number  of  persons,  not  less  than  twelve  in  number, 
may  associate  and  form  an  incorporation  or  company,  to  make  in- 
surance upon  the  lives  of  indi\iduals,  and  every  insurance  apper- 
taining thereto,  or  connected  therewith,  and  to  grant,  purchase,  <  r 
dispose  of  annuities  and  endowments  of  any  kind.  {Laics  of  1870, 
p.  til,  §  1.) 

66.  No  company  organized  under  the  laws  of  this  State,  or 
organized  under  the  laws  of  any  other  State,  or  of  the  United 
States,  or  of  any  foreign  government,  transacting  the  business  of 
life  insui'ance  in  this  State,  shall  be  permitted  to  take  any  other 
kind  of  risks,  except  those  connected  with  or  appertaining  to  uuxk- 
ing  insiu-ance  on  life,  and  the  granting,  j)urchasing,  and  disposing 
of  annuities  and  endowments;  Provided,  That  companies  author- 
ized by  the  laws  of  other  States  or  countries  to  do  both  fire  and 
life,  or  life  and  accident  insurance  business,  and  which  have  trans- 
acted either  a  fire  or  accident  business  in  this  State  under  the  au- 
thority of  its  laws,  may  continue  such  tire  or  accident  business 
therein,  and  may  renew  and  continne  in  force  any  life  policies  here- 
tofore issued,  but  shall  issue  no  new  life  policies.     {Ibid,  §  2.) 

67.  Every  insurance  company  organized  under  this  act,  or 
other  law  of  this  State,  shall  bave  authority  to  reinsure  any  risk 
herein  authorized  to  be  taken,  or  any  part  thereof.     {Ibid,  §  3.) 

6S.  The  persons  referred  to  in  the  first  section  of  this  act 
shall  be  designated  corporators ;  and  they  shall  file  in  the  ofiQce  of 
the  Insurance  Commissioner  a  declaration,  signed  by  each  of  them, 
setting  Ibrth  their  intention  to  form  a  company  for  the  purposes 
named  in  this  act,  which  shall  include  a  copy  of  the  charter  they 
propose  to  adopt,  which  charter  shall  set  forth  the  name  and  plan  of 
organization  of  the  company ;  whether  stock  or  mutual,  and  the 
amount  and  description  of  capital,  or  the  number  of  agreements 
for  insurance ;  the  place  where  it  is  to  be  located ;  the  kind  of  busi- 
ness to  be  undertaken ;  the  mode  and  manner  in  which  the  corpo- 
rate powers  of  the  company  are  to  be  exercised ;  the  manner  ot 
electing  the  trustees  or  directors,  and  officers,  and  the  number 
thereof,  a  majority  of  whom  shall  be  citizens  of  this  State,  and  the 
time  of  such  election;  the  maimer  of  filling  vacancies,  the  amount 
of  capital  to  be  employed,  and  such  other  particulars  as  may  be  neces- 
sary to  explain  and  make  manifest  the  objects  and  i)urposes  of  the 
company,  and  the  manner  in  which  it  is  to  be  conducted.  {Ibid, 
§4.) 

69.  Whenever  the  corporators  shall  file  such  declaration  with 
the  Insurance  Commissioner,  he  shall  notify  the  Auditor,  who  shall 
submit  the  same  to  the  Attorney-General  for  examination ;  and  if 
found  by  him  to  be  in  accordance  with  the  provisions  of  this  act, 
and  not  inconsistent  with  the  constitution  and  laws  of  the  United 
States  and  of  this  State,  he  shall  certify  to  the  same,  and  deliver  it 


270  hike's  insurance  statutes. 

to  the  Insurance  Commissioner,  who  shall  cause  the  said  declara- 
tion, with  the  certificate  of  the  Attorney-General,  to  he  tiled  away, 
after  the  same  has  been  recorded  in  a  book,  to  be  kept  for  that  pur- 
pose ;  and  upon  application  of  the  corporators,  or  a  majority  of 
them,  to  the  said  Commissioner,  it  shall  be  bis  duty  to  furnish  to 
them  a  certified  copy  of  such  declaration  and  certificate  under  his 
seal  of  office.     {Ibid,  p.  62,  §  5.) 

7®.  Whenever  the  incorporators  shall  have  received  from  the 
said  Commissioner  the  certified  copy  provided  for  in  the  ])receding 
section,  and  desire  to  proceed  to  organize  such  company,  they  shall 
publish  their  intentioiL  in  a  newspaper  published  in  the  county,  or, 
if  none  be  published  in  the  county,  in  which  said  company  is  to  be 
organized,  then  in  a  paper  having  general  circulation  therein,  pub- 
lished in  this  State ;  and  when  such  intention  has  been  published 
in  said  paper  for  six  weeks,  they  may  open  books  to  receive  sub- 
scriptions to  the  capital  stock,  and  keep  such  books  open  until  tlie 
amount  required  by  this  act  is  subscribed,  and  may  then  i^roceed  to 
distribute  the  stock  among  the  subscribers,  if  more  than  the  neces- 
sary amount  is  subscribed,  and  proceed  to  collect  in  the  said  capital 
and  complete  the  organization  of  the  company.  The  Commissioner, 
upon  notice  to  him  that  the  capital  stock  named  in  the  charter  has 
been  subscribed,  and  one  himdred  thousand  dollars  thereof  paid  in, 
shall  make  an  examination,  or  cause  one  to  be  made,  by  some  dis- 
interested person,  specially  appointed  by  him  for  that  purpose,  or 
by  his  deputy ;  and  if,  upon  examination,  it  shall  be  found  by  the 
Commissioner  or  his  deputy,  or  certified  to  him  by  the  person  so 
appointed,  under  oath,  that  the  i^ro visions  of  the  eleventh  section 
of  this  act  have  been  complied  with  by  said  company,  so  far  as  ap- 
plicable thereto,  which  certificate,  when  made,  shall  set  forth  the 
particulars  of  said  compliance,  then  the  Commissioner  shall  so  cer- 
tify ;  and  the  corjjorators  or  officers  of  such  company  shall  be  re- 
quired to  certify,  under  oath,  to  the  person  making  such  examina- 
tion, that  the  money  or  required  secmities  exhibited  to  him  are  the 
bona  fide  jjroperty  of  said  company.     {Ibid,  §  6.) 

7 1 .  Before  any  mutual  life  insurance  company  shall  go  into 
operation,  under  authority  of  any  general  or  special  law  of  this 
commonwealth  hereafter  to  be  enacted,  or  under  this  act,  a  guaran- 
tee caiiital  of  one  hundred  thousand  dollars  shall  have  been  sub- 
scribed, paid  in,  and  invested,  as  required  by  the  provisions  of  law 
regulating  investments  of  the  capital  of  life  insurance  companies ; 
or,  in  lieu  of  the  capital  required  by  this  and  the  preceding  section, 
when  bona  fide  agreements  for  assurance  named  in  the  charter, 
which  shall  not  be  less  than  one  hundred  i)ersons,  have  been  made, 
and  an  amount  of  premiums  not  less  than  one  hundred  thousand 
dollars  has  been  received  and  invested  in  the  same  description  of 
securities  in  which  capital  stock  is  required  to  be  invested.  The 
Commissioner,  upon  notice  to  him,  shall  make  an  examination,  or 
cause  one  to  be  made  by  some  disinterested  person,  specially  ap- 
pointed by  him  for  that  purpose,  or  by  his  deputy ;  and  if,  upon 
examination,  it  shall  be  found  by  the  Commissioner,  or  his  deputy, 
or  certified  to  him  by  the  person  so  appointed,  under  oath,  that  such 
agreements  have  been  entered  into  with  said  company,  and  pre- 
miums received,  in  the  manner  and  to  the  amount  aforesaid,  and 
are  held  by  it  in  money,  or  in  securities,  as  required  by  section 
eleven  of  this  act ;  and  the  corporators  or  officers  of  such  company 
shall  also  certify,  under  oath,  to  the  Commissioner  or  person  mak- 


KEXTUCKY.  271 

ing"  such  examinatiou,  that  the  money  or  required  securities  exhib- 
ited to  him  have  beeu  received,  aud  are  held  for  premiums  on  bona 
fide  proposals  and  agreements  for  insiu'ance,  the  Insurance  Com- 
missioner shall  certify  the  same  in  detail.     {Ibid,  p.  G3,  §  7.) 

7*Z.  Whenever  the  corporators  shall  have  fully  organized  such 
company,  and  the  Insurance  Commissioner  shall  be  furnished  with 
satisfactory  evidence  that  the  required  amount  of  capital  has  been 
paid  in,  invested,  and  deposited  as  hereinafter  i)rovided,  it  shall  be 
his  duty  to  furnish  the  corporation  with  a  certificate  of  such  deposit, 
which,  with  a  certified  copy  of  all  the  papers  elsewhere  required 
under  this  act,  shall,  when  filed  in  the  county  clerk's  office  of  the 
county  where  such  company  is  to  be  located,  be  the  authority  to 
commence  business  aud  issue  policies,  and  the  same  may  be  used 
in  evidence  for  aud  against  the  corporation  in  all  suits.  All  such 
companies,  when  no  other  provision  is  made,  may,  in  their  corporate 
name,  sue  and  be  sued,  appear,  prosecute,  and  defend  to  final  judg- 
ment, and  have  a  common  seal,  which  they  may  alter  at  pleasure. 
They  may  adopt  by-laws  not  inconsistent  with  their  charter  or  this 
act  or  the  constitution  and  laws  of  the  State,  as  may  be  deemed 
necessary  for  the  management  of  its  affairs.     {Ibid,  §  8.) 

73.  No  life  insiu'ance  company,  organized  under  any  general 
or  special  law  of  this  Commonwealth,  shall  adopt  the  name  of  any 
existing  insurance  company  or  association  transacting  business  in 
this  State,  or  any  name  so  similar  thereto  as  to  be  calculated  to  mis- 
lead the  public;  and  the  Insurance  Commissioner  is  hereby  prohib- 
ited from  granting  the  necessary  certificates  to  any  such  company 
adopting  a  name  prohibited  by  this  act,  to  enable  it  to  procure  the 
authority  to  do  business.     {Ibid,  p.  04,  §  9.) 

74.  Every  insurance  company  doing  business  in  this  State 
shall  conduct  the  same  in  the  proper  and  cori)orate  name  of  said 
company,  and  not  by  various  and  different  names.  The  policies  or 
contracts  of  insurance  hy  any  company  shall  be  headed  or  entitled 
only  in  the  corporate  name  or  title  of  said  company.     {Ibid,  §  10.) 

75.  The  cai)ital  stock  and  accumulations  not  required  for  its 
current  business  of  every  life  insurance  company  deriving  its  author- 
ity from  any  general  or  special  law  of  this  Commonwealth,  shall  be 
invested  in  the  bonds  or  treasury  notes,  bearing  interest,  of  the 
United  States,  or  bonds  of  the  State  of  Kentucky;  or  of  any  city, 
town,  or  county  of  this  State,  having  lawful  authority  to  issue  the 
same ;  or  in  bonds  of  railroad  companies  of  this  State ;  or  they  may 
be  invested  or  loaned  on  mortgages  of  real  estate  in  the  State  of 
Kentucky,  unincumbered,  aud  worth  at  least  double  the  amount 
loaned  thereon,  or  on  pledges  of  any  of  the  stocks  or  bonds  named 
in  this  section.  The  evidence  of  debts,  w^hether  notes,  bonds,  or 
other  instrument,  shall  in  all  cases  be  lodged  with  and  accompany 
the  mortgage,  in  such  manner  that  the  mortgage  can  not  be  released 
without  the  consent  of  the  company.     {Ibid,  §  11.) 

76.  Every  life  insurance  company,  organized  by  any  general 
or  special  law  of  this  Commonwealth,  shall  deposit  with  the  Treas- 
urer of  the  State,  who  shall  receive  the  same  in  his  official  capacity, 
any  of  the  bonds  or  securities  in  which,  by  law,  it  is  authorized  to 
invest  its  cajjital  and  accumulations,  to  an  amount  not  less  than 
one  hundred  thousand  dollars,  to  be  held  by  the  said  Treasurer  for 
the  benefit  of  the  policy-holders  of  the  company  making  such  de- 
posit. When  any  mortgage  debt  shall  be  deposited,  it  shall  be  ac- 
companied with  a  notice  served  upon  or  acknowledged  by  the  mort- 


272  hine's  insurance  statutes. 

gagor,  that  the  same  has  been  so  deposited  for  the  purpose  afore- 
said. When  required  to  do  so,  said  Treasurer  shall  give  to  any 
company  making  the  aforesaid  deposit  a  certificate  thereof,  giving 
description  of  the  seciuities,  and  their  par  or  market  value,  which 
valuation  must  be  approved  by  the  Commissioner:  and  if  said  se- 
curities shall  at  any  time  depreciate  so  that  their  aggregate  value 
is  less  than  the  sum  of  one  hundred  thousand  dollars,  the  Insurance 
Commissioner  shall  notify  and  require  said  company  to  make  good 
the  said  deficit ;  in  default  whereof,  lor  tbirty  days  alter  such  notice, 
he  shall  notify  the  company  to  cease  to  do  business  until  the  same 
has  been  done.  The  Treasurer  shall,  upon  receipt  of  said  securi- 
ties, and  upon  request  of  the  company  to  which  they  belong,  make 
a  si^ecial  deposit  of  the  same  in  a  package,  marked  with  the  name 
of  the  company  from  which  received,  and  otherwise  described  and 
designated,  in  any  incorporated  bank  of  this  tState  which  he  may 
approve,  to  be  there  held,  unless  removed  by  the  mutual  consent  ot 
the  comjiany  and  the  Treasurer,  or  in  accordance  with  other  provi- 
sions of  law,  as  security  for  i)olicy-holders  in  the  companies  to  which 
they  respectively  belong ;  but  so  long  as  any  company  so  depositing 
shall  continue  solvent,  and  shall  not  be  in  arrears  for  taxes  or  other 
assessments,  the  Treasurer  shall  permit  said  company  to  collect  the 
interest  or  di\adends  on  its  securities  so  deposited,  and,  from  time 
to  time,  to  withdraw  any  such  securities  on  depositing  others  in- 
stead of  those  withdrawn,  such  new  secui-ities  to  be  of  at  least 
equal  value,  and  of  the  kinds  mentioned  in  this  act;  but  such  securi- 
ties, or  any  part  of  the  same,  shall  not  be  withdrawn  from  the  place 
of  deposit  unless  upon  the  written  order  of  the  acting  i^resident  and 
secretar}',  or  of  the  directors  of  the  company  making  the  deposit, 
indorsed  by  the  Insiu-ance  Commissioner,  or  upon  the  order  or  by 
the  authority  of  some  court  of  competent  jurisdiction ;  and  if  the 
said  Treasurer  shall  willfully  fail,  refuse,  or  neglect  to  faithfully 
keep,  deposit,  account  for,  or  sui-reuder,  in  the  manner  by  this  act 
authorized  or  required,  any  such  securities  as  aforesaid  received  by 
him,  or  into  his  custody,  under  the  i)rovisions  of  this  act,  such 
Treasurer  so  otiending  shall,  upon  conviction  thereof,  be  adjudged 
guilty  of  a  felony,  and  punished  by  tine  not  exceeding  ten  thousand 
dollars,  and  by  imprisonment  in  the  State  penitentiary  for  not  less 
than  two  nor  more  than  ten  years.     {Ibid,  §  12.) 

77.  Any  court  of  competent  jurisdiction,  whenever  a  judgment 
shall  have  been  recovered  against  any  company  by  which  any  such 
securities  have  been  deposited,  as  hereinbefore  required  or  author- 
ized, upon  a  policy  issued  by  such  company,  and  an  execution  issued 
upon  such  judgment  shall  have  been  returned  unsatisfied,  wholly  or 
in  part,  shall,  upon  motion  made  by  the  plahitift"  in  such  execution, 
upon  three  days'  notice  to  the  company,  order  the  Insurance  Com- 
missioner and  Treasurer  to  deliver  into  coiu-t,  of  the  securities  so 
deposited  by  said  com[)any,  an  amount  sufficient  to  satisfy  said 
judgment  in  full,  or  so  far  as  such  securities  will  suffice  therefor; 
which  order,  being  obeyed,  shall  release  the  Treasurer,  Commis- 
sioner, and  bank  holding  such  securities  on  dei)osit,  trom  further 
liability  in  respect  to  the  same ;  and  the  secimties  so  delivered  into 
court  shall  be  collected  or  disposed  of  for  the  benefit  of  said  i^lain- 
tiff,  as  provided  by  law  in  respect  to  notes  or  securities  delivered 
into  court  by  a  garnishee ;  and  whenever  any  securities,  such  as 
aforesaid,  shall  be  delivered  into  any  court,  under  the  foregoing 
provisions,  said  (Jommissioner,  unless  the  comi^any  against  whom 


r^ 


KENTUCKY.     '  273 

such  execution  issued  sball,  witbiu  ten  days  thereafter,  deposit  with 
the  Treasurer  other  securities  of  like  description  and  vakie,  and  for 
the  like  purposes  as  the  securities  so  withdrawn,  shall  proceed  in 
respect  to  such  company  in  the  manner  provided  by  kiw  Avitii 
respect  to  companies  believed  by  him  to  be  insolvent,  or  in  an 
unsound  condition.     {Ibid,  j^-  ^-^j  §  13.) 

7  8 .  The  Insurance  Commissioner  and  Treasurer  may  deliver  uy) 
to  any  insurance  company  the  securities  held  by  the  Treasurer,  in 
virtue  of  this  act,  and  belonging  to  such  company,  on  being  satisfied, 
by  the  exhibition  of  the  books  and  papers  of  such  company  or  asso- 
ciation, and  on  examination  to  be  made  by  the  Commissioner,  or 
some  competent  person  to  be  appointed  by  him,  not  an  ofiBcer  of 
any  life  insurance  com;>any  in  this  State,  and  upon  the  oath  of  the 
president  or  principal  officer,  and  the  secretary  or  actuary-  of  the 
same,  or  a  majority  of  the  trustees  or  directors,  that  all  debts  and 
liabilities  of  every  kind  are  paid  and  extinguished  that  are  due,  and 
may  become  due,  upon  any  contract  or  agreemant  made  with  any 
citizen  of  the  United  States;  and  the  said  Commissioner  and  Treas- 
urer may  also,  from  time  to  time,  deliver  up  to  such  company  or 
association,  or  its  assigns,  any  portion  of  said  securities,  on  being 
satisfied,  in  manner  and  form  aforesaid,  or  by  any  other  competent 
proof,  that  all  the  debts  and  liabilities  of  every  kind  that  are  due, 
or  may  become  due,  upon  any  contract  or  agreement  made  with  any 
citizen  of  this  State  or  of  the  United  States,  by  said  company,  are 
less  than  one-half  of  the  amount  of  the  portion  of  said  securities 
that  shall  be  retained  on  <leposit ;  but  before  they  shall  so  deliver 
up  the  whole,  or  any  i)ortion  of  said  securities,  they  shall  advertise, 
in  some  newspaper  published  in  this  commonwealth,  for  three 
months,  the  intention  to  do  so,  unless  good  cause  is  shown  why  they 
shall  not  be  so  delivered  up.     {Ibid,  p.  66,  §  14.) 

79.  It  shall  be  the  duty  of  every  life  insurance  company  doing 
business  in  this  State,  whether  deriving  then-  corporate  powers  from 
this  State  or  any  other  State,  or  from  the  United  States,  or  from 
any  foreign  government,  on  the  10th  day  of  January  in  each  year, 
or  within  sixty  days  thereafter,  to  return  a  statement,  in  detail,  of 
their  condition  to  the  Commissioner  of  Insurance,  certified,  under 
oath,  by  two  of  the  principal  othcers  of  said  company,  or  by  a 
majority  of  the  directors,  wiiich  shall  be  in  form  as  follows: 
1.  Name  of  the  company;  2.  When  and  by  what  authority  char- 
tered ;  3.  For  what  period ;  4.  Where  located ,  5.  State  in  full  the 
assets  of  the  company ;  6.  Number  of  shares  owned  in  each  bank  or 
railroad,  separately,  with  par  and  market  value  of  each,  and  cost 
on  books  of  each;  7.  Amount  owned  in  railroad,  city  or  county 
bonds,  sej)arately,  par  and  market  value  of  each;  8.  Amount  in 
State  or  United  States  bonds,  i^ar  and  market  value ;  9.  Amount 
loaned  on  mortgages  of  real  estate,  with  value  of  real  estate,  and 
whether  the  evidences  of  debt  are  held  with  them;  10.  Amount 
loaned  on  notes  secured  by  collaterals  of  personal  security,  and 
whether  safe;  11.  Amounts  loaned  on  notes  without  coltaterals; 
12.  State  in  full  all  other  investments ;  13.  How  much  included  in 
the  foregoing  statement  of  assets  consists  of  premium  notes  on  policies 
not  now  in  force ;  14.  Number,  date,  amount,  and  description  ot  each 
outstanding  policy  not  heretofore  returned,  and  age  of  the  insured; 
15.  Number,  date,  amount,  and  description  of  each  policy  which  has, 
within  the  year,  ceased  to  be  in  force,  how  terminated,  what  has 
been  paid  to  the  legal  holder  of  the  policv,  and  age  of  the  insured ; 
18 


274  HINE'S  mSUEANCE  STATUTES. 

16.  Amount  of  losses  ascertained  and  unpaid ;  17.  Amount  of 
losses  claimed  against  the  company,  whether  acknowledged  as  due 
or  not  by  the  company ;  18.  Amount  due  from  the  company  on  its 
declared,  promised,  or  acknowledged  indebtedness,  or  other  claims, 
including  dividends,  bonuses  on  distribution  of  surplus,  or  as 
profits;  19.  Amount  received  for  premiums  the  past  year;  20. 
Amount  received  for  i^remiums  the  past  year  in  cash;  21.  Amount 
received  in  same  time  in  premiums,  in  promissory  notes  or  securi- 
ties ;  22.  Amount  received  for  interest  the  past  year ;  23.  Amount 
paid  for  interest  the  past  year;  24.  Amount  of  guarantee  funds, 
stating  i^articularly  whether  the  same  are  in  cash  or  subscription 
notes ;  25.  How  are  dividends,  distribution  of  surplus  funds, 
bonuses,  or  estimated  profits,  paid;  whether  in  cash  or  in  scrip,  or 
otherwise  on  credit,  and  whether  on  demand ;  or  if  on  credit,  for 
what  length  of  time,  and  whether  payable  at  a  specific  time  or 
indefinitely,  at  the  discretion  of  the  company;  26.  Amount  paid 
for  expenses,  taxes,  and  commissions,  the  past  year;  27.  A  descrip- 
tive list  of  all  the  policies  in  force,  unless  said  list  shall  have  been 
previously  furnished  ;  28.  The  whole  number  of  policies  issued  in  the 
iState  of  Kentucky,  the  amount  assured  thereby,  and  amount  of  pre- 
miums in  cash  or  credits,  or  notes  received  thereon  ;  29.  A  balance 
sheet  of  the  business  of  the  company,  taking  as  the  basis  the  net  as- 
sets of  the  company  on  the  31st  day  of  December  of  the  year  pre- 
ceding that  for  which  the  statemeut  is  made,  which  annual  state- 
ment shall  be  brought  down  to  31st  of  December  next  preceding  the 
time  in  which  it  is  required  to  be  returned.     {Ibid,  p.  67,  §  15.) 

8©.  The  Insurance  Commissioner  is  hereby  authorized  to 
revise  and  amend  the  forms  of  annual  statemeut  hereinbefore  pre- 
scribed, and  to  propose  such  additional  inquiries  as  are,  in  his 
opinion,  necessary  to  elicit  a  full  exhibit  of  the  business  and  stand- 
ing of  the  various  life  iusurance  companies  doing  business  in  this 
Commonwealth.     [Ibid,  p.  Q^  §  16.) 

81.  The  time  prescribed  for  filing  annual  statements  of  insur- 
ance companies  may  be  extended  by  the  Commissioner  in  favor  of 
any  company,  for  good  cause  shown,  but  not  beyond  sixty  days 
next  after  such  specified  time.     [Ibid,  §  17.) 

82.  Any  company  doing  business  in  this  State,  neglecting  to 
make  returns  in  the  manner  and  within  the  time  prescribed  by  law, 
unless  extended  by  the  Commissioner,  as  prescribed  in  the  preced- 
ing sections,  shall  forfeit  ten  dollars  a  day  for  each  day  of  such 
neglect ;  and  every  company  that  AvillfuUy  makes  false  statements 
shall  be  liable  to  a  fine  of  not  less  than  five  hundred  nor  more  than 
one  thousand  dollars.  Any  new  business  done  by  any  company,  or 
its  agents,  in  this  State,  after  neglect  to  make  the  prescribed 
returns,  shall  be  deemed  to  be  done  in  violation  of  law.   {Ibid,  §  18.) 

83.  If,  upon  examination,  the  Commissioner  is  of  opinion  that 
a  company  is  insolvent,  or  that  its  condition  is  such  as  to  render  its 
turther  proceedings  hazardous  to  the  public,  or  to  those  holding  its 
policies,-  he  shall  report  to  the  Attorney-General,  who  shall  apply  to 
a  judge  of  the  Franklin  circuit  court,  or  of  the  circuit  court  of  the 
county  where  such  company  is  located,  to  issue  an  injunction 
restraining  such  company,  in  whole  or  in  part,  from  further  pro- 
ceeding with  its  business,  notice  of  which  application  shall  be 
forthwith  served  on  said  company  or  its  representative ;  and  said 
application  shall  be  heard  within  twenty  days  after  such  notice, 
unless,  for  good  cause  shown  by  the  company  or  the  Commissioner, 


KENTUCKY.  275 

further  time  shall  be  deemed  necessary  to  the  ends  of  justice.  The 
court  shall  have  power  to  refer  the  complaint  or  application  of  the 
Attorney-General  to  a  referee,  to  inquire  into  and  report  npon  the 
facts  stated  herein.  He  may  make  such  orders  and  decrees  as  may 
be  needful  to  susi^end,  restrain,  or  prohibit  the  further  continuance 
of  the  business  of  the  comi)any ;  and  may  appoint  agents  or 
receivers  to  take  possession  of  the  property  and  effects  of  the  com- 
pany, subject  to  such  rules  and  orders  as  are,  from  time  to  time, 
according-  to  the  course  of  i^roceediugs  in  equity,  prescribed  by  the 
court  or  a  judge  thereof  in  vacation.     {Ibid,  §  19.) 

84.  Whenever,  upon  examination,  the  Commissioner  is  of 
opinion  that  auy  insurance  company  incorporated  in  this  common- 
wealth has  exceeded  its  powers  or  failed  to  comply  with  any  of  the 
rules,  restrictions,  or  conditions  jirovided  by  law,  he  may  apply  to 
the  judge  of  the  Franklin  circuit  ciuirt,  or  of  any  court  having 
chancery  jurisdiction  in  the  county  where  such  company  is  located, 
to  issue  an  injunction  restraining  such  company,  in  whole  or  in  part, 
from  further  proceeding  with  its  business;  and  the i)rovisions  of  the 
preceding  section  are  hereby  extended  to  proceedings  under  this 
section.  The  costs  and  reasonable  expenses  of  any  examination  or 
proceeding  authorized  by  this  or  the  preceding  section  of  this  act, 
including  reasonable  attorney's  fees,  to  be  allowed  and  taxed  as 
costs  by  the  court  or  judges  appointing  snch  attorney  as  aforesaid,, 
shall  be  paid  by  the  company  so  examined  or  proceeded  against ; 
and  su(;li  expenses,  other  than  taxed  costs,  may  be  recovered  by  said 
Commissioner  in  an  action  therefor  against  such  company  ;  Provided, 
That  if  any  injunction  issued  hereunder  be  dissolved,  and  the  court 
or  judge  dissolving  the  same  shall  not  state  in  the  order  or  decree 
of  dissolution  that  there  was  reasonable  grounds  for  procuring  such 
injunction,  the  costs  of  such  proceeding  shall  be  taxed  and  paid  by 
the  Commissioner  of  the  Insurance  Bureau,  and  shall  be  allowed 
him,  in  his  accounts,  upon  proper  vouchers  therefor,  as  expenses  of 
said  department.     {Ibid^p.  69,  §  20.) 

85.  Wheal  a  majority  in  number  or  interest  of  the  members  of 
an  insurance  company,  incorporated  in  this  State,  desire  to  close  its 
concerns,  they  may  apply,  by  petition,  to  any  coiu't  having  chancery 
jurisdiction,  of  the  county  where  such  insurance  company  is  located, 
setting  forbli  in  substance  the  grounds  of  their  application  ;  and  the 
court,  after  due  notice  to  all  parties  interested,  by  publication  in  a 
newspaper  published  or  having  general  circulation  in  the  county 
where  the  company  is  located,  at  least  once  a  week  for  six  months, 
may  proceed  to  hear  the  matter,  and  for  reasonable  cause  decree  a 
dissolution  of  the  company.  Corporations  so  dissolved  shall  be 
deemed  and  held  extinct,  in  all  respects  as  if  their  charters  had  ex- 
pired by  their  own  limitation  ;  Provided,  hoivever,  That  all  necessary 
proceedings  may  be  taken  by  the  company,  or  by  the  court,  for 
closing  up  its  affairs;  and  the  court  having  jurisdiction  may  make 
such  orders,  injunctions,  and  decrees  as  justice  and  equity  require. 
{Ibid,  §  21.) 

86.  All  accounts  rendered  by  receivers  of  insurance  com- 
panies, appointed  as  provided  in  this  act,  to  the  court  having  juris- 
diction, shall  be  referred  to  the  Insurance  Commissioner,  who  shall 
carefully  examine  the  same,  and  report  to  the  court  any  errors  or 
omissions  ;  and  the  court  may  make  all  such  orders  and  decrees  in 
the  premises  as  to  law  and  justice  ai)pertain.     {Ibid,  p.  70,  §  22.) 

87.  The  receivers  of  insurance  companies,  shall  report  to  the 


276  hine's  insurance  statutes. 

Insurance  Commissioner,  annually,  in  such  form  as  he  may  pre- 
scribe, on  or  l^efore  the  fifteenth  day  of  March,  and  as  much  oftener 
as  he  directs.  Such  reports,  or  abstracts  therefrom,  shall  be  incor- 
porated in  the  annual  report  of  the  Commissioner.     {Ihid,  §  23.) 

M8.  Life  insurance  companies,  incorporated  in  this  State,  may 
exercise  all  the  powers,  and  shall  be  subject  to  all  the  duties  and  lia- 
bilities, provided  in  this  act,  not  inconsistent  with  their  respective 
charters.     {Ibid,  §  24.) 

Sif.  Every  life  insurance  conii)any,  not  now  in  operation, 
which  shall  fail  for  twelve  months  after  the  i)assage  of  this  act,  or 
the  filing  of  a  declaration  under  this  act,  to  comply  with  the  law, 
and  obtain  authority  to  commence  business,  shall  be  deemed  and 
held  extinct,  and  its  charter  proceeding  void.     {Ibid^  §  25.) 

90.  It  shall  be  the  duty  of  the  president,  treasurer,  or  sec- 
retary of  any  life  insiu'ance  company,  deriving  its  authority  from 
any  general  or  special  law  of  this  commonwealth,  to  rei)ort  under 
oath  to  the  Auditor  of  Public  Accounts,  at  the  time  of  liling  the 
annual  statement  of  such  company,  the  amount  of  cajntal  stock  of 
such  company  or  association,  and  shall  at  the  same  time  cause  a  tax 
of  fifty  cents  upon  each  one  hundred  dollars  of  capital  stock  to  be 
paid  into  the  treasury  proper  of  the  fState;  Provided^  That  no  life 
insurance  comi)any  sball  pay  upon  less  than  one  hundred  thousand 
dollars,  whether  it  be  a  stock  or  mutual  company.     {Ibid,  §  26.) 

|>  1 .  No  taxes  shall  be  assessed  in  any  city  or  town  for  any 
State,  county,  or  town  purposes,  upon  the  shares  in  the  capital 
stock  or  accumulated  funds  for  any  year  for  which  they  pay  the 
taxes  provided  herein  to  be  paid ;  but  this  shall  not  exempt  the  real 
estate  of  such  company.     (J  bid,  §  27.) 

9'2,  Life  insurance  companies  of  this  State,  which  do  business 
upon  the  principle  of  mutual  insurance,  or  the  members  of  which 
are  entitled  to  share  in  the  surplus  fund  thereof,  may  make  distri- 
bution of  so  much  thereof,  after  retaining  the  reserve  required  by 
law,  as  the  company  may  determine,  annually,  or  once  in  two,  three, 
four,  or  five  years.     {Ibid, p.  71,  §  28.) 

93.  When  the  actual  funds  of  any  life  insurance  company  do- 
ing business  in  this  commonwealth  are  not  of  a  net  cash  value 
equal  to  its  liabilities,  counting  as  such  the  net  value  of  its  ])olicies, 
according  to  the  "American  Experience"  rate  of  mortality,  with  in- 
terest at  four  and  one-half  per  centum  per  annum,  it  shall  be  the 
duty  of  the  Insurance  Commissioner  to  give  notice  to  such  company 
and  its  agent  to  discontinue  issuing  new  policies  within  this  com- 
monwealth until  such  time  as  its  funds  have  become  e(]ual  to  its  lia- 
bilities, valuing  its  policies  as  aforesaid.  Any  ofiicer  or  agent  who, 
after  such  notice  has  been  given,  issues  a  new  policy  from  and  on 
behalf  of  such  company,  before  its  funds  have  become  equal  to  its 
liabilities  as  aforesaid,  shall  forfeit  for  each  offense,  not  exceeding 
one  thousand  dollars.     [Ibid,  §  29.) 

94.  A  policy  of  insurance  on  the  life  of  any  person,  expressed 
to  be  for  the  benefit  of  any  married  woman,  whether  procured  by 
herself,  her  husband,  or  any  other  person,  shall  inure  to  her  separate 
use  and  benefit,  and  that  of  her  children,  independently  of  her  hus- 
band or  his  creditors,  or  the  person  effecting  the  same  or  his  credit- 
ors. A  trustee  may  be  appointed  by  the  party  obtaining  the  policy, 
or  if  no  such  appointment  is  made,  then  by  any  judge  of  the  pro- 
bate coiu't  of  the  county  in  which  the  party  for  whose  benefit  the 
policy  is  made  shall  reside,  to  hold  the  interest  of  the  married 


KENTUCKY.  277 

woman  in  such  policy,  or  the  proceeds  tlieroof,  if  the  law  at  the  time 
makes  such  trustee  necessary  to  etfect  the  object  for  which  the 
policy  was  obtained.     {Ibid^  §  30.)  ♦ 

95.  A  policy  of  insurance  on  the  life  of  any  person,  duly  as- 
signed, ti'ansferred,  or  made  payable  to  any  married  woman,  or  to 
any  person  in  trust  for  her,  or  for  her  benefit,  whether  such  transfer 
be'made  by  her  husband  or  other  person,  shall  inure  to  her  separate 
use  and  benelit,  and  that  of  her  children,  independently  of  her  hus- 
band or  his  creditors,  or  of  the  person  effecting  or  transferring  the 
same,  or  his  creditors ;  Provided,  Jioicever,  That  if  the  premium  on 
such  policy  is  paid  by  any  person  with  intent  to  defraud  his  creditors, 
an  amount  equal  to  the  premium  so  paid,  with  interest  thereon,  shall 
iniu-e  to  the  benelit  of  said  creditors,  subject,  however,  to  the 
statute  of  limitations.     {Ibid,  §  31.) 

90.  When  a  policy  is  effected  by  any  person  on  his  own  life, 
or  on  the  life  of  another,  expressed  to  be  for  the  benefit  of  such 
other  or  his  representatives,  or  a  third  i)erson,  the  person  for  whose 
benefit  it  was  made  shall  be  entitled  thereto  against  the  creditors 
and  the  representatives  of  the  person  effecting  the  same.  If  the 
premium  is  i^aid  by  any  person  with  intent  to  defraud  his  creditors, 
an  amount  equal  to  the  premium  so  paid,  with  interest  thereon, 
shall  inure  to  their  benefit      {Ibid,  p.  72,  §  32.) 

97".  Xo  life  insurance  company  shall  be  permitted  to  purchase, 
hold,  or  convey  real  estate,  excepting  for  the  purpose  and  in  the 
manner  herein  set  forth  : 

J'/rst.  — Such  as  shall  be  requisite  or  convenient  for  its  accommo- 
dation in  the  transaction  of  its  business;  or 

Second. — Such  as  shall  have  been  mortgaged  in  good  faith,  by 
way  of  security  for  loans  previously  contracted  for  moneys  due ;  or 

Third. — Such  as  shall  have  been  conveyed  to  it  in  satisfaction 
of  debts  pre\aously  contracted  in  the  course  of  its  dealings ;  or 

Fourth. — ^uch  as  shall  have  been  purchased  at  sales  upon  the 
judgments,  decrees,  or  mortgages  obtained  or  made  for  such  debts  ; 
and  it  shall  not  be  lawful  for  such  company  to  x>iu'chase,  hold,  or 
convey  real  estate  in  any  other  case,  or  for  any  other  purpose ;  and 
all  such  real  estate  as  may  be  acquired  as  aforesaid,  and  which 
shall  not  be  requisite  or  convenient  for  the  accommodation  of  such 
company  in  the  convenient  transaction  of  its  business,  shall  be  sold 
and  disposed  of  within  five  years  after  such  company  shall  have 
acquired  absolute  title  to  the  same;  and  it  shall  not  be  lawful  for 
such  company  to  hold  real  estate  for  a  longer  period  than  that 
above  mentioned,  unless  the  said  company  shall  procure  a  certificate 
from  the  Commissioner  of  Insurance  that  the  interests  of  the  com- 
pany will  suffer  materiall3'  by  a  forced  sale  of  such  real  estate  ;  in 
which  event  the  time  for  the  sale  may  be  extended  to  such  time  as 
the  Commissioner  of  Insurance  shall  direct  in  such  certificate. 
{Ihid,  §  33.) 

98.  It  shall  not  be  lawful  for  any  person  to  act  within  this 
State  as  agent  or  otherwise,  in  receiving  or  procuring  applications 
for  assurance,  or  in  any  manner  to  aid  in  transacting  the  business 
referred  to  in  the  first  section  of  this  act,  for  any  life  assurance 
company,  or  association,  incorporated  by,  or  organized  under,  the 
laws  of  the  United  States,  or  any  other  State  of  the  United  States, 
or  any  foreign  government,  unless  such  company  is  possessed  of  the 
amount  of  capital,  and  of  actual  paid-up  capital,  I'equired  of  com- 
panies formed  under  the  provisions  of  this  act.     {Ibid,  §  34.) 


278  hine's  insurance  statutes. 

99.  No  such  company  mentioned  in  the  preceding  section  shall 
transact  any  business  in  this  State,  bj'  an  agent,  unless  it  shall 
first  file,  with  the  Insurance  Commissioner,  a  written  instrument  or 
power  of  attorney,  duly  signed  and  sealed,  authorizing  any  and 
every  agent  that  is  or  may  be  acting  for  such  company  in  this  State 
to  acknowledge  service  of  process  for  and  in  behalf  of  such  com- 
pany in  this  State,  and  consenting  that  service  of  process  on  any 
such  agent  shall  be  taken  and  held  to  be  as  valid  as  if  served  upon 
the  company,  according  to  the  laws  of  this  or  any  other  State ;  and 
that  in  case  any  such  insurance  company  shall  cease  to  transact 
business  in  this  State,  any  i)erson  who  acts  as  such  agent  shall  be 
considered  and  held  as  continuing  to  be  agent  for  such  company, 
for  the  purpose  of  process,  as  aforesaid,  in  any  action  against  the 
company  upon  any  policy  or  liability  issued  or  contracted  during 
the  time  such  company  transacted  business  in  this  State.  Service 
of  process  upon  any  such  agent,  wherever  found  in  this  State,  shall 
be  sufficient  to  give  jurisdiction  to  the  proper  court  of  the  county 
where  the  cause  of  action  may  have  arisen,  or  of  the  county 
of  the  residence  of  the  assured  when  the  suit  shall  be  upon 
any  policy  relating  to  life  insurance ;  it  shall  be  the  duty  of  the 
clerk  of  the  coui't  in  which  suit  may  be  brought  against  any  insur- 
ance company,  at  the  commencement  of  the  action,  to  place  in  the 
post-office  a  copy  of  the  summons  or  other  process  which  may  be 
issued  in  the  cause  directed  to  the  company,  at  the  place  of  the  lo- 
cation of  its  principal  office,  postage  paid  ;  and  he  shall  make  a  note 
or  memorandum  thereof  on  the  papers  of  the  suit,  and  tax  the 
costs,  i)ostage  included,  as  other  costs  of  the  suit;  Provided^  That 
such  notification  by  the  clerk  shall  not  affect  the  time  of  the  trial 
of  the  cause.  If  any  such  insurance  company  shall,  without  the 
consent  of  the  other  parties  to  any  suit  or  proceeding  against  it, 
brought  or  to  be  brought,  in  any  of  the  courts  of  this  common- 
wealth, remove  the  said  suit  or  proceeding  into  any  Federal  court, 
or  if  such  com])any  shall  hereafter  institute  any  suit  or  proceeding 
against  any  citizen  of  the  commonwealth  in  any  Federal  court,  it 
shall  be  the  duty  of  the  Auditor  forthwith  to  revoke  all  authority 
to  such  company,  and  all  its  agents,  to  do  business  in  this  common- 
wealth, and  to  publish  such  revocation  in  some  newspaper  published 
in  this  commonwealth.     {Ihidjp.  73,  §  35.) 

100.  It  shall  not  be  lawful  for  any  life  insurance  company, 
organized  or  incorporated  under  the  laws  ot  the  United  States,  or 
of  any  State  thereof  except  this,  or  of  any  foreign  government,  to 
transact  any  business  in  this  State  mentioned  in  the  first  section  of 
this  act,  until  it  shall  have  filed  with  the  Insurance  Commissioner 
of  this  State  the  certificate  of  the  Superintendent  or  Commissioner 
of  Insurance,  or  some  chief  financial  officer  of  some  other  of  said 
United  States,  or  financial  officer  of  the  United  States,  under  his 
hand  and  official  seal,  that  he  holds  on  deposit,  for  the  benefit  of  all 
policy-holders  of  such  company,  stocks  and  securities  amounting  to 
at  least  one  hundred  thousand  dollars,  stating  the  kind,  such  as  life 
insurance  companies  of  this  State  are  authorized  to  invest  their 
capital  stock  in,  or  in  which  such  companies  are  authorized  to  invest 
their  capital  stock  or  accummidated  funds  by  the  State  in  which 
the  deposit  has  been  made,  or  by  the  law  of  the  United  States ; 
Provided,  That  any  such  company,  not  having  such  deposit  made 
in  the  State  in  which  it  is  organized,  or  with  some  officer  of  the 
United  States,  or  in  some  other  State,  may  make  such  deposit  in 


KEMTUCKY.  279 

this  State  in  the  manner,  and  subject  to  the  provisions  of  law,  ap- 
plicable to  similar  companies  of  this  State.     {Ibid,  §  3G.) 

lOl.  Every  life  insurance  company,  not  organized  under  the 
law  of  this  State,  before  transacting'  any  business  in  this  State,  if  it 
has  not  already  done  so,  shall  return  to  the  Auditor  a  copy  of  its 
charter,  articles  of  association,  or  deed  of  settlement,  by  whatever 
name  its  organic  law  may  be  called ;  and  the  Auditor  shall,  upon 
recei\ing  a  certificate  from  the  Insurance  Commissioner  that  such 
company  has  fully  complied  wtth  the  laws  of  this  State,  and  is  pos- 
sessed of  the  legal  reserve,  fiumish,  to  such  agents  as  the  company 
dii'ects,  a  copy  of  such  Commissioner's  certificate,  together  with  a 
license  to  transact  business  as  agent  for  said  company  under  the 
seal  of  the  Bureau  of  Insurance.     {Ibid,  p.  74,  §  .37.) 

1®3.  Licenses  to  agents  must  be  renewed  annually,  in  the 
same  manner  as  original  licenses  were  issued,  upon  certificate  of  the 
Commissioner  that  the  company  represented  by  the  agent  has  fully 
complied  with  the  law  of  this  State,  and  maintains  its  legal  reserve. 
{Ibid,  §  3S.) 

Hya.  It  shall  be  the  duty  of  the  State  agent  or  manager  of 
every  company,  and  when  there  is  no  State  agent  or  manager,  then 
a  special  agent,  appointed  for  that  purj^ose,  to  return  to  the  Auditor 
for  deposit  in  the  Insurance  Bureau,  on  the  first  daj'  of  May  and 
November  in  each  year,  or  in  thirty  days  thereafter,  a  correct  state- 
ment, under  oath,  of  all  premiums  received  or  agreed  to  be  re- 
ceived, by  all  their  agents  doing  business  in  this  State,  and 
amount  of  insurance  effected,  designating  therein  the  amount  in 
cash,  or  in  notes  or  certificates  of  forbearance  of  premium,  or  loans 
on  pohcies  or  renewals.  If  no  premiums  have  been  received,  the 
fact  shall  nevertheless  be  reported;  Provided,  That  the  Commis- 
sioner mav,  for  a  good  cause  shown,  extend  the  time  for  making  such 
return,     (ibid,  ^39.) 

104.  Every  such  agent  of  any  insiu-ance  company,  not  incor- 
porated in  this  State,  neglecting  to  make  the  returns  required  by 
law,  shall  forfeit  twenty-five  dollars  for  each  offense,  to  be  recovered 
by  the  Insurance  Commissioner,  for  the  use  of  the  commonwealth. 
Sucli  agent  so  neglecting  shall  be  notified  by  the  Commissioner  or 
his  deputy;  and  if  he  continues  such  neglect  for  ten  days  after  such 
notice  is  deposited  in  the  x)ost-office,  directed  to  his  proi)er  address, 
or  has  been  otherwise  conveyed  to  him,  he  shall  forfeit  five  hundred 
dollars  for  such  neglect,  to  be  recovered  by  the  Commissioner  ibr 
the  use  of  the  commonwealth ;  Provided,  That  no  agent  shall  be 
held  liable  if  it  is  made  to  appear,  to  the  satisfaction  of  the  Commis- 
sioner, that  the  required  statements  were  duly  deposited  in  the  post- 
ofi&ce  and  directed  to  the  Insurance  Commissioner,  and  that  there 
was  no  neglect  on  his  ])art.     {Ibid,  p.  75,  §  40.) 

105.  It  shall  be  the  duty  of  every  life  insurance  company,  not 
organized  under  authority  of  the  laws  of  this  State,  but  doing  bus- 
iness therein,  on  or  before  the  first  Mondays  in  June  and  December 
of  each  year  to  pay  into  the  treasury  two  dollars  and  fifty  cents  on 
every  one  huntU-ed  dollars  of  net  premiums  received  in  cash,  during 
the  six  months  last  preceding,  ending  on  tlie  last  days  of  April  and 
October  respectively ;  and  any  company  failing  or  refusing,  for  thirty 
davs,  to  render  an  accurate  account  of  all  such  premiums  received, 
under  the  oath  of  some  innncipal  ofiQcer  or  general  agent  for  the 
State,  and  to  pay  the  tax  required  thereon  by  this  act,  shall  forfeit 
one  hundred  dollars  for  such  offense;  an  1  it  shall  be  the  duty  of  the 


280  hike's  insurance  statutes. 

Auditor  to  revoke  all  authoritj"  to  siicli  company  or  its  agents,  and 
to  publish  such  revocation  in  some  newspaper  of  this  commonwealth. 
{Ibid,  §  41.) 

1^6.  Every  person  who  shall  transact  any  business  as  an 
agent  of  any  life  insurance  company,  without  fii'st  procuring  the  li- 
cense required  in  this  act,  or  who  knowingly  procures  payment,  or 
any  obligation  for  the  payment  of  any  premium  for  insurance,  by 
fraudulent  representations,  or  after  revocation  of  his  license,  shall 
be  i^unished  by  tine  not  exceeding  one  thousand  dollars.  {Ibid,  §  42.) 

107.  Whoever  solicits  and  receives  application  for  insurance 
on  behalf  of  any  life  insurance  company,  wliether  incorporated  by 
this  commonwealth,  or  elsewhere,  or  transmits  for  an^-  person  other 
than  himself  an  application  for  insurance,  or  a  policy  of  insurance 
to  or  from  such  company,  or  advertises  that  be  will  receive  or  trans- 
mit tbe  same,  shall  be  held  to  be  an  agent  of  such  company  withiu 
the  meaning  of  this  act.     {Ibid,  §  43.) 

KM.  Insurance  companies  created  by  any  other  authority 
than  tbut  of  this  State,  having  property  in  this  State,  shall  be  liable 
to  be  sued,  and  their  property  shall  be  subject  to  be  attached  in 
like  manner  as  residents  of  other  States  having  property  in  this 
State  are  liable  to  be  sued  and  their  property  to  be  attached.  {Ibid, 
p.  7t),   §  44.) 

109.  The  Governor  may  allow  such  reasonable  compensation 
to  attorneys  or  agents  of  the  bureau,  for  services  rendered,  and  for 
expenses  incurred  in  enforcing  the  laws  relating  to  insiu'aiice  com- 
panies, as  he  may  deem  lU'oper ;  Provided,  That  in  all  cases  tried 
by  any  court  of  competent  juiisdictiou,  such  compensation  shall  be 
adjudged  by  the  court.     {Ibid,  §  45.) 

1  lO.  If  insurance  is  made  by  any  company  as  authorized  by 
this  act  to  be  made,  but  without  a  compliance  with  the  requirements 
of  the  laws  of  this  State,  the  contract  shall  be  valid ;  but  the  agent 
or  person  making  the  insurance  shall  be  liable  to  a  tine  not  exceed- 
ing one  thousand  dollars  for  each  offense.     {Ibid,  §  40.) 

111.  When  by  the  laws  of  any  other  State  an^-  taxes,  fines, 
j)enalties,  dejiosits  of  money  or  of  secui'ities,  or  other  obligations, 
prohibitions,  or  requirements  are  imposed  upon  insurance  compa- 
nies organized  or  incori^oiated  under  any  general  or  special  law  of 
this  State,  and  transacting  business  in  such  other  State,  or  upon 
the  agents  of  such  insurance  company,  greater  than  those  imposed 
upon  similar  companies,  by  the  laws  of  this  State,  or  when  sucli 
laws  of  other  States  shall  require  insurance  companies  of  this 
commonwealth  to  deposit  money  or  security,  for  the  benefit  or  pro- 
tection of  citizens  of  such  other  States,  or  when  the  laws  of  any 
other  State,  or  the  officers  thereof,  shall  prohibit  companies  of  this 
commonwealth  from  transacting  business  in  said  State,  Avithout  a 
special  examination  of  said  com])anies,  or  a  computation  of  their 
liabilities  by  the  officers  of  said  State,  the  same  taxes,  fines,  i)enal- 
ties,  deposits,  examinations,  obligations,  and  requirements  shall  be 
imposed  upon  all  insurance  companies  doing  business  in  this  State, 
which  are  incorporated  or  organized  under  the  laws  of  such  State, 
and  upon  their  agents.     {Ibid,  §  47.) 

112.  Every  fine,  penalty,  or  forfeiture  for  any  neglect  of  duty 
or  violation  of  the  provisions  of  this  act,  shall  be  sued  for  in  the 
name  of  the  State  of  Kentucky  by  the  Attorney-General  or  jirose- 
cutiug-attorney  of  the  district  or  county  in  which  the  company  or 
agents  so  violating  shall  be  situated,  when  no  other  provision  is 


KENTUCKY.  281 

made  by  this  act ;  and  oue-half  of  such  penalty,  when  recovered, 
shall  be  paid  into  the  treasury  of  the  commonwealth  and  one-half 
to  the  informer  of  such  violation,  other  than  an  officer,  whose  duty 
it  is  to  enforce  the  law ;  and  in  the  case  of  the  non-payment  of  such 
penalty,  fine,  or  forfeiture,  the  officer  or  agent  of  any  company 
so  offending  and  guilty  of  neglect  or  malfeasance  shall  be  liable  to 
imprisonment  for  a  period  not  less  than  six  months,  in  the  discretion 
of  the  coui't  having  cognizance  thereof.     {Ibid,  §  48.) 


EEGISTEATION   OF   LIFE-POLICIES. 

113.  Any  life  insurance  company  now  or  hereafter  incoii)o- 
rated  by  this  State,  and  authorized,  under  the  laws  thereof,  to  make 
insurance  on  lives,  may  deposit  in  the  Insurance  Department  mort- 
gages on  unincumbered  real  estate  in  the  State  of  Kentucky  worth 
at  least  double  the  amouut  loaned  thereon  (and  in  addition  to  the 
securities  now  required  and  authorized  by  law  to  be  deposited  by 
life  insurance  companies),  to  any  amount  not  less  than  twenty 
thousand  dollars,  in  the  manner  and  for  the  purpose  herein  named; 
Provided,  That  when  any  mortgage  shall  be  deposited,  it  shall  be 
accomi)anied  with  the  evidence  of  the  debt,  and  with  a  notice  served 
upon,  or  duly  acknowledged  by  the  mortgagor,  that  the  same  has 
been  transferred  to  the  Insurance  Department,  and  will  be  deposited 
in  said  Department,  to  be  held  for  the  uses  and  purposes  named  in 
said  act ;  Provided  further,  That  such  transfer  shall  be  noted  of  re- 
cord on  the  face  of  said  mortgage,  and  such  entry  shall  be  certified 
on  the  mortgage  by  the  clerk  of  the  county  court  of  the  county 
where  such  mortgage  is  recorded     {Act  of  March  15,  1871,  §  1.) 

114.  The  mortgages  deposited  by  any  company  under  this  act 
shall  be  legally  transferred  by  it  to  the  Commissioner  of  the  Insiu-ance 
Department,  for  the  common  benefit  of  all  the  holders  of  its  regis- 
tered policies  and  annuity  bonds  issued  under  the  provisions  of  this 
act,  and  he  shall  hold  the  same  in  trust  for  the  purposes  and  objects 
specified  in  this  act;  said  mortgages  shall  not  be  alienated  from  the 
purposes  of  said  trust,  nor  transferred,  excejDt  in  the  manner  herein- 
after provided,  and  in  compliance  with  the  insurance  laws  of  this 
State  relating  to  such  transfers  ;  Provided,  That  any  company  here- 
after electing  to  make  special  deposits,  as  authorized  by  this  act, 
sliall  do  so  in  respect  to  all  policies  thereafter  issued,  and  not  a  por- 
tion of  them  only ;  Provided  further.  That  any  company  making 
such  special  deposit  shall  first  satisfy  the  Commissioner  of  In- 
surance that  no  part  of  the  assets  of  said  company  previously  held 
for  the  benefit  or  security  of  any  non-registered  policj",  has  been  im- 
paired in  making  such  deposit.     {Ibid,  §  2.) 

1 15.  Whenever  any  such  company  shall  legally  transfer  to  the 
Commissioner  of  the  Insurance  Department  any  amount  of  said 
mortgages,  not  less  than  twenty  thousand  dollars,  said  Commis- 
sioner shall  issue  to  said  company  registered  policies  of  insui'ance 
or  annuity  bonds,  of  such  denominations  or  amounts  as  the  said 
company  may  require ;  such  policies  and  annuity  bonds  shaU  bear 
upon  their  face  the  words,  "  The  net  value  of  this  policy  is  secured 
by  approved  real  estate  mortgages  deposited  with  the  State  of  Ken- 
tucky," with  the  seal  of  the  said  department,  and  shall  be  counter- 
signed by  the  Commissioner  or  his  authorized  deputy,  who  shall 
cause  to  be  indorsed  on  such  policy  the  net  value  thereof  at  the  be- 


282  niNE'S  INSURANCE   STATUTES. 

ginning  and  end  of  each  year  of  said  policy,  for  ten  years,  or  any 
less  number  it  may  have  to  run ;  at  the  end  of  said  ten  years,  if  re- 
quested by  the  holder,  make  a  similar  indorsement  of  the  next  suc- 
ceeding ten,  or  any  less  number  of  years  it  may  have  to  run  before 
becoming  a  claim.     (Ibid,  §  3.) 

1 1 H.  Tlie  said  Commissioner  shall,  on  delivering  said  policies 
or  annuity  bonds  to  any  of  the  said  life  insurance  comj)anies, 
charge  to  the  said  companies  respectively  the  amount  of  the 
net  present  value  of  such  policies  or  annuity  bonds,  valued  by 
the  tables  authorized  by  law  in  relation  to  life  insurance 
companies,  according  to  the  amount  and  number  of  i^remiums 
paid  annually,  semi-annually,  or  quarterly  thereon,  and  the 
terms  thereof;  but  in  no  case  shall  the  amount  of  such  value 
exceed,  in  the  aggregate,  the  amount  of  the  securities  deposited 
under  the  provisions  of  this  act.  On  the  first  days  of  January  and 
July  of  each  and  every  year,  or  within  sixty  days  thereafter,  the 
said  companies  shall  make  a  return  to  the  Commissioner  of  the  In- 
surance Department,  under  oath  of  the  president  and  actuarj^,  of 
the  exact  condition  of  the  registered  policies  received  from  the  said 
department,  and  of  the  premium  account  of  the  said  policies,  and 
shall  deposit  with  the  said  Commissioner  additional  and  similar 
mortgages  to  an  amount  equal  to  any  increase  of  the  value  of  the 
policies  heretofore  issued,  and  which  shall  remain  in  force,  valued 
by  the  same  rule  as  upon  the  issue  thereof;  and  the  mortgages  thus 
from  time  to  time  deposited,  or  so  large  an  amount  thereof  as  may 
be  necessary  to  equal,  at  all  times,  the  net  value  of  all  the  outstand- 
mg  registered  policies  and  annuity  bonds  of  said  companies,  shall 
be  held  by  said  Commissioner  in  trust  as  aforesaid,  until  the  obliga- 
tions of  said  companies,  under  the  said  registered  i)olicies  and 
annuity  bonds,  shall,  to  the  satisfaction  of  the  said  Commissioner, 
be  fully  liquidated,  canceled,  or  annulled ;  but  nothing  in  this  act 
shall  be  construed  as  implying  any  obligation  on  the  part  of  the 
State  to  pay  the  policies  and  annuity  bonds  issued  under  this  act. 
The  Treasurer  of  the  State,  and  any  person  duly  authorized  by  the 
depositing  or  registering  company,  shall,  at  all  times,  in  the  usual 
office  hours,  have  access  to  the  books  and  other  documents  in  the 
Insurance  Department,  relating  to  the  deposits  made,  and  policies 
and  annuity  bonds  issued  under  the  provisions  of  this  act ;  and 
they  shall  also,  at  all  such  times,  have  access  to  said  mortgages  as 
may  be  necessary  for  the  examination  thereof.  The  Treasurer  shall, 
for  the  services  required  by  this  act,  receive  the  annual  salary  of 
two  hundred  and  fifty  dollars,  to  be  paid  by  the  companies  availing 
themselves  of  the  provisions  of  this  act.  Tlie  said  mortgages,  when 
deposited,  shall  be  registered  by  said  Commissioner  in  a  book  to  be 
provided  for  that  purpose,  which  shall  be  kept  as  an  open  record  in 
his  office,  and  shall  be  indorsed  with  the  name  of  the  company  de- 
positing, the  date  of  the  deposit,  and  the  purpose  for  which  the 
same  is  deposited,  which  indorsement  shall  be  signed  by  the  com- 
pany making  the  deposit  and  the  Commissioaer,  and  countersigned 
by  the  Treasurer ;  and  the  said  Commissioner  shall,  upou  the  re- 
ceipt of  said  mortgages,  and  upon  the  request  of  the  company  to 
which  they  belong,  make  a  special  deposit  of  the  same  iu  a  package 
marked  with  the  name  of  the  company  from  which  received,  and 
date  of  deposit,  iu  any  incorporated  bank  of  this  State  which  he 
may  approve,  to  be  there  held  in  trust  and  for  the  uses  herein  de- 
clared, unless  removed  by  the  mutual  consent,  in  writing,  of  the 


KENTUCKY.  283 

company  and  the  Commissioner,  which  shall  be  countersigned  by 
the  Treasurer,  and  entered  on  the  register  aforesaid.     {Ibid,  §  4.) 

117.  The  said  depositing  companies  may,  at  any  time,  with- 
di'aw  any  excess  of  mortgages  above  tlie  net  i)resent  vahie  herein- 
before specified,  upon  satisfying  the  said  Commissioner,  by  written 
proof,  to  be  filed  in  the  said  department,  that  such  excess  exists, 
and  shall  be  allowed  to  receive  the  interest  on  all  mortgages  depo- 
sited, and  to  exchange  such  mortgages  by.su.bstituting  others,  as 
now  provided  by  the  act  in  relation  to  life  insurance  companies, 
approved  I\Iarch  12,  1870.     {Ibid,  §  5.) 

118.  The  said  companies  shall  deliver  to  the  Superintendent 
of  the  Insurance  Department  the  policy  and  anuuitj"  bonds,  engraved 
and  printed,  or  printed  and  written,  in  such  manner  as  the  said 
Commissioner  shall  direct,  with  duplicate  originals  of  the  same,  duly 
signed.  On  their  receipt  by  the  Commissioner  he  shall  cause  them 
to  be  duly  registered,  in  i)roper  books  kept  for  that  purpose,  in  con- 
secutive numbers,  corresponding  to  the  numbers  on  said  policies 
and  bonds  ;  shall  cause  his  name,  or  the  name  of  his  deputy,  to  be 
inscribed  on  the  policies  and  bonds,  and  affix  the  seal  of  the  depart- 
ment to  the  same,  and  shall  return  the  original  policies  to  the  said 
depositing  comi)anies  respectively.  The  expenses  necessarily  in- 
curred in  registering,  countersigning,  and  sealing  the  said  policies 
and  annuity  bonds,  and  in  otherwise  executing  the  provisions  of 
this  act,  including  the  salary  of  the  Treasurer,  shall  be  audited  and 
paid  out  of  any  moneys  in  the  treasury  not  otherwise  appropriated ; 
and,  for  the  jmrpose  of  reimbursing  the  same,  the  said  Commissioner 
is  hereby  authorized  to  charge  against  the  said  depositing  com- 
panies, respectively,  an  amount  sufficient  for  such  i^urpose  as  may 
be  just  and  reasonable.  It  shall  be  the  duty  of  the  said  Commis- 
vsioner  to  receive  mutilated  policies  and  annuity  bonds  issued  to  the 
said  companies,  and  deliver,  in  lieu  thereof,  other  policies  and  bonds 
of  like  tenor  and  date  ;  and  in  case  of  lost  policies  or  annuity  bonds, 
to  furnish  certified  copies  of  the  duj)licates  on  file  m  his  office. 
{Ibid,  §  6.) 

119.  If,  at  any  time,  the  affairs  of  any  life  insurance  company 
which  has  deposited  mortgages  under  this  act,  shall,  in  the  opinion 
of  the  Commissioner  of  the  Insurance  Department,  appear  in  such  a 
condition  as  to  render  the  issuing  of  additional  policies  and  annuity 
bonds  by  said  comi^any  injurious  to  the  public  interest,  the  said 
Commissioner  shall  report  that  fact  to  the  Attorney-General,  whose 
duty  it  shall  then  be  to  apply  to  the  circuit  court  for  an  order,  re- 
quiring said  company  to  show  cause  why  its  business  should  not  be 
closed.  The  court  shall  thereupon  proceed  to  hear  the  allegations 
and  proofs  of  the  respective  parties :  and  in  case  it  shall  appear  to 
the  satisfaction  of  the  court  that  the  assets  and  funds  of  said  com- 
pany are  not  sufficient  to  justify  the  furtlier  continuance  of  the  bus- 
iness of  insuring  lives,  gi-anting  annuities,  and  incurring  new  obh- 
gations,  as  authorized  by  its  charter,  then  the  said  court  shall  issue 
an  order  enjoining  and  restraining  said  company  from  the  lurther 
prosecution  of  its  business,  and  shall  also  appoint  a  receiver  of  all 
the  assets  and  credits  of  said  company.  The  said  receiver,  ujion 
filing  his  bond  in  an  amount,  and  with  sureties  apjiroved  by  said 
court,  conditioned  for  the  faithful  performance  of  his  duties,  shall 
take  possession  of  all  the  assets  and  credits  of  said  company,  ex- 
cept the  mortgages  deposited  in  the  Insurance  Department  under 
the  provisions  of  this  act,  which  said  mortgages  shall  remain  in 


284  hine's  insurance  statutes. 

said  clej)artmeiit,  to  be  disposed  of  as  hereinafter  provided.     {Ibid, 
§  7.) 

1^0.     The  said  receiver  shall,  immediately  on  euteriug  upon 
the  duties  of  his  office,  appoint  a  competent  actuary,  approved  by 
the  Commissioner  of  the  Insurance  Department,  who  shall  make  a 
careful  investigation,  according  to  the  standard  fixed  by  the  laws  of 
this  State,  into  the  condition  of  said  company,  and  report  thereon, 
in  writing,  under  oath,  to  said  court  and  receiver ;  and  if  it  shall, 
by  said  report,  be  found  that  the  mortgages  deposited  by  said  com- 
pany in  the  Insurance  Department,  and  the  assets  and  credits,  in- 
cluding the  future  premiums  that  will  mature  on  the  outstanding 
policies,  and  other  obligations  of  said  company,  are  sufficient,  under 
the  laws  of  this  State,  to  pay  all  the  i)olicies,  annuities,  and  other 
obligations  of  said  company  as  thej"  may  mature  by  the  terms 
thereof,  and  the  legal  costs  and  expenses  incident  to  the  business  ; 
and  if  said  actuary's  report  shall  be  confirmed  by  the  coiu't,  the  said 
receiver  shall  notify  all  the  holders  of  said  policies,  annuities,  and 
other  obligations,  requiring  them  to  pay  him,  as  such  receiver,  all 
premiums  or  other  payments  due  or  to  become  due  to  said  company, 
from  time  to  time,  on  their  respective  policies,  annuities,  or  other 
obligations.     Such  notice  shall  be  given,  by  depositing  the  same  in 
the  post-office,  at  the  place  where  said  comp-my  has  its  principal 
business  office,  addressed  to  said  parties  respectively,  at  their  sev- 
eral residences  so  far  as  the  same  can  be  ascertained  by  said  re- 
ceiver ;  and  also  by  the  publication  in  at  least  three  newspapers  of 
general  circulation  in  the  State,  once  a  week,  for  six  successive 
weeks ;  or  on  the  confirmation  of  the  report  of  said  actuary,  the 
court  may,  in  its  discretion,  direct  the  receiver  to  reinsiu"e  all  re- 
gistered iDolicies  in  some  solvent  company,  on  the  execution  by  said 
receiver  of  an  assignment  to  said  reinsuring  company  of  all  mort- 
gages on  deposit  in  trust  for  registered  policy-holders,  or  such  por- 
tions thereof  as  said  court  may  direct.     And  in  case  the  said  report 
of  the  said  actuary  shall  show  that  the  said  mortgages,  assets, 
credits,  and  premiums  are  not  sufficient,  under  the  laws  of  this 
State,  to  pay  all  the  policies,  annuities,  and  other  obligations  of 
said  company  as  they  may  mature  by  the  terms  thereof,  and  the 
legal  costs  and  expenses  of  said  receivership,  the  said  receiver  shall 
notify  the  said  Commissioner  thereof,  and  the  Commissioner  shall, 
with  the  consent  of  the  Treasurer  of  the  State,  and  in  such  manner 
as  the  said  receiver.  Commissioner,  and  Treasurer,  or  a  majority  of 
them,  shall  determine,  convert  said  mortgages  into  money  ;  and  the 
proceeds  of  such  mortgages  shall  be  paid  to  the  said  receiver,  on 
his  giving  his  receipt  to  said  Commissioner,  and  shall  be  applied  by 
said  receiver  as  follows :  to  the  payment  of  the  registered  policy- 
holders of  said  company,  in  proportion  to  the  net  value  of  their 
policies  respectively ;  and  to  the  registered  annuities  of  said  com- 
pany, in  i)roportion  to  the  then  present  value  of  their  respective 
annuities,  as  estimated  by  the  legal  standard  for  valuing  life  insur- 
ance and  annuity  obligations  within  this  State.    The  surplus  de- 
rived from  mortgages,  if  any  there  be,  after  the  ijayment  last  above 
mentioned,  with  all  the  other  assets  of  the  said  company,  shall  be 
then  applied  to  the  payment  of  all  the  just  debts  of  said  company  in- 
curred in  the  conducting  and  carrying  on  its  lawful    business. 
(Ibid,  §  8.) 

1^1.     Whenever  the  business  of  any  company  shall  be  continued 


KENTUCKY.  285 

under  the  provisions  of  the  next  preceding  section,  in  case  the  re- 
ceipt for  premiums,  and  from  all  other  sources,  shall,  at  any  time, 
be  in  excess  of  the  sums  required  to  meet  the  policy,,  and  all 
other  obligations  of  said  compan}^,  said  receiver,  whenever  such  ex- 
cess shall  amount  to  twenty-live  thousand  dollars,  shall  invest  said 
excess  in  such  securities  as  are  authorized  to  be  deposited  in  the  In- 
surance Department,  and  shall  deposit  said  securities  with  the  Com- 
missioner of  said  department  in  the  manner  herein  provided.  If,  at 
any  time,  the  funds  in  the  hands  of  said  receiver  are  not  sufficient 
to  meet  such  obligations  of  said  company  as  they  mature,  he  shall 
notify  the  said  Commissioner  of  the  amount  required  to  meet  the 
deticiency  in  respect  thereto ;  and  it  shall  become  the  duty  of  the 
Commissioner  to  convert  into  money,  with  the  consent  and  advice 
of  tlie  Treasury  of  the  State,  and  in  such  manner  as  the  Receiver, 
Commissioner,  and  Treasurer,  or  a  majority  of  them,  shall  determine, 
such  portion  of  said  mortgages  as  may  be  required  to  meet  the  said 
matured  obligations;  and  the  proceeds  of  such  mortgages  so  con- 
verted shall  be  paid  to  said  receiver,  on  his  giving  his  receipt  there- 
for to  the  said  Commissioner,  to  be  used  as  required  for  said  matured 
obligations.     {Ibid,  §  9.) 

l!^^.  On  the  tirst  day  of  January  in  every  year,  or  within 
thirty  days  thereafter,  an  investigation  shall  be  made  by  a  com- 
petent actuary,  approved  by  the  Commissioner  of  the  Insurance 
Department,  into  the  affairs  of  said  company ;  and  if,  upon  such  in- 
vestigation, it  shall  be  found  that  a  suri^lus  of  its  assets,  not  less  in 
amount  than  ten  thousand  dollars,  exists,  after  making  adequate 
provision  for  meeting,  at  maturity,  all  the  obligations  of  said  com- 
pany, and  all  the  legal  expenses  of  said  reseivership,  and,  in  case 
of  a  joint  stock  company,  over  and  above  the  amount  of  its  capital, 
such  portion  of  said  surphis  as  may,  under  the  charter  of  said  com- 
pany, if  a  stock  company,  belong  to  its  stockholders,  shall  be  set 
aside  and  invested  by  said  receiver  in  such  mortgages  as  are  author- 
ized to  be  deposited  by  this  act  in  the  Insurance  Department  "as  a 
contingent  fund,  and  scrip  therefor  sliall  be  issued  by  said  receiver 
to  said  stockholders  respectively,  in  proportion  to  their  respective 
shares,  bearing  six  per  cent,  interest,  and  payable  on  the  final  settle- 
ment of  the  affairs  of  said  company,  as  herein  provided.  The  re- 
mainder of  such  surplus,  if  the  company  be  a  stock  company,  and  the 
whole  of  said  surplus,  if  it  be  a  mutual  company,  shall  be  disposed 
of  as  follows  :  One  quarter  of  such  remainder  sliall  be  reserved  by 
said  receiver,  and  invested  by  him  in  such  securities  as  are  author- 
ized to  be  dei)osited  by  life  insurance  companies  in  the  Insurance 
Department  by  this  act  as  a  contingent  fund,  for  whicli  scrip  shall 
be  issued  by  said  receiver  to  all  policy-holders  entitled  under  policies 
to  share  in  the  surplus  of  said  company.  Said  scrip  shall  bear  in- 
terest at  the  rate  of  six  per  cent,  per  annum,  payable  annually,  and 
shall  be  redeemable  on  the  maturity  of  the  respective  policies  to 
which  said  scrip  may  bs  related.  The  remaining  three-quarters  of 
said  surplus  shall  be  paid  by  said  receiver  within  one  year  from  said 
first  day  of  January  to  said  policy-holders  respectively,  in  lawful 
money  of  the  United  States.  But  no  scrip  shall  be  issued  for  any 
fractional  part  of  a  dollar ;  and  any  scrip  so  issued  maj-,  at  any 
time,  be  called  in  and  canceled  by  said  receiver,  without  payment, 
if  necessary  to  better  secure  the  remaining  obligations  of  said  com- 
pany ;  and  all  scri{)  so  issued  shall  have  printed  thereon  a  clause 


286  hine's  insurance  statutes. 

to  this  effect.  If,  on  the  final  accounting  of  said  receiver,  after  the 
liquidation  of  all  the  obligations  of  said  company,  as  herein  pro- 
vided, and,  in  case  of  a  joint  stock  company,  the  return  to  the  re- 
spective stockholders  of  their  respective  amounts  of  stock,  and  the 
scrip  issued  to  them  under  this' act,  there  shall  remain  a  surplus  in 
the  hands  of  said  receiver,  it  shall  be  divided  by  him  among  said 
stockholders,  if  a  stock  company,  proportionately  to  their  respective 
shares,  as  provided  by  the  charter  of  said  company,  and  the  balance 
of  said  surplus  among  the  last  ten  policy-holders  of  said  company, 
or  their  legal  representatives,  in  proportion  to  the  amounts  of  their 
said  respective  policies ;  and  if  not  a  stock  company,  among  the 
holders  of  the  last  ten  policies  issued  by  said  company,  or  theii'  legal 
representatives,  in  proportion  to  the  amount  of  their  said  respective 
policies.     {Ibid,  §  10.) 

l^el.  The  receiver  of  any  company  under  this  act  vshall  have 
all  the  powers  incident  to.  the  successful  management  of  its  affairs, 
and,  to  that  end,  authority  to  purchase  policies  issued  by  said  com- 
pany, to  make  any  other  compromise  in  the  settlement  of  its  out- 
standing obligations,  and  to  use  the  corporate  seal  of  said  company, 
whenever  necessary,  in  the  transaction  of  the  business  of  his  re- 
ceivership.    {Ibid,  §  11.) 

1^1,  The  compensation  of  the  receiver  under  this  act  shall  be 
fixed  by  the  Commissioner  of  the  Insurance  Department,  and  shall 
not  exceed  the  sum  of  five  per  cent,  on  the  amount  of  the  assets  of 
such  company  as  shall  come  into  his  possession.  The  receiver  may 
employ  such  clerks  and  actuaries  as  he  may  deem  necessary  for  the 
proper  conducting  of  his  business  as  such  receiver;  and  the  said 
clerks  and  actuaries  shall  be  paid  such  reasonable  compensation  as 
he  may  determine,  subject,  however,  to  the  approval  of  the  Com- 
missioner of  the  Insurance  Department ;  all  of  which  compensation 
to  said  receiver,  clerks,  and  actuaries  shall  be  a  charge  on  the  funds 
of  such  comi)any,  and  paid  out  of  the  said  funds.     {Ibid,  §  12.) 

1*25.  It  shall  be  the  duty  of  either  the  president  or  secretary, 
or  actuary  of  every  insurance  company  having  securities  deposited 
in  the  office  of  the  Commissioner  of  the  Insurance  Department  of 
this  State,  under  this  act,  once  or  more  during  each  calendar  year, 
and  at  such  time  or  times  during  the  ordinary  business  hours  as  said 
insurance  company  may  select,  to  examine  and  compare  such  secur- 
ities with  the  books  of  said  department ;  and,  if  found  correct,  to 
execute  to  the  Commissioner  of  the  Insurance  Department  a  receipt 
or  certificate,  setting  forth  in  the  same  the  different  amounts  thereof, 
and  that  the  same  are  in  the  possession  and  custody  of  the  Commis- 
sioner at  the  date  of  such  receipt.    {Ibid,  §  13.) 


GENERAL  PROVISIONS. 

1  *26.  All  corporations  created  by  general  or  special  laws,  or 
by  amendments  to  other  laws  for  doing  an  insurance,  or  insurance 
and  banking  business,  or  insurance  business  in  connection  with  any 
other  business  in  this  Commonwealth,  be,  and  they  are  hereby,  re- 
quired to  make  all  the  deposits  and  reports,  pay  all  the  taxes,  and 
shall  be  subject  to  all  the  provisions  and  restrictions  of  said  general 
laws  under  the  penalties  therein  provided,  or  which  may  hereafter 
be  provided.     (Laws  of  1S70,  p.  140,  §  1.) 


KENTUCKY.  287 

1*27.  All  statements  or  descriptions  in  any  application  for  or 
policy  of  insurance  shall  be  deemed  and  held  representations  and 
not  warrantees,  nor  shall  any  misrepresentation,  unless  material  or 
raudulent,  x^revent  a  recovery  on  the  policy.    {Laws  o/1874,  j?.  20,  §  1 . ) 


AESON  AND   IXCENDIAEISM. 

128.  Kany  person  shall  be  guilty  of  arson,  he  shall  be  con- 
fined in  the  penitentiary  not  less  than  five  nor  more  than  twelve 
years.     {General  Statutes,  1873, 2).  327,  §  1.) 

1 39.  If  any  person  shall  willfully  burn  any  court-house,  county 
or  public  prison,  or  the  ofiice  of  any  clerk  of  a  court,  or  the  Capitol 
of  the  Commonwealth,  or  any  office  therein  or  upon  the  Capitol  or 
public  grounds,  or  any  sui'veyors  oftice,  or  other  public  office  within 
this  State,  or  the  ofdce  or  depot  of  any  railroad  or  canal,  gas  or 
telegraph  company,  he  shall  be  confined  in  the  penitentiary  not  less 
than  seven  nor  more  than  twenty-one  years.     {Ibid,  §  2.) 

1  ;{0.  If  any  person  shall  willfully  and  unlawfidly  burn  a  pow- 
der-house, tobacco-house,  warehouse,  storehouse,  stable,  barn,  or 
any  house  or  place  where  wheat,  corn,  or  other  grain,  grass,  fodder, 
hemp,  cotton,  wool,  fruit,  ice,  hay,  or  straw  is  usually  kept,  or  any 
other  house  whatever,  or  any  stack,  rick,  or  shock  of  hay,  fodder, 
flax,  hemp,  cotton,  straw^,  or  grain,  or  pile  of  lumber,  plank,  rails, 
posts,  hoop-poles,  shingles,  boards,  spoke-timber,  stave-timber, 
cross-ties,  boat-gimwales,  cord-wood,  or  other  timber  or  wood  pre- 
pared for  any  piu-pose  of  use  or  sale,  or  pile  of  tan-bark,  wheat,  or 
other  grain,  or  any  bridge  or  causeway  upon  a  street,  public  high- 
way, or  private  passway,  railroad,  turnpike,  plank  or  other  road,  or 
canal,  river,  or  other  water,  or  steam-saw,  or  grist-mill,  water  grist, 
or  saw-mill,  or  other  mill  or  factory,  gas,  coal,  oil,  iron,  or  water- 
works, rolling-mill,  railroad  car,  still-house,  engine,  wagon,  buggy, 
or  carriage,  threshing  machine,  mowing  or  reaping  machine,  steam- 
boat, or  other  water  craft  or  vessel,  he  shall  be  confined  in  the  pen- 
itentiary not  less  than  one  nor  more  than  six  years.     {I hid,  §  3.) 

1 J5 1 .  If  any  person  shall  willfully,  maliciously,  and  unlawfully 
burn  any  dwelling-house  which  is  occupied  as  a  residence,  or  any 
(charitable  institution  in  this  commonwealth,  he  shall  be  punished 
by  confinement  in  the  penitentiary  for  not  less  than  ten  nor  more 
than  twenty  years,  and  if  death  ensues  from  such  burning,  such  of- 
fender shall  be  deemed  guilty  of  murder,  and  punished  with  death, 
or  confinement  in  the  penitentiary  for  life,  at  the  discretion  of  the 
jury.     {Ibid,  p.  328,  §  4.) 

133.  If  any  person  shall  willfuUy,  maliciously,  and  unlawfully 
attempt  to  commit  any  of  the  offenses  described  in  the  four  pre- 
ceding sections,  though  the  i^roperty  or  any  part  thereof  be  not 
fired  or  burned,  he  shall  be  confined  in  the  penitentiary  not  less 
than  three  months  nor  more  than  six  years.     {Ibid,  §  5.) 


EMBEZZLExMENT. 

1 33.     If  any  officer,  agent,  clerk,  or  servant  of  any  incorporated 
company  shall  embezzle,  or  fraudulently  convert  to  his  own  use,  or 


288  hine's  insurance  statutes. 

the  use  of  another,  bullion,  money,  bank  notes,  or  any  effects  or 
I)roperty  belonging  to  such  corporation,  or  any  other  corporation, 
or  any  person,  which  shall  have  come  to  his  possession,  or  been 
placed  in  his  care  or  under  his  management,  as  such  officer,  agent, 
clerk,  or  servant,  he  and  the  person  to  whose  use  the  same  was 
fraudulently  converted,  if  he  assented  thereto,  shall  be  confined  in 
the  penitentiary  not  less  than  one  nor  more  than  ten  years.  {Gen- 
eral Statutes,  1873,  p.  335,  §  1.) 

1 34.   For  General  Provisions  relating  to  Corporations  see  Gen- 
eral Statutes,  1873,  p.  546. 


$1 


INDEX  TO   LOUISIANA. 


PAGE 

Agents  of  Foreig:n  Companies — 

Annual  Report  (2) 290 

Embezzlement  by  (20) 293 

Must  Show  License  (4) 290 

Non-suited  and  Enjoined,  when  (4)  .--  290 
Taxes  of  ( 3-5) .290-1 

Annual  Report — 

Of  Louisiana  Companies  (1) 290 

Agents  must  make  (2) 290 

Arson,  Crime  and  Penalty  of  (12,  18)  292,  293 

CORPOBATiONS,    General    Provisions   Con- 
cerning (21) 294 

Dividends,  when  Unclaimed  (6-1 0) 291-2 

Embezzlement,  Crime  and  Penalty  of  (20)  293 

Ftees,  Inquiry  into  Origin  of  (19) 293 

Foreign  Companies — 

Agents  must  make  Annual  Report  (2) . .  290 

Must  Exhibit  License  (4) 290 

Non  suited  and  Enjoined,  when  (4)  ...  290 
Taxes  of  (3-5) 290-1 


PASE 

Insurance  Companies- 
Annual  Report  of  (1) 290 

Must  Exhibit  License,  when  (4) 290 

Non-suited  and  Enjoined,  when  (4) 290 

Statement  of  Unclaimed  Balances  (6-8)  291 
(See  Foreign  Companies.) 

Inquest  m  Case  of  Fire  (19) 293 

License— (See  Taxes.) 

Life  Insurance  Cos.— (See  Insurance  Cos.) 

• 

Penaltes — 

Agents  Failing  to   make  Annual  Re- 
ports (2) 290 

Doing  Business  without  License  (4) . . .  290 
Failure  to  Publish  Unclaimed  Balances 
(8) 290 

Public  Administrator  for  Unclaimed  Bal- 
ances (9,  10) 292 

Taibs  of  Companies  and  Agencies  (3-6)290-1 


19 


INSURANCE  STATUTES  OF  LOUISIANA. 


1 .  The  officers  of  each  insurance  company  incorporated  by  the 
laws  of  this  State  shall,  within  one  month  from  the  close  or  expira- 
tion of  each  year  of  the  corporation,  cause  to  be  published  in  one 
or  more  daily  newspapers  published  in  the  city  of  New  Orleans, 
and  for  the  term  of  at  least  one  month,  a  full  statement,  under  oath, 
of  the  business  of  the  company,  which  statement  shall  contain,  first, 
the  amount  of  premium  received  during  the  previous  year,  specify- 
ing what  amount  was  received  for  life  insurance,  for  insurance 
against  fire,  what  on  marine  policies,  and  what  on  river  policies  ; 
second,  the  amount  of  losses  incurred  during  the  year,  specifying 
and  designating  what  amount  of  losses  have  been  incurred  by  the 
different  kinds  of  i)olicies  as  aforesaid ;  third,  the  amount  of  capi- 
tal, stating  the  portion  of  the  same  invested  in  securities,  and  the 
nature  of  the  securities.     {Revised  Statutes,  1870,^.  371,  §  1874.) 

S.  Every  person  acting  as  agent  of  an  insurance  company  not 
incorporated  by  the  laws  of  this  State,  and  doing  fire,  marine,  or 
river  insurance  within  the  city  of  New  Orleans,  shall,  dui"ing  the 
month  of  January  of  each  year,  cause  a  full  statement,  under  oath, 
of  the  business  of  the  agency,  to  be  published  in  the  manner  and 
form  and  for  the  term,  as  specified  in  the  preceding  section  ;  and  for 
the  neglect  or  refusal  so  to  do,  shall  forfeit  and  pay  into  the  city 
treasury  the  sum  of  one  thousand  dollars  for  each  and  every  neglect 
or  refusal.  Whenever  the  parent  or  principal  office  of  the  agency 
shall  publish  an  annual  statement  of  its  aftairs,  the  time  mentioned 
in  the  first  part  of  this  section  for  the  publication  of  the  affairs  of 
the  agency  shall  be  so  far  changed  as  to  correspond  with  the  an- 
nual statement  of  the  insurance  comj)auy,  and  shall  then  be  pub- 
lished as  aforesaid,  within  one  month  from  the  date  of  the  publica- 
tion.    (I/>m/,2).  372,  §  1875.) 

3.  There  shall  be  collected  an  annual  amount  as  a  license  or 
tax : 

From  each  agent  or  representative  of  an  insurance  company, 
[incorporated]  by  or  under  the  laws  of  this  State,  and  transacting  an 
insurance  business  therein,  one  thousand  dollars;  from  each  insur- 
ance company  or  agency  not  chartered  by  this  State,  but  transact- 
ing business  therein,  one  thousand  dollars;  Provided,  That 
no  insurance  company  whose  license  tax  shall  be  one  thousand  dol- 
lars shall  be  liable  to  any  assessment,  State,  parish,  or  municipal, 
throughout  the  State,  other  than  that  imposed  by  this  article,  and 
by  section  six  of  this  act.     {Laws  o/1872,  ^.  51,  §  1,  paragraph  15.) 

4.  From  and  after  the  passage  of  this  act,  it  shall  not  be  law- 
ful for  any  person  or  corporation  to  carry  on  or  pursue,  practice,  or 
follow  any  of  the  trades,  professions,  or  occupations  enumerated  in 
the  foregoing  sections  of  this  act,  in  the  State,  before  paying  the 
tax  levied  thereon,  and  obtaining  a  license  therefor,  if  not  already 
licensed,  from  the  collector  of  the  State  taxes ;  and  no  person  or 


LOUISIANA.  291 

corporation  carrj'ing  on  a  profession,  bnsiness,  or  occupation  sub- 
ject to  the  payment  of  a  license,  as  herein  provided,  shall  be  allowed 
to  collect  any  claims  for  services  rendered  in  such  professions,  busi- 
ness, or  occupation,  unless  he,  she,  or  it  can,  upon  demand,  exhibit 
the  tax  collector's  receipt  for  such  license,  according  to  law  ;  and  a 
failure  to  exhibit  such  license  receipt,  by  any  person  or  corporation 
liable  to  such  license,  shall,  in  any  suit,  instituted  by  him,  her,  or 
it,  entitle  the  party  defendant  in  such  suit  to  a  non-suit ;  and  any 
person,  tirm,  or  corporation  attempting  to  do  business  without  a  li- 
cense shall,  on  written  notice  given  by  the  collector  to  the  Attor- 
ney-General or  District  Attorney,  or  District  Attorney  pro  tern,  be 
enjoined  in  the  name  of  the  State  from  proceeding  further  in  the 
transaction  of  their  respective  business  or  vocation  until  such  li- 
cense shall  have  been  paid.     {Laics  of  1872,  p.  52,  §  2.) 

5.  Each  and  every  license  shall  expire  on  the  thirty-first  day  of 
December  in  the  year  in  which  it  was  obtained ;  Provided,  That 
any  person,  tirm,  or  corporation  engaging  in  any  of  the  trades  or 
occupations,  subject  to  license  by  this  act,  after  the  first  day  of 
July  in  each  and  every  year,  shall  be  liable  for  only  half  a  license. 
{Laws  0/1872,  p.  53,  §  4.) 

6.  It  shall  be  the  duty  of  the  several  banks  and  the  various 
insurance  comj^anies  incorporated  in  this  State,  on  the  third  Mon- 
day of  April,  1874,  and  annually  thereafter,  to  cause  to  be  published 
in  the  ofiicial  journal  of  the  State,  printed  in  the  city  of  New  Or- 
leans, once  a  week  for  four  weeks  in  succession,  a  full  and  complete 
list  of  the  names  of  all  parties  who  may  have  in  such  institution 
any  unclaimed  or  uncalled  for  sums  of  money,  specifying  also  the 
several  amounts  thereof,  beginning  from  the  dates  of  their  respec- 
tive incorporation,  whenever  the  same  are  of  three  years  standing 
or  more  at  the  time  of  such  publication ;  whether  the  same  may 
arise  from  deposits,  dividends,  interest  scrip,  or  result  from  the 
non-payment  of  any  drafts,  bills  of  exchange,  certificates  of  deposit 
issued  payable  to  bearer,  and  which  have  not  been  presented  for 
payment  or  been  jjaid,  or  otherwise,  or  drafts,  bills  of  exchange,  or 
certificates  of  deposit,  di-awn  in  favor  of  such  persons,  or  any  other 
parties,  and  not  subsequently  jiaid  or  delivered  to  the  owner  there- 
of;  also  all  interest  on  scrip  due  and  unpaid  for  more  than  three 
years  since  the  same  became  demandable,  and  generally  all  indebt- 
edness of  such  institutions,  in  any  manner  whatever,  of  more  than 
three  years  standing,  or  where  the  evidence  of  the  fact  or  of  the  in 
debtedness  is  exclusively  in  possession  of  such  institutions.  {Laws 
ofiSU,p.  1G2,§  1.) 

7.  The  said  duty  of  publication,  according  to  the  provisions  of 
the  first  section  hereof,  is  hereby  imposed  upon  all  incorporated  in- 
stitutions of  this  State,  receiving  deposits  or  declaring  dividends 
on  money,  scri]>  or  other  evidences  of  indebtedness  ;  and  the  same 
shall  be  verified  by  the  affidavits  annexed  thereto  of  the  president 
and  cashier  when  they  are  made  by  a  bank,  and  of  the  president 
and  secretary  when  made  by  an  insurance  company.     {Ibid,  §  2.) 

8.  Each  and  every  omission  to  advertise,  in  accordance  with 
the  provisions  of  this  act,  shall  subject  the  corporation  so  offending 
to  a  penalty  of  one  thousand  dollars,  recoverable  before  any  court 
of  competent  jurisdiction,  at  the  domicile  where  such  corporation  is 
established,  in  the  name  and  for  the  benefit  of  the  Charity  Hospital 
of  New  Orleans ;  Provided,  The  publication  herein  directed  is  only 
required  when  the  sum  exceeds  ten  dollars,  and  that  it  shall  be  the 


292  hike's  insurance  statutes. 

duty  of  the  public  administrator  to  institute  all  such  suits,  and  in 
case  such  bank  or  other  incorporated  institution  shall,  after  the  in- 
stitution of  such  suit,  still  omit  to  make  the  publication  herein  re- 
quired, such  bank  or  institution  for  such  failure  or  omission  shall 
be  subjected  to  a  further  penalty  of  two  thousand  dollars,  during 
each  and  every  mouth  thereafter,  to  be  sued  for  and  recovered  in 
the  same  manner  as  provided  for  the  first  omission.     {Ibid,  §  ?.) 

t>.  In  all  cases  when  it  shall  appear  that  dividends  of  money 
or  of  scrip,  or  de})osits,  or  drafts,  bills  of  exchange,  certificates  of  de- 
l)Osit,  or  otherwise,  have  remained  uncalled  for  for  a  period  of  seven 
years  or  more,  and  such  dividends  or  scrip,  or  interest  of  scrip,  or 
drafts,  bills  of  exchange,  certificates  of  deposit,  or  otherwise,  have 
remained  uncalled  for  during  a  period  of  seven  years  or  more,  and 
such  dividends  or  scrip,  or  interest  of  scrip,  drafts,  bills  of  ex- 
change, certificates  of  deposit,  or  otherwise,  shall  stand  in  the  names 
of  persons  who  are  absent  and  unrepresented,  and  have  not  been 
heard  fi'om  within  the  period  of  seven  years,  the  Public  Adminis- 
trator shall  proceed  to  administer  upon  the  same  in  the  manner 
now  provided  by  law  for  the  administration  of  vacant  estates. 
{Ibid,  p.  103,  §  4.) 

1 0.  All  legal  proceedings  instituted  by  the  Public  Adminis- 
trator under  this  and  other  acts  shall  be  tried  by  preference  in  the 
district  courts  and  in  the  Supreme  Court.     {Ibid,  §  5.) 

AESON  AND  INCENDIAKISM. 

1 1.  Every  person  who  shall  willfully  or  maliciously  set  fire  to 
or  burn,  in  the  night  time,  any  house,  ship,  vessel,  steamboat,  or 
other  water-crait  in  which  there  shall  be,  at  the  time,  some  human 
being  usuallv  staying,  lodging,  or  residing  at  night,  upon  conviction 
thereof  shall  suffer  death."  {Etvised  Statuies,  1870,^.  168,  §  841.) 

12.  Every  person  who  shall  willfully  or  maliciously  set  fire  to 
or  biu-n,  in  the  day  time,  any  house,  ship,  vessel,  steamboat,  or  W 
other  water-craft,  in  which  some  human  being  shall,  at  the  time,  \ 
usually  stay,  lodge,  or  reside,  upon  con\iction  thereof  shall  be  im-  j! 
prisoned  at  hard  labor  for  not  less  than  ten  years  and  not  more  \\ 
than  twenty  years.     {Ibid,  §  842.)  ;l 

13.  Every  person  who  shall  willfully  or  maliciously  set  fire  to      .  I 
or  bui'n  any  out-house,  stable,  or  barn,  any  shop,  store,  ofBce,  ware- 
house, sugar-house,  cotton-gin-house,  cotton-press,   cotton-pickery, 
school-house,  church,  or  any  building  of  i)uDiic  worship,  or  any      ! 
otner  building  or  house  not  embraced  and  provided  for  in  the  two      1 1 
preceding  sections,  or  any  vessel,  ship,  or  steamboat,  or  other  water- 
craft  not  embraced  and  provided  for  in  the  two  preceding  sections,      ' , 
shall,  upon  conviction,  suffer  imprisonment  at  hard  labor  for  not      j  I 
less  than  seven  years  nor  more  than  twenty  years.     {Ibid,  §  843.)  i 

14.  Whoever  shall  willfidly  or  maliciously  set  fire  to  or  burn  \(\ 
any  fences,  piles  of  wood,  shed,  boards,  lumber,  or  other  combustible  i  » 
matter,  by  means  of  which  any  house  or  building,  or  any  vessel,  i  ( 
steamboat,  or  other  water-craft,  be  burnt,  on  conviction,  shall  suffer  '/j 
imprisonment  at  hard  labor  for  not  less  than  seven  nor  more  than  |^ 
fourteen  years.     {Ibid,  §  844.)  m 

15.  Whoever  shall  attempt  willfidly  and  maliciously  to  set  fire  i 
to  any  house,  or  building,  or  to  set  tire  to  any  vessel,  steamboat,  or  i 
other  water-craft,  shall,  on  conviction,  be  imj)risoned  at  hard  labor  t 
for  not  less  than  five  nor  more  than  ten  years.     {Ibid,  §  845.) 


LOUISIANA.  293 

16.  Whoever  shall  be  couvictecl  of  having  maliciously  pre- 
pared combustible  matters  and  put  them  in  any  place  with  the  iu- 
teut  to  set  fire  to  any  house  or  building,  or  to  a  vessel,  steamboat, 
or  other  water-craft,  the  person  thus  convicted  shall  be  sentenced 
to  an  imprisonment  at  hard  labor  for  not  less  than  five  years  nor 
more  than  fifteen  years,  although  the  said  person  had  not  yet  set 
fire  to  the  said  combustible  matters.     {I hid,  §  846.) 

17.  Every  person  who  shall  willfully  and  maliciously  set  fii'e 
or  burn,  or  attempt  to  set  fire  to  or  burn  any  bridge,  shed,  railroad, 
plankroad,  railroad  car,  carriage,  or  other  vehicle,  or  any  goods, 
wares,  or  merchandise,  or  any  stock,  bale  or  heap  of  hay,  fodder, 
grain,  corn,  or  other  produce,  or  any  crop  of  cotton,  grain,  or  pro- 
duce growing  or  standing  in  the  field,  or  any  nursery,  orchard,  or 
grove  of  trees  not  his  own,  or  any  fence  around  any  field,  farm,  or 
inclosure  of  another,  or  any  cord  wood  in  the  cord,  or  any  coal  in  a 
coal-boat,  coal-yard,  or  in  a  pile  on  the  levee,  or  in  the  street,  not 
belonging  to  himself,  shall,  on  conviction,  be  imprisoned  at  hard 
labor  for  not  less  than  one  year  nor  more  than  five  years.  {Ibid, 
§  847.) 

18.  Every  person  who  shall  willfully  and  maliciously  set  fire 
to  or  burn,  or  attempt  to  set  fire  to  or  burn  any  cotton,  or  bales  of 
(jotton,  situated  upon  the  levee,  in  the  street,  or  banquette,  in  any 
cotton-press,  or  yard,  or  elsewhere,  shall,  upon  conviction,  sufier 
imprisonment  at  hard  labor  for  not  less  than  five  years  nor  more 
than  twenty  years.     {Ibid,  §  848.) 


INQUESTS  IN  CASES  OF  FIRE. 

19.  It  shall  be  the  duty  of  any  one  of  the  recorders  of  New 
Orleans,  or  justices  of  the  peace,  to  whom  application  shall  be  made 
for  tliat  purpose,  to  visit  any  building  where  a  fire  may  have  hap- 
pened, immediately  after  the  fire  shall  have  been  extinguished,  and 
inquire  into  the  origin  and  cause  of  said  fire,  examine  all  witnesses 
whom  the  owners  or  insurers  of  the  property  destroyed  may  desire 
to  have  examined  under  oath,  and  make  and  preserve  a  true  and 
correct  record  of  proces  verbal  of  their  testimony,  a  copy  of  which 
record  or  proces  verbal,  certified  by  such  recorder  or  justice,  shall  be 
admitted  in  evidence  in  any  civil  action.  The  party  occupying  or 
owning  the  property,  his  agent,  or  any  one  having  the  property  in 
charge  at  the  time  of  the  fire  shall  be  notified  by  the  recorder  or 
justice  of  the  examination.     {Ibid,  §  1876.) 


EMBEZZLEMENT. 

SO.  Any  servant,  clerk,  broker,  agent,  consignee,  trustee,  at- 
torney, mandatary,  depositary,  common  carrier,  bailee,  curator,  tes- 
tamentary executor,  administrator,  tutor,  or  any  jjerson  holding  any 
office  of  trust  under  the  executive  or  judicial  authority  of  this  State, 
or  in  the  service  of  any  public  or  jirivate  corporation  or  company, 
who  shall  wrongfully  use,  dispose  of,  conceal,  or  otherwise  embezzle 
any  money,  bill  note,  check,  order,  draft,  bond,  receipt,  bill  of  lad- 
ing, or  any  other  property  which  he  shall  have  received  for  another, 
or  for  his  employer,  principal,  or  bailor,  or  by  virtue  of  his  office, 
trust,  or  employment,  or  which  shall  have  been  intrusted  to  his 


294  niNE'S  IIS'SUEANCE  STATUTES. 

care,  keeping,  or  possession  by  another,  or  by  his  employer,  prin- 
cipal, or  bailor,  or  by  any  court,  corporation,  or  company ;  upon  con- 
viction thereof,  or  of  having  aided  or  abetted  in  the  commission 
thereof,  or  of  having  been  accessory  thereto,  before  or  after  the 
fact,  shall  suffer  imprisonment  at  hard  labor  not  exceeding  seven 
nor  less  than  one  yesr.     [Revised  Statutes,  1870,  p.  178,  §  905.) 

SI .  For  General  Provisions  relating  to  Corporations  see  Revised 
Statutes,  1870,  pp.  135-137, 142-145. 


INDEX    TO   MAINE. 


PAGE 

Agent— 

Broker  must  be  Licensed  (51) 304 

Embezzlement  by  (96) 313 

Must  File  Authority  and  get  License 

(50) 304 

Notice  to  and  Knowledge  of  (64) 307 

Offoreign  Co.,  Service  on  (84) 311 

"Who  shall  be  Deemed,  Notice  to  (19, 

64) 299,  307 

"When  a  Life  Co.  is  "Unsound  (57) 305 

"When  Judgment  against  Company  is 
Unsatisfied  (63) 307 

Annual  Statement — 

Of  Domestic  and  Foreign  Cos.  (54,  55)  305 
OfMutual  Fire  Insurance  Cos.  (31)...  301 

Arson.  Crime  and  Penalty  of  (92,  95)  ...  313 

Assessment— (See  Premium  Notes.) 

Assignee  of  Policy  may  Sue  (68) 308 

Broker  must  be  Licensed  (51) 304 

Capital— 

01  Insurance  Companies  (6) 297 

Companies  may  not  Insure  after  Loss  of 

(18) 299 

Investment  of  (8,  9) 298 

"When  Impaired  (65-6T) 307,  308 

Church,  Parish  may  Insure  (83) 311 

Corporations- 

Embezelement by  (96J) 313 

General  Provisions  Concerning  (97)  ..  313 
Must  Organize  under  General  Law  (1)  297 

Deposit  of  Securities, with  State  Treasurer 

(38-44) 302-3 

Directors — 

Election  of  (3,  4) 297 

Liable  for  Losses  after  Loss  of  Capital 

(18) 299 

Salaries  in  Mutual  Companies  (32) 301 

Dividends,  how  and  when  Made  (14-16)    298 

Embezzlement,  Crime  and  Penalty  of  (96)  313 

F«E8  — 

Compensation  for  Expense  of  Enforcing 
Laws  (71) 308 

In  Case  of  Fire  Inquests  (91) 312 

Of  Clerk  in  Insolvency  Proceedings 
(48) 303 

Of  Insurance  Commissioner  for  Certifi- 
cate to  Home  Companies  (47) 303 

Of  Insurance  Commissioner  for  Certifi- 
cate to  Foreign  Companies  (49) 304 


PAGE 

Fees  (Continued) — 

Of  Insurance  Commissioner  for  Agent's 

License  (50) 304 

Of  Insurance  Commissioner  for  Broker's 

License  (51) 304 

Of  Insurance  Commissioner  for  Investi- 
gating Fraudulent  Ins.  Cos.  (60)  ...  306 
Of  State  Treasurer  as  Custodian  of  Se- 
curities (44) 303 

Fire  Inquests,  when  and  how  Made  (87- 

91) 312 

Foreign  Companies — 

Annual  Statement  (54-56)  305 

Capital  of  (62) 306 

Examination  of  (69,  70) 309 

How  Authorized  to  do  Business  (49)..  304 
Jurisdiction  of  Courts,  Actions  against 

(62,  63) 30C,  307 

Liability  of  Premium  Note  (27) 300 

Service  on  in  Case  of  Action  (84) 311 

Taxation  of  (78-82) 310-11 

"When  Unsound  (52,57) 305 

"When  Prohibited  at  Home  (53)- 305 

"When  Capital  is  Impaired  (67) 308 

Fraud,  Investigation  of  ( 60) 306 

Insukanck  Companies- 
Annual  Statements  (64,  56) 305 

Capital  of  (6) 297 

Directors  and  Officers  (3,4) 297 

Deposit  of  Securities  with  State  Treas- 
urer (38,  44) 302,303 

Dividends,  when  nnd  how  Made  (14- 

16) 298 

Examination  of  (46) 303 

Investment  of  Funds  (8,9) 298 

Insured  must  give  Notice  of  Loss  (21)  299 

Limitation  of  Risk  (10) 298 

Liabilities  of  Premium  Notes  (27) 300 

Meetings,  how  Called  (5) 297 

May  Loan  on  Bottomry,  when  (9) 298 

May  Insure  what  (10) 298 

Mar  not  Insure  after  Loss  of  Capital 

(18) 299 

May  not  do  Business  without  Certificate 

(47) 303 

May  Appeal  from  Commissioner  (68).  30(; 
Must  Organize  within  Two  Tears  (47)  303 
Mutuals  Excepted  from  Certain   Pro- 
visions ^22) 300 

Notice  to  and  Knowledge    of   Agent 

(64) 307 

Policies,  how  Executed  (12) 298 


296 


INDEX  TO  MAINE. 


PAGE 

Insurance  Companies  (Continued) — 

Policies  by  Unlicensed  Agents  Binding 

(50) 304 

Parish  may  Insure  Church  BuildLng(8  3)  305 

Proceedings,  when  Unsound  (48) 303 

Kepregentations  and  Warranties,  EflFect 

of  (20) 299 

Shall  not  Engage  in  Trade  (13) 298 

Stockholder's  Liability  in  Case  of  In- 
solvency (7) 297 

Triennial  Statements  to  be  Made  (17).  299 
When  Insurance  has  been  Procured  by 

Fraud  (60) 306 

When  Capital  is  Impaired  («6, 66)307,  308 
Who  shall  be  Deemed  Agents,  Notice 

to  (19,  64) 299,307 

Insurance  Commissioner — 

Appointment,  Salary,  Duties  (45i 303 

Company  may  Appeal  when  Suspended 

by  (5  8) 306 

Compensation  for  Expenses  (71) 308 

Examination  of  Foreign  Companies  by 

(69,  70; 308 

In  Case  of  Fraudulent  Insurance  (60).  306 
In  Case  of  Unsatisfied  Judgment  (63).  307 

Shall  Examine  Domestic  Cos.  (46) 303 

Shall  Grant  Certificate  (47) 303 

Shall  License  Foreign  Companies,  when 

(49) 304 

Shall  License  Agents,  when  (50) 304 

Shall  License  Broker,  when  (51) 304 

Shall  make  Annual  Report  (56) 305 

When  Domestic  Co.  is  Unsound  (48)..  303 
When  Foreign  Co.  is  Unsound  (52)...  335 
When  Foreign  Company  is  Prohibited 

at  Homo  (53) 305 

When  Life  Company  is  Unsound  (5  7).  305 
Inquests  in  case  of  Fire,  when  and  how 

Made  (87-91) 312 

Life  Insurance  Companies— 

Liability  of  Premium  Note*  (27) 300 

When  Unsound  (57) 305 

(See  Insurance  Cos.  and  Foreign  Cos.) 

Life  Insurance  Money,  Distribution  of  (85)  311 
Life   Policies  Exempt   from    Attachment, 

when  (86) 312 

Loss- 
Insured  must  give  Notice  of  (21) 299 

After  Loss  of  Capital  (18) 299 

Marine  Companies — 

Dividends,  how  Made  (16) .'.  298 

Proceedings   to   Enforce   Assessments 

(73-77) 309-10 

(See  Insurance  Companies.) 

Mortgagee  shall  have  Lien  on  Policy,  when 

(33-37) 301-2 

Mutual  Fire  Insurance  Companies — 

Annual  Statement  (31) 301 

Excepted  from  Certain  Provisions  (22)  3U0 
Insured  shall  be  Deemed  Members  (25)  300 
May  Insure,  what  (23) 300 


PAGE 

Mutual  Life  Insurance  Cos.  (Continued) — 
Married  Women  may  Insure  and  give 

Note  (26) 300 

Premium  Notes  and  Assessments  (26, 

27) 300 

Premium  Notes  shall  be  a  Lien  (28, 

30) 301 

Proceedings   to  Enforce    Assessments 

(73-77) 309-10 

Regulations  must  be  set  forth  in  Policy 

(24) 300 

Salaries  of  Directors  and  Officers  (32).  301 
When  Assessments  are  Unpaid  (29) . .  301 
(See  Insurance  Companies.) 

Notice  to  Agent  (19,  64) 299-307 

Penalties— 

Against  Home  Companies  for  Resisting 

Examination  (46) 3()3 

For  Acting  as  Agent  without  License 

(50) 304 

For  Acting  as  Broker  without  License 

(51) 304 

For  Arson  (92-95) 313 

For  Embezzlement  (96) 3i:i 

For  Failure  to  Publish  Statement  (5  5)  305 
For  Acting  as  Agent  of  Suspended  Life 

Company  (57) 305 

For  Issuing  Policy  by  Suspended  Com- 
pany (63) 307 

Recovery  of  ( 59) 306 

Policies — 

Assignees  may  Sue  (68) 3C8 

How  Executed  (12) 298 

Issued  by  Unlicensed  Agent  Binding 

(60) 304 

Issued  by  Suspended  Co.  Binding  (63)  307 

Life,  Distribution  of  C85) 311 

Life  Exempt  from  Attachment,  when 

i86) 312 

Mortgagee  shall  have  Lien  on,  when 

(33-37) 301-2 

Of  Mutual  Fire  Companies  must  Contain 

Regulations  (24) 300 

When  Procured  by  Fraud  (60) 306 

Pkemium  Notes — 

And  Assessments   (26,  27,  73-77)  300, 

309,  310 
Shall  be  a  Lien  (28,  30) 301 

When  Assessments  are  Unpaid  (29)..  301 

Receivers,  Powers  of  ( 72) 308 

Representations  and  Warranties,  Effect  of 

(20) 299 

Risk,  Limitation  of  (10) 2ii8 

State  Treasurer- 
Deposit  of  Securities  with  (38-44) .  .302-3 
Fees  (44) 303 

Taxation  of  Foreign  Cos.  (78-82) 310-11 

Warhanties  and  Representations,  Effect 

of  (20) 299 

Wife  may  Insure  and  give  Note  (26) 300 


INSURANCE  STATUTES  OF  MAINE, 


Revised  by  Ron.  Joshua  Nye,  Insurance  Commissioner. 


coxstitutio:n^al  provisions   concerning   corpo- 
rations. 

1 .  Corporations  shall  be  formed  under  general  laws,  and  shaU 
not  be  created  by  special  acts  of  the  Legislature,  except  for  munici- 
pal purposes,  and  in  cases  where  the  objects  of  the  corporation 
can  not  otherwise  be  attained  ;  and,  however  formed,  they  shall  for- 
ever be  subject  to  the  general  laws  of  the  State.  {Fart  3,  Art. 
§14.) 

2.  All  incorporated  insurance  companies  may  exercise  the 
powers  and  shall  be  subject  to  the  duties  and  liabilities  contained 
herein  and  in  chapter  forty-six,  as  far  as  consistent  with  the  pro- 
visions of  their  charters.     [Revised  Statutes,  1871,^.  429,  §  1.) 

3.  The  business  of  such  companies  shall  be  managed  by  not 
less  than  seven  directors,  who  shall  be  chosen  by  the  stockholders 
at  the  time  and  place  and  in  the  manner  i)rovided  in  their  by-laws; 
be  stockholders  and  citizens  of  the  State,  and  hold  their  offices  one 
year,  and  until  others  are  chosen  and  qualified  in  their  stead.  Va- 
cancies may  be  fiUed  at  a  meeting  called  for  the  purpose.  In  elec- 
tions and  other  business,  stockholders  have  one  vote  for  each  share. 
The  directors  shall  choose  one  of  their  number  president.  {Ibid, 
§2.) 

4.  Every  such  company  or  the  directors  thereof,  as  often  as 
once  a  year,  shall,  by  ballot,  elect  a  secretarj^,  who  shall  be  the 
clerk  of  the  company  and  sworn  to  the  faithful  discharge  of  his 
duty ;  besides  other  duties  required  by  the  by-laws  of  the  company, 
he  shall  keep  a  true  record  of  all  the  votes  of  the  stockholders  and 
of  the  directors,  and  a  true  list  of  the  stockholders,  and  of  the 
number  of  shares  held  by  each,  and  record  every  transfer  of  shares 
in  a  book  kept  for  the  purpose.  The  directors  may  appoint  such 
other  officers  as  they  think  necessary.     {Ibid,  p.  420,  §  3.) 

4>.  The  secretary  shall  call  si)ecial  meetings  of  such  company, 
besides  any  meeting  for  which  the  by-laws  provide,  to  be  held  at 
the  time  and  place,  and  for  the  purposes  required  in  writing  by  the 
proprietors  of  one-fifth  of  the  capital  stock  ;  if  the  by-laws  of  such 
company  prescribe  no  mode  of  calling  such  meeting,  it  may  be  noti- 
fied in  the  manner  prescribed  in  the  act  of  incorporation  for  calling 
the  first  meeting.     {Ibid,  §  4.) 

6.  No  insm-auce  company  shall  be  incorporated  in  this  State 
with  a  capital  less  than  one  hundred  thousand  dollars,  to  be  paid  iu 
at  the  periods  and  in  the  i)roportions  requked  by  the  charter. 
{Ibid,  §  5.) 

7.  If  any  such  company  becomes  insolvent  before  its  whole 


298  hike's  insurance  statutes. 

capital  is  paid  iu  by  the  stockholders,  any  creditor  thereof  may 
have  his  action  on  the  case  against  any  one  or  more  of  the  stock- 
holders, whose  proportion  of  the  whole  stock  allowed  by  the  char- 
ter is  not  paid  in,  to  recover  against  them  in  their  individual  ca- 
pacity towards  his  debt,  an  amount  not  exceeding  the  sum  due 
from  them  on  their  shares.     {Ibid,  §  6.) 

8.  The  capital  and  other  assets  of  insurance  companies  incor- 
porated in  this  State,  except  such  as  may  be  needed  tor  immediate 
use,  shall  be  invested  in  the  funded  debt  or  bonds  of  the  United 
States,  or  of  any  of  the  New  England  States,  or  in  the  bonds  or 
securities  of  county,  city,  or  other  municipal  corporations  of  said 
New  England  States,  or  in  the  purchase  of  real  estate  in  fee,  or 
loans  on  mortgage  of  real  estate  or  deposit  in  savings  banks  of  said 
States,  or  in  the  bonds  or  stocks  of  incorporated  companies  of  said 
States  of  an  undoubted  character  for  credit,  insurance  company 
stock  or  bonds  excepted,  and  in  no  case  shall  any  such  funds  be 
loaned  on  the  securitv  of  names  alone.  {Ibid,  §  7,  as  amended  by 
Uics  of  1S73,  p.  104,  §  5.) 

9.  Such  company  may  loan  to  citizens  of  this  State,  any  por- 
tion not  exceeding  one-half  of  its  capital  stock,  or  respondentia,  or 
bottomry  5  but  not  unless  three-fourths  of  all  the  directors  agree  to 
such  loan,  and  enter  their  consent  thereto  at  large  on  the  records  of 
the  corporation,  to  be  laid  before  the  stockholders  at  their  next 
meeting.     (Ibid,  §  8.) 

10.  Such  company  may  make  insurance  on  vessels,  freight, 
money,  goods,  and  effects,  against  captivity  of  persons,  on  the  life 
of  any  person  during  his  absence  at  sea,  on  money  lent  upon  bot- 
tomry and  respondentia,  against  fire  on  dwelling-houses  and  other 
buddings,  and  on  merchandise  or  other  property  within  the  United 
States,  and  fix  the  premiums  and  terms  of  payment ;  but  no  risk  on 
any  one  bottom  or  on  one  building  and  contents  shall  exceed  ten 
per  cent,  of  its  capital  stock  actually  ])aid  in.     {Ibid,  §  9.) 

1 1 .  Insurance  effected  by  a  husband  or  wife  on  a  dwelling 
house  owned  by  the  insured  and  on  the  furniture  therein,  shall  be 
valid  for  all  the  furniture,  though  part  is  owned  by  the  husband 
and  part  by  the  wife.     {Ibid,  p.  431,  §  10.) 

1 2.  All  policies  of  insurance  shall  be  signed  by  the  president, 
or  in  case  of  his  death,  inability,  or  absence,  by  any  two  of  the  di- 
rectors, and  countersigned  by  the  secretary ;  and  they  shall  be 
binding  upon  the  company  as  if  executed  under  its  corporate  seal. 
{Ibid,  §  11.) 

13.  Said  companies  shall  not,  directly  or  indirectly,  be  con- 
cerned in  buying  or  selling  any  goods,  wares,  merchandise,  or  com- 
modities whatever.     {Ibid,  ^  12.) 

14.  The  directors,  at  such  times  as  their  charter  or  by-laws 
prescribe,  shall  make  dividends  of  so  much  of  the  profits  of  the 
company  as  they  think  advisable ;  but  moneys  received  and  notes 
taken  for  premiums  on  risks,  which  are  undetermined  at  the  time 
of  making  such  dividends,  shall  not  be  part  of  said  profits.     {Ibid, 

§  13.) 

15.  After  any  diminution  of  the  capital  stock  by  losses,  de- 
preciation, or  otherwise,  no  dividend  shall  be  made  until  such  dimi- 
nution is  supplied  by  actual  funds,  or  the  value  restored.     {Ibid, 

§14.) 

1 6.  Any  marine  insurance  company  may,  by  the  by-laws  or 
votes  duly  passed  for  that  purpose,  divide  among  the   stockhold- 


MAINE.  299 

ers  thereof,  and  the  persons  insured  therein,  in  proportion  to  the 
stock  awned  by  such  stockholders,  and  to  the  amount  of  })remiums 
paid  by  the  insured  on  risks  terminated,  all  the  clear  profits  of  the 
company  above  six  per  cent,  per  annum  on  its  capital  stock.  Before 
such  division  is  made,  all  arrearages  of  dividends  to  stockholders, 
required  to  make  up  their  annual  dividends  equal  to  six  per  cent, 
per  annum,  shall  first  be  paid.     {Ibid,  §  15.) 

1 7.  Once  in  every  three  years,  and  oftener  if  required  by  the 
stockholders,  the  directors  shall  lay  before  them  at  a  meeting,  an 
exact  and  particular  statement  of  the  affairs  of  the  company,  show- 
ing their  profits,  if  any,  after  deducting  losses  and  dividends. 
(Ibid,  §  16.) 

18.  If  the  company  sustains  losses  to  an  amount  equal  to  their 
capital  stock,  and  the  president  or  directors,  after  knowing  the 
same,  make  any  new  or  fmther  insurance,  the  estates  of  all  who 
make  such  insurance,  or  consent  thereto,  shall  he  jointly  and  sever- 
ally liable  for  the  amount  of  any  loss  which  occurs  under  such  in- 
surance.    [Ibid,  §  17.) 

19.  An  agent  authorized  by  an  insurance  company,  whose 
name  shall  be  borne  on  the  policy,  shall  be  deemed  the  agent  of  said 
company  in  all  matters  of  insurance ;  any  notice  required  to  be 
given  to  said  company,  or  any  of  its  officers,  b}'  the  insured,  may 
be  given  to  such  agent ;  any  application  for  insurance  or  valuation, 
or  description  of  the  property,  or  of  the  interest  of  the  insured  there- 
in, if  drawn  by  said  agent,  shall  be  conclusive  upon  the  company, 
but  not  upon  the  insured,  although  signed  by  him ;  all  acts,  pro- 
ceedings, and  doings  of  such  agent  with  the  insured,  shall  be  as 
binding  upon  the  company  as  if  done  and  performed  by  the  person 
specially  empowered  or  designated  therefor  by  the  contract.  {Ibid, 
i>.  432,  §  18.) 

SO.  All  statements  of  description  or  value  in  an  application  or 
policy  of  insurance,  shall  be  deemed  representations  and  not  war- 
ranties ;  erroneous  descriptions  or  statements  of  value  or  title  by 
the  insured  shall  not  prevent  his  recovering  on  his  policy  unless  the 
jury  find  that  the  difference  between  the  property  as  described  and 
as  it  really  existed,  contributed  to  the  loss  or  materially  increased 
the  risk ;  a  change  in  the  property  insured,  its  use  or  occupation,  or 
a  breach  of  any  of  the  terms  of  the  policy  by  the  insured,  shall 
not  affect  the  policy  unless  they  materially  increase  the  risk;  nor 
shall  any  misrepresentation  of  the  title  or  interest  of  the  insured  in 
the  whole  or  a  part  of  the  property  insured,  real  or  personal,  unless 
material  or  fraudulent,  prevent  his  recovering  on  his  policy  to  the 
extent  of  his  insurable  interest.     {Ibid,  §  19.) 

21.  In  case  of  loss,  under  a  policy  against  fire,  the  insured 
shall  notify  the  company,  or  its  agent,  thereof,  and  within  a  reason- 
able time  afterwards,  shall  dehver  to  the  same,  as  particular  an 
account  of  the  loss  and  damage  as  the  nature  of  the  case  will  admit, 
stating  therein  his  interest  in  the  property,  what  other  insurance,  if 
any,  existed  thereon,  in  what  manner  the  building  insured,  or  con- 
taining the  property  insured,  was  occupied  at  the  time  of  the  fire, 
and  by  whom  and  when  and  how  the  fire  occurred,  so  far  as  he 
knows  or  believes,  to  be  sworn  to  before  some  disinterested  magis- 
trate, who  shall  certify  that  he  has  examined  the  circumstances  at- 
tending the  loss,  and  has  reason  to  and  does  believe  such  statement 
is  true;  the  insured  shall,  if  so  requested,  within  ten  days  after  no- 
tice of  loss,  exhibit  to  the  agent  or  company  his  books  of  account, 


300  hine's  insurance  statutes. 

bills  of  jjarcels  and  any  other  voucliers  in  his  possession,  and  shall, 
if  requested,  submit  to  an  examination  under  oath,  in  the  place  of 
his  residence;  no  other  preliminary  proof  of  any  kind  shall  be  re- 
quired before  commencing  an  action  against  such  company.  All 
provisions  contained  in  any  policy  of  insurance,  in  contlict  with  any 
of  the  provisions  hereof,  are  null  and  void,  and  all  contracts  of  in- 
surance made,  renewed,  or  extende<l  in  this  State,  or  on  property 
within  this  State,  shall  be  subject  to  the  provisions  hereof.  {Ibid, 
§20.) 

3:3.  The  provisions  in  the  foregoing  sections  relating  to  the 
amount  of  capital  stock  to  be  owned  by  any  insurance  comi)any, 
and  the  division  of  the  same  into  shares,  and  dividends  of  profit 
thereon,  and  other  provisions  incidental  to  the  nature  of  its  fund, 
and  such  of  said  provisions  as  relate  to  the  liability  of  directors  or 
stockholders  in  case  of  deficiency  of  capital,  and  the  regulations 
concerning  the  business  of  any  such  company  contained  in  sections 
eight  and  nine,  shall  not  be  construed  as  applicable  to  mutual  life 
insurance  companies ;  but  the  other  proceeding  and  the  following 
provisions  shall  be  binding  on  such  companies,  so  far  as  consistent 
with  their  charters.     {Ibid,  p.  433,  §  21  ). 

•3S.  Domestic  mutual  fire  insurance  companies  may  make  in- 
surance for  a  term,  not  exceeding  seven  years,  on  dwelling-houses, 
stores,  shops,  and  other  buildings,  and  on  household  furniture,  mer- 
chandise, and  other  property,  the  contents  of  any  building  within 
this  State,  against  loss  or  damage  by  fire  originating  in  any  cause 
other  than  by  design  in  the  insured.     {Ibid,  §  22.) 

24.  No  by-law,  rule,  or  requirement,  made  by  any  snch  com- 
pany, shall  be  binding  on  any  person  insured,  to  vacate  his  policy, 
unless  it  is  distinctly  set  forth  in  the  policy  or  renewal.  (Ibid,  §  23.) 

25.  Every  person  insured  by  such  company,  or  his  legal  re- 
l)resentatives  or  assigns  continuing  to  be  insured  therein,  shall  be 
deemed  a  member  of  the  company  during  the  term  specified  in  his 
policy,  and  no  longer.     {Ibid,  §  24.) 

2G.  The  insured,  before  receiving  his  policy,  shall  deposit  his 
l^romissory  note  for  the  sum  of  money  determined  by  the  directors; 
such  ])art  of  it  as  the  by-laws  require,  shall  be  immediately  paid 
towards  incidental  expenses  and  indorsed  thereon ;  and  the  re- 
mainder shall  be  payable  in  such  installments  as  the  directors  from 
time  to  time  require  for  the  payment  of  losses  and  other  expenses, 
to  be  assessed  on  all  who  are  members  when  such  losses  or  expenses 
happen,  in  proportion  to  the  amounts  of  their  not(;s.  A  married 
woman  may  insure  her  property  and  give  her  note,  with  or  with- 
out her  husband,  and  it  shall  be  as  valid  against  her  as  if  she  was 
unmarried.     {Ibid,  §  25.) 

27.  A  policy  of  insurance,  issued  by  life,  fire,  or  marine  in- 
surance company,  domestic  or  foreign,  and  a  deposit  note  given 
therefor,  shall  be  deemed  one  contract ;  and  a  loss  under  such  policy 
or  other  equitable  claims  may  be  proved  in  defence  to  said  note, 
though  it  was  endorsed  or  assigned  before  it  was  due  ;  and  where  a 
company  becomes  insolvent,  the  maker  of  the  note  shall  only  be 
liable  for  the  equitable  proportion  thereof  which  accrued  during  the 
solvency  ;  and  if  the  insolvency  occurs  within  sixty  days  of  the 
date  of  the  note,  it  shall  be  void  except  for  the  amount  of  the 
maker's  claim,  if  any,  on  the  company.  No  insured  shall  be  held  to 
contribute  to  any  losses  or  expenses  beyond  the  amount  of  his  de- 
posit note.     At  the  expiration  of  his  term  of  insurance,  his  note,  on 


MAINE.  301 

payment  of  all  assessments  for  which  it  is  liable,  shall  be  re- 
linquished to  him,  except  as  provided  in  the  next  section.  {Ibid, 
§  26.) 

28.  The  company  shall  have  a  lien  against  the  assured,  on  the 
buildings  insiu'ed  and  the  land  appurtenant  thereto,  for  the  amonnt 
at  any  time  due  on  said  note,  to  commence  from  the  time  of  the  re- 
cording of  the  same,  as  hereinafter  l)^o^ided,  and  to  continue  sixty 
days  after  the  expiration  of  the  policy  on  which  such  note  is  given ; 
if  the  company  causes  a  certiiicate  of  its  claim  to  such  lien,  signed 
by  the  secretary,  to  be  recorded  by  the  Eegister  of  Deeds  for  the 
county  or  district,  and,  dm^ing  the  pendency  of  such  lien,  an  at- 
tachment of  such  property,  in  a  suit  on  said  note  in  favor  of  the 
company,  shall  have  priority  of  all  other  attachments  or  claims; 
and  execution,  when  recovered,  may  be  levied  on  it  accordingly. 
{Ibid,  p.  434,  §  27.) 

29.  If  an  assessment,  made  as  provided  in  the  twenty-seventh 
section,  remains  unxiaid  for  thirty  days  after  demand  made  by  any 
agent  of  the  company  on  any  person  liable  to  pay  the  note,  the  di- 
rectors may  sue  for  and  collect  the  amount  due  on  such  note  ;  and 
the  amount  collected  shall  remain  in  the  treasury  of  the  company 
subject  to  the  payment  of  such  sums  as  might  otherwise  be  assessed 
on  the  note ;  and  the  overplus  at  the  expiration  of  the  policy  shall 
be  the  property  of  the  assured.     {Ibid,  §  28.) 

SO.  Upon  the  decease  of  a  member,  the  lien  of  the  company 
shall  remain  good  on  the  property  insm-ed  to  the  amount  due  on 
the  deposit  note,  and  the  policy  shall  descend  to  the  executor  or  ad- 
ministrator of  the  deceased  for  the  benefit  of  the  estate  during  its 
continnance,  unless  voluntarily  surrendered  or  forfeited  by  the  pro- 
visions of  the  charter  of  the  company.     {Ibid,  §  29.) 

Jll,  The  directors  of  each  such  company  shall  cause  a  detailed 
account  of  their  expenses  for  the  year  next  preceding  their  annual 
meeting,  the  amount  of  property  actually  insured  at  that  time,  the 
amount  due  on  their  premium  notes,  and  amount  of  all  debts  due  to 
and  from  the  company,  to  be  laid  before  the  stockholders  at  their  an- 
nual meeting  in  each  year;  and  a  coi>y  thereof  shall  be  printed  in 
some  newspaper  published  in  the  county,  if  any,  otherwise  in  the 
State  paper ;  but  no  such  company,  having  an  accumulated  fund 
for  the  payment  of  losses,  shall  be  required  to  publish  the  names  of 
its  debtors.     {Ibid,  §  30.) 

32.  The  salary  or  compensation  for  services  of  the  directors, 
treasurer,  and  secretary,  shall  be  fixed  by  the  stockholders  at  their 
annual  meeting,  and  no  stockholder  or  other  person  shall  be  allowed 
more  than  fifteen  votes  by  proxy.     [Ibid,  §  31.) 

33.  The  mortgagee  of  any  real  estate  shall  have  a  lien  upon 
any  policy  of  insurance  against  loss  by  fire  procured  thereon  by  the 
mortgagor,  to  take  efiect  from  the  time  he  files  with  the  secretary  of 
the  comi^any  a  written  notice,  briefly  describing  his  mortgage,  the 
estate  conveyed  thereby,  and  the  siun  remaining  unpaid  thereon. 
If  the  mortgagor,  by  a  writing  by  him  signed,  and  filed  with  the 
secretary,  consents  that  the  whole  of  the  sum  secured  by  the  policy, 
or  so  much  as  is  required  to  discharge  the  amount  due  on  the  mort- 
gage at  the  time  a  loss  occurs,  shall  be  applied  to  the  payment  of 
the  mortgage,  it  shall  be  so  paid  by  the  company,  and  the  mort- 
gagee's receipt  therefor  shall  be  a  sufficient  discharge  of  the  com- 
pany therefor.     {Ibid,  p.  435,  §  32.) 

34.  If  the  mortgagor  does  not  so  consent,  the  mortgagee  may. 


302  HINE'S  INSURANCE   STATUTES. 

at  any  time  witliin  sixty  days  after  a  loss,  enforce  liis  lieu  by  a 
suit  against  the  mortgagor,  and  the  company  as  his  trustee,  in 
which  judgment  may  be  rendered  for  what  is  found  due  from  said 
company  upon  the  policy,  notwithstanding  the  time  of  payment  of 
the  whole  sum  secured  by  the  mortgage  has  not  arrived.  (Ibid, 
§33.) 

;i»5.  The  amount  so  recovered  shall  be  applied  first  to  the  paj'- 
ment  of  the  costs  of  the  suit  and  officer's  fees  oq  the  execution,  and 
next  to  the  payment  of  the  amount  due  on  the  mortgage ;  and  the 
balance,  if  any,  shall  be  retained  by  the  company  and  jiaid  to  the 
mortgagor.  If  the  company  assumes  the  defense  of  the  suit,  it 
shall  be  liable  to  the  plaintiff  for  costs  in  the  same  manner  as  the 
principal  defendant,  defending  the  suit,  would  be.     {Ibid,  §  34.) 

34J.  When  two  or  more  mortgagees  claim  the  benefit  of  the 
three  i^receding  sections,  their  rights  shall  be  determined  according 
to  the  priority  of  their  claims  and  mortgages  by  the  principles  of 
law.     {Ibid,  §  35.) 

37,  When  any  mortgagee  claims  the  benefit  of  said  sections, 
any  policy  of  insurance,  which  he  had  procured  or  subsequently 
procures  on  his  interest  in  the  same  property  by  virtue  of  his  mort- 
gage, shall  be  void,  unless  it  is  consented  to  by  the  company  in- 
suring the  mortgagor's  interests.     {Ibid,  §  3(5.) 

38.  When  any  insurance  company,  incorporated  in  this  State, 
desires  to  deposit  any  portion  of  its  stocks  or  other  securities  with 
any  officer  of  this  State,  as  a  iire-requisite  to  the  establishment  of 
agencies  in  any  other  State  in  compliance  with  the  law  thereof,  the 
Treasurer  of  State  is  to  receive  such  stocks  or  other  securities,  and 
to  hold  the  same  on  deposit  and  in  trust  for  the  benefit  of  all  the 
policy-holders  in  said  company.     {Ibid,  §  37.) 

3I>.  The  Treasiu'er  shall  then  furnish  such  company  with  a 
certificate  or  certificates  of  the  fact,  in  his  official  capacity,  em- 
bracing the  items  of  the  security  so  deposited,  the  amount  and  par 
value  of  each,  and  his  opinion  of  their  value.     {Ibid,  §  38.) 

40.  He  shall  hold  such  seciu-ities  on  deposit  in  accordance 
with  these  provisions,  but  such  company  may  receive  and  collect 
the  interest  or  dividends  on  them,  and  withdraw  them,  from  time  to 
time,  on  depositing  in  lieu  thereof  others  of  like  character  and  value, 
to  be  determined  by  the  Treasurer.     {I bid,  p.  436,  §  39.) 

41 .  The  Treasurer  on  being  satisfied  of  the  repeal  or  alteration 
of  the  law  of  such  other  State,  disqualifying  such  company  from 
continuing  its  business  therein,  shall  retiu'u  the  securities  on  de- 
mand.    {Ibid,  §  40.) 

43.  When  such  company  desires  to  relinquish  its  business  out 
of  the  State,  the  Treasurer,  on  application  thereof  and  on  the  oath  of 
the  president  and  secretary,  that  its  assets  are  ample  to  meet  all  the 
existing  demands  against  it,  shall  deliver  its  securities.  {Ibid,  §  41.) 

43.  If  any  such  company  fails,  while  its  securities  are  so  on 
deposit,  the  Treasurer  shall  demand  of  its  secretary  or  clerk,  and  he 
shall  furnish  a  full  and  complete  list  of  the  names  and  residences  of 
all  policy-holders  and  others  having  claims  upon  the  company ;  and 
they  shaU  be  notified  forthwith  through  the  post-office  by  the 
Treasurer  of  the  condition  of  the  company ;  and  he  shall  state 
in  the  notice,  that  the  securities  held  by  him  will  be  disposed 
of,  and  the  proceeds,  after  paying  expenses,  paid  over  in  a  rata- 
ble proportion  upon  their  claims,  properly  authenticated,  and  the 
time  when  such  dividend  will  be  made ;  but  nothing  in  the  forego- 


MAINE.  303 

ing  x^^'O'^isions  shall  be  construed  to  impose  any  liability  on  this 
State  on  account  of  any  delinquency  of  the  Treasurer.  {Ibid,  §  42.) 
44.  Such  company,  on  so  depositing  its  securities,  shall  pay  to 
the  Treasiu-er  the  sum  of  five  dollars  for  each  certificate  granted  by 
him ;  and  in  case  of  proceeding  under  the  pro^isions  of  the  preced- 
ing section  the  Treasurer  shall  retain,  as  compensation  for  the  ser- 
vices thereby  required  by  him,  the  sum  of  two  per  cent,  on  the 
amount  received  and  disbursed  by  him.     {Ibid,  §  43.) 

■45.  An  Insurance  Commissioner  shall  be  appointed  by  the 
Governor  and  Council,  who  shall  hold  his  office  three  years  unless 
sooner  removed,  but  shall  not  at  the  same  time  be  examiner  of 
banks.  He  shall  have  no  comijensation  for  his  official  ser\-ices  ex- 
cept the  fees  prescribed  in  the  following  sections;  and  if  they 
amount  to  more  than  twenty -five  hundred  dollars  a  year,  the  bal- 
ance shall  be  paid  by  him  into  the  Treasiu'er  of  State ;  and  he  shall 
keep  an  accurate  account  of  all  fees  received,  and  settle  the  same 
annually  with  the  Governor  and  Council.  He  may  administer  oaths 
in  the  performance  of  his  official  duties  in  any  x>art  of  the  State  and 
at  any  time.  He  shall  keep  a  correct  account  of  his  doings  and  of 
all  matters  relating  to  the  subject  of  insurance  and  insurance  com- 
panies, on  which  he  is  officially  called  to  act.     {Ibid,  §  44.) 

46.  He  shall  annually  examine,  or  cause  to  be  examined,  every 
domestic  joint  stock  insurance  company,  and  mutual  life  insur- 
ance company,  to  ascertain  its  ability  to  meet  its  engagements 
and  do  a  safe  insurance  business;  and  make  such  other  exam- 
inations as  he  regards  necessary  for  the  safety  of  the  public  or 
the  holders  of  policies.  In  all  such  cases  he  may  require  the 
officers  to  produce  for  examination  any  and  all  books  and 
papers  of  the  company,  and  to  answer,  on  oath,  all  questions  pro- 
pounded to  them  in  relation  to  the  condition  and  affairs  of  the  com- 
pany ;  and  any  officer  who  refuses  to  produce  any  such  books  or 
papers  upon  his  demand,  or  to  be  sworn,  or  to  answer  any  such 
questions,  shall  be  subject  to  a  x)enalty  not  exceeding  two  hundred 
dollars.     {Ibid,  p.  437,  §  45.) 

47.  Every  such  insurance  comj^any  shall  organize  within  two 
years  after  its  charter  is  granted,  otherwise  the  charter  shall  be 
void ;  and  \r\)on  such  organization  shall  inform  the  Commissioner 
thereof.  iS'o  such  company  shall  for  the  first  time  commence  busi- 
ness by  issuing  policies,  until  the  Commissioner  first  examines  and 
ascertains  that  the  company  has  complied  with  the  terms  of  its 
charter,  paid  in  its  capital  stock,  and  become  qualified  to  act ;  and 
he  shall  then  issue  to  it  his  certificate  of  that  fact,  for  which  service 
he  shall  receive  from  it  twenty  dollars  and  all  traveling  expenses ; 
and  annually  thereafter  upon  examination,  so  long  as  the  same  is 
found  solvent  and  responsible  to  do  business,  the  Commissioner  shall 
issue  to  it  a  like  certificate  and  receive  a  like  fee.     {Ibid,  §  4G.) 

48.  If  on  examination  the  Commissioner  thinks  that  any 
domestic  insurance  company  is  insolvent,  or  that  it  is  in  such  a  con- 
dition as  to  render  its  further  proceedings  hazardous  to  the  i)ublic 
or  its  policy-holders,  he  shall  apply  to  a  justice  of  the  supreme  judi- 
cial court  to  issue  an  injunction  restraining  the  comi)an3-  in  whole 
or  in  part  from  further  proceeding  with  its  business.  Such  justice, 
or  any  other  justice  of  said  court,  may  thereupon,  either  with  or 
without  notice,  issue  such  temporary  injunction,  or  if  on  notice  such 
temporary  or  permanent  injunction  as  he  may  think  proper,  either 
of  which  he  may  afterwards  modify,  vacate,  or  perpetuate,  and  may 


304  hine's  insurance  statutes. 

pass  such  orders  and  decrees,  appoint  receivers  to  receive  the  assets 
of  the  company,  and  such  masters,  and  do  any  other  act  conform- 
able to  the  general  rules  of  chancery  i^ractice  as  may  in  his  opinion 
be  requisite  for  the  safety  of  the  public  and  for  the  best  interests  of 
all  parties  concerned,  all  which  orders  and  decrees  he  may  in  like 
manner  enforce.  All  such  proceedings  shall  be  at  once  made 
known  to  the  clerk  of  the  courts  for  the  county,  who  shall  enter 
them  on  his  docket,  place  them  on  file,  and  record  them  in  the 
records  of  the  court.  The  clerk's  fees  shall  be  audited  and  allowed 
by  the  coiu't,  and  paid  from  the  assets  of  the  company.  {Ibid, 
§48.) 

49.  No  foreign  insurance  company  shall  transact  any  insurance 
business  in  this  State,  unless  it  first  obtains  a  license  therefor  from 
the  Commissioner.  Before  recei\ing  such  license,  it  shall  furnish 
the  Commissioner  with  a  true  certified  copy  of  its  charter  and  by- 
laws, with  a  statement  under  oath,  signed  by  its  i^resident  or  secre- 
tary, showing  its  financial  condition,  according  to  a  form  supplied 
by  the  Commissioner.  Upon  receiving  such'  copies  and  statement, 
the  Commissioner  shall  grant  a  license,  if  he  thinks  it  ought  to  be 
granted,  which  shall  authorize  the  company  to  do  an  insurance 
business  in  this  State,  subject  to  the  laws  of  the  State,  until  the 
first  day  of  July  then  next ;  and  annually  thereafter  such  license 
may  be  renewed,  so  long  as  he  regards  the  company  responsible  and 
safe,  in  all  cases  to  terminate  on  the  first  day  of  July  next  succeed- 
ing. For  such  license  and  each  renewal  the  company  shall  pay  the 
Commissioner  twenty  dollars.     {Ibid,  p.  438,  §  49.) 

50.  No  i)ersou  shall  act  as  agent  of  any  insurance  company 
until  he  has  produced  to  the  Commissioner  and  filed  with  him  a 
duplicate  power  of  attorney  from  the  company,  or  its  authorized 
agent,  authorizing  him  to  act  as  such  agent.  Upon  filing  such 
power  the  Commissioner  shall  issue  a  license  to  him,  if  the  company 
has  received  a  license  to  do  an  insurance  business  in  this  State ;  and 
such  license  shall  continue  until  the  first  day  of  July  then  next,  and 
may  be  renewed  from  year  to  year  on  producing  a  certificate  from 
the  company  that  his  agency  is  continued.  For  each  such  license 
or  renewal  thereof  the  Commissioner  shall  receive  the  sum  of  one 
dollar.  And  if  any  person  solicits,  receives,  or  forwards  any  risk  or 
application  for  insurance  to  any  insurance  company,  without  first 
receiving  such  license,  or  fraudulently  assumes  to  be  an  agent,  and 
thus  procures  risks  and  receives  money  for  ])remiums,  he  shall 
forfeit  not  more  than  fifty  dollars  for  each  offense ;  but  any  policy 
issued  on  an  application  thus  procured  shall  bind  the  company,  if 
otherwise  valid.     [Ibid,  §  50.) 

51.  Any  person  may  be  licensed  by  the  Commissioner  as  in- 
surance broker,  to  negotiate  contracts  of  insurance,  and  to  efiect 
insurance  for  others  than  himself  for  a  compensation,  and  by  virtue 
thereof  he  may  place  risks  or  effect  insurance  with  any  insurance 
company  of  this  State,  or  with  the  agents  of  any  foreign  insurance 
companj^  who  have  been  licensed  to  do  an  insurance  business  in  this 
State,  but  with  no  other.  For  such  license  he  shall  pay  the  sum  of 
five  dollars,  which  shall  authorize  him  thus  to  act  until  the  first  day 
of  July  then  next;  and  on  payment  of  the  same  fee  his  license  may 
be  renewed  from  year  to  year  afterwards,  ending  annually  on  the 
first  day  of  July.  Any  person  without  such  license,  assuming  to  act 
as  such  broker,  shall  forfeit  not  more  than  fifty  dollars.  {Ibid, 
§51.) 


MAINE.  305 

52,  When  the  Coramissioiier  thinks  any  licensed  foreign  insnr- 
ance  company  is  in  failing  condition  or  nnsafe,  he  may,  on  reason- 
able notice,  suspend  its  right  to  do  insurance  business  in  the  State 
until  the  disability  is  removed.  And  if  the  company  or  any  of  its 
agents,  after  such  suspension  or  the  injunction  mentioned  in  section 
forty-eight,  issue  any  new  policies,  such  agent  or  company  shall 
forteit  not  exceeding  two  hundred  dollars.  And  to  enable  the  Com- 
missioner to  act  in  the  premises,  he  may  at  any  time  require  of  any 
such  company  a  lull  statement  of  all  its  affairs  bearing  upon  its 
responsibility  in  the  form  prescribed  by  him.     {I hid, p.  439,  §  52.) 

5?J.  ^^'hen  any  foreign  insurance  company  doing  business  in 
this  State  is  dissolved,  restrained,  or  prohibited  from  doing  business 
in  the  place  where  it  is  incorporated,  and  when  under  the  last  ])re- 
ceding  section  the  Commissioner  regards  the  proceedings  advisable, 
he  may  api)ly  to  the  supreme  judicial  court,  or  any  justice  thereof, 
either  in  term  time  or  vacation,  setting  forth  the  facts,  and  there- 
upon the  court  or  justice  may  appoint  a  receiver  or  receivers,  to  take 
possession  of  the  assets  of  the  company  in  this  State,  and  collect, 
sell,  or  disjjose  of  the  same  as  the  court  or  justice  may  decree,  and 
divide  the  proceeds  pro  rata  among  the  creditors  in  this  State,  who 
prove  their  claims  before  said  coiu't  or  justice  before  the  dividend 
is  made ;  and  the  balance,  if  any,  shall  be  paid  over  to  the  com- 
pany or  assigns.  The  i>roceedings  herein  provided  for  shall  conform 
to  the  provisions  of  section  forty-eight.  The  receivers  may  main- 
tain! any  action  on  or  for  any  such  assets  in  their  own  names  as 
receivers,  subject  to  all  equities  which  exist  between  the  original  or 
previous  parties.     (/  bid,  §  53.) 

54.  Every  domestic  insurance  company,  and  every  foreigii  in- 
surance company  doing  business  in  this  State  shall  annually,  by  the 
thirty-first  day  of  January,  render  to  the  Commissioner  an  exact 
statement,  under  oath,  of  its  condition  as  it  existed  on  the  thirty- 
first  day  of  December  previous,  or  its  last  exhibit,  setting  forth  its 
condition  as  required  by  blanks  furnished  by  the  Commissioner. 
{Ibid,  §  54:,  as  amended  by  laws  of  1S74,  p.  145,  §  1.) 

55.  Every  foreign  insurance  company  doing  business  in  this 
State  shall  annually  cause  to  be  published  three  weeks  successively, 
in  some  dail}^  or  weekly  paper  printed  in  the  county  where  said 
company  has  a  duly  authorized  agent,  or  takes  policies,  a  condensed 
statement  of  its  condition,  comformable  to  its  last  annual  report  to 
the  Commissioner;  and  any  such  insurance  company  which  shall 
neglect  or  refuse  to  }mblish  such  statement  shall  forfeit  not  less  than 
fifty  dollars.     {Ibid,  §  ')[),  as  amended  by  laics  of  1874,  p.  145.) 

56.  The  Commissioner  shall  preserve,  in  a  proper  form,  the 
statements  of  the  condition  of  every  company'  examined  or  caused  to 
be  examined  by  him,  and  all  which  shall  be  rendered  to  him  as  herein 
required;  and  shall  annually  report  to  the  legislature  the  general 
condition  of  the  insurance  companies  doing  business  in  this  State, 
with  the  names  and  locations  of  their  authorized  agents  in  this 
State,  and  such  suggestions  as  ht)  thinks  proper,  and  in  connection 
therewith,  shall  i)rei)are  an  abstract  of  all  returns  and  statements 
made  to  him  by  insurance  companies.      {Ibid,  §  56.) 

Si7,  When  the  Commissioner  learns  that  the  net  cash  funds  of 
any  lite  insurance  company  doing  business  in  this  State,  are  nit 
equal  to  its  liabilities,  including  the  net  value  of  its  policies  accord- 
ing to  the  "  Combined  Experience  or  Actuaries'  Eate  of  Mortal ity," 
with  interest  at  foirr  i)er  cent,  per  annum,  he  shall  give  notice  to 
20 


306  hine's  insurance  statutes. 

such  company  and  its  agents  to  cease  issuing  policies  within  this 
State.  He  may  ijurchase  and  use  the  life  valuation  tables  adopted 
by  the  insurance  department  of  Massachusetts  for  this  and  all  pur- 
poses of  valuation.  When  he  is  satisfied  that  the  funds  of  such 
company  have  become  equal  to  its  liabilities,  valuing  its  policies  as 
afoiej-aid,  he  shall  give  notice  to  such  company  and  agents  that  its 
business  may  be  resumed.  If  any  officer  or  agent,  after  such  notiee 
of  suspension  is  given,  issues  any  new  policy  in  behalf  of  such  com- 
pany, he  shall  forfeit  for  each  offense  a  sum  not  exceeding  three 
hundred  dollars ;  and  tlie  deUvery  of  a  policy  in  this  State  by  mail 
or  otherwise  shall  be  deemed  an  issuing  of  such  policy.  [Ibid, 
§57.) 

58.  When  the  Commissioner  suspends  the  operations  of  a 
comi)any,  or,  on  application,  refuses  to  countermand  such  suspen- 
sion, it  may  appeal  to  a  judge  of  the  supreme  judicial  court  by  pre- 
senting to  him  a  petition  therefor  in  term  time  or  vacation,  and  he 
shall  lix  a  time  and  place  of  hearing  which  may  be  at  chambers  and 
in  vacation,  and  cause  notice  thereof  to  be  given  to  the  Commissioner; 
and  after  the  hearing,  he  may  affirm  or  reverse  the  decision  of  the 
Commissioner ;  and  the  decision  of  such  justice  shall  be  linal.  {Ibid, 
§58.) 

i3S>.  All  penalties  provided  by  this  act  may  be  recovered  in  an 
action  of  debt  in  the  name  of  the  State,  and  inui^e  to  the  State  when 
collected.  The  County  Attorney  for  the  county  where  the  forfeiture 
is  incurred,  shall  sue  therefor  at  the  direction  of  the  Commissioner. 
{Ibid,  §59.) 

Hit.  On  application  in  writing  to  the  Commissioner  by  an 
officer  of  any  insurance  company  doing  business  in  this  State,  stat- 
ing that  he  has  reason  to  believe  and  does  believe  that  any  j)erson 
has  procured  of  said  company  an  insurance  by  fals3  representations, 
or  that  the  company  has  sustained  a  loss  by  the  fraudulent  act  of  the 
insured,  or  with  his  knowledge  or  consent,  and  requests  an  investi- 
gation thereof,  said  Commissioner,  or  such  magistrate  as  he  appoints, 
shall  summon  and  examine,  under  oath,  at  a  time  and  i^lace  de- 
signated by  liiin,  any  persons,  and  require  the  production  of  all 
books  and  XJapers  necessary  for  a  full  investigation  ot  the  facts,  and 
make  report  thereof  with  the  testimony  by  him  taken  to  the  com- 
pany making  such  application.  Such  com])any  shall  pay  the  Com- 
missioner or  magistrate  his  expenses  for  making  such  investigation 
and  ten  dollars  a  day  for  his  services,  and  the  fees  of  the  witnesses 
to  be  taxed  as  in  the  supreme  judical  court.     {Ibid,  §  GO.) 

<51.  The  word  domestic,  when  used  in  this  chapter,  means 
companies  incorporated  by  this  State ;  and  the  word  foreign  means 
comi)anies  not  so  incorporated.     {Ibid, p.  441,  §  Gl. ) 

^2.  No  foreign  fire  or  marine  insurance  company  shall  be  ad- 
mitted to  do  business  in  this  State  unless  it  have  n  bona  file,  paid 
up,  unimpaii'ed  capital,  if  a  stock  company,  of  at  least  two  hundred 
thousand  dollars,  well  invested  in  or  secured  by  real  estate,  bonds, 
stock,  or  securities  other  than  names  alone,  or  if  a  mutual  comi)any, 
cash  assets,  to  the  amount  aforesaid  ;  and  no  foreign  life  insurance 
company  shall  be  admitted  to  do  business  in  this  State  unless  it 
have  a  lonajide,  paid-up,  unimpaired  capital,  if  a  stock  company,  of 
at  least  one  hundred  thousand  dollars,  well  invested  in  or  secured 
by  real  estate,  bonds,  stock  or  securities  other  than  names  alone  ; 
or  if  a  mutual  company,  cash  assets  to  the  amount  aforesaid.  And 
no  stipulations  or  conditions  shall  deprive  the  courts  of  this  State  of 


MAINE.  307 

jurisdictions  of  actions  against  such  companies,  nor  limit  the  time 
of  commencing  tliem  to  a  period  of  less  than  two  years  from  the 
time  tlie  canse  of  action  accrues.  {Ibid,  §  62,  as  amended  hy  act  ap- 
proved February  134,  1875.) 

OtJ.  Any  person  having  a  claim  against  any  foreign  insurance 
comjjany  may  bring  a  suit  therefor  in  the  courts  in  this  State,  in- 
cluding trustee  suits,  and  service  made  on  any  authorized  agent  of 
said  comi)any  shall  be  valid  and  binding  on  the  company,  and  hold 
it  to  answer  to  such  suit;  and  the  judgment  rendered  thei-ein  shall 
bind  the  company  as  a  valid  judgment  in  every  respect,  whether  the 
defendants  appear  or  not.  In  case  no  agent  of  such  company  can 
be  found,  such  notice  or  sevice  served  on  the  State  Insurance  Com- 
missioner, who  shall  immediately  notify  said  insurance  company  by 
mail,  shall  be  valid  and  binding  on  the  company  as  though  served 
on  tlieir  agent.  Unless  any  such  judgment  is  paid  within  thirty 
days  after  demand  made  upon  any  such  agent  or  the  Insurance  Com- 
missioner by  the  officer  holding  the  execution,  the  Commissioner 
may,  on  notice  and  hearing  of  the  ])arties,  suspend  the  i^ower  of  the 
company  to  do  business  in  this  State  until  it  is  jiaid ;  and  if  the 
comi)any  or  any  agent  thereof  issues  any  policy  in  this  State  during: 
such  suspension,  said  company  and  agent  shall  each  forfeit  not  ex- 
ceeding one  hundred  dollars.  But  any  policy  so  issued  shall  be 
binding  on  the  company  in  favor  of  the  holder.  {Ibid,  §  63,  as 
amended  by  hncs  0/1874,  p.  160.) 

64.  All  notices  and  processes  which,  by  any  law,  by-law,  or 
provision  of  any  ijolicy,  any  insiu'ed  or  other  person  has  occasion  to 
give  or  serv^e  on  any  such  company,  may  be  given  to  or  served  on 
its  agent,  or  on  the  Insurance  Commissioner,  as  provided  in  said 
section  sixty-three,  with  like  effect  as  if  given  or  served  on  the  prin- 
cipal. Such  agents  and  the  agents  of  all  domestic  companies  shall 
be  regarded  as  in  the  place  of  the  company  in  all  respects  regarding 
any  insurance  effected  by  them.  The  company  shall  be  bound  by 
their  knowledge  of  the  risk  and  of  all  matters  connected  therewith. 
Omission  and  misdescriptions  known  to  the  agent  shall  be  regarded 
as  known  by  the  company',  and  waived  by  it  the  same  as  if  noted  in 
the  policy.     {I  bid,  §  64,  as  amended  by  laws  of  1874,  jj.  liil.) 

05.  Whenever,  after  setting  aside  a  sum  equal  to  the  full 
amount  of  premiums  on  outstanding  marine  risks,  together  with 
one-half  of  all  premiums  on  existing  fire  and  inland  risks,  tlie  net 
assets  of  any  insurance  company  with  a  specific  capital,  do  not 
amount  to  more  than  three-fourths  of  its  capital  stock,  the  ccmipany 
shall,  by  assessing  the  stock,  restore  its  capital  to  the  legal  amount. 
Shares  on  which  such  assessment  is  not  paid  within  sixty  days 
after  demand  upon  the  owner  thereof  shall  be  forfeited,  and 
ordered  by  a  vote  of  the  directors  to  be  sold  at  public  auction, 
seven  days'  notice  of  the  sale  thereof  shall  be  given  in  some  daily  or 
weekly  paper  published  in  the  place  where  such  company  is  located, 
the  proceeds  of  sale,  after  deducting  expenses  and  the  assessment 
due  on  such  shares,  shall  be  paid  to  the  owner  or  his  representative; 
Provided,  That  whenever  the  capital  stock  of  any  insurance  comi)any 
shall  be  impaired  as  aforesaid,  such  company  may,  by  a  majority 
vote  of  the  stock,  at  a  meeting  of  the  stockholders  legally  called,, 
reduce  its  capital,  by  canceling  its  shares  2f^o  ^«^f*  to  the  number 
thereof,  or  may  reduce  the  par  value  of  its  shares,  or  such  company 
may  thus  reduce  its  capital  stock  and  also  assess  as  hereinbefore 
provided;  but  no  such  company  shall  reduce  its  capital  stock  as 


308  hine's  insurance  statutes. 

aforesaid  more  than  twenty  per  cent,  thereof,  nor  to  a  sum  less  than 
one  huudred  thousand  doUars.     {Laws  oflSl'3,p.  102,  §  1.) 

C6.  Any  insurance  comjiany  incorporated  in  this  State  liaving 
a  specific  capital,  which  does  not  within  three  months  after  receiv- 
ing notice  from  the  Insurance  Commissioner  that  its  capital  is  thus 
impaired,  satisfy  him  that  it  has  fidly  complied  with  the  provisions 
of  this  act  relating  thereto,  shall  be  proceeded  against  according  to 
the  provisions  of  the  forty-eighth  section  of  the  act  to  which  this  is 
additional.     {Ibid,  p.  lOo,  §  li.)  . 

67.  Whenever,  after  setting  aside  a  sum  equal  to  that  required 
by  the  previous  sections,  the  cash  assets  of  auy  foreign  insurance 
company  having  a  specific  capital,  doing  business  in  this  State,  do 
not  amount  to  more  than  three-fourths  of  its  legal  capital,  the  com- 
pany shall,  by  assessing  its  stock  lor  the  difference,  or  in  some 
other  way,  repair  its  capital  to  its  legal  amount,  and  unless  it  do  so 
within  three  months  after  notice  from  the  Insurance  Commissioner, 
shall  no  longer  be  permitted  to  do  business  in  this  State,  and  the 
Commissioner  shall  thereupon  proceed  as  provided  in  sections  fifty- 
two  and  fifty-three  of  said  chai)ter  of  the  Kevised  Statutes,  if  in  his 
opinion  such  proceeding  is  necessary.     {Ibid,  §  '6.) 

08.  The  assignee  of  any  policy,  the  assignment  of  which  has 
been  assented  to  by  the  company  or  its  agent,  may  sue  the  com- 
pany on  the  policy  in  his  own  name,  and  all  sums  due  on  such 
policy  may  be  recovered  in  such  suit,  subject  to  any  defense  existing 
against  the  original  party,  the  assignee  so  suing  to  hold  the  judg- 
ment or  its  proceeds  subject  to  the  claims  and  equities  of  any  other 
parties  who  may  be  interested  therein.     {I bid,  p.  104,  §  fi.) 

01>.  It  shall  be  the  duty  of  the  Insurance  Commissioner,  when- 
ever he  deems  it  necessary  for  the  protection  of  policy-holders  in 
this  State,  to  visit  and  examine  any  insurance  company  not  incor- 
liorated  in  this  State  and  doing  business  by  agencies  therein.  He 
may  employ  such  assistants  as  are  necessary  in  making  the  exam- 
ination ;  all  necessary  expenses  for  such  examination  with<mt  the 
State  shall  be  borne  by  the  comj^auy  so  examined ;  Provided,  That 
in  relation  to  the  affairs  of  any  company  incorporated  by  or  organ- 
ized under  the  laws  of  any  State  of  the  United  States,  it  shall  be 
optional  with  the  said  Commissioner  to  accept  the  certificate  of 
the  Insurance  Commissioner  or  Superintendent  of  the  State,  under 
the  laws  of  which  the  said  company  was  organized,  as  to  its  stand- 
ing and  condition,  or  to  proceed  to  investigate  its  affairs  as  herein- 
before provided.     (Ibid,  §  7.) 

70.  For  the  purposes  aforesaid  the  Commissioner,  or  any 
person  whom  he  may  empower,  shall  have  free  access  to  all  the 
books  and  papers  of  any  insurance  company  doing  business  in  this 
State,  and  may  examine  under  oath  its  officers  or  agents  relative  to 
its  business  and  condition.  If  any  such  company,  its  officers  or 
agents,  refuse  to  submit  to  such  examination,  or  to  comply  with  any 
provisions  of  this  act  in  relation  thereto,  the  authority  of  such  com- 
pany to  do  business  in  this  State  shall  be  revoked  until  such  time 
as  satisfactory  proof  is  furnished  to  the  Commissioner  that  the 
company  is  in  a  sound  and  solvent  condition.     {Ibid,  §  8.) 

71.  The  Governor  and  ('ouncil  may  allow  such  reasonable 
compensation  for  services  rendered  and  expenses  incurred  in  en- 
forcing the  laws  relating  to  insurance  companies  as  they  deem 
proper.     (Ibid,  §  9.) 

72.  Receivers  appointed  for  any  insurance  company  of  this 


MAINE,  309 

State,  as  provided  in  said  chapter  forty-nine,  sliall  have  tlie  same 
power  and  rights  of  action,  and  the  course  of  proceeding  so  far  as 
applicable  shall  be  the  same  as  prescribed  for  receivers  of  banks  in 
the  forty-seventh  chapter  of  the  Kevised  Statutes.  {Ibid,  p.  105,  § 
10.) 

73.  Whenever  the  directors  of  any  mutual  fire  insurance  com- 
pany, or  any  mutual  marine  insurance  company,  shall  make  an  as- 
sessment, or  call  on  its  members  for  money,  or  shall  by  vote  deter- 
mine that  there  exists  a  necessity  for  such  assessment  or  call,  they, 
or  any  person  interested  in  the  company  as  an  officer,  policy-holder, 
or  creditor,  may  apply  to  the  supreme  judicial  coiu-t  for  any 
county,  by  a  petition  in  the  nature  of  a  bill  in  equity,  praying  the 
court  to  examine  said  assessment  or  call,  or  to  determine  the 
necessity  therefor,  and  all  matters  connected  therewith,  and  to 
ratify,  amend  or  annul  the  assessment  or  call,  or  to  order  that  the 
same  be  made  as  law  and  justice  may  require;  provided  such  ap- 
plication, when  made  by  any  party  except  the  corporation,  or  a  re- 
ceiver, or  the  Insurance  Commissioner,  shall  rest  in  the  discretion 
of  the  court.  And  whenever  the  directors  shall  unreasonably  neg- 
lect to  make  an  assessment  or  call,  to  satisfy  an  admitted  or  ascer- 
tained claim  upon  the  company,  any  judgment  creditor,  or  any  per- 
son holding  such  admitted  or  ascertained  claim,  or  the  Insurance 
Commissioner,  may  make  the  application  to  the  court.  Upon  such 
application,  if  made  by  the  directors,  or  upon  order  of  court,  if 
made  by  application  of  any  other  party,  the  directors  shall  set  forth 
the  claims  against  the  company,  its  assets  and  all  other  facts  and 
particidars  appertaining  to  the  matter.  {Act  approved  February  21, 
1875,  §  1.) 

74.  The  court  before  which  such  petition  is  filed  shall  order 
notice  to  be  given  to  all  parties  interested,  by  publication  or  other- 
wise ;  and  the  petition  may  be  filed  in  vacation,  in  which  case  the 
order  of  notice  may  be  made  by  any  justice  of  the  court ;  and  upon 
the  return  thereof,  the  court  shall  proceed  to  examine  the  assess- 
ment or  call,  or  the  necessity  therefor,  and  all  matters  connected 
therewith ;  and  any  parties  interested  may  appear  and  be  heard 
thereon,  and  all  questions  that  may  arise  shall  be  heard  and  deter- 
mined as  in  other  equity  cases.  The  court  may  refer  the  appoint- 
ment or  calculation  to  any  competent  person,  and  upon  the  examin- 
ation may  ratify,  amend  or  annul  the  assessment  or  call,  or  order 
one  to  be  made.  In  case  the  assessment  or  call  is  altered  or 
amended,  or  one  is  ordered  to  be  made,  the  directois  shall  forthwith 
proceed  to  vote  the  same  in  legal  form,  and  the  record  of  such  vote 
shall  be  set  forth  in  a  supplemental  bill  or  answer.     {Ibid,  §  2.) 

75.  Whenever  the  coitrt  shall  appoint  a  master  or  auditor  to 
make  the  apportionment  or  calculation  for  an  assessment  under  the 
provisions  of  this  act,  such  master  or  auditor  shall  ajipoint  a  time 
and  i)lace  to  hear  all  parties  interested  in  the  assessment  or  call,  and 
shall  give  personal  notice  thereof,  in  writting  to  the  Insurance  Com- 
missioner, and  through  the  post-office,  or  in  such  other  manner  as 
the  court  shall  direct,  so  far  as  he  may  be  able,  to  all  persons  liable 
upon  said  assessment  or  call.  Any  said  auditor  or  master  shall 
hear  the  parties,  and  make  report  to  the  court  of  all  his  doings  re- 
specting such  assessment  or  call,  and  all  matters  connected  there- 
with, and  all  parties  interested  in  such  report  or  assessment  shall 
have  the  right  to  be  heard  by  the  court  respecting  the  same,  in  the 
same  manner  as  is  above  provided.     {Ibid,  §  3.) 


310  niNE'S  INSURANCE  STATUTES. 

76.  When  an  assessment  or  call  has  been,  as  above  provided, 
ratified,  ascertained,  or  established,  a  decree  shall  been  tcied  which 
shall  be  final  and  conclusive  upon  the  company  and  all  ]>arties  liable 
to  the  assessment  or  call  as  to  the  necessity  of  the  same,  the  au- 
thority of  the  company  to  make  or  collect  the  same,  the  amount 
thereof,  and  all  formalities  connected  therewith.  And  where  an  as- 
sessment or  call  hereafter  made  shall  be  altered  or  amended  by  vote 
of  directors  and  decree  of  the  court  thereon,  such  amended  or  al- 
tered assessment  or  call  shall  be  binding  upon  all  parties  who  would 
have  been  liable  under  it  as  originally  made,  and  in  all  legal  i3ro- 
ceedings  shall  be  held  to  be  such  original  assessment  or  call.  All 
proceedings  above  provided  for  shall  be  at  the  cost  of  the  company, 
unless  the  court  for  cause  otherwise  order ;  and  in  all  cases  the  court 
may  control  the  disposition  of  the  funds  collected  under  these  pro- 
ceedings, and  may  issue  all  necessary  processes  to  enforce  the  pay- 
ment of  such  assessment  against  all  persons  liable  therefor,  (J  hid, 
§4.) 

77.  Whenever  it  shall  appear  to  the  presiding  judge  of  the 
court  before  which  such  petition  is  pending,  that  the  net  proceeds 
of  any  assessment  or  call  will  not  be  sufficient  to  furnish  substan- 
tial relief  to  those  having  claims  against  the  company,  said  judge 
may  decree  that  no  assessment  shall  be  collected ;  and  when  upon 
the  application  of  the  Insurance  Commissioner,  or  any  j)erson  in- 
terested, said  judge  shall  be  of  opinion  that  further  attempts  to  col- 
lect any  assessment  then  partiall}^  collected  will  not  benefit  those 
having  claims  against  the  comj^any,  he  may  stay  the  further  col- 
lection of  said  assessment.    {Ibid,  §  5.) 

78.  Every  insurance  company  or  association  which  is  or  may 
be  admitted  to  do  business  in  this  State,  not  incorporated  or  associ- 
ated under  the  laws  thereof,  shall,  as  hereinafter  provided,  annually 
pay  a  tax  upon  all  premiums  received,  whether  in  cash  or  in  notes 
absolutely  payable,  in  excess  over  losses  actually  paid  during  the 
year,  on  contracts  made  in  this  State,  for  the  insurance  of  life,  prop- 
erty, or  interests  therein,  at  the  rate  of  two  per  cent,  per  annum. 
{Laws  of  1<S74,  p.  177,  §  1.) 

79.  In  determining  the  amount  of  tax  due,  under  the  preceding 
section  of  this  act,  there  shall  be  do'ducted  on  each  case,  from  the 
full  amount  of  premiums  received  the  amount,  if  any,  paid  for  losses 
during  the  year ;  unused  balances  on  notes  taken  for  premiums  on 
open  policies  ;  and  all  sums  repaid  or  allowed  for  return  premiums 
on  canceled  policies,  and  the  legal  reserve  required  on  life  policies ; 
and  the  tax  shall  be  computed  on  the  net  amount  thus  actually  re- 
ceived by  said  comi)anies  or  their  agents  for  the  year,  as  aforesaid. 
{Ibid,  §  2.) 

80.  Every  company  or  association  which,  by  the  provisions  of 
this  act,  is  required  to  pay  a  tax,  shall  on  or  before  the  thirty-first 
day  of  January,  in  each  year,  make  a  return,  under  oath  to  the  In- 
surance Commissioner,  stating  the  amount  of  all  premiums  re- 
ceived by  said  company,  either  in  cash  or  notes  absolutely  payable, 
during  the  year  ending  on  the  thirty-first  of  December  next  previous, 
and  also  the  amount  to  be  deducted  therefrom,  under  the  provisions 
of  this  act,  specifying  the  whole  amount  thereof,  and  also  the 
classes  of  deductions  and  amount  of  each  class.  Said  tax  shall  be 
assessed  by  the  State  Treasurer,  uj^on  the  certificate  of  the  Insur- 
ance Commissioner,  to  be  seasonably  furnished  therefor,  on  or  before 
the  first  day  of  April,  the  same  to  be  paid  on  or  before  the  first  day 


MAINE.  311 

of  May  then  next.  It  sliall  be  the  duty  of  tlie  Treasurer  to  notify  the 
several  companies  of  the  assessment,  and  unless  the  same  be  paid 
as  aforesaid,  the  Commissioner  shall  suspend  the  right  of  the  com- 
pany to  do  any  further  business  in  the  State  until  the  tax  is  paid. 
{Ibid,  §  3.) 

8 1 .  The  legal  reserve  required  on  life  policies,  which  section 
two  of  chapter  two  hundred  and  fifty-one  of  the  public  laws  of 
eighteen  hundred  and  seventy-four  allows  to  be  deducted  from  the 
premiums  received,  in  computing  the  tax  on  life  insurance  companies, 
shall  be  held  and  construed  to  mean  the  amount  to  be  annually  set 
aside  as  a  reserve  from  premiums  received  in  this  State  during  the 
year  for  which  the  return  is  made  aud  the  tax  assessed.  {Act  ap- 
proved February  24, 1875,  §  1.) 

82.  In  case  any  insurance  company  or  association  shall  refuse 
or  neglect  to  make  the  return  required  by  section  three  of  chapter 
two  hundred  and  fifty-one,  of  the  public  laws  of  eighteen  hundred 
and  seventy-four,  including  each  and  every  item  therein  specified, 
as  provided  by  said  chapter,  or  by  this  act  explanatory  of  aud  ad- 
ditional to  the  same,  the  Treasurer  shall  make  the  assessment  of  the 
tax  prescribed  in  said  chapter  two  hundred  and  fifty-one,  on  such 
net  amount  as  he  may  think  just,  with  sucli  evidence  as  he  may  be 
able  to  obtain  ;  aud  from  such  assessment  there  shall  exist  no  right 
of  appeal  on  the  part  of  the  company  or  association  failing  to  make 
such  return.     {Ibid,  §  2.) 

SdlTS  AGAINST  mSURANCE  COMPAiTIES. 

83.  A  parish  in  the  actnal  occupancy  of  a  church,  meeting- 
house, or  other  building  used  for  religious  purposes  may  insure  it 
against  loss  by  fire.  Aud  in  case  of  such  loss  the  company  insuring 
shall  not  deny  the  occupancy  of  the  parish,  its  legal  existence,  or  its 
right  to  maintain  an  action  on  the  policy.  {Revised  Statutes,  1871, 
p.  208,  §  13.) 

84.  In  actions  by  inhabitants  of  this  State  against  insurance 
companies  established  by  any  other  State  or  country,  on  policies  of 
insurance,  signed  or  countersigned  by  agents  in  this  State,  on  pro- 
perty or  lives,  or  against  accidents  in  this  State,  service  shall  be 
sufiBcient  if  made  on  the  person  who  signed  or  countersigned  such 
policies,  or  on  any  agent  or  attorney  of  either  such  company,  or  left 
at  his  last  and  usual  place  of  abode  thirty  days  before  the  return 
day  of  the  suit ;  but  the  court  may,  in  any  case,  order  further  notice. 
{Revised  Statutes,  1871,^.  619,  §  20.) 

DISTEIBUTIOX  OF  LIFE  INSURANCE  MOIS^EY. 

8«5.  A  sum  of  money  received  for  insurance  on  his  (deceased 
party's)  life,  deducting  the  premium  paid  therefor  within  three 
years'  with  interest,  does  not  constitute  a  part  of  his  estate  for  pay- 
ment of  debts,  or  purposes  specified  in  the  first  section  of  chapter 
sixty-six,  when  the  intestate  leaves  a  widow  or  issue,  but  descends 
one-third  to  his  widow,  and  the  remainder  to  his  issue ;  if  no  issue, 
the  whole  to  the  widow,  and  if  no  widow  the  whole  to  the  issue.  It 
may  be  disposed  of  by  will,  though  the  estate  is  insolvent.  {Revise! 
Statutes,  1871,^.  568,  §  10.) 


312  hide's  ixsueance  statutes. 

86.  All  life  policies  and  money  due  thereon  are  exempt  from 
attacbment  and  from  all  claims  of  creditors  during  the  life  of  the 
insured,  when  the  annual  cash  premium  paid  does  not  exceed  one 
hundred  and  fifty  dollars ;  but  when  it  exceeds  that  sum,  and  the 
premium  was  paid  by  the  debtor,  his  creditors  have  a  lien  on  the 
policies  for  such  sum  over  one  hundred  and  fifty  dollars  per  year  as 
the  debtor  has  paid  for  two  years,  subject  to  any  pledge  or  assign- 
ment thereof  made  in  good  faith.     [Ibid,  p.  442,  §  65.) 


l^^QUESTS  IN  CASES  OF  FIKE. 

87.  Whenever  any  building  or  vessel  in  port,  or  their  contents, 
are  wholly  or  partially  destroyed  by  fire,  originating  on  the  premi- 
ses, unless  the  cause  thereof  shall  be  clearly  accidental,  it  shall  be 
the  duty  of  the  mayor  of  the  citj^  or  the  municipal  authorities  of  the 
town  or  plantation  where  the  fire  occurs,  to  give  notice  thereof  at 
once  to  the  sheriff  of  the  county  or  his  deputy,  and  said  sheriff  or 
deputy  shall  thereupon  immediately  summon  three  good  and  lawful 
men  to  appear  at  the  place  of  the  fire  at  a  time  to  be  fixed  as 
soon  as  possible,  to  inquire  M'hen,  how,  and  by  what  means  the 
fire  originated,  and  in  case  of  the  non-appearance  of  the  x^ersons  so 
suinmoned,  the  ofticer  shall  appoint  some  other  j)ersons  to  complete 
said  number,  and  it  shall  be  the  duty  of  all  i^ersons  so  summoned 
to  appear  and  act  under  such  summons  unless  excused  for  reason- 
able cause.  {Bevised  jStatutes,  1871,  p.  294,  §  29,  as  amended  by  laws 
0/1873,  p.  96,  §  1.) 

88.  When  the  persons  thus  summoned  appear,  or  the  number 
be  made  complete,  the  sheriff'  or  deputy  shall  call  over  their  names, 
and  then  in  xievf  of  the  land  on  which  such  property  was  destroyed, 
he  shall  administer  the  following  oath  : 

You  solemidy  swear  that  you  will  diligently  inquire  and  true 
presentment  make,  in  behalf  of  the  State,  when,  how,  and  by  what 
means  the  fire  which  has  here  occurred  was  caused;  and  that  you 
will  return  a  true  inquest  according  to  your  best  knowledge  and 
such  e\idence  as  shall  be  laid  before  vou.  {Ibid,  §  30,  as  amendel  by 
laws  of  1873,  p.  96,  §  2.) 

811.  The  sheriff  or  deputy  shall  issue  subpoenas  for  witnesses, 
returnable  forthwith  at  such  time  and  place  as  he  therein  directs. 
Such  witnesses  shall  be  allowed  the  same  fees  and  their  attendance 
shall  be  enforced  in  the  same  manner  as  if  they  had  been  served 
with  a  subpoena  in  behalf  of  the  State  to  attend  any  court  before 
such  sheriff"  or  deputy.  They  shall  be  sworn,  and  their  testimony 
shall  be  reduced  to  writing  by  the  presiding  sheriff"  or  deputy,  or 
some  person  by  his  direction,  and  by  them  subscribed.  {Ibid,  §  31, 
as  amended  by  laws  of  1872,  j?^.  96,  §  2.) 

tlO.  The  Jury,  after  hearing  the  testimony  and  making  all  need- 
ful inquiries,  shall  draw  up  and  deliver  to  such  sheriff'  or  dejmty, 
their  inquisition  under  their  hands,  in  which  they  shall  find  and  cer- 
tify when,  how,  and  by  what  means  such  fire  was  caused.  Said  in- 
quisition and  testimony  thus  subscribed  shall  be  filed  by  said  sheriff 
or  deputy  with  the  clerk  of  the  courts  for  said  county  within  one 
week  thereafter.  {Ibid,  p.  95,  §  32,  as  amended  by  laws  of  1813,  p.  96, 
§2.) 

91 .  The  fees  of  the  officer  and  the  expenses  of  said  inquisition 
shall  be  the  same  as  prescribed  for  the  coroner  in  cases  of  inquests 


MAINE,  313 

upon  dead  bodies,  and  the  fees  of  tbe  jurors  sliall  be  two  dollars 
each  for  tbe  inquest,  witb  traveling-  fees,  tbe  same  as  witnesses  in 
court ;  and  tbe  amount  tbereof  sball  be  added  to  tbe  county  tax  of 
tbe  town  wliere  tbe  lire  occurred  and  be  paid  and  collected  as  otber 
county  taxes.     {Ibid,  §  33,  as  amended  bylaws  of  1873, p.  96,  §  3.) 


AESON  AND  INCENDIARISM. 

ft2.  Wboever  willfully  and  maliciously  sets  fire  to  tbe  dwell- 
ing-bouse of  auotbcr,  or  to  any  building  adjoining  tbereto,  or  to 
any  building  owned  by  bimself  or  anotber,  witb  tbe  intent  to  burn 
sucb  dwelling-bouse,  and  it  is  tbereby  burnt,  in  tbe  nigbt  time,  sball 
be  punisbed  witb  deatb.  If  be  proves,  and  tbe  jury  find,  tbat  tbere 
was  no  person  lawfully  in  sucb  dwelling-bouse  at  tbe  time,  or  if  tbe 
offense  was  committed  in  tbe  day  time,  be  sball  be  punisbed  by  im- 
prisonment for  life.     (lievised  Statutes,  1871, _p.  830,  §  1.) 

SIIS.  Wboever  willfully  and  maliciously  sets  lire  to  a  dwelling- 
bouse  owned  wbolly  or  partly  by  bimself  or  anotber,  witb  intent  to 
burn  sucb  dwelling-bouse,  anotber  person  being  lawfully  tberein, 
and  it  is  tbereby  burnt,  sball  be  punisbed  by  imprisonment  for  life. 
[^Ibid,  §  2.) 

04.  Wboever  willfully  and  maliciously  sets  fire  to  a  meeting- 
house, court-house,  jail,  town-house,  college,  academy,  or  other 
building  erected  for  public  use,  or  to  any  store,  sboj),  office,  barn,  or 
stable  of  another  within  the  curtilage  of  a  dwelbng-bouse,  so  that 
it  is  tbereby  endiingered,  and  such  public  or  otber  building  is 
thereby  burnt  in  the  night-time,  sball  be  punisbed  by  imprisonment 
for  life,  or  any  term  of  years  ;  but  if  such  ofiense  was  committed  in 
tbe  day-time,  or  without  the  curtilage  of  and  without  endangering  a 
dwelling-house,  by  imprisonment  not  less  than  one,  nor  more  than 
ten  years.    [Ibid,  §  3.) 

Oo,  Wboever  willfully  and  maliciously  burns  any  building  of 
another  not  mentioned  in  tbe  preceding  section,  or  any  vessel, 
bridge,  lock,  dam,  or  flume,  of  another,  shall  be  punisbed  by  im- 
prisonment not  less  than  one,  nor  more  than  ten  years.    {Ibid,  §  4.) 


EMBEZZLEMENT. 

06.  If  an  officer,  agent,  clert,  or  servant  of  a  i^erson,  co-part- 
nership, or  corporation,  not  an  apprentice,  nor  less  than  sixteen 
years  of  age,  embezzles  or  fraudulently  converts  to  his  own  use,  or 
takes  and  secretes  with  intent  to  do  so,  without  consent  of  bis  em- 
ployer or  master,  any  property  of  another  in  his  possession  or  under 
his  care,  by  virtue  of  his  employment,  he  sball  be  deemed  guilty  of 
larceny,  and  be  punished  accordingly.  {Revised  Statutes,  1871,  p.  883, 
§7.) 

97.  For  General  Provisions  relating  to  Corporations  see  Re- 
vised Statutes  1871,  pp.  393-399,  G7G;  Laws  of  1871,  ])p.  143, 
153-155 ;  Laws  of  1872,  pp.  12,  43;  Laws  of  1873,  pp.  76,  77,  84; 
Laws  of  1874,  p.  131. 


INDEX  TO   MARYLAND. 


PAGE 

Agent  or  Broker — 

Must  Obtain  License  (28) 329 

Penalties   for   Unauthorized    Business 
(20) 325 

Agents  of  Foreign  Companies- 
Appointment  (10) 319 

Comptroller  must  Publish  Names  (20)  325 

Embezzlement  (39) 331 

May  not  Act  until  Company  has  Com- 
plied (22) 326 

Must  be  Authorized  to  Accept  Service 

(24) 327 

Not  Complying,  Penalties  (11) 319 

Process  may  be  Served  on  (1 6,  1  7)320,  321 

Annual  Report— ( 1 9) 321-5 

Annual  Statement — 

Blanks  by  Comptroller  (8) 317 

Foreign  Companies  (11) 319 

Maryland  Companies  (8) 317 

Must  be  Published  (9,  12) 319,  320 

Arson,  Crime  and  Penalties  of  (31-38)329,  330 

Broker  must  Secure  License  (28) 329 

Capital— 

Of  Home  Insurance  Companies   (10, 

21,  25) 319,325,  327 

Of  Foreign  Companies  (10,  25)  ..  319,  327 

Certificate — 

Of  Incorporation,  Includes  what  (4) 316 

Of  Authority,  Fees  for  (21) 325 

Charter— 

Of  Foreign  Cos.  to  be  Filed  (11) 319 

Provisions  Relating  to  (21) 325 

Comptroller — 

Must  Furnish  Blank  Forms  (8) 317 

Must  Appoint  Insurance  Commissioner 

(18) 321 

Must  Publish  Names  of  Agents  (20)..  325 

Corporations- 
General  Provisions  (40)  331 

How  Formed  (2) 316 

Under  General  Laws  ( 1 ) 316 

(See  Insurance  Companies.) 

Deferred  Premiums  shall  be  Allowed  (23)  326 
Deposit  of  Life  Companies  (7) 317 

Embezzlement,  Crime  and  Penalty  of  (39)  331 

Fire  Insurance  Co. — iSee  Insurance  Co.) 

Foreign  Companies — 

Annual  Statement  (11,  23) 319,  326 

Appointment  of  Agents  UO) 319 


PAGE 

Foreign  Companies  (Continued) — 

Capital,    Amount  and   Investment    of 

(10,  25) 319,  327 

Charter  (11,23) 319,  326 

Comptroller  mu&t  Publish  Names  (20)  325 
Commissioner     shall     Allow     Certain 

Credits  (23) 326 

Examination  of  (19) 321-5 

Fees  and  Taxes  (22) 326 

InCaseof  Deficiency  (19) 321-5 

In  Case  of  Non-Compliance  (19) 321-5 

Must  File  Charter  and  Certificate  (25)  327 

Must  Publish  Statement  (12) 320 

Must  Stipulate   for  Service  of  Process 

(24) 327 

Penalties,  Agent  Non-Complying  Com- 
pany (11) 319 

Penalties   for  Violating    Certain   Pro- 
visions (27) 323 

Penalties  for  Neglect  to  Render  State- 
ment (23) 326 

Purchase  and  Sale  of  Real  Estate  (13).  320 
Suits  Against,    how  Prosecuted   (14, 

16,  17) 320,321 

Taxation  Reciprocal  (27) 328 

Valuation  of  Policies  (19) 321-5 

Guardian   may  Insure    Ward's   Property 

(30) 329 

Insurance  Commissioner — 

Appointment,  Powers,  and  Duties  (18, 

19) 321-5 

Fees  of  (19) 321-5 

Must  be  Authorized  to  Accept  Service 

(24) 327 

Must  Value  Policies  (19) 321 

Must  Allow  Reduction  of  Capital  (19)  321-5 
Must  Examine  Cos.,  when  (19,  21)  321-5 
Must  Proceed  against  Cos.,  when  (1 9)321-5 

Must  Furnish  Annual  Report  (19) 321-5 

Must  Allow  Certain  Credits  (23) 326 

When  Assets  of  Life  Company  are  De- 
ficient (19) 321-5 

When  Company  Fails  to  Comply  (19)321-5 
When  Company  is  Insolvent  (19) 321-5 

Insurance  Companies — 

Annual  Statement  (8,  23) 317,326 

Capital,  Amount  and  Investment  (25)    327 

Capital,  when  Impaired  (19) 321-5 

Certificate  of  Incorporation  (4) 316 

Commissioner     shall     Allow     Certain 
Credits  (23) 326 


INDEX  TO  MARYLAKD. 


315 


PAGE 

Insurance  Companies  (Continued) — 

Esaminttljoii  of  (19,  21) 321-5 

How  Formed  (2 ) 316 

May  be  Mutual  or  Stock  (5) 317 

May     Insure    Property     of    Married 

Women  and  Wards  (30) 329 

Penalties  fur  Vi/slating  Certain  Condi- 
tions (2T) 328 

Penalties  for  Neglecting  to  make  State- 
ment (23) 326 

Proceedings  Against,   how  Conducted 

(26) 328 

Suits  Against,  how  Prosecuted  (15)...  320 

Statement  must  be  Published  (9) 319 

When  Insolvent  (19) 321-5 

Insurance — 

Department,  how  Created  (18) 321 

Penalties  for  Illegal  (20) 325 

License,  Broker  must  Obtain  (28) 329 

Life  Insurance  Companies — 

Annunl  Statement  (8) 317,  318 

Capital  and  Deposit  of  (7,  26) 317,  327 

Commissioner     shall     Allow     Certain 

Credits  (23) 326 

Examination  of  (19,  21) 321-5 

In  Case  of  Deficiency  (19) 321-5 

May  Insure  against  Accident  (6) 317 

May  Exchange  Securities  (7) 317 

Penalties  for    Violating   Certain   Pro- 
visions (27) 328 

Proceedings  Against,  how  Conducted 

(25) 327 

Suits  Against,  how  Prosecuted  (14- 

17) 320,321 

Statement  must  be  Published  (9) 319 

Valuation  of  Policies  (19) 321-5 

Wives' Policies  (29) 329 

(See  Insurance  Cos.  and  Foreign  Cos.) 


PAGE 

Marine  Insurance  Cos.— (See  Ins.  Cos.) 
Married  Women — (See  Wives.) 
Mutual  Insurance  Companies — 

Premium  Notes  and  Examination    of 

(21) 325 

Previously  Organized,  Excepted  in  Cer- 
tain Cases  ('i  1 ) 325 

(See  Insurance  Companies.) 

Pkxaltt— 

Acting  as  Broker  without  License  (28 )  329 

Arson  (31,  38) 329,330 

Embezzlement  (39) 331 

Failing  to  Make  and  Publish  Annual 

Statement  (8,  9) 317,  318 

False  Swearing  (21) 325 

Making  Illegal  Insurance  (20 ) 325 

Neglect  to  make  Statement  (23) 326 

Policies — 

Valuation  of  (19) 321-5 

Wives'  (29) 329 

Premium — 

Deferred,  shall  be  Admitted  (23) 326 

Notes  of  Mutual  Companies  (21) 325 

Eeal  Estate— 

Purchase  and  Sale  of  by  Foreign  Com- 
panies (13) 320 

Keciprocal  Taxation  (27) 328 

Tax— 

Brokermust  Pay  (28) 329 

Of  Foreign  Companies  (22) 326 

Shall  be  Reciprocal  (27) 328 

Valuation  of  Policies  (19) 321-5 

Wives— 

May  Insure  Property  (30) 329 

Life  Policies  (29) 329 


INSURANCE  STATUTES  OF  MARYLAND. 


CONSTITUTIOi^AL    PKOVISIONS   OONCEENmG   COKPO- 

EATIONS. 

1 .  Corporations  may  be  formed  under  general  laws,  but  sliall 
not  be  created  by  special  act,  excei>t  for  muuicipal  purposes,  and  in 
cases  where,  in  the  judgment  of  the  legislature,  the  object  of  the 
corporation  can  not  be  attained  under  general  laws.  All  laws  and 
special  acts  pursuant  to  this  section  may  be  altered  from  time  to 
time  or  repealed.     {Article  3,  §  47.) 

HOME    INSUEANCE    COMPANIES. 

9.  Corporations  may  be  formed  in  this  State,  under  the  pro- 
visions hereinafter  set  forth,  by  any  five  or  more  persons,  citizens 
of  the  United  States,  and  a  majority  of  them  citizens  of  this  State, 
or,  if  unnaturalized,  residents  of  tbis  State,  making  oath  that  they 
bona  fide  intend  to  become  citizens  of  the  United  States  without  un- 
necessary delaj",  who  may  desire  to  form  a  body  corporate  or  politic 
for  any  of  the  following  imrposes  :  {Supplement  to  Code,  18U8,  p.  37, 
part  of  §  14.) 

For  the  formation  of  fire,  life,  marine,  accident,  and  cattle  and 
all  live  stock,  and  other  kinds  of  insurance  companies;  provided 
they  shall  have  their  principal  office  in  this  State.     {Ibid,  §  17.) 

3.  The  capital  stock  of  any  insurance  company  incorporated 
under  this  article  shall  not  exc<^ed  the  sum  of  two  millions  of  dol- 
lars, and  except  in  the  case  of  mutual  insurance  companies,  shall 
not  be  less  than  one  hundred  thousand  dollars ;  and  at  least  one- 
fifth  of  the  whole  capital  stock  shall  be  paid  in  before  tlie  said  com- 
pany shall  be  competent  to  transact  the  business  for  which  it  shall 
have  been  incorporated.     {Ibid,  p.  58,  §  915.) 

4.  Any  corporation  incorporated  under  this  article  for  insur- 
ance purposes,  except  for  the  insurance  of  the  lives  of  persons,  is 
hereby  authorized  to  include  in  its  certificate  of  incorporation,  as 
among  the  other  objects  and  purposes  for  which  said  corporation  is 
formed,  the  following,  that  is  to  say :  to  guarantee  the  payment, 
punctual  performance,  and  collection  of  promissory  notes,  bills  of 
exchange,  contracts,  bonds,  accounts,  claims,  rents,  annuities,  mort- 
gages, choses  in  action,  evidences  of  debt,  and  certificates  of  prop- 
erty or  value,  and  the  titles  to  property,  real  or  personal,  on  such 
terms  as  maybe  established  by  a  board  of  directors  of  said  com- 
pany ;  to  receive  on  storage,  deposit,  or  otherwise,  merchandise, 
bullion,  specie,  plate,  stocks,  bonds,  promissory  notes,  certificates 
and  evidences  of  debt,  contracts  or  other  property,  and  to  take  the 
management,  custody,  and  charge  of  real  or  personal  estate  or  i)rop- 
erty,  and  to  advance  money,  securities,  and  credits  upon  any  prop- 


MARYLAND.  317 

erty,  real,  personal,  or  mixed,  on  snch  terms  and  with  all  such  pow- 
ers of  sale  and  other  disposition  thereof  as  sliall  be  established  by 
the  charter  or  by-laws  of  such  corporation:  Proviilel,  That  the  cor- 
porate title  of  any  company  having  amoii<^  its  other  i)urposes  those 
enumerated  in  this  section  shall  designate  the  same  as  a  "  security  " 
as  well  as  an  insurance  company.      {I  bid,  §  97.) 

5.  (.'orporatious  formed  under  the  provisions  of  this  article,  for 
insurance  purposes,  may  be  formed  either  as  mutual  or  stock  com- 
panies, or  as  mutual  and  stock  companies  combined,  as  shall  be  de- 
termined and  declared  in  the  certificate  of  incorporation  of  said 
company,     {Ibid,  p,  59,  §  98.) 

O.  Every  corporation  formed  under  the  provisions  of  this  arti- 
cle for  the  purposes  of  life  insurance  is  hereby  authorized  also  to  in- 
sure individuals  against  accident,  and  to  gTant,  purchase,  or  dispose 
of  annuities,  unless  it  be  otherwise  i^rovided  in  its  charter  or  by- 
laws.    {Ibid,  §  99.) 

7.  Every  life  insurance  company  incorporated  under  this  arti- 
cle, shall  have  a  guaranty  capital  of  not  less  than  one  hundred 
thousand  dollars,  which  shall  be  invested  either  in  securities  of  the 
United  States,  of  the  State  of  Maryland,  or  of  the  city  of  Baltimore, 
and  the  same  shall,  before  said  company  shall  commence  issuing 
policies,  be  deposited  in  the  treasury  of  this  State  as  a  guaranty  for 
the  payment  of  the  policies  of  insurance  issued  by  said  company; 
and  the  said  company  from  time  to  time,  as  the^'  shall  deem  proper, 
may  sell  and  dispose  ot  the  said  securities,  and  exchange  and  re-de- 
posit the  same  with  the  said  treasurer,  under  such  rules  and  regu- 
lations for  said  exchange  and  re- deposit  as  the  said  treasurer  shall 
direct,  the  said  company  confining  the  said  business  of  sale,  dispo- 
sition, and  exchange  of  said  securities  to  either  or  all  of  said  securi- 
ties above  named  in  this  section ;  and  the  interest  and  profits  ac- 
cruing and  made  on  said  securities,  and  the  sale  or  exchange  thereof, 
shall  be  collected  by  and  paid  to  said  company.     {Ibid,  §  100.) 

8.  It  shall  hereafter  be  the  duty  of  the  president,  or  vice-presi 
dent  and  secretary,  or  other  ])roi)er  officer,  of  each  company  or  asso- 
ciation organized  under  the  laws  of  this  State  to  transact  the 
business  of  insurance,  annually,  on  the  first  day  of  Febiuary,  or 
within  one  month  thereafter,  to  prepare,  under  their  own  oath,  and 
deposit  in  the  office  of  the  Comptroller  of  the  Treasury,  a  statement 
of  the  condition  of  such  company  or  association  on  the  thirty-first 
day  of  December  then  next  preceding,  exhibiting  the  following  facts 
and  items,  in  the  following  form,  namely: 

First. — The  capital  stock  of  the  company. 

Second.  -  The  property  and  assets  held  by  the  company  or  associ- 
ation, specifying:  First.  The  value,  or  as  near  as  may  be,  of  the 
real  estate  held  by  such  com})any  or  association.  Second.  The 
amount  of  cash  on  hand  and  deposited  in  banks  to  the  credit  of  the 
company  or  association,  specifying  in  what  bank  the  same  are  de- 
posited. Third.  The  amount  of  cash  in  the  hands  of  agents  and  in 
course  of  transmission.  Fourth.  The  amount  of  loans  secured  by 
bonds  and  mortgages,  constituting  the  first  liens  on  real  estate  on 
which  there  shall  be  less  than  one  year's  interest  due  or  owing. 
Fifth.  The  amount  of  loans  on  which  interest  shall  not  have  been 
paid  within  one  year  previous  to  such  statement.  Sixth.  The  amount 
due  the  company  on  which  judgments  have  been  obtained.  Seventh. 
The  amount  of  stocks  of  this  State,  of  the  United  States,  of  any  in- 
corporated city  of  this  State,  and  of  any  other  stocks  owned  by  the 


3i»  hesie's  insurance  statutes. 

company,  specifying  tlie  amount,  number  of  shares,  and  par  and 
market  value  of  each  kind  of  stock.  Eighth.  The  amount  of  stocks 
held  thereby  as  culhiteral  security  for  loans,  with  the  amount  loaned 
on  each  kind  of  stock,  its  par  value  and  the  market  value.  Nmth. 
The  amount  of  assessments  on  stock  or  i^remium  notes,  jiaid  and 
unpaid.  Tenth.  The  amount  of  interest  actually  due  ancl  unpaid. 
Eleventh.  The  amount  of  premium  notes  on  hand  on  which  x^olicies 
are  issued.  -^ 

T/ri/Y?.— The  liabilities  of  such  company,  specifying  :  First.  The 
amount  of  losses  due  and  yet  unpaid.  JSecoud.  The  amount  of  claims 
for  losses  resisted  by  the  company.  Third.  The  amount  of  losses  in- 
curred during  the  year,  including  those  claimed  and  not  yet  due, 
and  of  those  reported  to  the  company  upon  which  no  action  has  been 
taken.  Eoiirtli.  The  amount  of  dividends  declared  and  due  and  re- 
maining unpaid.  Filth.  The  amount  of  dividends,  either  cash  or 
scrip,  declared,  but  not  yet  due.  Sixth.  The  amount  of  money  bor- 
rowed, and  security  for  the  j)ayment  thereof.  Seventh.  The  amount 
of  policies  outstanding.  Eighth.  The  amount  of  all  other  existing 
claims  against  the  company  or  association. 

Fourth. — The  income  of  the  company  or  association  during  the 
preceding  year,  specifying :  First.  The  amount  of  cash  premiums 
received.  Second.  The  amount  of  notes  received  for  i)remiums. 
Third.  The  amount  of  interest  money  received.  Fourth.  Tlie  amount 
of  income  received  from  other  sources. 

Fifth.  The  expenditures  during  the  preceding  year,  specifying  : 
First.  The  amount  of  losses  paid  during  the  year,  stating  how  much 
of  the  same  accrued  i^rior,  and  how  much  subsequent,  to  the  date 
of  the  preceding  statement,  and  the  amount  at  which  such  losses 
were  estimated  in  such  preceding  statement.  Second.  The  amount 
of  dividends  paid  during  the  year.  Third.  The  amount  of  expenses 
paid  during  the  year,  including  commissions  and  fees  to  agents  and 
officers  of  the  company  or  association.  Fourth.  The  amount  paid 
in  taxes.  Fifth.  The  amounts  of  all  other  payments  and  expendi- 
tures. 

The  statementof  any  company  or  association,  the  cajntal  of  which 
is  composed  in  whole  or  in  part  of  notes,  shall,  in  addition  to  the 
foregoing,  exhibit  the  amount  of  notes  originally  forming  the  capi- 
tal, and  also  what  proportion  of  said  notes  is  held  by  such  company 
or  association,  and  considered  cai)ital.  Every  insurance  company  or 
association  organized  under  the  laws  of  this  State,  failing  to  make 
and  deposit  such  statement,  or  to  reply  to  any  inquiry  of  the  Comp- 
troller of  the  Treasury  relating  to  the  condition  of  such  company,  or 
to  submit  its  books  and  papers  when  demanded,  to  the  inspection 
and  examination  of  the  Comptroller,  shall  be  subject  to  the  penaltj" 
of  five  hundred  dollars  for  every  month  that  such  comi)any  shall 
continue  thereafter  to  transact  any  business  of  insui'ance.  It  shall 
be  the  duty  of  the  Comptroller  of  the  Treasury  to  cause  to  be  pre- 
pared and  furnished  to  each  of  the  companies,  and  to  the  attorneys 
of  companies  incorporated  by  other  States  and  foreign  governments, 
printed  forms  of  the  statements  required  by  this  act ;  and  he  may, 
from  time  to  time,  make  such  changes  in  the  form  of  such  statements 
as  shall  seem  to  him  best  adapted  to  elicit  from  the  companies  a  true 
exhibit  of  their  condition  in  respect  to  the  several  points  hereinbe- 
fore enumerated.     (Laws  o/1870,  p.  452,  §  1.) 

9.  Every  company. as  aforesaid  shall  cause  the  statement  ren- 
dered by  it  to  the  Comptroller  to  be  published  on  the  first  Monday 


iflAKTLAND.  319 

in  tlie  Diontli  of  March,  in  the  same  year,  dailj',  for  one  week,  in  one 
or  more  newspapers,  of  the  place  where  said  company  is  located; 
and  it  any  company,  as  aforesaid,  shall  fail  to  make  the  required 
retiu'ii  of  its  condition,  within  the  time  here  designated,  or  to  make 
the  publication  thereof  within  the  month  of  March  aforesaid,  the 
said  company  shall  be  liable  to  a  penalty  of  fifty  dollars  for  each 
omission  for  every  day  thereafter  until  the  return  shall  have  been 
rendered,  or  the  publication  made  as  required  ;  said  penalty  to  be 
payable  into  the  treasury  of  the  State,  and  recoverable  in  like  man- 
ner as  other  fines  and  penalties.     {Ibid,  p.  454,  §  2.) 


FOREIGN  INSUEANCE   COMPANIES. 

10.  It  shall  not  be  lawful  for  any  insurance  company,  incorpo- 
rated under  the  laws  of  any  other  State  of  the  United  States,  or  by 
any  foreign  government,  directly  or  indirectly,  to  take  risks,  or 
transact  any  business  of  insurance  in  this  State,  unless  possessed  of 
the  amount  of  actual  capital  required  of  similar  companies  formed 
under  the  provisions  of  this  article;  and  any  such  company  desir- 
ing to  transact  any  such  business  as  aforesaid,  by  an  agent  or 
agents  in  this  State,  shall  appoint  such  agent  or  agents,  who  shall 
reside  in  this  State,  and  shall  file  in  the  office  of  the  Clerk  of  the 
Superior  Court  of  Baltimore  City,  a  certified  copy  of  the  vote  or 
resolution  of  the  directors  appointing  such  agent,  to  be  recorded  at 
the  cost  of  such  agent,  in  a  book  to  be  specially  procured  for  that 
purpose,  which  appointment  shall  continue  until  some  other  agent 
shall  be  in  like  manner  appointed  in  his  place,  and  the  appointment 
certified  and  recorded   as   aforesaid.     {Ibid,  p.  GO,  §  102.) 

1 1 .  Said  comjiany  shall  also  file  in  said  clerk's  office,  to  be  re- 
corded as  aforesaid,  a  certified  copy  of  its  charter,  together  with  a 
statement  under  the  oath  of  the  president  or  \ice-president  and 
secretary,  and  to  be  renewed  annually  in  the  month  of  January  of 
each  year,  setting  forth  the  name  of  the  company,  and  the  place 
where  located,  the  amount  of  capital,  and  the  amount  actually  paid 
in,  with  a  detailed  statement  of  its  assets  and  indebtedness,  the 
amount  of  losses  adjusted  and  unpaid,  the  amount  incurred  and  in 
process  of  adjustment,  and  any  other  claims  existing  against  the 
company;  and  in  the  case  of  life  insurance  companies,  the  said  cer- 
tificates shall  contain  a  statement  under  the  oaths  of  said  certifying 
officers,  that  the  said  company  has  invested  in  good  securities  nam- 
ing them,  an  amount  equal  to  that  required  of  similar  companies 
authorized  to  be  incorporated  under  this  article,  and  that  such  se- 
curities are  held  in  trust,  and  by  whom,  for  the  benefit  of  persons 
who  may  effect  insurance  in  said  company.  The  first  certificate 
herein  required  shall  be  filed  by  all  companies  doing  business  in  this 
State,  on  or  before  the  first  day  of  July,  eighteen  hundred  and 
sixty  eight,  and  any  person  who  shall,  after  the  first  day  of  July, 
eighteen  hundred  and  sixty-eight,  act  as  agent  of  any  insurance 
company  which  has  not  complied  with  the  provisions  in  this  section 
contained,  shall  be  subject  to  a  penalty  of  five  hundred  dollars  for 
every  day  he  shall  so  act,  to  be  recovered  as  other  fines  and  penal- 
ties are  recovered  in  this  State,  one-half  to  the  use  of  the  informer, 
and  one-half  to  the  use  of  the  State.     {Ibid,  p.  61,  §  103.) 

12.  Every  insurance  company  transacting   business  in  the 


320  hike's  insurance  statutes. 

state  of  Maryland  shall  anuually  cause  to  be  published,  once  a  week, 
for  three  successive  weeks,  in  at  least  one  newspaper  published  in 
the  city  or  county  of  this  State  in  which  the  i)rincipul  ofllce  or  agency 
of  said  company  may  be  located,  a  certified  copy  of  the  annual  state- 
ment which  they  are  required,  by  the  thirty-second  section  of  the 
act  passed  at  January  session  eighteen  hundred  and  seventy-two, 
chapter  three  hundred  eighty-eight,  to  submit  to  the  Insurance 
Commissioner;  Provided,  That  the  publication  for  fire  and  marine 
insurance  companies  shall  be  made  during  the  month  of  January, 
and  that  for  life  insurance  companies  during  the  month  of  Febru- 
ary, a  copy  of  the  first  publication  to  be  furnished  to  the  Insurance 
Commissioner.     {Ibid,  §  105,  as  amended  by  laws  o/1874,  ^.  10,  §  1.) 

1 S.  Any  insurance  company  iucorj)orated  under  the  laws  of 
any  other  State  may  acquire  by  x)urchase,  or  any  other  manner,  and 
take,  receive,  hold,  use,  employ,  manage,  dispose  of,  or  deal  with 
any  property,  real,  personal,  or  mixed,  and  situate  in  the  State  of 
Maryland,  which  may  be  necessary  or  proper  to  enable  any  of  said 
insurance  companies  to  erect  for  oUice  or  business  purposes,  or  to 
enable  any  of  said  insurance  companies  to  foreclose  any  mortgages 
that  may  be  due  said  companies  for  loans  made;  Provided,  That  all 
transactions  as  herein  permitted  shall  be  in  accordance  with  the 
laws  now  in  force  regulating  such  transactions  on  the  part  of  insur- 
ance companies  incorporated  under  the  laws  of  this  State ;  all  laws 
of  this  State  regulating  and  providing  for  the  purchase  and  holding 
of  real  estate  by  insurance  companies  of  this  State  shall  be  con- 
strued to  bear  with  equal  effect  iu  law  upon  companies  of  other 
States  purchasing  or  holding  real  estate  in  the  State  of  Maryland. 
{Ibid,  §  108,  as  amended  by  laws  of  187 A,  p.  10,  §  1.) 

14.  Any  corporation  not  chartered  by  the  laws  of  this  State, 
which  shall  transact  business  therein,  shall  be  deemed  to  hold  and 
exercise  franchises  within  this  State,  and  shall  be  liable  to  suit  in 
any  of  the  courts  of  this  State,  on  any  dealings  or  transactions 
therein.     {Suppleynent  to  Code,  1808,  y.  94,  §  209.) 

1 5.  Process  issued  by  any  court  or  justice  of  the  peace  of  this 
State,  against  any  corporation  incorporated  under  its  laws,  may  be 
served  on  any  i>resident,  director,  manager,  or  other  officer  of  such 
corporation,  and  all  suits  wbich  shall  hereafter  be  brought  against 
any  corporation  which  has  been  or  may  be  incorporated  under  the 
general  incorporation  laws  of  this  State,  shall  be  brought  in  the 
county  or  city  of  Baltimore,  as  the  case  may  be,  in  which  ihe  certifi- 
cate of  incorporation  is  required  to  be,  and  has  been  recorded. 
{Ibid,  §  210.) 

1 6.  Suits  may  be  brought  in  any  court  of  this  State,  or  before 
a  justice  of  the  ])eace,  against  any  corporation  not  incorporated  un- 
der its  laws,  but  deemed  to  hohl  and  exercise  franchises  herein,  or 
against  any  joint-stock  company,  or  association  doing  business  in 
this  State,  by  a  resident  of  this  State,  for  any  cause  of  action,  and 
by  a  plaintiff  not  a  resident  of  this  State,  when  the  cause  of  ac- 
tion has  arisen,  or  the  subject  of  the  action  shall  be  situated  in  this 
State ;  and  process  in  such  suits  may  be  served  as  provided  in  the 
next  ]ireceding  section,  and  also  upon  any  agent  of  such  corporation 
or  joint-stock  company  or  association  ;  and  in  case  of  service  of  pro- 
cess on  an  agent,  notice  of  such  process  shall  be  left  at  the  princi- 
pal office  of  said  corporation,  joint-stock  company,  or  association,  if 
there  be  such  office  in  this  State,  provided  nothing  in  this  article 


MARYLAND.  321 

shall  prevent  or  affect  the  issue  of  attachments  against  corporations 
as  now  or  hereafter  allowed  by  law.     {Ibid,  p.  95.  §  211.) 

17,  If  any  corporation  or  joint-stock  companies  embraced  in 
the  next  preceding  section,  after  any  liability  shall  occur  within  this 
State,  or  after  any  contracts  shall  have  been  made  by  it  with  any 
resident  of  this  State,  shall  cease  to  have  any  agent  in  this  State, 
and  no  president,  director,  or  manager  of  sucn  corporation  or 
joint-stock  company  or  association  can  be  found  in  this  Sta'.e, 
then,  in  such  case,  service  of  an}'  writ  or  process  issuing  from 
the  (courts  of  this  State,  on  the  person  who  was  last  the  agent 
of  such  corporation  or  joint  stock  company  iu  this  State,  shall 
be  deemed  sufficient  service,  if  a  copy  of  such  process  be  serv'ed  on 
the  president  or  manager,  or  two  directors  of  such  corporation  or 
joint  stock  company,  wherever  they  may  be  found,  and  an  affidavit 
of  such  service  be  made  before  any  person  authorized  by  the  laws 
of  this  State  to  take  the  acknowledgments  of  deeds.  {Ibid,  §  212.) 


INSURANCE  DEPARTMENT. 

1  8,  There  is  hereby  established  a  distinct  bureau  iu  tlie  office 
of  the  Comptroller  of  the  Treasury,  to  be  known  as  the  Insurance 
Department,  which  shall  be  charged  with  the  execution  of  the  laws 
of  this  State  iu  relation  to  insurance ;  and  the  Comptroller  of  the 
Treasury  is  hereby  authorized  and  directed  to  assign  a  clerk  in 
charge  of  said  department,  who  shall  be  known  as  the  Insurance 
Commissioner  for  the  State  of  .Alaryland,  and  who  shall  receive  an 
annual  salary  of  twenty-five  hundred  dollars,  payable  out  of  the 
fees  of  bis  office,  and  shall  hold  his  office  during  the  term  of  the 
Comptroller  making  the  appointment,  or  until  his  successor  is  ap- 
pointed and  qualified,  unless  sooner  removed  by  the  Comptroller ; 
and  the  said  Insurance  Commissioner  shall  give  bond  to  the  State 
of  Maryland  in  the  sum  of  twenty-five  thousand  dollars,  for  the 
faithful  discharge  of  his  duties,  and  no  person  who  is  a  director, 
officer,  or  agent  of,  or  directly  or  indirectly  interested  in  any  insur- 
ance company,  except  as  insured,  shall  be  appointed  as  such  Com- 
missioner hy  the  Comptroller,  and  the  rulings  or  decisions  made  by 
said  Commissioner  shall  ahvays  be  subject  to  revision  by  the 
Comptroller.  (Code,  1860,  p.  383,  §  27,  as  amended  by  laws  of  1872, 
p.  684.) 

1  S>.  It  shall  be  the  duty  of  the  Insurance  Commissioner — First, 
to  see  that  all  laws  of  this  State  respecting  insurance  companies  are 
faithfully  executed,  to  file  in  his  office  every  charter  or  declaration 
of,  or  organization  of  a  company,  with  certificate  of  the  Attorney- 
General,  and  on  application  of  the  corporation,  to  furnish  to  them 
certified  copies  thereof.  Second,  He  shall,  as  soon  as  practicable  in 
each  year,  calculate  or  cause  to  be  calculated  in  his  office,  the  net 
value,  on  the  thirty-first  day  of  December  of  the  previous  year,  of 
all  the  ])olicies  in  force  on  that  day,  in  each  life  insurance  company 
doing  business  in  this  State,  organized  by  authority  of  this  State, 
and  of  every  other  life  insurance  company  doing  business  in  this 
State,  that  shall  fail  to  furnish  to  him,  as  hereinafter  provided,  a 
certificate  of  the  Insurance  Commissioner  of  the  State  by  whose 
authority  the  company  was  organized,  or  by  the  State  in  whi(;h  it 
may  elect  to  have  its  policies  valued  and  its  deposit  made,  in  case 
the  company  is  chartered  by  the  government  of  the  United  States, 
21 


322  hine's  insurance  statutes. 

or  by  any  State  not  having  an  insurance  department,  giving  the 
net  value  of  all  policies  in  force  in  the  company  on  the  thirty-first 
day  of  December  of  the  preceding  year,  which  calculation  of  the  net 
value  of  each  policy  shall  be  based  upon  the  American  Exiierience 
Table  of  Mortality,  and  four  and  one-half  per  cent,  interest  per  an- 
num ;  and  the  net  value  of  a  policy  at  any  time  shall  be  taken  to  be 
the  single  net  premium  which  will  at  that  time  effect  the  insurance, 
less  the  value  at  that  time  of  the  future  net  premiums  called  for  by 
the  Table  of  Mortality  and  rate  of  interest  designated  above. 
Third,  In  case  it  is  found  that  any  life  insurance  company  doing 
business  in  this  State  has  not  on  hand  the  net  value  of  all  its  poli- 
cies in  force,  after  all  other  debts  of  the  company  and  claims  against 
it,  exclusive  of  capital  stock,  have  been  provided  for,  it  shall  be  the 
duty  of  the  Insurance  Commissioner  to  jmblish  the  fact  that  the 
then  existing  condition  of  the  affairs  of  the  company  is  below  the 
standard  of  legal  safety  established  by  this  State,  and  he  shall  re- 
quire the  company  at  once  to  cease  doing  new  business,  and  he  shall 
immediately  institute  proceedings  to  determine  what  further  shall 
be  done  in  the  case ;  and  it  is  hereby  made  the  duty  of  the  Insurance 
Commissioner,  after  having  determined,  as  above,  the  amount  of 
the  net  value  of  all  the  policies  in  force,  to  see  that  the  company 
has  that  amount  in  safe,  legal  securities,  of  the  description  and 
character  hereafter  provided  for  in  this  act,  after  all  its  other  debts 
and  claims  against  it,  exclusive  of  capital  stock,  have  been  provided 
for.  Foiu'th,  He  shall  accept  the  valuations  made  by  the  Insurance 
Commissioner  of  the  State,  under  whose  authority  a  life  bisurance 
comi)any  was  organized,  or  that  of  the  State  in  which  it  may  elect 
to  have  its  policies  valued,  when  such  vaUiations  have  been  prop- 
erly made  on  sound  and  recognized  principles  and  legal  Imsis  not 
less  than  the  above ;  Provided,  The  company  shall  furnish  to  the 
Insurance  Commissioner  of  this  State  a  certificate  from  the  Insur- 
ance Commissioner  of  such  State,  setting  forth  the  value,  cal- 
culated on  the  data  designated  above,  of  all  the  policies  in  force 
in  the  company  on  the  i)revious  thirty- first  day  of  December,  and 
stating  that  after  all  the  other  debts  of  the  company,  and  claims 
against  it  at  that  time,  were  provided  for,  the  company  had,  in  safe 
securities  of  the  character  si)ecified  in  this  act,  an  amount  equal  to  the 
net  value  of  all  its  policies  in  force,  and  that  said  company  is  en- 
titled to  do  business  in  its  own  State,  and  every  life  insui-ance  com- 
pany doing  business  in  this  State  during  the  year  for  which  the 
statement  is  made,  that  fails  promptly  to  furnish  the  certificate 
aforesaid,  shall  be  required  to  make  full  detailed  list  of  policies  and 
securities  to  the  Insurance  Commissioner  of  this  State,  and  shall 
be  liable  for  all  charges  and  expenses  consequent  upon  not  having 
furnished  said  certificate.  Fifth.  For  every  company  doing  fire 
insurance  business  in  this  state,  he  shall  calculate  the  re  insurance 
reserve  for  unexpired  fire  risks,  by  taking  fifty  per  cent,  of  the  pre- 
miums received  on  all  unexpired  risks  that  have  less  than  one  year 
to  run.  and  a  pro  rata  of  all  premiums  received  on  risks  that  have 
one  year  or  longer  to  run,  and  in  marine  and  inland  insurance  he 
shall  charge  all  the  premiums  received  on  unexpired  risks  as  a  re- 
insurance reserve ;  Provided,  That  the  foregoing  requirement  of 
reinsurance  reserve  when  applied  to  com})auies  organized  under 
the  laws  of  foreign  governments  shall  be  calculated  only  upon  the 
business  of  such  company  in  the  United  States,  and  the  basis  of 
the  reserve  fund  so  required  shall  be  the  assets  of  such  company 


MARYLAND.  323 

held  and  invested  in  the  United  States.  Sixth.  Havin.i]j  charged 
against  a  company  the  reinsurance  reserve  as  above  determined, 
for  fire,  inland,  and  marine  insurance,  and  adding  thereto  all  debts 
and  claims  against  the  company,  he  shall,  in  case  he  finds  the  capi- 
tal stock  of  the  company  impaired  to  the  extent  of  forty  per  cent., 
give  notice  to  the  company  to  make  good  its  whole  capital  stock 
within  sixty  days ;  and  if  this  is  not  done,  he  shall  require  the 
company  to  cease  to  do  new  business  withiii  this  State,  and  shall 
thereupon,  in  case  the  company  is  organized  under  authority  of 
this  State,  immediately  institute  legal  proceedings,  as  required  in 
this  act,  to  determine  what  further  shall  be  done  in  the  case  ;  and 
any  company  receiving  the  aforesaid  notice  of  the  Insurance  Com- 
missioner to  make  good  its  whole  ca]iital  stock  within  sixty  days, 
shall  forthwith  call  upon  its  stockholders  for  such  amounts  as  will 
make  its  capital  equal  to  the  amount  fixed  by  the  charter  of  said 
company ;  and,  in  case  any  stockholder  of  such  company  shall 
neglect  or  refuse  to  iiay  the  amount  so  called  for,  after  notice  per- 
sonally given,  or  by  advertisement,  in  such  time  and  manner  as 
the  said  Insurance  Commissioner  shall  approve,  it  shall  be  lawful 
for  the  said  company  to  require  the  return  of  the  original  certifi- 
cate of  stock  held  by  such  stockholder,  and,  in  lieu  thereof,  to  issue 
new  certificates  for  such  number  of  shares  as  the  said  stockholder 
may  be  entitled  to,  in  the  proportion  that  the  ascertained  value  of 
the  funds  of  the  said  company  may  be  found  to  bear  to  the  original 
capital  of  the  said  company ;  the  value  of  such  shares,  for  which 
new  certificates  shall  be  issued,  to  be  ascertained  under  the  direc- 
tion of  the  said  Commissioner,  the  company  paying  for  the  fraction- 
al parts  of  shares ;  and,  it  shall  be  lawful  for  the  directors  of  such 
comi>any  to  create  new  stock  and  dispose  of  the  same,  and  to  issue 
new  certificates  therefor,  to  any  amount  sufficient  to  make  up  the 
original  capital  of  the  company.  Whenever  the  capital  stock  of 
any  joint  stock  fire  or  marine  insurance  company  of  this  State  be- 
comes impaired,  the  Insurance  Commissioner  may,  in  his  discretion, 
permit  the  said  company  to  reduce  its  capital  stock  and  the  i)ar 
value  of  its  shares  in  proportion  to  the  extent  of  impairment ;  Pro- 
vided^ That  in  fixing  such  reduced  capital,  no  sum  exceeding 
twenty^five  thousand  dollars  shall  be  deducted  from  the  assets  and 
property  on  hand,  which  shall  be  retained  as  surplus  assets ;  And 
provided  further,  That  the  capital  stock  shall  not  be  reduced  to  an 
amount  less  than  one  hundred  thousand  doUars.  And  whenever  he 
shall  have  reason  to  believe  that  any  company  is  insolvent  or  fraud- 
ulently conducted,  or  that  its  assets  are  not  sufficient  for  carrying 
on  the  business  of  the  same,  or  during  any  non-compliance  with  the 
provisions  of  this  act,  he  shall  make  complaint  thereof  to  the  judge 
of  the  superior  court  of  Baltimore  city,  or  any  judge  of  the 
circuit  court  of  the  county  where  the  company  or  agency  may  be 
located,  as  the  case  may  be,  which  judge  shall,  upon  the  requisition 
of  the  Commissioner,  appoint  a  commission  consisting  of  the  Insur- 
ance Commissioner  and  two  disinterested  and  competent  persons, 
whose  duty  it  shall  be  to  examine  every  detail  of  the  business  and 
condition  of  said  company,  and  report  in  writing  the  result  of  such 
examination  to  the  judge  appointing  them,  who  shall,  if  in  his  judg- 
ment the  charges  of  fraud,  neglect  or  abuse,  as  charged  by  the  In- 
surance Commissioner,  is  sustained  by  the  said  report,  at  once  issue 
an  injunction  suspending  the  business  of  said  company.  Seventh, 
It  shall  be  the  duty  of  the  Insurance  Commissioner,  after  he  has 


324  hine's  insurance  statutes. 

notified  a  life  insurance   company,   organized  under  authority  of 
this  State,  to  cease  doing  new  business  until  the  net  value  of  its 
policies  in  force  is  equal  to  that  called  for  by  the  standard  of  safety 
established  by  the  State,  at  once  to  cause  a  rigid  examination  in  re- 
gard to  all  the  affairs  of  such  company ;  in  case  it  shall  appear  that 
there  is  no  iraud  or  gross  incompetency  or  recklessness  shown  to 
exist  in  the  management,  he  may,  upon  publishing  the  facts  in  the 
case,  permit  such  company  to  continue  in  charge  of  its  business  for 
one  year ;  Provided^  There  is,  in  his  opinion,  reason  to  believe  that 
the  company  may  eventually  be  able  to  re-establish  the  legal  net 
value  of  all  its  policies  in  force;  at  the  end  of  the  year  named 
above,  he  may  renew  the  permission,  in  case,  on  examination,  he 
is  satisfied   that  the    company  is  likely  to   retrieve  its  affairs; 
but,  in   case  the  Insurance  Commissioner  does  not    permit  the 
company   to    continue   in    the  control  of   its  old  business,  it  is 
hereby  made  his    duty  to    institute    the    necessary  proceedings 
for  the  protection   of  its  policy-holders,  in   accordance  with  the 
laws  of  this    State ;   to  publish  the  result  of  his  examination  of 
the   affairs  of  any  comjiany  whenever  he  deems  it  for  the  interest 
of  the  ijublic   so   to  do,   in  one  or  more  papers  of  this   State. 
Eighth.   He  shall  institute,  or  cause  to  be  instituted,  if  approved 
by  the  Comptroller,   the  necessary   x^roceediugs,  under  the  laws 
of   this    State,    to    close    the    affairs    of   any    company    of    this 
State  which  shall  appear  to  him,  upon  examination,  to  be  insolvent 
or  fraudulently  conducted ;  to  report  in  detail,  through  the  Comp- 
troller, to  the  Attorney-General,  any  violation  of  the  laws  relative 
to  insurance  companies,  their  officers,  or  agents,  or  the  business  of 
insurance;  to  furnish  to  the  companies  required  by  this  act  to  re- 
port to  him  the  necessary  blank  forms  for  the  statement  required; 
and,  at  the  request  of  any  person,  and  on  payment  of  the  fee,  to 
give  certified  copies  of  any  record  or  paper  in  his  office,  when  he 
deems  it  not  jirejudicial  to  public  interest  so  to  do,  and  to  give  such 
other  certificates  as  this  act  provides  for.    Ninth,  He  shall  preserve, 
in  permanent  form,  a  full  record  of  his  proceedings,  and  a  concise 
statement  of  the  condition  of  each  company  or  agency  visited  or 
examined,  and  report  annually  to  the  Comptroller,  on  or  before  the 
first  day  of  December,  his  official  acts ;  the  fees  received  and  ex- 
penses of  his  department  for  the  year  then  to  end,  and  pay  into  the 
treasury  all  excess  of  receijits  over  disbursements;  the  condition  of 
coraj)anies  doing  business  in  this  State,  and  such  other  information 
as  will  exhibit  the  affairs  of  his  department,  a  copy  of  which  re- 
port he  shall  forward  to  the  Insurance  Commissioner  or  other  simi- 
lar officer  of  every  other  State,  and  to  each  company  doing  business 
in  this  State,  and,  on  request,  to  communicate  to  the  Insurance 
Commissioner  of  any  other  State  any  facts  which,  by  law,  it  is  his 
duty  to  ascertain,  respecting  companies  of  this  State  doing  business 
within  such  other  State.    Tenth,  To  adopt  and  renew,  from  time  to 
time,  when  necessary,  ^^ith  the  approval  of  the  Governor,  a  seal  of 
office,  an  impression  and  description  whereof,  with  the  Governor's 
certificate  of  approval,  shall  be  filed  with  the  Secretary  of  State, 
and  it  shall  be  his  duty  to  see  that  no  company  is  permitted  to  in- 
sure lives  in  this  State  whose  charter  authorizes  it  to  do  fire,  ma- 
rine, or  inland  insurance  business.     Eleventh,  The  Insurance  Com- 
missioner, for  the  purposes  of  examinations  authorized  by  law,  has 
power  to  summon  and  examine  any  person  being  within  this  State, 
under  oath,  which  he  may  administer,  relative  to  the  affaires  and 


MARYLAND.  325 

condition  of  any  company ;  or  for  probable  cause,  to  visit,  at  its 
principal  office,  wherever  it  may  be,  any  insurance  company,  not  of 
tliis  State,  and  doing  business  in  this  State,  for  the  purpose  of  in- 
vestigating its  affairs  and  condition ;  and  to  revoke,  with  the  ap- 
l)roval  of  the  Comptroller,  its  certificate  in  this  State,  if  it  does  not 
permit  an  examination;  to  revoke  or  modify  any  certiticate  of  au- 
thority, when  any  conditions  prescribed  by  law  for  granting  it  no 
longer  exist ;  and  the  Insurance  Commissioner,  with  the  approval 
of  the  Comptroller,  has  also  power  to  institute  suits  and  prosecu- 
tions, either  by  the  Attorney  General  or  such  other  attorney  as  the 
Comj)troller  may  designate,  for  any  violation  of  this  act,  and  the 
Comptroller  is  a  necessary  party  to  any  proceedings  instituted  for 
the  purpose  of  closing  up  the  affairs  of  any  company,  when  the 
same  shall  not  be  in  the  name  of  the  State  of  Maryland.  {Ihid, 
§  28,  as  amended  hy  laivs  of  1812,  p.  G8o.) 

SO.  If  any  })erson,  body  politic,  or  corporate,  shall  make, 
negotiate,  or  solicit  within  this  State  any  contract  of  insurance, 
or  shall  effect  an  insurance  or  insurances,  or  pretend  to  effect 
an  insurance  or  insurances,  or  receive  and  transmit  an  offer 
or  offers  of  insurance  or  insurances,  or  receive  or  deliver  a  pol- 
icy or  policies  of  insurance,  or  connect  any  other  person  or  per- 
sons with  them  in  any  policy  they  may  at  the  time  hold,  or  adver- 
tise, or  circulate,  any  card,  circulars,  or  notice,  open  or  keep 
any  office  for  the  transaction  of  said  business,  without  complying 
fully  with  all  the  provisions  of  this  act,  shall  be  subject  to  the  fines 
imposed  by  section  thirty-six  of  this  act ;  and  it  shall  be  the  duty 
of  the  Comptroller  to  i^ublish  annually,  in  the  month  of  June,  in  at 
least  two  newspapers,  one  of  which  shall  be  published  in  Baltimore 
city,  the  names  of  all  general  agents  authorized  to  do  business  in 
this  State,  together  with  the  names  of  the  companies  they  are 
licensed  to  represent.  (Ibid,  §  29,  as  amended  by  laws  of  1872, 
p.  691. 

21.  No  declaration  of  organization,  or  charter  of  an  insurance 
company  formed  under  any  general  law  of  this  State,  and  no  alter- 
ation or  amendment  thereof  shall  be  operative  until  it  has  been 
submitted  to  the  Attorney-General  for  examination,  and  found  by 
him  to  be  in  accordance  with  the  provisions  of  this  act  and  of  such 
general  law,  and  not  inconsistent  with  the  constitution  and  laws  of 
this  State,  and  so  certified  by  him  and  delivered  to  the  Insurance 
Commissioner,  and  before  any  insurance  company  of  this  State 
shall  do  any  business,  the  Insurance  Commissioner  shall  examine 
the  officers  of  said  company  under  oath,  Avhich  examination  shall 
be  certified  to  under  oath  of  said  Commissioner,  that  the  capital 
herein  required  of  the  company  named  in  the  charter,  according  to 
the  nature  of  the  business  proposed  to  be  transacted  by  such  com- 
pany to  an  amount  of  not  less  than  one  hundred  thousand  dollars, 
has  been  paid  in,  in  money,  and  is  held  by  the  board  of  directois, 
subject  to  their  actual  control,  according  to  the  provisions  of  the 
charter  of  said  company,  or  has  been  by  them  invested  in  securities 
negotiable,  and  worth  in  the  market  not  less  than  the  sum  of  one 
hundred  thousand  dollars,  or  if  a  mutual  company,  that  it  has  re- 
ceived, and  is  in  actual  possession  of,  the  promises,  or  bona  fide  en- 
gagements of  insurance  or  other  securities,  as  the  case  may  be,  to 
the  full  extent,  and  of  the  value  required  by  law ;  and  the  name 
and  residence  of  the  maker  of  each  premium  note  forming  part  of 
the  capital  or  assets,  and  the  amount  of  such  note  shall  be  reported 


326  hine's  insurance  statutes. 

to  the  Insurance  Commissioner,  and  the  corporators  or  officers  of 
such  company  sliall  be  required  to  certify  uuder  oath,  that  the  cap- 
ital exhibited  to  the  Insurance  Commissioner  is  bona  fide  property 
of  the  company;  which  certificate  shall  be  filed  in  the  office  of  the 
Insurance  Commissioner ;  Provided^  however^  That  the  provisions 
of  this  act  shall  not  apply  to  mutual  fire  insurance  companies  here- 
tofore chartered  by  the  laws  of  this  State  and  now  doing  business ; 
and  any  officer  or  the  Commissioner  swearing  falsely  in  regard  to 
the  provisions  of  this  section  shall  be  deemed  guilty  of  perjury, 
and  shall  be  subject  to  the  penalty  or  penalties  prescribed  for  such 
offense  by  the  laws  of  this  State.  {Ibid.  §  30,  as  amended  by  laws  of 
1872,  p.  691.) 

23.  No  person  shall  act  as  agent  or  solicitor  in  this  State  for 
any  company  not  of  this  State,  in  any  manner  whatever  relating  to 
risks,  until  the  provisions  of  this  act  have  been  complied  with  on 
the  part  of  the  company  or  association,  and  there  has  been  granted 
to  said  com])any  or  association,  by  the  Insurance  Commissioner,  a 
certificate  of  authority  or  license,  for  which  said  company  or  asso- 
ciation shall  pay  into  the  State  Treasiuy  the  sum  of  three  hundred 
dollars ;  and  it  a  tax  of  one  and  one-half  per  cent,  on  the  gross 
amount  of  premiums  charged  or  collected  for  said  company  or  asso- 
ciation during  the  last  license  year— which  report  of  premiums  the 
agent  is  required  to  make  under  oath  to  the  Insurance  Commis- 
sioner— shall  exceed  the  price  of  said  license,  there  shall  be  paid 
into  the  treasury,  before  a  license  shall  be  renewed  for  the  ensuing 
year,  the  whole  excess  of  the  one  and  one-half  per  cent,  over  and 
above  the  cost  of  license ;  Provided,  That  all  licenses  shall  expire  on 
the  first  day  of  May  in  each  year,  and  any  company  applying  for 
admission  into  the  State  shall  pay  in  like  proportion  for  the  frac- 
tional part  of  a  year.  In  addition  to  the  above  license  or  tax,  there 
shall  be  paid  by  each  company  doing  business  in  this  State  the  fol- 
lowing fees  to  defray  the  expenses  of  executing  the  i)rovisions  of 
this  act :  Upon  filing  the  declaration  or  certified  copy  of  charter, 
twenty-five  dollars.  Upon  filing  the  annual  statement  or  certificate 
in  lieu  thereof,  twenty  dollars.  For  each  certificate  of  authority 
(which  each  sub-agent  or  solicitor  is  hereby  required  to  obtain)  and 
certified  copy  thereof,  two  dollars.  For  every  copy  of  any  paper 
filed  in  the  department,  the  sum  of  twenty  cents  per  folio  ;  and  for 
affixing  the  official  seal  to  such  copy  and  certifying  to  the  same,  one 
dollar.  For  valuing  liolicies  of  life  insurance  companies,  thirty 
dollars  per  million  of  insurance  or  any  fraction  thereof.  For  official 
examinations  of  companies  under  this  act,  the  actual  expenses  in- 
curred ;  Provided,  That  tlie  filing  of  the  pai)ers  with  the  Insurance 
Commissioner,  as  provided  by  this  act,  shall  be  in  lieu  of  all  papers 
now  required  by  law  to  be  filed  with  the  Comptroller  and  the  clerk 
of  the  superior  court  of  Baltimore  city,  {Ibid,  §  31,  as  amended  by 
laws  of  1872,  p.  692.) 

23.  Every  insurance  companj^,  including  individuals,  partner- 
ships, joint  stock  associations,  and  corporations,  conducting  any 
branch  of  insurance  business  in  this  State,  must  transmit  to  the  In- 
surance Commissioner  a  statement  of  its  condition  and  business  for 
the  year  ending  on  the  preceding  thirty-first  day  of  December, 
which  statement  shall  be  rendered  on  the  first  day  of  January  fol- 
lowing, or  by  fire  and  marine  insurance  companies  within  thirty 
days,  and  by  life  insurance  companies  within  sixty  days  thereafter, 
except  that  foreign  companies  shall   transmit  their  statement  of 


MARYLAND.  327 

business,  other  than  that  done  in  the  United  States  prior  to  the  fol- 
lowing first  day  of  July,  which  statements  must  be  in  form,  and 
state  the  particulars  requiredby  the  blanks  prescribed  by  the  Comp- 
troller ;  and  the  Insurance  Commissioner  maj'  require  at  any  time 
statements  from  any  compuny  doing  business  within  this  State,  or 
from  any  of  its  ofiicers  or  agents,  on  such  ])oints  as  he  deems  ne- 
cessary and  proper,  to  elicit  a  full  exhibit  of  its  business  and  stand- 
ing ;  all  of  which  statements,  herein  required,  must  be  verified  by 
the  signatures  and  oath  of  the  president  or  vice-president,  with 
those  of  the  secretary  or  actuary ;  no  company  having  neglected  to 
file  a  statement  required  of  it,  within  the  time  and  manner  pre- 
scribed, shall  do  any  new  business  after  notification  by  the  Insurance 
Commissioner,  while  such  neglect  continues ;  and  any  comi)any  or 
association  neglecting  to  make  and  transmit  any  statement  required, 
shall  forfeit  one  hundred  dollars  for  each  day's  neglect,  and  any  per- 
son, or  the  officers  ot  any  company,  knowingly  making  a  false  state- 
ment in  any  report  to  the  Insurance  Commissioner,  shall  be  liable 
for  the  fines  and  penalties  imposed  by  this  article :  the  Insurance 
Commissioner  shall  allow,  in  addition  to  the  assets  now  provided 
for  the  reserve  of  insurance  companies,  all  interest  due,  and  such 
proportion  of  deferred  and  uncollected  i)remiums,  shown  due  by  the 
above  required  statements,  as  in  his  judgment  is  a  legal  and  proper 
credit.     {Ibid^  §  32,  as  amended  by  laics  o/lS74,  p.  587.) 

24.  Xo  insurance  company,  not  of  this  State,  nor  its  agents, 
shall  do  business  in  this  State  until  it  has  filed  with  the  Insurance 
Commissioner  of  this  State  a  written  stipulation,  duly  authenticated 
by  the  company,  agreeing  that  any  legal  process  affecting  the  com- 
pany, served  on  the  Insurance  Commissioner,  or  the  party  designated 
by  him,  or  the  agent  specified  by  said  company,  to  receive  service 
of  process  for  the  company,  shall  have  the  same  effect  as  if  served 
personally  on  the  comi)any  within  this  State,  and  if  such  company 
should  cease  to  maintain  such  agent  in  this  State,  so  designated, 
such  process  may  thereafter  be  served  on  the  Insni'ance  Commis- 
sioner ;  but  so  long  as  any  liability  of  the  stipulating  company  to 
any  resident  of  this  State  continues,  such  stipulation  can  not  be  re- 
voked or  modified,  except  that  a  new  one  may  be  substituted  so  as 
to  require  or  dispense  with  service  at  the  office  of  said  company 
within  this  State,  and  that  such  ser\ice  of  process,  according  to 
this  stipulation,  shall  be  sufficient  personal  service  on  the  company; 
the  term  process  includes  any  writ,  summons,  or  order  whereby  any 
action,  suit,  or  proceeding  shall  be  commenced,  or  which  shall  be 
issued  in,  or  upon  any  action,  suit,  or  proceedings.  {Ibid,  §  33,  as 
amended  by  laws  of  1872,  p.  694.) 

25.  Before  any  insurance  company  shall  commence  business 
in  this  State,  the  following  conditions,  in  addition  to  those  imposed 
by  the  preceding  sections  of  this  act,  must  be  complied  with  :  It 
must  be  fully  organized.  If  it  be  a  company  not  of  this  State,  a 
copy  of  its  charter,  duly  accepted,  or  its  declaration  of  organization, 
or  deed  of  settlement,  dul^^  approved  and  certified  by  the  Insurance 
Commissioner  or  other  proper  officer  of  its  own  State  or  nation,  with 
his  certificate  that  the  company  is  entitled  to  assume  risks  and  issue 
policies  therein,  must  be  filed  with  the  Insurance  Commissioner  of 
this  State.  The  capital  stock  of  no  insurance  company  (mutual 
insurance  comj)anies  excepted),  incorporated  by  this  State,  or  incor- 
porated by  the  laws  of  another  State  or  country,  and  doing  business 
in  this  State,  whether  fire,  life,  marine,  or  inland  insuiance,  sliali  be 


328  iii.xe's  msuiiANCE  statutes. 

less  than  one  liiiudred  thousand  dollars.  An  amount  equal  to  the 
reinsurance  reserve  of  all  insurance  companies  shall  be  invested  in 
the  bonds  or  treasury  notes  of  the  United  States,  or  bonds  or  stocks 
of  this  or  any  other  State  of  the  United  States,  or  of  any  incorpor- 
ated city  or  corijoration  of  this  or  any  other  State  having  legal 
authority  to  issue  the  same,  bearing  interest,  or  it  may  be  invested 
in  real  estate  lor  their  office  or  business  purposes  only,  or  on  ground- 
rents  or  loaned  on  mortgages  of  unincumbered  real  estate  in  tliis  or 
any  other  State  of  the  United  States,  worth  at  least  double  the 
amount  loaned  thereon,  exclusive  of  buildings,  except  where  such 
buildings  are  insured,  and  the  policies  duly  assigned  as  additional 
security,  or  loaned  on  pledges  of  any  seciu-ity  named  in  this  section 
or  on  the  policies  of  the  company  in  force,  each  loan  being  less  than 
the  net  value  of  the  policy  on  which  the  loan  is  made ;  Provided 
always,  That  the  current  market  value  of  such  pledged  securities 
other  than  the  bonds  and  stocks  of  this  State  or  of  the  United 
States,  shall  be  at  all  times,  during  the  continuance  of  such  loans, 
at  least  ten  per  cent,  more  than  the  sum  loaned  on  them,  and  all 
such  loans  are  subject  to  the  power  of  the  company  to  terminate  the 
same  in  case  of  depreciation  of  the  securities  below  that  limit;  And 
provided^  In  all  investments  made  upon  mortgaged  securities,  the 
evidence  of  the  debt  shall  accompany  the  mortgage  or  deed  of  trust. 
{Ibid,  §  34,  as  amended  by  laics  of  1872,  j:>.  694.) 

•Jsi.  Whenever  the  Attorney-General  of  the  State,  or  State's 
Attorney  for  the  City  of  Baltimore  or  for  a*ny  county  in  this  State, 
shall  be  authorized  by  the  Comptroller  to  institute  j)roceedings 
against  any  insurance  company,  incorporated  under  the  laws  of  this 
State,  to  ascertain  whether  such  corporation  has  been  guiltj'  of  such 
misuse,  abuse,  or  non-user  of  its  corporate  powers  and  franchises,  as, 
b}^  law,  would  authorize  and  make  ])roper  the  forfeiture  of  its 
charter,  corporate  powers,  and  franchises,  the  Attorney-General  or 
State's  Attorney,  so  authorized,  shall  file  in  the  superior  court  of 
Baltimore  city,  or  the  circuit  court  of  the  county,  as  the  case  may 
be,  a  petition  in  the  name  of  the  State,  setting  forth  fully  and  in 
detail  the  alleged  abuse,  misuse,  or  non-user,  by  reason  whereof  the 
forfeiture  is  sought,  and  upon  the  filing  of  such  petition  the  court, 
in  which  it  is  filed,  or  any  judge  thereof,  shall  lay  a  rule  requiring 
the  said  company  or  corporation  to  show  cause  within  such  time  as 
the  said  judge  may  deem  pro])er,  why  a  decree  of  forfeitm^e  should 
not  be  passed  as  prayed  in  said  petition ;  a  copy  of  which  rule  and 
the  petition  shall  be  served  on  the  president,  manager,  secretary,  or 
some  other  officer  of  the  said  company  or  corporation,  by  a  day  to 
be  therein  limited  (not  exceeding  twenty  days),  as  other  process 
against  such  corporations  or  companies  is  directed  to  be  served ; 
and  further  proceedings  shall  be  had  in  said  cause,  in  conformity 
with  the  act  passed  at  January  session,  18iJ8,  chapter  471.  {Ibid, 
§  35,  as  amended  by  laws  of  1S72,2).  G95.) 

•J7.  Any  i)erson  or  persons,  or  any  company  or  association 
violating  any  of  the  provisions  of  this  act,  vshall  be  subject  to  a  fine 
of  not  less  than  one  liundred  dollars,  nor  more  than  one  thousand 
dollars,  which  fines  shall  be  sued  for  in  the  name  of  the  State  of 
Maryland,  and  collected  as  all  other  fines  as  are  imposed  by  the 
laws  of  this  State  are  now  collectable,  and  any  act  or  part  of  an  act 
inconsistent  with  the  provisions  of  this  act,  be  and  the  same  are 
hereby  re])ealed;  Provided,  That  no  right  of  action  accrued,  or  pen- 
alty incurred  under  any  existing  law  repealed  by  this  act,  shall  be 


MARYLAND.  329 

thereby  waived  or  annulled  in  any  way,  but  the  same  may  be  en- 
forced under  said  acts  in  the  same  way  as  if  the  repealing  clause 
had  not  been  ])assed ;  And,  provided  further^  That  when  by  the  laws 
of  any  other  State  any  taxes,  fines,  i)enalties,  deposits  of  money,  or 
securities,  or  other  obligations,  or  prohibitions  are  imposed  upon 
insm-ance  companies  incorporated  or  organized  under  the  laws  of 
this  State  and  transacting  business  in  such  other  State,  or  upon  the 
agents  of  such  insurance  companies,  not  imposed  by  the  laws  of  this 
State,  so  long  as  such  hiws  continue  in  force,  the  same  taxes,  fines, 
penalties,  deposits,  and  obligations  shall  be  imposed  upon  all  insur- 
ance companies  doing  business  in  this  State  which  are  incorporated 
or  organized  under  the  laws  of  such  other  State,  and  upon  their 
agent  or  agents.     {Ibid,  §  36,  as  amended  by  laws  of  1872,  p.  690.) 

28.  Any  j^erson  applying  for  the  same,  and  paying  the  sum  of 
one  hundred  dollars,  may  obtain  a  license  for  carrying  on  the  busi- 
ness of  insurance  broker,  and  any  indixidual,  co-partnership,  or  firm 
who  shall  carry  on  the  business  of  an  insurance  broker,  without  a 
license,  shall  be  subject  to  the  penalties  imposed  upon  other  brokers, 
by  section  seventeen  of  this  article.  {Supplement  to  Code,  1868, 
p.  133,  §  11.) 


LIFE  INSURANCE   FOR  MARRIED   WOMEN. 

29.  Any  married  woman,  by  herself  and  in  her  name,  or  in 
the  name  oi  any  other  person,  with  his  assent,  as  her  trustee,  may 
insure  in  any  life  insm\ince  company  formed  under  the  provisions 
of  this  article,  for  her  sole  use,  the  life  of  her  husband  for  any 
definite  period  or  for  the  term  of  his  natui^al  life  ;  and  in  case  she 
shall  survive  her  husband,  the  sum  or  net  amount  of  the  insurance 
becoming  due  and  payable  by  the  terms  of  the  insurance  shall  be 
payable  to  her  and  for  her  own  use,  free  from  the  claims  of  the  rep- 
resentatives of  her  husband  or  any  of  his  creditors  ;  and  in  case  of 
the  death  of  the  wife  before  the  decease  of  her  husband,  the  amount 
of  the  insurance  may  be  made  payable  after  death  to  her  children 
for  their  use,  and  to  their  guardian  if  under  age.  (Supplement  to 
Code,  1868,  p.  60,  §  101.) 

30.  Any  corporation  formed  under  this  article  may  insure  the 
property,  personal,  or  mixed,  which  any  married  woman  may  own 
jointly  or  in  severalty,  in  the  same  manner  as  if  she  were  Sbfemme 
sole,  and  any  guardian  may,  with  the  assent  of  the  Orphan's  Court, 
by  which  he  shall  have  been  appointed,  insure  in  any  company 
formed  under  this  article,  any  proi)erty  which  the  ward  or  wards  of 
such  guardian  may  own,  either  jointly  or  in  severalty,  and  such  in- 
surance shall  have  the  same  effect  in  all  respects  as  if  the  minor 
whose  property  is  thus  insured  were  of  full  age  and  had  made  such 
insurance  himself.     {Ibid,  p.  61,  §  104.) 


ARSON  AND   INCENDIARISM. 

31.  Every  i^erson  convicted  of  the  crime  of  arson,  or  as  being 
accessory  thereto,  shall,  at  the  discretion  of  the  Court,  suffer  death, 
or  be  sentenced  to  the  penitentiary  for  not  less  than  five  nor  more 
than  twenty  years.     ( Code,  1860,  p.  205,  §  2.) 

32.  U  any  person  shall  maliciously  set  fire  to  and  burn  any 


330  hine's  insurance  statutes. 

untenanted  dwelling-house,  be  shall,  on  conviction  thereof,  be  con- 
fined in  the  penitentiary  for  a  term  not  less  than  two  years  nor 
more  than  ten  years.     {Ibid,  y.  200,  §  3.) 

33.  Every  person,  his  aiders  and  abettors,  who  shall  be  con- 
victed of  the  crime  of  willfully  and  maliciously  burning  any  ship  or 
other  vessel  of  seventeen  feet  keel  or  upwards,  whether  laden  or 
empty,  shall  be  sentenced  to  the  penitentiary  for  not  less  than  two 
nor  more  than  twelve  years.     (JfewZ,  §  4.) 

34.  If  any  person  shall  willfully  burn,  or  attempt  or  conspire 
to  burn,  any  court-house,  or  county  or  jmblic  prison,  or  the  peni- 
tentiary, poor-house,  magazine  or  lazaretto,  or  public  warehouse,  or 
any  other  building  belonging  to  this  State,  or  the  different  counties, 
cities,  or  towns,  or  bodies  corporate  in  this  State,  or  the  office  of 
the  clerk  or  register  of  any  court  in  this  State,  or  the  State-house 
of  this  State,  or  any  public  office  contained  therein,  or  any  public 
office  in  tbis  State  of  any  kind  whatever,  or  church  or  house  of 
worship,  college,  academy,  or  school-house,  engine-house,  market- 
house,  scale-house,  watch-house,  or  public  barrack,  such  person  and 
his  aiders,  abettors,  and  counselors,  and  each  of  them,  shall  be 
deemed  felons,  and,  on  being  convicted  thereof,  shall  suffer  death, 
or  be  sentenced  to  the  penitentiary  for  not  more  than  fifteen  years. 
{Ibid,  §  5.) 

35.  Every  person  convicted  of  the  crime  of  willfully  and  ma- 
liciously burning  or  destroying,  or  attempting  or  conspiring  to  burn 
or  destroy,  any  public  arsenal  or  magazine  of  provisions,  or  of  mili- 
tary or  naval  stores,  belonging  to  this  State,  or  subject  to  the  juris- 
diction of  this  State,  or  of  willfully  and  maliciously  burning  or 
destroying,  or  attempting  or  conspiring  to  burn  or  destroy,  any 
military  or  naval  stores,  ship,  or  vessel,  belonging  to  this  State,  the 
United  States,  or  any  one  of  them,  shall  suffer  death  by  hanging, 
or  be  sentenced  to  the  penitentiary  for  a  period  not  less  than  three 
nor  more  than  ten  years.     {Ibid,  §  0.) 

36.  If  any  person  shall  maliciously  set  on  fire  any  fence  or 
fencing,  or  any  straw,  stack  or  stacks,  or  ricks  of  straw,  or  any  hay 
or  mowed  grass,  or  other  grass,  or  any  tobacco,  he  shall,  on  convic- 
tion thereof,  be  sentenced  to  the  penitentiary  for  not  less  than  two 
nor  more  than  four  years.     {Ibid,  §  7.) 

37.  Every  j)erson,  his  aiders,  abettors,  or  counselors,  who 
shall  be  convicted  of  the  crime  of  willfully  burning  any  mill,  dis- 
tillery, manufactory,  barn,  meat-house,  tobacco-house,  stable,  ware- 
house, or  other  out-house,  not  parcel  of  any  dwelling-house,  being 
empty  or  having  therein  any  tobacco,  wheat,  rye,  oats,  Indian  corn, 
barley,  flax,  hemp,  hay,  or  other  country  produce,  horse,  or  horses, 
cattle  or  goods,  wares  and  merchandise,  or  of  burning  any  stack, 
rick,  mow,  or  barrack,  of  hay,  fodder,  flax,  hemp,  tan  bark,  wheat, 
or  other  grain,  shall,  at  the  discretion  of  the  court,  suffer  death,  or 
be  sentenced  to  the  penitentiary  for  not  less  than  three  nor  more 
than  twelve  years.     {Ibid, p.  207,  §  8.) 

38.  Any  person  who  shall  maliciously  and  willfully  attempt  to 
burn  any  dwelling-house,  whether  inhabited  or  not,  or  any  mill, 
factory,  barn,  stable,  store-house,  or  other  out-house,  or  any  stack 
of  grain,  haj^,  straw  or  fodder,  ujion  conviction  thereof,  shall  be 
sentenced  to  the  penitentiary  for  not  less  than  eighteen  months  nor 
more  than  ten  years.     {Ibid,  §  9.) 


MARYLAND.  331 

EMBEZZLEMENT. 

39.  If  any  cashier,  servant,  agent  or  clerk,  or  any  person  em- 
ployed for  the  purpose  or  in  the  capacity  of  cashier,  servant,  agent, 
or  clerk,  to  any  person  or  to  any  body  corporate,  shall,  by  virtue  of 
such  emi)loyment,  receive  or  take  into  his  possession  any  money, 
goods,  bill,  note,  bond,  check,  evidence  of  debt,  or  other,  valuable 
secimty  or  effects,  for  and  in  the  name  or  on  account  of  his  em- 
ployer, and  shall  fraudulently  embezzle,  secrete,  or  make  way  with 
the  same,  or  any  part  thereof,  he  shall  be  deemed  guilty  of  having 
feloniously  stolen  the  same  from  his  employer,  for  whose  use  or  in 
whose  name  or  on  whose  account  the  same  was  or  were  delivered  to 
or  taken  into  the  possession  of  such  cashier,  servant,  clerk,  or  other 
person  employed,  although  such  money,  goods,  bill,  l)ond,  note, 
check,  evidence  of  debt,  or  other  valuable  security  or  effects,  was  or 
were  not  otherwise  received  into  the  possession  of  such  employer 
than  by  the  actual  possession  of  his  cashier,  servant,  or  clerk,  or 
other  person  so  employed,  and  every  such  offender,  his  adviser, 
aider,  procurer,  or  abettor  shall,  on  conviction  thereof,  be  sentenced 
to  the  penitentiary  for  not  less  than  five  nor  more  than  fifteen  years. 
((;of7el860,_p.  217,  §49.) 

4®.     For  General  Provisions  relating  to  Corporations,  see  Sup- 
plement to  Code,  1868,  pp.  33-53,  84-97. 


INDEX   TO   MASSACHUSETTS. 


PAGE 

Agent — 

Embezzlement  by  {  306) 39(5 

Insurance  Commissioner  may  Exarairie 

(6,7) 336,  337 

Of  Life  Company,  livlien  Keserve  is  Im- 
paired (272) 390 

Penalties  for  Violating  (238,  239, 

268,  269) 378,  3S9 

Who  may  be  Deemed  (237) 377 

(See  Broker). 

Of  rorei{,ai  Company  must  Advertise 

Location  (219) 374 

Of  Foreign  Company  must  Give  Bond 

1217,  254,255) 374,  382 

Of  Foreign  Company  must  Obtain  Cer- 
tificate (218) 374 

Of  Foreign  Company,  Provisions  as  to 

Taxation  (2-44:-253) 378-382 

Of  Foreign  Company,  Plate  Glass  (1 92)  3(J9 
Of  Foreign  Company  to  Accept  Service 

(•^11-215) 373 

Of  Foreign  Company,  Violation  of  Law 
(8,   186,  220  224,  231,  232, 

238,  239) 337,  367,  374-8 

Annual  Report  by  Insurance  Commissioner 

(13,  15,  16) 337,338 

Annual  Statement— 

Of  Massachusetts  Companies  (65) 345 

Of  Fire  Risks  in  Cities  (186) 367 

Of  Foreign  Companies    (225,  226, 

230-232) 375-7 

Commissioner  may  Withhold  (264)...  387 

Forms  Prescribed  (258-262) 383-7 

Penalties  for  Failure  to  Make  (264)  -.  387 

Time  of  Making  (263) 387 

Arson,  Crime  and  Penalty  (283,    301- 

305) 392,  395,  396 

Boston  Protective  Department,  Provisions 

Concerning  (288-293) 392-4 

Broker- 
Must  Procure  Certificate  (280-282)..  391 
Who  shall  be  Deemed  (278,  279) 391 

Charter — 

May  be  Amended  or  Repealed  (78)  ...  347 

Notice  of  Acceptance  of  (29-32) 340 

Notice  of  Intention  to  Alter  (23-27)339-40 
When  Annulled  (69-71) 346 

Capital  of  Joint  Stock  Companies — 

Amount  of  ( 9  7) 350 

Investment  of  (99-1 01) 350,  351 


PAGE 

Capital  of  Joint  Stock  Cos.  (Continued)— 

Increase  of  (1 1  7) 353 

Liability  in  Case  of  Impairment  (105)  351 
Proceedings    in    Case    of  Impairment 

(106  116)  351-3 

Payment  of  (95,  96) 350 

Stock  Notes  stall  not  be  (98) 350 

Capital  of— 

Foreign  Companies  (1  84,  208,  233)  367, 

372,  377 
Mutual     Fire     Insurance    Companies 

(170,  187) 363.  368 

Mutual     Life     Insurance    Companies 

(193,  196) 369 

Mutual  Marine  and  Fire-Marine  Com- 
panies (155,  167,  171,  178)3fi0,  362, 

363,  365 

Stock  Co.  may  be  Increased  (180) 366 

Stock  and  Mutual  Cos.  Combined  (148)  359 
Certificate — 

Of  Joint  Stock  and  Mutual  Companies 

(96,  176,  182) 350,  364.  366 

Of  Fori'ign  Agents  (218) 374 

Cities  Divided  in   Fire  Districts  (186). .. .  367 
Corporations,  General  Provisions  Concern- 
ing (307) 396 

Deposit— 

For  Perpetual  Insurance  (106-1 09)351.352 
Of  Marine  Cos.,  Treasurer  to  hold  (42)  341 

Directors  — 

Of  Joint  Stock  Cos.,  Liability  of  (105)  351 
Of  Mutual  Cos.— (See  Mutual  Fire  In- 
surance ) 

Dissolution  of  Insurance  Cos.  (68-76)346,  347 

Dividends — 

Of  Joint  Stock  Cos.  (93,  94) 349 

Of  Life  Insurance  Cos.  (195-199)  369,  370 
Of    Mutual    with     Guaranty    Capital 

(163-166,  179^ 361,362,365 

Unclaimed  Must  be  Published  (48) 342 

Embezzlement,    Crime   and   Penalties  of 

(306) 396 

Fees— 

For  Agent's  Certificates  (218) 374 

For  Broker's  Certificate  (281) 391 

For  Copies  of  Papers  (242) 378 

For  Examination  (21,96) 338,350 

For  Filing  Certificates  (182) 366 

For  Valuation  of  Life  Policies  (2,  3, 

241) 336,  378 

Of  Foreign  Companies  (243) 378 


INDEX  TO    MASSACHUSETTS. 


333 


PAGE 

Fire  Insurance  Companies— (See  Insurance 

Companies,  Joint  Stock  Companies, 

ilntuals,  etc.) 
Fire- 
Districts,  City  Divided  into  (18 6) 367 

Inquests  (294-300) 394,  395 

Foreign  Insurance  Companies — 

Agent  must  Give  Bond  (217)  254, 

255^ 374,  382 

Agent  must  Procure  Certificate  (218)  374 
Annual  Statement  of  (225,  226,  230- 

232) 375,  377 

Attorney    to    Accept    Service    (211- 

215) 373 

Capital  of  (184,  208) 3(i7,  372 

Commissioner  may  Examine  (18-20)  338 
Commissioner  may  Examine  Agents  of 

(6,  7) 336,337 

Conditions  as  to  Mutual  Fire  Compa- 
nies (209) 372 

Fees  of  (.243) 378 

Fire  Policies  must  Contain  Conditions 

of  Business  (274) 390 

Form  of  Statement  (25 8-261  j 383-6 

In  Case  of  Violatiuu  of  the  Law  (8)  . . .  337 
Limitation  of  Kisk  (208,  229,)... 372,  376 
Laws,  to  what  Companies  Applicable 

(235,  236,  257.) 377,  382 

Must  Satisfy  Commissioner  (210) 372 

Must  Advertise  Location  (219) 374 

Must  do  Business  in  Corporate  Name 

(273) 390 

Plate  Glass  (192) 369 

Penalties  for  Non-Compliance    (220- 

224) 374.375 

Policies  must  be  Limited  (275) 391 

Reinsurance  by  (229) 376 

Suits  .A  gainst  (234) 377 

Taxation  of  (244-25  3) 378-82 

When  Capital  is  Impaired  (233) 377 

(See  Life  Insurance  Companies.) 
Frauds  against  Insurance  Cos.  (283-287)  392 

Inquests  in  Case  of  Fire  (294-300i..  394,  395 
Insurance  Commissioner — 

Appointment  and  Salary  (1-3) 330 

Authority    as    to    Annual    Statement 

(262-265) 387 

Clerk  of  (4) 336 

Examination  of  Companies  and  Agents 

(5-7)    336,  337 

Examination  and  Report  of  (17-20)..  338 
Examination    of   Keceiver's   Accounts 

(74-76) 347 

Examination  and  Kep  jrt  of  Loan  Fund 

Association  (14,  15)   337,338 

In  Case  of  Violation  by  Foreign  Co.  (8)  337 
In  Case  of  Violation  by  Domestic  Com- 
pany (67) 346 

May  Appoiat  Deputy  (22) 339 

Must   Endorse  and  Transfer   Agent's 

Bond  (217) 374 

Must  Keep  Form  of  Policy  (270) 390 


PAOR 

Insuran  ce  Commissioner  (Continued) — 

Shall  Furnish  Blanks  (9) 3o7 

Shall  Value  Life  Policies  (10) 3.37 

Shall    Compute   Eeinsurance    Keserve 

(11) 337 

Shall  make  Annual  Report  (13,   15, 

16)... 337,  338 

Shall  give  Bond  (16) 338 

Shall  Visit  Companies  (17-19) 338 

Shall  Examine  Capital  of  Joint  Stock 

Companies  (96) 350 

Shall  grantCertificateto  Agents  (218)  374 
Shall  grant  Broker's  Certificate  (281)  391 
When  Domestic  Company  is  Insolvent 

(66) 345 

Insurance  Companies  of  Massachusetts — 

Annual  Statements  (65) 345 

By-laws  may  Contain,  what  (35-37)  340-1 
Commissioner  may  Examine  (5,  7,  1  7, 

19,21) 336-8 

Charter  of  Fire  Co.  Annulled,  how  (,69)  346 
Charter  Subject  to  Amendment  or  Re- 
peal (78) :t47 

Charter,  how  Altered  (23-27) 339 

Directors  must  Furnish  Statement  (39)  341 

Fees  for  Examination  (21) 338 

General  Powers  of(34) 340 

Investment  of  Funds  (40) 341 

Location  of  Ofllee  (45) 34i 

Limited  Partnerships  Prohibited  (49).  342 

May  be  Dissolved  on  Petition  (68) 346 

May  Convey  Lands  (43) 341 

May  be  Taxed  by  General  Laws  (50)  .  342 

May  not  Trade  (277) 391 

Must  Obtain  Certificate  (21) 338 

Must    Publish    Unclaimed    Diviaends 

(48) -342 

Must  do  Business  in  Corporate  Name 

(273) • 390 

Mortgages  Sold  on  Execution  (44) 341 

Organization  of  (29-33) 340 

Officers  of  Mutuals,  Restrictions  (41).  341 

Officers  shall  give  Bond  (39) 341 

Policies  Limited  to   Time  of  Charter 

(46) 341 

Policies   must   Contain    Conditions  of 

Business  (275) 391 

Policies  must  be  Limited  (276) 391 

Proceedings  in  Case  of  Insolvency  (66)  315 
Proceedings  tor  Violation  of  Law  (67)  346 
Remedy  in  Equity  against  Officers  (47)  342 

Receivers  of  (71-77) 34(>,  347 

Shall  make  Tax  Returns  (.55) 343 

Shares  Exempt  from  Local  Tax  (63)  ..  345 
Special  Franchise  may  be  Taxed  (.64).  345 

Treasurer  to  Hold  Deposits  (42) 341 

To  Continue  Bodies  Politic  after  Disso- 
lution (70,  79) .346,347 

Tax,  Amount  and  how  Estimated  (56- 

64) .MS,  :i45 

Taxation  of  (227,  243,  247,  249- 

252) 376,378-81 

(See  Joint  Stock  Companies  ) 


334 


hine's  insurance  statutes. 


PAGK 

Joist  Stock  Insurance  Companies—  350 

Amount  of  Capital  (97)  349,367 

Basis  and  Amount  of  Diridends  (93, 

94,  185) 

Certificate,  Examination  and  Fees  (96)  350 

Directors  Liable,  ■when  (105) r'51 

Election  of  Directors  and  Oflficers  (80- 

82) 348 

From  of  Statement  (258) 383 

Investment  of  Capital  (99-101)  ..3o0,  351 

Increase  of  Capital  (117) 353 

Liability  of  Executors  and  Estates  (91)  349 
Limitation  of  Risk  (104,  186)..  .351,  367 
May  Insure    Eire  and  Marine    Bisks 

(102,  106) 351 

Payment  of  Capital  (96) 350 

Policies,  how  Executed  (103) 351 

Pnrpetual  Insurance  (106-108)  ..351,352 
Proceeding.^    in    Case    of    Impairment 

(110-116) 35^',  353 

StociLholders  must  be  Registered  (86, 

87; 353 

Stockholders  Liable,  when  (105) 351 

Stock  Notes  shall  not  be  Capital  (98).-  350 
Shall  call  Special  Meetings  (92,  93)..  349 

Transfer  of  Stock  "(88-90) 349 

(See  Insurance  Companies,  Stock  and 

Mutual  Insurance.) 

LiKE.Insurance  Companies — 

Directois  of  (194) 369 

Dividends  of  196-199) 369,370 

Fees  for  Valuing  Policies  (2,  3,  241)336, 

378 

Form  of  Statement  (261) 386 

Guaranty  Capital  of  Mutual  Companies 

(193,  196; 369 

Interest  of  Beneficiary  (202) 370 

Must  not  Insure  F.  and  M.  Risks  (207)  371 
Policies  shall  be  Non-Forfeiting  (203, 

204)  370,  371 

Reinsurance  of  (2  0  7) 371 

Restrictions  as  to  Contracts  (205) 371 

Taxation  of  (246,  247,  253)  ...379,  382 

What  shall  be  Deemed  (205) 371 

When  Reserve  is  Impaired  i,272) 390 

AVives' PoUcies  (200,  201) 370 

Limited  Partnerships  Prohibited  (49) 342 

Loan  Fund  Associalion  (14,  15) 337,  338 

Mauine— 

Frauds  (284-287)   392 

Insurance    Cos.    (See  Insurance    Cos., 
Joint  Stock,  Mutual,  Stock,  etc.) 
Massachusetts  Hospital  Life  Ins,  Co.— 

Taxation  of  (51-54)   342,343 

Other  Companies  Subject  to  Obligations 

of  (206) 371 

Mortgages  may  be  Sold  on  Execution  (44)  341 
Mutual  Fire  Insurance  Companies- 
Assessments,   when    and    how     Made 

(130-142) 355-8 

Corporations,  Representation  of  Mem- 
bers (120) 354 


PAGE 

Mutual  Fire  Instirance  Cos.  (Continued)- 

Classification  of  Risks  (131) 355 

Election    of    Directors    (118,    120, 

122)   353,354 

Form  of  Statement  (260) 385 

Guaranty  Capital  (170,  178,  187)-.363, 

355,  368 
Limitation  of  Risk  (126,  127,  186;354, 

355,  367 

May  do  Business,  where  (125) 354 

Members    Share    Profits    and    Losses 

(130) 355 

Notice  of  Annual  Meeting  (119) 354 

Perpetual  Insurance  by  (106-109)351,  352 
Policies  may  be  Issued,  when  (124)  ..  354 
Policies  shall  be  a  Lien  (128,  129).-  355 
Special  Meetings,  how  Called  (122).-  354 
Secretary  shall  Keep  Records  (123).-.  354 

Subscribed  Insui-ance  of  (177) 365 

Trustees  may  Create  Lien  (129) 355 

With    Guaranty  Capital  may  Insure, 

what(178) 365 

(See  Insurance  Companies,  Stock,  Mu- 
tual, etc.) 
Mutual  Life  Companies — 

Notice  of  Annual  Meeting  (119) 354 

(See  Insurance  Cos.,  Lite  Ins.  Cos) 
Mutual  Marine  and  Fire-Marine  Insurance 
Companies — 
Capital  and  Certificate  (155,  157).-.  360 
Dividends,  how  Made  (163-166)361,  362 

Formation  of  (154) 360 

Form  of  Statement  (259) 384 

Liabilities  and  Duties  of  Officers  and 

Directors  (161) 361 

Limitation  of  Risk  (160,  186)  ...361,  367 

Membership  of  (159) 361 

Subscription  Notes  of  (154-158) 360 

To  have  Permanent  Fund  (171) 363 

(See  Stock  or  Mutual,  Fire,  etc.) 

Penalties— 

Agent  for  Refusal  to  be  Examined  (6, 
,j  J 336,  337 

Arson  and  Marine  Frauds  (283-287)  392 

Company,  for  Refusal  to  be  Examined 
(19,20) ^38 

Issuing  Policies  beyond  Time  of  Char- 
ter (46) 341 

Unlawful  Brokerage  (282) 391 

Violation  of  Law  by  Agent  (186,218, 
220)    367,  374 

Violation  as  to  Taxation  (240,  264)378, 

382 

Violationby  Agents  (23 1,232,  238, 
239) 376-8 

Violation  as  to  Form  of  Policy  (268, 

269) ^^ 

When  Reserve  is  Impaired  (272) 390 

Perpetual  Insurance,  when  and  how  Effected 

(106,  109) 351,  352 

Plate  Glass  Insurance  Companies — 

Capital  of  (191) 369 


INDEX  TO  MASSACHUSETTS. 


335 


PAGE 

Plate  Glass  Insurance  Cos.  (Continued)  — 

Foreign  (192) 369 

Of  Formation  of  Domestic  (190) 368 

Policies — 

Commissioner  shall  Value  (10) 337 

Form  of  ProTision  Concerning  (266- 

271) 387-90 

Life,  Title  of  Beneficiarj  (202) 370 

Life  must  State,  what  (205) 371 

Life  shall  be  Xon-Forfeiiing(203,  204)370, 

371 

Limited  to  Seven  Tears  (275) 391 

Limited  to  Time  of  Charter  (46) 341 

Must  State  Conditions  (274) 390 

Of  Joint  Stock  Companies,  how  Exe- 
cuted (103) 351 

Of  Mutual  Fire  Companies  shall  be  a 

Lien  (128,  129) 155 

Valuation  of  Life  (198) 370 

TTives'  (200,201) 370 

Premium  Notes- 
Assessments  of  (130-142) 355-8 

Amount  and  Date  of  (1 24 j 354 

Receivers,  Appointment,  Duty,  and  Com- 
pensation of  (71-77) 346,  347 

Reinsurance — 

Reserve  how  Computed  (11) 337 

By  Foreign  Companies  (244) 378 

Reserve  Premium  of  Life  Cos.  (198) 370 

Risk,   Limitation  of   (104,  126,    127, 

150,  160,  186,  208,  229)  .351,  355, 

359.  361,  367,  372,  376 

Risks.  Classification  of  (131) 355 

Stock  and  Mutual  Insurance  Cos. — 

Combined   Business    to    be    Separated 

(149) 359 

Capital  and  Investment  (148) 359 

Directors,  Officers,  and  Meetings  (151- 

153) 360 

Limitation  of  Risk  (150) 359 

(See  Insurance  Companies,  Joint  Stock, 
Mutual,  etc.) 
Stock  or  Mutual,    Fire,  Marine,   or  Fire- 
Marine  Insurance  Co)apanies — 
Agreement  to  Set  Forth,  what  (169)..  362 
Capital  may  be  Increased  (1 80,  181)  3.^6 


PAGK 

stock  or  Mutual  Fire,  Marine,  or  Fire-Ma- 
rine Insurance  Companies  (Conlinued).^- 

Certificateof  (176,  182) 364,  366 

Dividends  of  (178,  179,  18 5).. 365,  367 
Guaranty  Capital,  how  Applied  (178)  .  365 

How  Formed  (168) 362 

Limitation  of  Risk  (186) 367 

May  Insure,  what  (178,  181).. -365,  366 
Mutual  Fire  may  have  Guaranty  Capi- 
tal (170,  187) 363,  368 

Mutuals  must  have  |500,000  Subscribed 

(177) 365 

Mutual  Marine  Cos.  to  have  a  Perma- 
nent rund(171) 363 

Must  Commence  Business  within  One 

Year  (188) 368 

Name  of  (172) 363 

Organization  of  (173-176) 363,  364 

Provisions    of  Act   may    be    Allowed 

(189) 368 

Real  Estate  (183) 367 

(See  Joint  Stock,  Mutual  Stock,  etc.) 
Subscription  Notes  of  Mutual  Marine  Com- 
panies (154,  158) 360 

Taxation— 

Construction  of  Certain  Laws  Concern- 
ing (227) 376 

Massachusetts  Companies  must   make 

Returns  (55) 343 

Massachusetis    Companies,  how    Esti- 
mated (56-64) 343-5 

Massachusetts    Companies    Subject    to 
Obligations  of  Massachusetts  Hospital 

Life  (206) 371 

Of  Foreign  and  Domestic  Companies 

(243-253,  256) 378-82 

Of  Massachusetts  Hospital  Life  (51, 

54,  206) 342,  343,  371 

Of  Special  Franchise  (64) 345 

Penalties  for  Failing  to  Pay  (240) 378 

Reciprocal  (132) 356 

Shares  Exempt  from  Local  Tax  (63)..  345 

Under  General  Laws  (50) 342 

Transfer  of  Stock  ( 8  8-90) 349 

"WivEi*  Policies  (200-201) 370 


INSURANCE  STATUTES  OF  MASSACHUSETTS. 


INSURANCE  COMMISSIONER. 

1.  The  Governor,  by  and  with  the  advice  and  consent  of  the 
Council,  shall  appoint  some  suitable  ])erson  to  be  Insurance  Com- 
missioner, who  shall,  unless  sooner  removed  by  the  Governor,  hold 
his  office  for  the  term  of  three  years  from  the  date  of  his  commission 
and  until  his  successor  is  appointed  amd  qualified.  ( G.  8.  58,  §  1 ; 
186G,  255,  §  1.) 

S.  The  Commissioner  shaU  receive  an  annual  salarv  of  two 
thousand  dollars.  There  shall  be  allowed  and  paid  out  of  tlie  fees 
received  from  life  insiu-ance  companies  as  compensation  for  the  val- 
uation of  policies  on  lives,  all  the  exi)euses  incurred  for  actuarial 
and  clerical  assistance  employed  in  making  such  valuation,  and  all 
the  incidental  and  contingent  expenses  connected  therewith.  One- 
fifth  of  the  amount  received,  if  so  much  then  remains  unexpended, 
shall  be  allowed  and  paid  for  the  actuarial  services  of  the  Commis- 
sioner; Provided,  That  the  amount  so  allowed  and  paid  in  any  one 
year  shall  not  exceed  the  sum  of  three  thousand  dollars^.  {Ibidy 
§  11 ;  Lau'S  0/I86O,  178;  1862,  212,  §§  1,  2;  1862,  86;  1866,  255,  §  2; 
1867,  267,  §  8;  1869,  481,  §  2.) 

J§.  For  each  certificate  of  the  valuation  of  the  outstanding  poli- 
cies of  any  insurance  company  doing  business  in  this  commonwealth, 
there  shall  be  paid  the  sum  of  two  dollars,  to  be  collected  by  the 
Insurance  Commissioner  and  paid  into  the  treasurv.  [Laics  of 
1870,  349,  §  8.) 

4.  The  Commissioner  may  appoint  a  clerk,  who  shall  receive 
an  annual  salary  of  two  thousand  dollars.  The  salaries  of  the  Com- 
missioner and  of  his  clerk  shall  be  paid  monthly  out  of  the  treasury 
of  the  commonwealth.  [Laics  of  1866,  255,  §  2 ;  1877,  167,  §  3 ; 
1867,  263,  §  1 ;  1869,  434,  §  1.) 

5.  Tlie  Commissioner  shall  visit  and  examine  any  insurance 
company  incorporated  in  this  State,  when  requested  in  writing  by 
five  or  more  persons,  each  of  whom  is  a  stockholder  or  creditor,  or 
pecuniarily  interested  in  such  company ;  and  also  whenever  he  deems 
an  examination  necessary.  At  such  times  he  shall  have  free  access 
to  its  books  and  papers,  and  shall  thoroughly  inspect  and  examine 
all  its  aflairs,  and  make  inquiries  such  as  are  necessary  to  ascertain 
its  condition  and  ability  to  fulfill  its  engagements,  and  whether  it 
has  comi)lied  with  all  the  provisions  of  law  applicable  to  its  trans- 
actions.    [G.  >S'.,  58,  §  2.) 

6.  He  may  at  any  time  require  the  agents  of  any  insurance 
company  not  incorporated  by  the  legislature  of  this  commonwealth 
to  exhibit  the  books  kept  by  them  relating  to  such  agencies,  and  to 
make  answer  in  writing  and  under  oath  to  all  reasonable  questions 
proposed  by  him,  in  order  to  elicit  a  full  statement  of  the  business 
done  for  the  company  represented  by  such  agent.  Any  agent  re- 
fusing or  neglecting  for  thirty  days  to  answer  such  interrogatories 


MASSACHUSETTS.  337 

shall  be  deemed  not  to  liave  complied  with  the  provisions  of  the 
laws  of  this  State ;  and  if  he  continues  to  act  as  such  agent,  he  shall 
be  liable  to  a  fine  not  exceeding  one  thousand  dollars  for  each  of- 
fense.    {Ibid,  §§  3,  74.) 

7.  He  may  summon  and  examine  under  oath,  which  he  may 
administer,  the  directors,  oificers,  and  agents  of  any  insurance  com- 
pany, and  such  other  person  as  he  thinks  proper,  in  relation  to  the 
affairs,  transactions,  and  condition  of  such  company.  Whoever, 
without  justifiable  cause,  refuses  to  appear  and  testify  when  so  re- 
quired, or  obstructs  the  Commissioner  in  the  discharge  of  his  duty, 
shall  for  each  offense  be  punished  by  a  fine  not  exceeding  one  thou- 
sand dollars,  or  by  imprisonment  not  exceeding  one  year.  {Ibid, 
§5.) 

8.  When  in  his  opinion  an  insurance  company,  its  officers,  or 
agents,  have  violatedany  lawof  the  State  relative  to  such  company, 
he  shall  forthwith  report  the  facts,  with  such  statements  and  re- 
marks as  he  deems  expedient,  to  the  Attorney-General,  who  shall 
at  once  prosecute  said  company,  officer,  or  agent  therefor.  {Ibid, 
§  8,  as  amended  by  laws  of  1871,  chap.  297,  §  9.) 

9.  He  shall  annually  in  September  furnish  to  the  insurance 
companies  in  this  State,  and  to  the  agents  known  to  him  of  insur- 
ance companies  not  incorporated  in  this  State  and  doing  business 
therein,  two  or  more  printed  copies  of  the  forms  of  returns  to  be 
made  by  them.     {Ibid,  §  7.) 

10.  Upon  some  day  in  each  year,  designated  by  him,  he  shall 
calculate  the  existing  value  of  all  outstanding  policies  of  life  insur- 
ance in  companies  authorized  to  make  insurance  on  lives  in  this 
State.     {Ibid,  §  4.) 

1 1.  Whenever,  in  determining  the  liabilities  of  an  insurance 
company,  it  becomes  necessary  for  the  Insurance  Commissioner  to 
ascertain  the  amount  necessary  to  reinsure  all  outstanding  risks,  he 
shall  compute  the  same  by  taking  fifty  per  cent,  of  the  premium  re- 
ceived upon  outstanding  fire  and  inland  risks,  and  the  full  amount 
received  upon  marine  risks  not  marked  off.  {Laws  of  1874,  108,  §  1.) 

19.  He  shall  keep  and  preserve  in  a  permanent  form  a  full  re- 
cord of  his  proceedings,  including  a  concise  statement  of  the  condi- 
tion of  each  company  visited  or  examined  by  him.  {GLmral  Stat- 
utes, 58,  §  9.) 

1 3.  He  shall  annually,  at  the  earliest  ])racticable  date  after 
the  returns  are  received  from  the  several  insurance  companies,  make 
a  report  to  the  legislature  of  the  general  conduct  and  condition  of 
the  corx)orations  visited  by  him  since  his  last  annual  report,  with 
such  suggestions  as  he  deems  expedient,  and  shall  include  therein 
an  aggregate  of  the  calculated  values  of  all  outstanding  i^olicies  of 
life  insurance;  and  in  connection  therewith  shall  prepare  an  abstract 
of  all  the  returns  and  statements  made  to  him  by  insurance  com- 
panies and  agents.  Such  report  shall  be  printed  on  or  before  the 
first  Wednesday  of  January.     {Ibid,  §'10.) 

14,  The  Commissioner  shall  visit  and  examine  every  loan  fund 
association  incorporated  in  this  State,  whenever  requested  in  writ- 
i'lg  hy  five  or  more  persons,  each  of  whom  is  a  stockholder  or  cred- 
itor, or  pecuniarily  interested  in  said  association,  and  also  whenever 
he  deems  it  necessary ;  at  which  times  he  shall  have  free  access  to 
its  books  and  papers,  and  shall  thoroughly  inspect  and  examine  all 
its  affairs,  and  make  all  inquiries  necessary  to  ascertain  its  condi- 
tion, its  ability  to  fulfill  all  its  engagements,  and  whether  it  has 

22 


338  hine's  insurance  statutes. 

complied  with  all  provisions  of  law  applicable  to  its  transactions. 
Upon  such  examinations  the  Commissiouer  shall  have  the  i^owers 
and  perform  the  duties  which  he  has  and  performs  in  the  examina- 
tion of  insurance  companies.     {Zhlil,  59,  §  10.) 

15.  The  Commissioner  shall  annually,  on  or  before  the  first 
Wednesday  of  January,  submit  to  the  legislature  a  report  in  print 
of  the  general  conduct  and  condition  of  the  several  loan  fund  cor- 
porations, with  such  suggestions  as  he  deems  expedient ;  and  if  in 
his  opinion  any  such  corporation  has  violated  any  law  relative  to 
such  associatious,  he  shall  forthwith  present  the  lacts  to  the  Attor- 
ney-General, who  may  prosecute  the  association  or  its  officers,  as 
the  case  may  be,  for  such  violation.     {Ihid,  §  11.) 

16.  The  Commissioner  shall  report  annually  to  the  legislature 
all  the  receipts  and  exjienditures  of  his  dei)artment,  and  shall  give 
bond,  with  sufficient  sureties  to^be  approved  by  the  Treasurer,  in  the 
sum  of  ten  thousand  dollars  for  the  faithful  discharge  of  all  the  du- 
ties of  his  office.     {Laws  of  1867,  2G7,  §  9.) 

17.  It  shall  be  the  duty  of  the  Insurance  Commissioner,  by 
himself  or  his  deputy,  at  least  once  in  three  years,  and  whenever 
be  deems  it  necessary  for  the  protection  of  policy-holders,  to  visit 
each  insurance  company  incorporated  in  this  commonwealth,  and 
thoroughly  examine  its  financial  condition  and  ability  to  fulfill  its 
obligations,  and  ascertain  whether  it  has  complied  with  all  the  pro- 
visions of  law  api)licable  to  the  company  and  its  transactions. 
(ifat'S  0/1871,  297,  §  1.) 

1 8.  He  shall  in  like  manner,  whenever  he  deems  it  necessary 
for  the  protection  of  policy  holders  in  this  commonwealth,  visit  and 
examine,  as  aforesaid,  any  insurance  company  not  incorporated  in 
this  State  and  doing  business  by  agencies  therein.  He  may  employ 
such  assistants  as  are  necessary  in  making  the  examination;  and 
all  the  expenses  of  an  examination  without  the  commonwealth  shall 
be  borne  by  the  company  examined.     {Ibid,  §  2.) 

19.  For  the  purposes  aforesaid,  the  Commissioner  or  his  depu- 
ty shall  have  free  access  to  all  the  books  and  papers  of  any  insur- 
ance company  doing  business  in  this  commonwealth,  and  may  ex- 
amine under  oath  its  officers  or  agents  relative  to  its  business  and 
condition.  If  any  company  not  incorporated  in  this  State,  its  offi- 
cers or  agents,  refuse  to  submit  to  such  examination  or  to  comply 
with  any  provisions  of  this  act  in  relation  thereto,  the  authority  of 
such  comi^any  to  do  business  in  this  commonwealth  shall  cease. 
{Ibid,  §  3.) 

!20.  Whenever  he  deems  it  expedient,  the  Commissioner  shall 
i:)ublish  in  the  newspaper  in  which  the  general  laws  are  published 
the  result  of  any  examination  made  as  aforesaid.  If  it  appears  to 
the  Commissioner  upon  such  examination  that  any  company  not 
incorporated  in  this  State  is  in  an  unsound  condition,  or  if  the 
company  refuses  to  submit  to  an  examination  as  aforesaid,  he  shall 
revoke  all  certificates  of  authority  granted  in  behalf  of  such  compa- 
ny or  its  agents,  and  shall  cause  notice  thereof  to  be  published  in 
the  newspaper  aforesaid,  and  all  new  business  thereafter  done  by 
the  company  or  its  agents  in  this  commonwealth  shall  be  deemed 
to  be  done  in  violation  of  law.     {Ibid,  §  4.) 

at.  No  insurance  company  or  association  incorporated  or 
formed  in  this  commonwealth  shall  issue  policies  until,  upon  exam- 
iimtion  by  the  Insurance  Commissioner  or  his  deputy,  it  is  found  to 
have  complied  with  the  laws  thereof;  nor  until  a  certificate  is  ob- 


MASSACHUSETTS.  339 

tainecl  from  said  Commissioner  setting  forth  sucli  fact  and  author- 
izing such  company  to  issue  policies.  Every  sucli  company  or  a.^so- 
ciation  shall  pay  into  the  treasury  of  the  coinmonwealtii,  for  the 
examination  required  by  this  section,  the  sum  of  thirty  dollars. 
{Ibid,  §  5.) 

2^.  For  such  additional  assistance  as  the  Insurance  Commis- 
sioner may  find  necessary  in  the  discharge  of  the  duties  imposed 
by  this  act  and  by  existing  laws,  he  may  appoint,  with  the  api^roval 
of  the  Governor  and  council,  and  subject  to  removal  with  their  con- 
sent, a  deputy  commissiimer,  who  shall  receive  an  annual  salary  of 
three  thousand  dollars ;  and  he  may  also  employ  such  additional 
clerical  assistance  as  he  may  find  necessary  for  the  i)roper  discharge 
of  the  duties  of  his  department.     [Ibid,  §  Oj  Laws  oflST2,  374,  §  1.) 


i:nsurance  corporations  chartered  by  the 

commonwealth. 

APPLICATIONS    FOR    ACTS    OF    INCORPORATION,   OR    FOR    ALTERA- 
TION  OR   EXTENSION    OF    CHARTERS. 

23.  Persons  intending  to  ap])ly  to  the  legislature  for  an  act  of 
incorporation,  and  corporations  intending  to  apply  for  an  alteration 
or  extension  of  their  charters,  shall  give  notice  of  such  intended  ap- 
phcation  by  an  advertisement,  at  least  four  weeks  immediately  pre- 
ceding the  session  at  which  the  ap[)lication  is  to  be  made,  in  some 
newspaper  printed  in  the  county  where  such  corporations  are,  or 
are  intended  to  be,  established  ;  such  newspaper  shall  be  designated 
by  the  petitions  and  approved  by  the  Secretary  of  the  common- 
wealth.    {General  Statutes,  2,  §  10.) 

tJ4.  The  notice  of  an  application  for  an  act  of  incorporation 
shall  specify  the  amount  of  capital  stock  required  ;  and  if  the  notice 
is  for  an  alteration  or  extension  of  any  charter  already  granted,  it 
shall  specifically  state  the  same.     {Ibid,  §  II.) 

25.  Proof  of  the  publication  of  the  notice  required  in  the  pre- 
ceding sections,  may  be  made  by  the  afl&davit  of  the  printer  or  pub- 
lisher of  the  newspaper  in  which  such  publication  is  made ;  wliich 
aflidavit  and  the  i^etition  to  which  it  relates  shall  be  presented  to 
the  general  court  within  the  first  ten  days  of  the  session.  The  form 
of  proof  of  publication  of  notice  herein  authorized  shall  not  lie  con- 
strued to  exclude  any  other  equallv  satisfactory  evidence  thereof. 
{Ibid,  §  12;  Laws  oflSQ'2,  91,  §  3.) 

26.  Whenever  it  appears  upon  satisfactory  evidence  under 
oath,  that  the  notice  required  to  be  given  by  the  fifteenth  section 
was  omitted  to  be  given  by  reason  of  any  unavoidable  accident, 
without  default  on  the  part  of  the  jietitioner  or  applicant,  or  that 
the  subject-matter  of  the  petition  or  application  did  not  admit  of 
such  previous  notice,  the  notice  shall  be  accounted  sufficient,  if  giv- 
en for  the  period  of  time  therein  named  as  soon  as  such  omission 
was  discovered  by  the  petitioner  or  applicant,  or  within  a  reasona- 
ble time  after  such  subject-matter  arose  or  became  known  ;  Provided, 
Such  petition  or  application  is  presented  within  thirty  days  after 
the  first  day  of  the  assembling  of  the  legislature.     {Ibid,  §  1.) 

27.  Whenever  any  petition  is  presented  within  the  period  of 
thirty  days  after  the  assembling  of  the  legislature,  and  it  appears 
ui)on  satisfactory  proof  that  all  the  parties  having  rights  or  interests 


340  hike's  mSURANCE   STATUTES. 

in  the  subject-matter  thereof  have  waived  notice,  or  have  received 
satisfactory  notice  thereof,  by  wTriting  signed  by  them,  no  other  or 
further  proof  of  notice  shall  be  required.     {Ibidj  §  2.) 

POWERS,   DUTIES,   AND   LIABILITIES   OF    INSURANCE   COMPANIES. 

28.  Insurance  companies  incorporated  in  this  State  may  exer- 
cise the  powers  and  shall  be  subject  to  the  duties  and  liabilities 
herein  provided,  so  far  as  consistent  with  their  respective  charters. 
{General  Statutes,  58,  §  12.) 

S!>.  Every  such  company  shall  give  notice  in  writing  to  the 
Secretary  of  the  commonwealth,  of  the  acceptance  of  its  charter  and 
organization  under  the  same,  within  one  j^ear  from  the  date  thereof, 
or  the  same  shall  be  void.     [IhUl^  §  14.) 

;j^.  The  tirst  meeting  of  such  companies  hereafter  organized 
shall  be  called  by  a  notice  signed  by  one  or  more  of  the  persons 
named  in  the  act  of  incorporation,  setting  forth  the  time,  place  and 
purposes  of  the  meeting,  which  shall  be  delivered  to  each  member 
seven  days  at  least  before  the  meeting,  or  irablished  in  some  news- 
paper of  the  county  in  which  the  company  is  established,  or  if  there 
is  no  such  paper,  in  some  newspaper  of  an  adjoining  county. 
{Ibid,  §  13.) 

Vi  1 .  All  matters  proposed  to  be  acted  upon  at  any  meeting  of 
such  companies  shall  be  specified  in  the  call  for  the  same.  {Ibid,  §  15.) 

S!2.  When  by  reason  of  the  death,  absence  or  other  legal  im- 
pediment, of  the  officers  of  any  such  company,  there  is  no  person 
duly  authorized  to  call  or  preside  at  a  legal  meeting,  any  justice  of 
the  peace  in  the  county  where  the  corporation  is  established  may, 
on  a  written  application  of  three  or  more  of  the  members,  issue  a 
warrant  to  either  of  them,  directing  him  to  call  a  meeting  by  giving 
such  notice  as  was  previously  required  by  law ;  and  the  justice  may 
in  the  same  warrant  direct  such  i)erson  to  preside  at  the  meeting 
until  a  clerk  is  duly  chosen  and  qualified,  if  no  officer  is  present 
legally  authorized  to  preside.     {Ibid^  68,  §  5.) 

3«S.  The  corporation,  when  so  assembled,  may  elect  officers  to 
fill  all  vacancies,  and  act  upon  such  other  business  as  may  by  law 
be  transacted  at  a  regular  meeting.     [Ibid,  §  6.) 

34.  All  such  companies,  where  no  other  provision  is  specially 
made,  may  in  their  corporate  name  sue  and  be  sued,  appear,  prose- 
cute, and  defend  to  final  judgment  and  execution;  have  a  common 
seal,  which  they  may  alter  at  pleasure;  and  elect,  in  such  manner 
as  they  determine,  all  necessary  officers,  fix  their  compensation,  and 
define  their  duties  and  obligations.     {Ibid,  §  1.) 

;$5.  Such  companies  may  adopt  by-laws  for  conducting  their 
business,  not  repugnant  to  their  respective  charters  or  the  laws  of 
the  State,  but  no  such  company  shall,  by  any  condition,  restriction 
or  stipulation,  in  its  by-laws  or  policies,  designate  the  county  in 
which  any  suit  shall  be  brought  against  the  company,  or  limit  the 
term  of  commencing  such  suit  to  a  less  period  than  two  years  from 
the  time  when  the  right  thereto  accrues.     {Ibid,  58,  §  16.) 

36.  Such  companies  may  by  their  by-laws,  where  no  other 
provision  is  specially  made,  determine  the  manner  of  calling  and 
conducting  their  meetings;  the  number  of  members  that  shall  con- 
stitute a  quorum ;  the  mode  of  voting  by  proxy ;  the  mode  of  selling 
shares  for  the  non-payment  of  assessments ;  and  the  tenure  of  office 
for  the  several  officers.    They  may  annex  suitable  penalties  to  such 


MASSACHUSETTS.  341 

by-laws,  not  exceeding  the  suui  of  twenty  dollars  for  one  offense ; 
but  no  by-law  shall  be  made  by  a  corporation  repugnant  to  its  char- 
ter or  the  laws  of  the  State.     {Ibid,  68,  §  7,  Laws  o/1865,  2,56.) 

37.  Any  such  company  may,  by  its  by-laws,  provide  for  the 
election  annually  of  a  vice-president,  who  shall  be  sworn  to  the 
faithful  j>erformance  of  his  duties  before  entering  upon  the  discharge 
thereof.  Policies,  checks,  and  other  instruments,  signed  by  the 
vice-president,  shall  have  the  same  force  and  effect  as  if  signed  by 
the  president  or  two  directors.  The  vice-president  shall  perform 
such  other  duties  as  are  prescribed  by  the  by-hiws  or  directors. 
{Laws  of  18G4:,  113,  §§  1,  2.) 

38.  The  secretary  and  treasurer  of  such  companies  shall  give 
bond  in  such  sum  as  is  required  by  the  directors,  for  the  faithful 
discharge  of  their  respective  duties.     {General  Statutes,  58,  §  17.) 

;I9.  The  directors  of  such  companies  shall,  when  required, 
furnish  to  the  legislature,  or  to  a  committee  thereof,  or  to  the  In- 
surance Commissioner,  a  statement  of  their  affairs,  signed  by  the 
president  and  secretary,  and  sworn  by  them  to  be  correct  according 
to  their  best  knowledge  and  belief,  and  shall  submit  to  an  examina- 
tion on  oath  concerning  the  same.     {Ibid,  §  19.) 

40,  Investments  of  the  funds  of  an  insurance  company  shall 
be  made  in  its  corporate  name;  and  funds  of  such  companies  as 
classify  their  risks  shall  be  kept  and  invested  separately,  so  as  to 
designate  the  assets  belonging  to  each  class.     {Ibid,  §  20.) 

41 .  No  member  of  a  committee  or  officer  of  a  mutual  marine, 
mutual  fire,  or  mutual  life  insurance  company,  charged  with  the 
duty  of  investing  its  funds,  shall  borrow  the  same,  or  be  surety  for 
such  loans  to  others,  or  directly  or  indirectly  be  liable  for  money 
borrowed  of  the  company.     {Ibid,  §  21.) 

1'^.  The  Treasurer  of  the  commonwealth  in  his  official  capacity 
shall  take  and  hold  on  deposit  the  securities  of  any  insurance  com- 
pany incorporated  under  the  laws  of  this  State,  which  are  deposited 
by  any  such  company  for  the  purpose  of  complying  with  the  laws 
of  any  other  State  in  order  to  enable  such  company  to  commence 
business  in  such  State.  The  company  depositing  such  securities 
shall  have  the  right  to  receive  the  income  thereof,  and  at  any  time 
to  exchange  the  same  according  to  the  laws  of  the  States  in  which 
they  are  doing  business.     {Ibid,  §  63.) 

43.  Every  such  company  may  convey  lands  to  which  it  has  a 
legal  title.     {Ibid,  6S,  §  8.) 

44.  Mortgages  on  real  estate,  held  by  an  insurance  company, 
shall  be  liable  to  be  attached  and  taken  and  sold  on  execution,  in 
the  manner  provided  in  sections  seventy-five,  seventy-six,  and  sev- 
enty-seven, of  chapter  fifty-seven  of  the  General  Statutes,  in  re- 
spect to  mortgages  held  by  banks.  The  secretary  shall  ])erform 
the  duties  therein  required  of  cashiers  and  clerks.     {Ibid,  58,  §  22.) 

45.  Such  comi)anies  shall  have  their  office  in  the  city  or  town 
specified  in  their  charter;  and  when  they  establish  agencies  in  other 
cities  or  towns,  all  signs,  cards,  pamphlets  and  advertisements  ex- 
hibited or  issued  by  them  shall  specify  the  city  or  town  where  the 
company  they  represent  is  located.     {Ibid,  §  18.) 

46.  No  insurance  company  incor])orated  in  this  commonwealth 
shall  issue  any  policy  for  a  period  extending  beyond  the  time  for 
which  it  was  incorporated,  unless  its  act  of  incorporation  has  been 
renewed,  extended  or  continued,  and  then  not  exceeding  the  time 
of  such  renewal,  extension  or  continuance.    Any  president,  vice- 


342  hine's  insurance  statutes. 

president,  director,  secretary  or  otlier  officer  or  agent  of  any  insur- 
ance company,  who  issues  or  assents  to  the  issuing  of  any  policy 
contrary  to  the  provisions  of  this  section,  shall,  upon  conviction 
thereof,  be  punished  by  a  fine  not  exceeding  five  hundred  dollars, 
and  shall  be  liable  in  an  action  of  tort  to  the  holder  of  any  such 
policy,  for  any  damage  he  suffers  or  sustains  by  reason  of  the  issu- 
ing of  the  same.     {Lacs  q/*18(>4,  277,  §§  1,  2.) 

47.  When  the  officers,  stockholders,  or  members  of  an  insur- 
ance company,  or  any  of  them,  are  liable  for  any  of  its  debts,  or  for 
their  acts  or  omissions  res|)ecting  its  business,  or  when  some  of 
them  are  liable  to  contribute  for  money  paid  by  others  on  account 
of  such  debts,  acts,  or  omissions,  the  party  entitled  may,  instead  of 
any  i-emedy  otherwise  provided,  maintain  a  suit  in  equity  in  the 
supreme  judicial  court.     (Ibid,  §  17.) 

48.  Each  insurance  company  in  this  State  shall,  once  in  every 
five  years,  i^ublish  in  some  newspaper  in  the  city  of  Boston,  and 
also  in  some  newsx)aper,  if  there  is  any,  in  the  county  where  the 
corporation  is  established,  a  list  of  all  dividends  and  balances 
which  have  remained  unclaimed  for  two  years  or  more,  with  the 
names  of  the  persons  -to  whose  credit  the  dividends  or  balances 
stand ;  which  piiblication  shall  be  continued  in  three  successive 
papers.     (Ibid,  §  19.) 

41).  Nothing  contained  in  the  fifty-ninth  chapter  of  the  Gen- 
eral Statutes,  relating  to  limited  partnershii)s,  shall  authorize  such 
partnerships  to  be  formed  for  the  purpose  of  banking  or  insurance. 
{Ibid,  55,  §  1.) 

TAXATION   OF   INSURANCE   COJIPANIES. 

50.  Insurance  companies  incorporated  in  this  State  shall  be 
liable  to  be  taxed  by  any  general  law  taxing  insurance  companies. 
[Ibid,  58,  §  19.) 

5 1 .  The  Massachusetts  Hospital  Life  Insurance  C'ompany  shall 
pay  to  the  Treasurer  of  the  Commonwealth  upon  all  moneys  and 
propel ty  in  the  possession  or  charge  of  said  company  as  deposits, 
trust  funds,  or  for  purposes  of  investment,  at  the  time  for  which 
the  return  of  said  company,  required  by  the  following  section,  is 
made,  the  same  rate  of  tax*  as  is  imposed  upon  or  paid  by  savings 
banks  or  institutions  for  savings  on  account  of  deposits.  All  prop- 
erty taxed  under  this  section  shall  be  otherwise  exempt  from  taxa- 
tion for  the  current  vear  in  which  the  tax  is  i)aid.  {Laws  of  18G2, 
221,  §§  3,4,  12;  18(35,^283,  §  18.) 

5':^.  The  Massachusetts  Hospital  Life  Insurance  Company 
shall  semi-annually,  on  or  before  the  second  Mondays  of  JMay  and 
November,  make  a  return  to  the  Treasurer  of  the  commonwealth, 
which  shall  be  signed  and  sworn  to  by  a  majority  of  its  board  of 
directors,  and  shall  include  the  full  amount  of  all  moneys  and  prop- 
erty, in  detail,  in  the  possession  or  charge  of  said  company  as 
deposits,  trust  funds,  or  for  purpose  of  investment,  on  the  first 
day  of  May  or  November,  in  which  said  return  is  required.  {Ibid, 
§§  7,  9.) 

5JI.  The  taxes  hereinbefore  provided  for,  shall  be  paid  semi- 
annually within   ten  days  after  the  first  Mondays  of  June  and 

*  Under  existing  laws,  one-half  of  one  per  cent,  per  annum,  payable,  one-half 
of  said  tax  semi-annually. 


MASSACHUSETTS.  345 

December,  eacli  payment  to  be  an  assessment,  by  tlie  Treasurer,  of 
oue-balf  tbe  annual  percentage.     {Ibid,  §  5.) 

54.  Every  corporation  nejilecting-  to  make  return  as  hereinbe- 
fore required,  sball  forfeit  tifty  dollars  for  each  day  of  such  neglect ; 
and  any  corporation  that  willfully  makes  false  statements  in  any 
such  return  shall  be  liable  to  pay  a  tine  of  not  less  than  five  hun- 
dred nor  more  than  five  thousand  dollars.     {Ibid,  §  9  ;  see  ii*27 .) 

TAX  ON  CORPORATE  SHARES  OR  FRANCHISE. 

53,  Every  insurance  company  chartered  by  this  common- 
wealth, and  having  a  capital  stock  divided  into  shares,  shall  an- 
nually, between  the  first  and  the  tenth  day  of  May,  return  to  the 
Tax  Commissioner,*  under  the  oath  of  its  Treasurer,  a  complete  list 
of  its  shareholders,  with  their  places  of  residence,  the  number  of 
shares  belonging  to  each  on  the  first  day  of  May,  the  amount  of  the 
capital  stock  of  the  corporation,  its  place  of  business,  the  par  value 
and  the  market  value  of  the  shares  on  said  first  day  of  May.  Such 
return  shall,  iu  the  case  of  stock  held  as  collateral  security,  state 
not  only  the  name  of  the  person  holding  the  same,  but  also  the 
name  of  the  pledgor  and  his  residence.  The  return  shall  also  con- 
tain a  statement  in  detail  of  the  real  estate  owned  by  such  com- 
pany, and  subject  to  local  taxation  within  the  commonwealth,  and 
the  location  and  value  thereof.  The  company  shall  also  return  the 
amount,  value,  and  location  of  all  real  estate  owned  by  it,  and  sub- 
ject to  local  taxation  without  the  commonwealth.  {Laws  of  1865,  283, 
■§3.) 

55.  The  Tax  Commissioner  shall  ascertain,  from  the  retiu-ns  or 
otherwise,  the  true  market  value  of  the  shares  of  each  such  com- 
pany, and  shall  estimate  therefrom  the  fair  cash  valuation  of  all  of 
said  shares  constituting  the  capital  stock  of  such  company  on  the 
first  day  of  May  next  preceding,  which  shall  be  taken  as  the  true 
value  of  its  corporate  franchise  for  the  purposes  of  taxation.  He 
shall  also  ascertain  and  determine  the  value  and  amount  of  all  real 
estate  owned  by  each  such  company,  and  subject  to  local  taxation, 
and  to  the  deduction  hereinafter  provided ;  and  for  this  purpose  he 
may  take  the  amount  or  value  at  which  such  real  estate  is  assessed 
at  the  place  where  the  same  is  located  as  the  true  amount  or  value  ; 
but  such  local  assessment  shall  not  be  conclusive  of  the  true  amount 
or  value  thereof.     {Ibid,  §  4.) 

57.  Every  such  company  shall  annually  pay  a  tax  upon  its 
corporate  franchise  at  a  valuation  thereof  equal  to  the  aggregate 
value  of  the  shares  in  its  capital  stock,  as  determined  in  the  preced- 
ing section,  after  making  the  deduction  provided  for  in  this  sjsction, 
at  a  rate  determined  by  an  apportionment  of  the  whole  amoimt  of 
money  to  be  raised  by  taxation  ui)on  property  in  the  commonwealth 
during  the  same  current  year,  upon  the  aggregate  valuation  of  all 
the  cities  and  towns  in  the  commonwealth  for  the  ])receding  year; 
Provided,  That  the  amount  of  tax  assessed  uj)on  polls  the  preceding 
year  may  be  taken  as  the  amount  of  poll-tax  to  be  deducted  from 
the  whole  amount  to  be  raised  by  taxation,  for  the  purpose  of  ascer- 
taining the  amount  to  be  raised  by  taxation  u})on  i)roi)erty.  From 
the  valuation,  ascertained  and  determined  as  aforesaid,  there  shall 
be  deducted  an  amount  equal  to  the  value,  as  determined  by  the 

*  The  Treasurer  of  the  commonwealth  is  ex  officio  Tax  Commissioner. 


344  hike's  insurance  statutes. 

Tax  Commissioner,  of  tlie  real  estate  of  sucli  company  subject  to 
local  taxation,  wherever  situated.     [Ihid,  §  5.) 

5S.  In  case  the  value  of  the  real  estate  located  within  the 
commonwealth,  of  any  such  company  as  determined  by  the  Tax 
Commissioner,  is  less  than  the  value  as  determined  by  the  assessors 
of  the  city  or  town  where  such  real  estate  or  machinery  is  taxable, 
said  Commissioner  shall  notify  the  company  of  such  determination, 
and  if  said  company  does  not,  within  one  month  from  the  date  of 
such  notice,  make  application  to  said  assessors  for  an  abatement, 
and  does  not,  in  case  of  the  refusal  of  said  assessors  to  grant  an 
abatement,  forthwith  prosecute  an  appeal  in  accordance  with  the 
provisions  of  chapter  eleven  of  the  General  Statutes,  and  give 
notice  thereof  to  the  Tax  Commissioner,  such  determination  shall  be 
conclusive  upon  said  company.  The  Tax  Commissioner  may  appear 
before  the  County  Commissioners  and  be  heard  upon  an  ai)peal 
made  to  them,  and  the  decision  of  the  County  Commissioners  shall 
be  conclusive  as  to  tlie  value.     {Ibid,  §  6.) 

59.  The  Tax  Commissioner  shall,  as  soon  as  may  be  after  the 
first  Monday  in  August,  notify  the  Treasurer  of  each  such  company 
of  the  amount  of  its  tax,  ascertained  as  aforesaid,  to  become  due 
and  payable  to  the  Treasurer  of  the  commonwealth  within  thirty 
days  from  the  date  of  such  notice;  Provided,  That  it  shall  not  be 
due  and  payable  earlier  than  the  first  day  of  November.  Such 
notice  shall  also  state  that  within  ten  days  after  the  date  thereof, 
the  com]xiny  may  apply  for  a  correction  of  said  tax,  and  be  heard 
thereon  before  the  Board  of  Appeal  hereinafter  established.     [Ibid, 

§11-) 

60.  The  Treasurer  and  Auditor,  together  with  one  member  of 

the  Council  to  be  named  by  the  Governor,  shall  constitute  a  Board  of 
Appeal,  to  which  Board  any  party  aggrieved  by  the  decision  of  the 
Tax  Commissioner  upon  any  matter  arising  under  the  five  preceding 
sections,  may  apply  within  ten  days  after  notice  of  such  decision. 
Upon  such  appeal  said  Board  shall,  as  soon  as  may  be,  give  a 
hearing  to  such  party,  and  shall  thereupon  decide  the  matter  in 
question,  which  decision  shall  be  final.     {Ibid,  §  13.) 

61.  Every  such  company  shall,  when  required,  submit  its 
books  to  the  inspection  of  the  Tax  Commissioner,  and  its  treasurer 
and  directors  to  examination  on  oath  in  regard  to  all  matters 
aft'ecting  the  determinations  which  are  to  be  made  by  said  Commis- 
sioner.    {Ibid,  §  17.) 

62.  Any  such  company  neglecting  to  make  return  according 
to  the  provisions  of  section  forty-nine,  or  refusing  or  neglecting, 
when  required  thereto,  to  submit  to  the  examinations  i)rovided  for 
in  the  preceding  section,  shall  forfeit  two  per  cent,  upon  the  par 
value  of  its  capital  stock ;  which  penalty  may  be  recovered  by  an 
action  of  tort,  brought  in  the  name  of  the  commonwealth,  either  in 
the  county  of  Suffolk  or  in  the  county  where  the  company  is  located. 
Any  company  failing  to  make  said  return  shall  also  be  liable,  on 
application  of  the  Tax  Commissioner  therefor  to  any  of  the  justices 
of  the  supreme  judicial  court,  to  injunction  restraining  said  corpora- 
tion and  the  agents  thereof  from  the  further  prosecution  of  its  busi- 
ness until  such  return  is  made.  If  any  such  company  fails  to  pay 
the  tax  required  by  section  fifty-one,  the  Treasurer  of  the  common- 
wealth raav  forthwith  commence  an  action  of  contract  in  his  own 
name,  as  Treasurer,  for  the  recovery  of  the  same,  with  interest. 
Said  penalty  may  also  be  enforced,  and  said  tax  may  also  be  col- 


MASSAOUUSETTS.  345 

lected  by  infonuatiou  brought  in  the  supreme  judicial  court  at  the 
relation  of  the  Treasurer  of  the  commonwealth,  and  upon  such 
information  the  court  may  issue  an  injunction  restraining  the 
further  i^rosecution  of  the  business  of  the  company  named  therein, 
until  all  taxes  due  or  i)enalties  incurred  as  aforesaid  are  paid,  with 
interest  and  costs.*      {Ibid,  §  14 ;  18GG,  291,  §  1.) 

Gti.  No  taxes  shall  be  assessed  in  any  city  or  town  for  State, 
county  or  town  purposes,  upon  the  shares  in  the  capital  stock  of 
such  companies,  for  any  year  for  which  they  pay  the  tax  herein  im- 
posed ;  but  nothing  contained  herein  shall  be  construed  to  exempt 
the  owners  of  shares  in  the  capital  stock  of  any  such  company  from 
liability  to  taxation  for  school  district  and  parish  purposes.  {Ihidj 
§  15 ;  1866,  196,  §  1.) 

64.  The  tax  herein  imposed  ujion  any  such  company,  shall  not 
affect  nor  prevent  the  imposition  and  collection  of  any  other  tax 
now  authorized,  or  that  may  hereafter  be  authorized,  upon  any  es- 
pecial privilege,  franchise  or  business,  enjoyed  or  exercised  by  such 
company.     {Ihid,  §  18.) 

[For  other  provisions  in  detail  regarding  the  taxation  of  the  cor- 
porate shares  or  franchise  of  insurance  companies  in  common  with 
other  joint-stock  corporations,  see  chapter  383  of  the  acts  of  1865, 
and  chapter  52  of  the  acts  of  1867.] 


ANNUAL   STATEMENTS. 

65.  Every  insurance  company  incorporated  in  this  State  shall, 
on  or  before  the  fifteenth  day  of  January  in  each  year,  transmit  to 
the  Insurance  Commissioner,  and  file  in  his  office,  a  statement  of  its 
business,  standing  and  affairs,  in  the  form  prescribed  or  authorized 
by  law,  and  adapted  to  the  business  done  by  such  company,  signed 
and  sworn  to  by  the  president  and  secretary,  and  made  out  for  the 
year  ending  on  the  preceding  thirtv-flrst  day  of  December.  {Gen- 
eral Statutes  57,  §  25;  Laics  0/1887,"' 267  §  2,  3.) 


INSOLVENT  AND  FRAUDULENT   INSURANCE   COMPANIES. 

66.  If  upon  examination  the  Commissioner  is  of  opinion  that 
a  company  is  insolvent,  or  that  its  condition  is  such  as  to  render  its 
further  proceedings  hazardous  to  the  public  or  to  those  holding  its 
policies,  he  shall  apply  to  a  justice  of  the  supreme  judicial  court  to 
issue  an  injunction  restraining  such  company,  in  whole  or  in  part, 
from  further  proceeding  with  its  business  until  after  a  full  hearing 
can  be  had.  It  shall  be  discretionary  with  such  justice  either  to 
issue  said  injunction  forthwith,  or  to  give  previous  notice  to  the 
company,  and  to  cause  a  hearing  to  be  had  on  complaint  and  answer 
or  otherwise,  as  in  ordinary  proceedings  in  equity,  before  determin- 
ing whether  an  injunction  shall  be  issued.  If  issued  forthwith,  with- 
out such  previous  notice  and  hearing,  he  may,  after  a  full  hearing  of 
all  parties  interested,  dissolve  or  modify  the  same  or  make  it  per- 
petual. He  may  make  such  orders  and  decrees  as  may  be  needful 
to  suspend,  restrain,  or  prohibit  the  further  continuance  of  the  busi- 

*  Chapter  52  of  the  acts  of  1867  also  authorizes  the  Treasurer  to  issue  a  war- 
rant for  the  collection  of  such  taxes,  and  limits  the  remedy  of  the  company  for 
the  exaction  of  an  alleged  illegal  tax  to  petition  to  the  supreme  judicial  court. 


346  hine's  ixsueance  statutes. 

ness  of  tlie  company;  and  may  appoint  aj^ents  or  receivers  to  take 
possession  of  the  ])roperty  and  effects  of  tlie  company,  subject  to 
such  rules  and  orders  as  are  from  time  to  time,  according  to  the 
course  of  proceedings  in  equity,  prescribed  by  the  court  or  a  justice 
thereof  in  vacation.     {Ibid,  58,  §  6  ;  1862,  13  ) 

[For  proceedings  by  and  against  insolvent  comj)anies  in  the 
courts  of  insolvency,  see  General  Statutes,  chap.  118,  §§  113-124.] 

67,  Whenever  upon  examination  the  Commissioner  is  of  opin- 
ion that  any  insurance  company  incorporated  under  the  laws  of 
this  commonwealth  has  exceeded  its  powers,  or  failed  to  comi>ly  with 
any  of  the  rules,  restrictions,  or  conditions  provided  by  law,  he  may 
apply  to  a  justice  of  the  supreme  judicial  court  to  issue  an  injunc- 
tion restraining  such  company  in  whole  or  in  part  from  further  pro- 
ceeding with  its  business  until  after  a  full  hearing  can  be  had  ;  and 
the  ])ro visions  of  the  preceding  section  are  hereby  extended  to  pro- 
ceedings under  this  section.     [Laivs  of  18G2,  145,  §  1.) 


DISSOLUTION   OF  INSURANCE   COMPANIES. 

68.  When  a  majority  in  number  or  interest  of  the  members  of 
an  insurance  company  incorporated  in  this  State  desire  to  close  its 
concerns,  they  may  apply  by  petition  to  the  supreme  judicial  court, 
setting  forth  in  substance  the  grounds  of  their  application,  and  the 
court,  after  due  notice  to  all  parties  interested,  may  proceed  to  hear 
the  matter,  and  for  reasonable  cause  decree  a  dissolution  of  the  cor- 
poration. Corporations  so  dissolved  shall  be  deemed  and  held  ex- 
tinct in  all  respects  as  if  their  charters  had  expired  by  their  own 
limitation.     [General  Statutes,  68,  §  35.) 

60.  The  charters  of  all  tire  insurance  companies,  which,  either 
by  the  vote  of  their  members,  the  neglect  of  their  officers,  or  in  obed- 
ience to  injunctions  from  the  supreme  judicial  court,  have  ceased,  or 
hereafter  cease,  for  the  period  of  one  year,  to  transact  the  business 
for  which  they  were  established,  shall  become  extinct  in  all  respects 
as  if  they  had  expired  by  their  own  limitation.  The  supreme  judi- 
cial coiu't  shall  have  authority,  upon  the  application  of  the  Insurance 
Commissioner,  or  any  person  interested,  to  fix,  by  decree,  the  time 
"within  wdiich  such  companies  shall  settle  and  close  their  concerns. 
(XftM's  0/1863,  249,  §§  1,  2.) 

70,  Insurance  companies  whose  charters  expire  by  their  own 
limitation,  or  are  annulled  by  forfeiture  or  otherwise,  shall  neverthe- 
less continue  bodies  corporate  for  the  term  of  three  years  after  the 
time  when  they  would  have  been  so  dissolved,  for  the  purpose  of 
prosecuting  and  defending  suits  by  or  against  them,  and  of  enabling 
them  gradually  to  settle  and  close  their  concerns,  to  dispose  of  and 
convey  their  property,  and  to  divide  their  capital  stock  ;  but  not  for 
the  purpose  of  continuing  the  business  for  which  they  were  estab- 
lished.    {General  Statutes,  68,  §  36.) 

7 1 ,  When  the  charter  of  an  insurance  company  expires  or  is 
annulled,  or  the  corporation  is  dissolved  as  provided  in  section 
sixty-two,  the  supreme  judicial  court  on  application  of  a  creditor, 
stockholder,  or  member,  at  any  time  within  said  three  years,  may 
appoint  one  or  more  persons  to  be  receivers  or  trustees  to  take 
charge  of  its  estate  and  effects,  and  collect  the  debts  and  property 
due  and  belonging  to  it,  with  power  to  prosecute  and  defend  suits 
in  the  name  of  the  corporation  or  otherwise,  to  appoint  agents 


MASSACHUSETTS.  347 

under  them,  and  do  all  other  acts,  which  might  be  done  by  such 
corporation  if  in  being,  that  are  necessary  for  the  final  settlement 
of  the  unfinished  business  of  the  corporation.  The  powers  of  such 
receivers  may  be  continued  as  long  as  the  court  deem  snecessary  for 
said  purposes.     {Ibid^  §  37.) 

73.  The  court  shall  have  jurisdiction  in  equity  of  the  applica- 
tion and  of  all  questions  arising  in  the  proceedings  thereon ;  and 
may  make  such  orders,  injunctions,  and  decrees  therein  as  justice 
and  equity  require.     {Ibid^  §  38.) 

7ti.  The  receivers  shall  pay  all  debts  due  from  the  company, 
if  the  funds  in  their  hands  are  sufiflcient  therefor,  and  if  not,  they 
shall  distribute  the  same  ratably  among  the  creditors  who  prove 
their  debts  in  the  manner  directed  by  any  order  or  decree  of  the 
court  for  that  purpose.  If  there  is  a  balance  remaining  after  the 
paj^uent  of  the  debts,  the  receivers  shall  distribute  and  pay  it  to 
and  among  those  who  are  justly  entitled  thereto  as  having  been 
stockholders  or  members  of  the  company,  or  their  legal  representa- 
tives.    {Ibid,  §  3!.>.) 

74.  All  accounts  rendered  by  receivers  of  insurance  companies 
appointed  as  aforesaid  to  the  supreme  judicial  court,  shall  be  refer- 
ed  to  the  Insurance  Commissioner,  w^ho  shall  carefully  examine  the 
same  and  ref)ort  thereon  to  the  court,  and  the  court  may  make  all 
such  orders  and  decrees  in  the  premises  as  to  law  and  justice  ap- 
pertain.    (Laics  of  1864,  308,  §  3.) 

7d.  Whenever  in  the  opinion  of  the  Commissioner,  further 
efforts  to  collect  an  assessment  will  not  afford  substantial  relief  to 
creditors,  he  shall  certify  the  fact  to  the  supreme  judicial  court, 
which  after  public  notice  and  hearing  of  the  parties  interested,  may 
order  the  receivers  to  make  a  final  report.     {{Ibid,  §  2.) 

70.  Receivers  of  insurance  companies  shall  report  to  the  In- 
surance Commissioner  annually,  in  such  form  a«  the  Commissioner 
prescribes,  on  or  before  the  fifteenth  day  of  November,  and  as  much 
oftener  as  he  directs.  Such  reports,  or  abstracts  therefrom,  shall 
be  incorporated  into  the  annual  report  of  the  Commissioner  to  the 
legislature.     {Ibid,  §  1.) 

77  The  compensation  of  receivers  of  insolvent  insurance  com- 
panies shall  be  fixed  by  the  supreme  judicial  court.  {Ibid,  1872, 
362,  §  1.) 

A^IENDJIENT    OR    REPEAL    OF    CHARTERS. 

78.  Every  act  of  incorporation  passed  after  the  eleventh  day 
of  ]\Iarch  in  the  year  one  thousand  eight  hundred  and  thirty-one, 
shall  be  subject  to  amendment,  alteration  or  repeal,  at  the  pleasure 
of  the  legislature ;  but  the  corporation,  notwithstanding  such  re- 
peal, shall  be  subject  to  the  provisions  of  sections  sixty-four  and 
sixty-five;  and  such  amendment,  alteration  or  repeal  shall  not  take 
away  or  impair  any  other  remedy  which  may  exist  by  law  consist- 
ently with  those  sections  against  the  corporation,  its  members  or 
officers,  for  any  liability  iireviously  incurred.  ( General  Statutes,  68, 
§  41.) 

79.  Insurance  companies  created  by  the  laws  of  this  common- 
wealth, whose  charters  were  granted  or  have  been  extended  for  a 
term  of  years  or  subject  to  a  limitation  of  time,  shall  c<  ntinueto  be 
bodies  corporate,  for  the  purposes  specified  in  their  several  acts  of 
incorporation  and  in  any  acts  in  addition  to  or  in   amendment 


348  hine's  insurance  statutes. 

thereof,  from  and  after  the  expiration  of  their  respective  charters, 
with  the  powers  and  privileges  and  subject  to  the  duties,  liabilities, 
and  restrictions  set  forth  m  the  general  laws  which  are  or  may  be  in 
force  and  applicable  to  such  insurance  companies.  {Laws  of  1875, 
34,  §  1.) 

JOINT  STOCK  INSURANCE  COMPANIES. 

80.  Every  insurance  company  with  a  specific  capital  shall  an- 
nually choose  by  ballot  from  the  stockholders  of  the  company  resi- 
dent within  this  State,  not  less  than  live  directors,  who  shall  hold 
of&ce  for  one  year  and  until  others  are  chosen  and  qualified  in  their 
stead.  Such  directors  when  elected  and  notified  shall,  before  they 
are  qualified  to  act,  declare  their  acceptance  in  writing  to  the  sec- 
retary of  the  company.     {General  Statutes,  58,  §  27.) 

8 1 .  Not  less  than  four  directors  shall  constitute  a  quorum ;  and 
all  questions  shall  be  decided  by  a  majority  of  those  present.  They 
shall  choose  annually,  by  ballot,  a  president,  secretary,  and  such 
other bfflcers  as  the  rules  direct.  Vacancies  in  any  office  maybe 
filled  by  the  directors  or  by  a  meeting  of  stockholders  called  for 
that  pui-pose.     {Ibid,  §§  27,  28.) 

8'!J.  The  president  shall  be  chosen  from  the  Board  of  Directors. 
He  shall  preside  at  all  meetings  of  the  stockholders  and  directors, 
but  when  absent  a  president  pro  tempore  may  be  chosen  as  the  meet- 
ing determines.  The  president  and  secretary  shall  annually  be 
sworn.     {Ibid,  §  28.) 

83.  The  shares  of  every  insurance  company  organized  after 
the  tenth  day  of  May,  in  the  year  eighteen  hundred  and  sixty-seven, 
and  having  a  capital  stock  divided  into  shares,  shall  be  fixed  at  one 
hundred  dollars  each.  Each  share  shall  be  entitled  to  one  vote. 
Proxies  may  be  authorized  in  writing.  No  officer  shall  vote  as 
proxy,  and  no  stockholder  shall,  either  in  person  or  by  proxy,  cast 
more  than  thirty  votes.  The  record  of  the  votes,  whether  cast  in 
person  or  by  proxy,  made  by  the  secretary  or  clerk  of  the  company, 
shall  be  evidence  of  aU  such  elections.  {Ibid,  §  27  ;  Laws  of  1865, 
236;  1867,131.) 

84.  An  executor,  administrator,  guardian,  or  trustee,  shall  rep- 
resent the  shares  or  stock  in  his  hands  at  all  meetings  of  the  cor- 
poration, and  may  vote  as  a  stockholder.     {Ibid,  §  11.) 

85.  The  secretary  shall  keep  a  record  of  the  votes  of  the  stock- 
holders and  of  the  directors;  a  list  of  the  stockholders  and  number 
of  shares  standing  in  the  name  of  each  ;  a  record  of  all  transfers  of 
shares ;  of  all  policies  issued  by  the  company,  and  of  all  assign- 
ments and  transfers  thereof;  and  such  additional  books  as  the 
president  and  directors  require.     {Ibid,  58,  §  28.) 

86.  Every  such  company  shall  register  the  names  and  residences 
of  all  its  stockholders,  and  all  changes  therein  of  which  it  is  notified ; 
shall  issue  no  certificate  of  stock  to  a  stockholder  or  purchaser  of  a 
share,  until  he  informs  the  corporation  of  his  actual  place  of  resi- 
dence ;  and  shall  pay  no  dividend  to  a  stockholder  whose  actual 
place  of  residence  is  unknown,  or  has  become  uncertain,  until  he  in- 
forms the  corporation  thereof.     {Laivs  of  1864,  201,  §  1.) 

87.  The  list  of  stockholders  shall  at  all  times,  upon  written 
api)lication  by  any  stockholder,  be  exhibited  for  his  inspection.  If 
the  officer  keeping  such  list  refuses  so  to  exhibit  the  same,  he  shall 
forfeit  fifty  dollars  for  each  offense.     {General  Statutes  68,  §  10.) 


MASSACHUSETTS.  349 

8  8 .  All  records  of  transfers  of  stock  in  companies  incorporated 
by  the  sole  authority  of  this  State,  shall  be  made  and  kept  within 
the  State.  The  officer  of  every  company  whose  duty  it  is  to  record 
such  transfers,  shall,  at  the  time  of  his  appointment,  be  a  resident 
witliin  the  State,  and  when  he  ceases  to  be  a  resident  the  office  shall 
become  vacant.      (i  hid,  §  12.) 

89.  In  transfers  of  stock  as  collateral  security,  the  debt  or  duty 
which  such  transfer  is  intended  to  secure,  shall  be  substantially  de- 
scribed in  the  deed  or  instrument  of  transfer.  A  certificate  of  stock 
issued  to  a  pledgee  or  holder  of  such  collateral  security  shall  ex- 
press on  the  face  of  it  that  the  same  is  so  holden  ;  and  the  name  of 
the  pledgor  shall  be  stated  therein,  who  alone  shall  be  responsible 
as  a  stockholder.     {Ibid,  §  13.) 

90.  The  treasurer,  cashier,  or  other  officer  who  has  the  lawful 
custody  of  the  records  of  transfers  of  shares,  upon  the  written  re- 
quest of  a  creditor  of  the  general  owner  of  stock  pledged  or  trans- 
ferred, shall  exhibit  to  him  the  record  of  such  transfer  ;  and  in  case 
of  refusal  and  of  loss  to  the  creditor  by  reason  thereof,  the  corpora- 
tion shall  be  liable  for  the  amount  of  the  loss.     {Ibid,  §  14.) 

91.  Persons  holding  stock  in  a  corporation  as  executors,  ad- 
ministrators, guardians,  or  trustees,  shall  not  be  personally  subject 
to  any  liabilities  as  stockholders  ;  but  the  estates'and  funds  in  their 
hands  shaU  be  liable  in  like  manner  and  to  the  same  extent  as  the 
testator,  intestate,  ward,  or  person  interested  in  the  trust  fund 
would  be  if  they  were  respectively  living  and  competent  to  act  and 
held  the  stock  in  their  own  names.     {Ibid,  §  18.) 

92.  Special  meetings  of  the  stockholders  may  be  called  by  the 
directors  when  they  think  proper  ;  and  they  shall  call  such  meetings 
on  the  written  ap[>lication  of  the  owners  of  one-fifth  part  of  the  capi- 
tal, or  of  twenty  stockholders,  setting  forth  the  purposes  of  the 
meeting.  {Ibid,  58,  §  29.) 

9JJ.  At  each  annual  meeting  the  directors  shall  cause  to  be  fur- 
nished to  the  stockholders  a  statement  of  the  condition  of  the  com- 
pany, and  in  making  dividends  shall  not  consider  any  part  of  the 
premium  money  divisible  until  the  risks  for  which  the  same  was  paid 
have  absolutely  been  terminated.  But  in  making  up  their  annual 
statement  they  shall  be  required  to  charge  the  company  only  such 
portions  of  the  cash  or  notes  received  on  policies  which  are  unex- 
pired, as  would  be  required  to  reinsure  all  outstanding  risks. 
{Ibid,  §  34.) 

94.  Joint-stock  fire  and  marine  insurance  companies,  organ- 
ized under  the  laws  of  the  commonwealth,  are  hereby  authorized  to 
declare  and  pay  to  the  stockholders  of  their  respective  companies, 
cash  dividends,  not  exceediag  ten  i^er  centum  a  year,  on  their  capital 
stock,  and  if  any  dividends  are  less  than  ten  per  cent,  in  any  one 
year  after  the  passage  of  this  act,  the  same  may  be  made  up  when 
the  net  profits  and  income  become  sufficient  therefor,  but  any  such 
company  may  issue  pro  rata  to  its  stockholders,  certificates  of  such 
portions  of  its  actual  surplus  as  the  company  may  from  time  to  time 
determine,  which  shall  be  deemed  to  be  an  increase  of  its  capital 
stock  to  the  extent  of  such  new  certificates  so  issued  ;  but  no  such 
dividend  either  in  cash  or  stock  certificate  shall  be  made  by  any 
such  company  except  from  actual  surplus  fund  of  the  company ;  such 
surplus  to  be  computed  in  the  same  manner  as  is  now  required  by 
law,  by  such  insurance  companies  in  making  their  annual  report  to 


350  hine's  insurance  statutes. 

the  Insurance  Commissioner  of  Massacliiisetts.  {Laics  of  1874, 
chap.  222,  as  amended  by  hues  of  1875,  chaj).  95.) 

SI5.  The  capital  stock,  unless  other\Yise  specially  provided,  shall 
be  paid  in  cash  within  twelve  months  from  the  date  of  this  charter. 
No  certificates  of  full  shares  or  policies  shall  be  issued  until  the 
whole  capital  is  paid  in  ;  nor,  unless  specially  authorized,  shall  any 
shares  be  issued  for  a  less  amount  to  be  actually  paid  in  on  each 
share,  than  the  par  value  of  the  shares  first  issued.  (General 
Statutes,  8,  §  30 ;  08,  §  9.) 

96.  No  policy  shall  be  issued  until  a  certificate  from  the  In- 
surance Commissioner  has  been  obtained  authorizing  such  company 
to  issue  policies.  The  Insurance  Commissioner  shall  examine  the 
capital,  and  a  majjority  ot  the  directors  shall  make  oath  that  the 
money  has  been  paid  in  by  the  stockholders  toward  payment  of  their 
respective  shares,  and  not  for  any  other  purpose,  and  that  it  is  in- 
tended that  the  same  shall  remain  as  the  caj)ital  of  the  comi)any,  to 
be  invested  as  required  by  the  laws  of  this  commonwealth.  Every 
insurance  company  incor{)orated  in  this  commonwealth  shall  pay 
into  the  treasury,  for  the  examination  required  by  this  section,  the 
sum  of  thirty  dollars.     {Ibid,  §  30 ;  Laws  of  1867,  267,  §4.) 


investment  of  capital. 

97.  No  insurance  company  having  a  specific  cajjital  shall  in- 
sure property  in  this  commonwealth,  nor  contract  for  insurance 
with  any  residents  thereof,  unless  its  paid  up  capital  stock  amounts 
to  one  hundred  thousand  dollars,  to  be  invested  in  accordance  with 
the  provisions  of  section  thirty-one  of  chajiter  fifty  eight  of  the 
General  [Statutes;  Provided,  however,  That  nothing  contained  in  this 
section  shall  apply  to  companies  chartered  with  a  capital  of  less 
amount.     {Laws  of  1872,  chap.  325,  §  2.) 

98.  Stockholders'  obligations  of  any  description  not  secured  as 
required  by  the  provisions  of  section  thirty-one  of  chapter  fifty- 
eight  of  the  General  Statutes,  shall  constitute  no  part  of  the  capital 
stock  or  assets  of  any  insurance  company  doing  business  in  this 
commonwealth  with  a  specific  capital.     {Ibid,  §  3.) 

99.  The  capital  stock  shall  be  invested  in  the  stocks  of  the 
United  States,  or  of  this  State,  or  of  any  city  or  town  in  this  State, 
or  in  any  of  the  banks  thereof,  or  in  any  railroads  thereof  which  are 
completed  and  paid  for  and  the  franchises  of  which  are  not  pledged 
or  mortgaged,  or  in  bonds  or  railroad  corporations  in  this  State  ;  or 
it  may  be  loaned  on  mortgages  of  real  estate  therein,  or  on  pledges 
of  any  of  the  stocks  or  bonds  named  in  this  section  ;  Provided,  That 
no  insurance  company  shall  own  more  than  one-fourth  of  the  capital 
of  any  one  bank,  nor  invest  in  nor  loan  on  the  stocks  and  bonds  both 
included  of  any  one  railroad  company,  more  than  one-tenth  of  its 
own  capital,  nor  in  the  aggregate  shall  the  investment  in  and  loan 
on  all  raikoad  property  exceed  one-fifth  of  its  capital.  Not  more 
than  half  of  its  capital  shall  be  loaned  on  mortgage  of  real  estate, 
and  not  more  than  one-tenth  part  of  the  capital  actually  existing  of 
any  company  shall  be  invested  in  a  single  mortgage.  {General 
Statutes,  5S,  §31.) 

100.  Insurance  companies  may  make  investment  of  their  cap- 
ital and  other  funds  in  the  stock  of  any  banking  association  loca- 
ted in  this  commonwealth  and  organized  under  the  provisions  of  an 


MASSACHUSETTS,  351 

act  of  Congress  entitled  "  An  act  to  provide  a  national  cnrrency, 
secured  by  a  pledge  of  United  States  stocks,  and  to  provide  for  the 
circulation  and  redemption  thereof,"  approved  on  the  twenty-fifth 
day  of  February,  in  the  year  eighteen  hundred  and  sixty-three : 
Proviiled,  however,  that  no  insurance  company  shall  hold  as  coUateral 
security  more  than  one  fourtli  of  the  capital  of  any  one  of  such  bank- 
ing associations.  Any  insurance  company  which  makes  any  invest- 
ment in  the  stock  of  any  banking  association,  as  authorized  by  this 
section,  shall  continue  subject  to  all  the  limitations  and  restrictions 
contained  in  the  preceding  section,  except  as  herein  otherwise  pro- 
vided.    [Laics  of  18G4,  29,  §§  1,  2.) 

101.  If  any  investment  or  loan  is  made  in  a  manner  not  au- 
thorized by  law,  the  directors  making  or  authorizing  the  same  shall 
be  personally  liable  to  the  stockholders  for  any  loss  occasioned 
thereby ;  but  insurance  companies  chartered  by  this  State  now 
doing  business,  shall  not  be  comi)elled  to  change  any  investment 
that  was  originally  legally  made.    {General  Statutes,  58,  §  31.) 


KISKS  AND  POLICIES. 

102.  Companies  thus  organized  may  insure  vessels,  freights, 
goods,  money,  eftacts,  and  money  lent  on  bottomry  or  respondentia, 
against  the  perils  of  the  sea  and  other  perils  usually  insured  against 
by  marine  insurance;  and  dwelling-houses  and  other  buildings, 
merchandise  and  other  personal  property,  against  loss  by  fire,  ac- 
cording to  their  respective  charters.     {Ibid,   §  32.) 

10J8.  All  policies  shall  be  signed  by  the  president  and  secre- 
tary ;  or  in  the  absence  of  the  president  by  two  directors,  and  in  the 
absence  of  the  secretary  by  a  secretarj'  pro  tempore.  Policies  signed 
by  the  vice-president  shall  have  the  same  force  and  effect  as  if  signed 
by  the  president  or  two  directors.  {Ibid,  §  32;  Laics  o/18G4,  113, 
§2.) 

1 04.  ^o  stock  company  shall  hold,  on  any  one  risk,  a  sum  ex- 
ceeding one-tenth  i^art  of  the  capital  existing,  and  surplus,  after  de- 
ducting all  losses,  claims,  liabilities  and  debts  due  from  the  com- 
pany. When  the  capital  has  been  reduced  by  losses,  or  from  an,y  other 
cause,  the  amount  thereafter  to  be  taken  on  any  one  risk  shall  cor- 
respondingly be  reduced  to  the  limitation  herein  prescribed.  If  the 
directors  allow  more  to  be  insiu'ed  on  any  one  risk,  they  shall  be 
liable  for  a  loss  on  any  amount  exceeding  one-tenth  the  existing 
capital.     {Ibid,  §§  32,  33.) 

105.  If  any  company  is  under  liability  for  losses  actually  sus- 
tained equal  to  the  capital,  and  the  president  and  directors  know- 
ing it  make  insurance  or  assent  thereto,  thej^  shall  be  personally 
liable  for  the  loss  if  any  under  such  insurance.  When  the  charter 
permits  the  capital  stock  to  be  paid  by  installments,  if  the  capital 
is  lessened  by  losses  before  aU  installments  are  paid  in,  each  stock- 
holder shall  be  liable  for  the  installments  unpaid  on  his  shares  at 
the  time  of  such  loss  ;  and  no  dividend  shall  be  made  until  the  cap- 
ital is  restored  to  its  original  amount.     {Ibid,  §  33.) 

106.  Joint  stock  insurance  companies  and  mutual  insurance 
companies  with  a  guarantee  capital  incorporated  or  organized  under 
the  laws  of  this  commonwealth,  are  hereby  authorized  to  issue  pol- 
icies of  insurance  which  shall  not  limit  or  restrict  the  term  of  the 
risk,  against  loss  or  damage  by  fire  or  lightning,  on  buildings  occu- 


352  hine's  insurance  statutes. 

pied  solely  for  d^ellmg-house  piirjioses,  together  with  the  out-biiild- 
ings  and  private  stables  usually  belonging  thereto,  and  on  buildings 
used  exclusively  for  religious,  charitable,  and  educational  purposes ; 
Provided,  That  no  such  policy  shall  be  issued,  until  the  insured  has 
made  a  deposit  in  cash  with  said  companies,  the  annual  interest  of 
which  shall  be  not  less  than  an  adequate  yearly  rate  of  premium  on 
the  risk  iuciuTcd ;  and  Provide^  farther,  That  no  part  of  said  de- 
posit shall  be  returned  to  the  insured,  while  such  risks  continue  in 
force.     {Laws  of  1875,  chap.  72,  §  1.) 

107.  All  sums  deposited  with  any  insurance  company,  for  the 
purpose  of  insurance  under  the  provisions  of  this  act,  shall  be  set 
apart  and  invested,  and  shall  constitute  a  distinct  fund,  the  income 
from  which  shall  become  a  part  of  the  general  funds  of  the  com- 
pany; but  no  part  of  such  distinct  fund  shall  be  used  except  as  in 
manner  hereinafter  provided,  nor  shall  the  same  be  advertised  in 
any  publications  of  the  company  in  any  other  manner  than  as  de- 
posits upon  i^erpetual  policices.     {Ibid,  §  2.) 

108.  Whenever  a  policy  of  insurance  issued  under  the  pro- 
visions of  this  act,  is  terminated  at  the  request  of  the  company,  the 
fall  amount  of  the  deposit  upon  the  same  shall  be  paid  to  the  in- 
sured from  said  distinct  fund,  and  whenever  a  policy  so  issued  is 
terminated  at  the  request  of  the  insured,  or  in  consequence  of  loss 
under  the  same,  ninety  per  cent,  of  the  deposit  shall  be  paid  to  the 
insured  from  the  distinct  fund,  and  the  balance  thereof  shall  be 
drawn  from  said  fund,  and  be  entered  in  and  become  a  part  of  the 
general  funds  of  the  company.  In  the  event  of  the  insolvency  of 
the  company,  the  deposits  made  for  insurance  under  the  provisions 
of  this  act  shall  be  returned  to  the  insured  under  the  same.  {Ibid, 
§3.) 

109.  The  provisions  of  the  third  section  of  this  act  shall  be 
expressed  in  full  in  any  policy  issued  under  this  act,  before  the  sig- 
natures of  the  officers  signing  the  same.     {Ibid,  §  84.) 


impairment  of  capital. 

110.  Whenever,  after  setting  aside  a  sum  equal  to  the  pre- 
miums for  the  unexpired  term  on  existing  risks,  the  cash  assets  of 
any  fire  insurance  company  with  a  specific  capital  do  not  amount  to 
more  than  three-fourths  of  its  original  capital,  the  company  may  by 
assessing  the  stock  for  the  difierence,  repair  its  capital  to  the  orig- 
inal amount.  Shares  on  which  such  assessment  is  not  paid  within 
sixty  days  after  demand  upon  the  owner  thereof  shall  be  forfeitable 
and  subject  to  be  canceled  by  a  vote  of  the  directors,  and  new 
shares  may  be  issued  to  make  up  the  deficiency.  {Laws  of  1863,  249, 
§§7,8;  1875,  27,  §G.) 

111.  Sections  seven  and  eight  of  chapter  two  hundred  and 
forty-nine  of  the  acts  of  the  year  eighteen  hundred  sixty-three,  re- 
lating to  the  impairment  of  capital,  shall  be  held  to  include  compa- 
nies doing  any  kind  of  insurance  business  with  a  specific  capital. 
{Laws  of  1872,  chaj).  322,  §  1.) 

1 1  "^5.  Any  insurance  company  with  a  specific  capital  which 
does  not,  within  three  months  after  receiving  notice  from  the  Insur- 
ance Commissioner  that  its  capital  is  legally  subject  to  repair  as 
aforesaid,  satisfy  him  that  it  has  been  fully  restored  to  its  original 
amount,  with  a  reserve  of  premium  sufficient  to  reinsure  all  out- 


MASSACHUSETTS.  353 

standing  risks,  or  decreased  in  accordance  with  the  laws  of  this 
commonwealtli,  shall  be  proceeded  against  according  to  the  provi- 
sions of  section  sixty.     {Laws  of  18G3,  249,  §§  6,  9.) 

1 1  Jl.  Whenever  the  capital  stock  of  any  fire,  marine,  or  fire- 
marine  insurance  company,  organized  or  incorporated  i)ursuant  to 
law,  is  impaired,  such  comjiany  may  reduce  its  capital  stock  and  the 
number  of  shares  thereof  to  such  an  amount  as  truly  represents  the 
assets  and  property  of  such  company  ;  Provided,  That  no  j)art  of  its 
assets  and  property  shall  be  distributed  to  the  stockholders  of  said 
company,  and  that  said  capital  stock  shall  not  be  reduced  below  the 
minimum  sum  required  by  the  laws  of  this  commonwealth.  {Laics  of 
1875,  chap.  27,  §  1.) 

114.  No  reduction  of  the  capital  of  any  such  company  shall 
be  made,  except  upon  a  vote  of  a  majority  of  the  stockholders  of 
said  company  had  at  a  meeting  duly  and  legally  called  for  that  pur- 
pose ;  and  within  ten  days  after  said  meeting  a  certificate,  setting 
forth  the  proceedings  of  said  meeting  and  the  amount  of  the  reduc- 
tion of  the  capital  stock  of  said  company,  shall  be  signed  and 
sworn  to  by  the  president,  secretary  and  a  majority  of  the  directors 
of  said  company  and  i^resented  to  the  Insiu-auce  Commissioner,  who 
shall  examine  the  facts  in  the  case,  and  if  the  same  conform  to  law, 
shall  endorse  his  approval  thereof:  and  such  certificate,  so  approved, 
shall  be  filed  with  the  secretary  of  the  commonwealth.     {Ibid,  §  2.) 

115.  Upon  filing  the  certificate  provided  in  the  second  section 
of  this  act,  such  company  shall  with  such  reduced  capital  possess 
the  same  rights  and  be  subject  to  the  same  liabilities  that  it  pos- 
sessed or  was  subject  to  at  time  of  the  reduction  of  its  capital ; 
and  the  charter  of  such  company  shall  be  deemed  to  be  amended  so 
as  to  conform  to  such  reduction  ;  and  the  Insurance  Commissioner 
shall  issue  his  certificate  to  that  eftect.     {Ibid,  §  3.) 

116.  Such  company  may,  by  a  majority  vote  of  its  direct- 
ors, atfer  said  reduction  of  capital  shall  have  been  made  as  afore- 
said, require  the  return  of  the  original  certificates  of  stock  held  by 
each  stockholder  and  in  lieu  thereof  issue  uew^  certificates  for  such 
number  of  shares  as  the  said  stockholder  shall  be  entitled  to,  in  the 
proportion  that  the  reduced  capital  may  be  found  to  bear  to  the 
original  capital  of  said  company.     {Ibid,  §  4.) 

117.  It  shall  be  lawful  for  any  joint  stock  fire,  marine,  or  fire- 
marine  insurance  company,  incorporated  under  any  special  laws  of 
this  commonwealth,  to  increase  its  capital  stock  as  provided  in  sec- 
tion thirteen  chapter  three  hundred  and  seventy-five  of  the  acts  of 
the  year  eighteen  hundred  and  seventy-two.     {Ibid,  §  6.) 


MCTTUAL  FIRE  INSURANCE  COMPANIES. 

118.  Every  mutual  fire  insurance  company  shall  annually 
elect  by  ballot  not  less  than  seven  directors,  citizens  of  this  State, 
and,  after  the  first  election,  members  of  the  company,  who  shall 
manage  and  conduct  the  business  thereof.  Every  person  insured 
by  the  company  shall  be  a  member,  and  each  member  shall  be  al- 
lowed one  vote  for  each  policy  held  by  him.  Members  may  vote  by 
proxies  dated  and  executed  within  six  months,  and  returned  and  re- 
corded on  the  books  of  the  company  at  least  three  days  previous  to 
the  meeting  of  the  company"  at  which  the  same  are  used ;  but  no 
person  shall  be  allowed  by  proxy  or  otherwise  to  cast  more  than 
23 


354  HINE'S  INSUEAKCE   STATUTES. 

twenty  votes  ;  and  no  paid  officer  or  agent  shall  vote  as  proxy  for 
any  absent  member.  IS^o  paid  officer  or  agent  shall  ask  for,  receive, 
procure  to  be  obtained  or  use  any  i)roxy  vote  in  the  corporation 
with  which  he  is  connected.  Any  officer  or  agent  who  violates  the 
piovisions  of  this  act  shall  forfeit  and  i)ay  a  fine  of  not  less  than 
one  hundred  dollars  nor  more  than  three  hundred  dollars.  {Laws  of 
1872,  230,  §  1.) 

13  9.  All  members  of  mutual  life  and  fire  insui^ance  companies 
incori)orated  under  the  laws  of  this  commonwealth,  shall  be  notified 
of  the  time  and  place  of  holding  the  annual  meetings  of  said  com- 
panies by  a  written  notice  or  by  an  imprint  upon  the  back  of  each 
policy,  receipt,  or  certificate  of  renewal,  in  the  following  form,  to 
wit :  "  By  virtue  of  this  policy  the  assured  is  hereby  notified  that 
he  is  a  member  of  the  Insurance  Company,  and  that  the  an- 

nual meetings  of  said  comi^any  are  holden  at  its  home  office  on  the 
day  of  in  each  year,  at  o'clock,  ." 

The  blanks  shall  be  duly  filled  in  making  the  aforesaid  imprint,  and 
the  same  shall  be  deemed  a  sufficient  notice  as  herein  provided. 
[Laics  of  1810,  349,  §  7.) 

l!Ji>.  The  directors  of  every  corporation  which  becomes  a 
member  of  any  mutual  company,  may  authorize  one  or  more  of  the 
stockholders  of  such  corporation  to  represent  the  same  in  all  meet- 
ings of  such  company ;  and  such  representatives  shall  vote  and  be 
eligible  to  the  office  ot  the  director  in  the  company.  {General  Stat- 
utes, §  47.) 

1!31.  The  directors  of  every  such  company  shall  annually 
choose  by  ballot  one  of  their  number  as  president,  a  secretary  and 
treasurer,  who  shall  annually  be  sworn,  and  a  record  of  the  oath 
shall  be  entered  upon  the  books  of  the  company.     {Ibid,  §  44.) 

ISS.  Not  less  than  five  directors  shall  constitute  a  quorum, 
and  all  questions  shall  be  decided  by  a  majority  of  those  present. 
Vacancies  in  any  office  may  be  filled  by  the  directors  until  the  next 
annual  election,  or  by  a  new  election  at  a  meeting  called  for  that 
purpose.  Special  meetings  of  the  members  may  be  called  when 
ordered  by  the  directors,  and  the  directors  shall  call  such  meetings 
"when  requested  in  writing  so  to  do  by  any  twenty  members.  {Ibid, 
§45.) 

1'2S.  The  secretary  shall  keep  true  records  of  the  meetings  of 
the  corporation  and  of  the  directors,  and  of  all  votes  jiassed  by 
them ;  and  record  a  copy  of  all  policies  issued  by  such  company, 
and  all  assignments  or  transfers  of  the  same,  when  properly  assented 
to,  which  record  shall  be  open  to  the  inspection  of  any  persons  in- 
terested therein.     {Ibid,  §  44.) 

1 24.  No  policy  shall  be  issued  by  a  mutual  fire  insurance  com- 
pany incorporated  subsequently  to  the  twenty-seventh  day  of  March, 
in  the  year  eighteen  hundred  and  fifty-eight,  until  the  sum  of  two 
hundred  and  fifty  thousand  dollars  has  been  subscribed  to  be  in- 
sured and  entered  on  the  books  of  the  company.  The  policies 
issued  and  the  deposit  notes  given  for  said  insurance,  which  notes 
shall  not  exceed  double  the  amount  paid  as  cash  premium,  shall  be 
of  the  same  date.     {Ibid,  §  58.) 

135.  Mutual  fire  insurance  companies  created  under  the  laws 
of  this  State  may  issue  policies  on  any  property  included  in  the 
terms  of  their  charter,  situated  in  the  New  England  States,  New 
York,  Pennsylvania,  and  New  Jersey.     {Laws  o/1875,  chap.  59,  §  1.) 

136.  No  mutual  fire  insurance  company  shall  contract  for  in- 


MASSACHUSETTS.  355 

surance  on  any  one  risk  for  a  gxeater  amount  tban  tliej  intend  to 
retain ;  nor  witli  the  view  or  intention  of  reinsuring-  any  part  thereof. 
{General  Statutes,  58,  §  55.) 

1^27,  Xo  policy  shall  be  issued  on  the  mutual  i^lau  for  a  greater 
amount  than  three-fourths  of  the  value  of  the  i)roi)erty  insured. 
{Ibid,  §  52.) 

1538.  Every  policy  issued  by  a  mutual  fire  insurance  company 
previously  to  the  thirtieth  day  of  April,  in  the  year  eighteen  hun- 
dred and  sixty-two,  shall  create  a  lien*  on  the  personal  i)roperty, 
and  on  any  building  insured  and  the  land  under  the  same,  for  se- 
curing the  payment  of  tlie  deposit  note,  or  other  liabilities,  or  any 
sums  assessed  upon  the  same ;  Provided,  That  the  extent  of  the  lia- 
bility and  the  intention  of  the  company  to  rely  upon  the  lieu  are  set 
forth  on  the  face  of  the  policy.  Upon  the  alienation  of  the  property 
to  a  bona  fide  purchaser,  the  lien  shall  cease  as  to  all  losses  which 
thereafter  occur,  unless  the  i)olicy  is  continued  by  consent  of  the 
purchaser  and  the  company.  If  it  becomes  necessary  to  resort  to 
such  lien  tor  the  payment  of  the  liabilities  secured  thereby,  the 
treasurer  shall  demand  payment  from  the  insured,  and  also  from 
the  tenant  in  possession,  or  the  person  having  possession  of  the  per- 
sonal i)roperty,  setting  forth  in  writing  the  sum  due ;  and  in  case 
of  non-payment  the  comjiany  may  sue  and  levy  the  execution  upon 
the  property  or  estate.  The  officer  making  the  levy  may  sell  the 
whole  or  any  part  thereof  by  auction,  and  apply  the  proceeds  in  the 
same  manner,  and  the  owner  shall  have  the  same  right  to  redeem 
as  in  the  sale  of  an  equity  of  redemption  of  real  estate.  [Ibid, 
§  52;  Laics  o/18G2,  181,  §  4.) 

121J.  A  person  holding  property  in  trust  may  effect  insurance 
on  such  property  in  any  mutual  tire  insurance  company  incorporated 
in  this  State,  and  for  that  purpose  may,  as  such  trustee,  assume 
the  liabilities  and  create  all  the  liens  upon  the  property  so  insured 
which  other  persons,  on  becoming  members  of  such  insurance  com- 
panies, assume  and  create.  He  shall  not  be  liable,  in  his  individual 
capacity,  upon  such  contract  of  insurance.     [Ibid,  §  59.) 

ISd.  Every  member  of  a  mutual  company  shall,  at  the  expira- 
tion of  his  policy,  have  a  share  in  the  profits  of  the  company  diu-ing 
the  time  his  policy  was  in  force,  in  proportion  to  the  sums  by  him 
paid  on  account  of  said  policy  according  to  the  contract  or  policy, 
after  all  expenses,  losses,  and  liabilities  then  incurred,  including  a 
sum  sufficient  to  reinsure  all  outstanding  risks,  have  been  deducted. 
And  he  shall,  in  like  manner,  be  subject  to  pay  any  assessments 
which  may  be  laid  by  such  company  for  the  payment  of  losses  and 
expenses,  in  accordance  with  its  charter  and  the  laws  regulating 
such  companies.     [Ibid,  §  01 ;  Laics  of  1803,  249,  §  0.) 

lUl.  The  directors  of  mutiml  fire  insurance  companies  may 
divide  the  property  insured  into  not  exceeding  four  classes.  The 
policy  shall  designate  the  class,  and  the  assessments  shall  be  made 
upon  premiums  and  deposits  belonging  to  the  class  in  which  the 
loss  occurs ;  but  no  policy  shall  be  issued  in  a  separate  class,  until 
five  hundred  thousand  dollars  are  subscribed  to  be  insured  in  that 
class  on  one  date,  and  the  same  is  entered  on  the  books  of  the 
company.  The  expenses  of  the  company  not  strictly  a]>plicable  to 
either  class  shall  be  apportioned  to  each  class  according  to  the 

*  The  lien  ia  ab  Wished,  as  regards  all  policies  issued  on  or  after  said,  date,, 
by  chapter  181,  section  4,  of  the  acta  of  1862. 


356  hine's  insurance  statutes. 

amount  of  premiums  paid  by  that  class  for  the  same  period ;  and  in 
a  division  of  the  funds  and  returns  of  premiums  and  deposits  each 
member  shall  be  entitled  to  receive  his  proportion  of  the  profits  be- 
longing to  the  class  in  which  he  was  insured.  No  money  belonging 
to  one  class,  received  either  as  premium  or  assessment  in  said  class, 
shall  be  used  to  pay  losses  or  expenses  or  other  liability  of  any 
other  class.     {Ibid,  §  53.) 


ASSESSMENTS. 

139.  When  the  just  claims  against  a  mutual  fire  insurance 
company  exceed  the  funds,  its  directors  shall  assess  such  sums  as 
may  be  necessary  upon  the  members,  in  proportion  to  their  pre- 
mium and  deposit,  no  member  being  liable  to  pay  in  addition  to  his 
premium  and  deposit  more  than  a  sum  equal  to  his  said  premium 
and  deposit;  and  in  case  of  classification  of  risks,  said  assess- 
ment shall  be  made  uj^on  such  premium  and  deposit  as  were 
given  upon  hazards  associated  with  the  property  upon  which 
losses  have  occurred.     {Ibid,  §  48.) 

1  ;j 3,  Mutual  fire  insurance  companies,  upon  making  an  assess- 
ment, shall  keep  a  record  of  the  vote  passed  by  the  directors,  for 
making  the  same,  with  a  statement  of  the  condition  of  the  company 
at  the  time  such  assessment  is  made.  AVhen  an  assessment  is  or- 
dered, the  whole  amount  to  be  raised  and  the  particular  losses  or 
other  liabilities  of  which  said  amount  consists  shall  be  stated.  The 
statement  shall  separately  show  the  amount  of  cash  on  hand,  of 
deposit  notes,  and  of  liabilities  subject  to  such  assessment,  and  it 
shall  be  recorded  in  a  book  kept  for  that  purpose,  and  signed  by 
the  directors  voting  for  such  assessment.  Companies  dividing  their 
risk  and  insuring  in  separate  classes  shall  make  such  statement  for 
each  class  in  which  an  assessment  is  ordered.  Any  member  of  the 
company  may  inspect  such  statement  and  take  a  copy  of  the  same  ; 
and  a  person  who  is  liable  to  assessment  shall  be  considered  a  mem- 
ber. No  assessment  shall  be  collected  until  such  statement  and 
record  are  made.     {Ibid,  §  54.) 

1 114.  Whenever  the  directors  of  any  mutual  fire  insurance 
company  find  that  its  funds,  other  than  premium  notes,  are  not 
equal  to  the  cash  premium  on  the  unexpired  term  of  the  existing 
risks,  and  that  the  company  is  in  danger  of  becoming  insolvent,  in- 
stead of  the  assessment  or  call  hereinbefore  provided,  they  may 
make  two  assessments,  the  first  determining  what  each  policy- 
holder must  equitably  pay  or  receive  in  case  of  withdrawal  from 
the  company  and  having  his  policy  canceled,  the  second  what  fur- 
ther sum  each  must  pay  in  order  to  reinsure  the  unexpired  term  of 
his  policy  at  the  same  rate  as  the  whole  was  insured  at  first.  Each 
policy-holder  shall  pay  or  receive  according  to  the  first  assessment, 
and  his  policy  shall  then  be  canceled  unless  he  prefers  to  pay  the 
further  sum  determined  by  the  second  assessment,  in  which  case  his 
policy  shall  continue  in  force;  Provided,  That  in  neither  case  shall 
any  policy-holder  receive  or  have  credited  to  him  more  than  he 
would  have  received  on  having  his  policy  canceled  by  vote  of  the 
directors  under  the  by-laws  of  the  company.  {Laics  of  1863,  249, 
§4.) 

135.  Whenever  the  directors  in  any  mutual  fire  insurance 
company  make  an  assessment  or  call  on  its  members  for  money,  or 


MASSACnUSETTS.  357 

by  vote  determiae  that  there  exists  a  necessity  for  such  assessment  or 
call,  they,  or  any  person  interested  in  the  company  as  an  officer, 
policy-holder,  or  creditor,  may  apply  to  the  supreme  judicial  court 
lor  any  county,  by  a  petition  in  the  nature  of  a  bill  in  equity,  pray- 
ing the  court  to  examine  said  assessment,  or  call,  the  necessity 
therefor,  or  all  the  matters  connected  therewith,  and  to  ratify, 
amend,  and  annul  the  assessment  or  call,  or  to  order  that  the  same 
be  made,  as  law  and  justice  may  reqire;  Provided,  Such  application 
when  made  by  any  party  except  the  corporation,  or  a  receiver,  or 
the  Insurance  Commissioner,  shall  rest  in  the  discretion  of  the 
court.  Whenever  the  directors  unreasonably  neglect  to  make  an 
assessment  or  call  to  satisfy  an  admitted  or  ascertained  claim  upon 
the  company,  any  judgment  creditor,  or  any  person  holding  such 
admitted  or  ascertained  claim,  or  the  Insurance  Commissioner,  may 
make  the  application  to  the  court.  Upon  such  application,  if  made 
by  the  directors,  or  upon  any  order  of  the  court,  if  made  by  ai)pli- 
cation  of  any  other  party,  the  directors  shall  set  forth  the  claims 
against  the  company,  its  assets,  and  all  other  facts  and  particulars 
appertaining  to  the  matter.     {Ibid,  181,  §  1 ;  1863,  249,  §  5.) 

134».  The  court  before  which  such  petition  is  filed  shall  order 
notice  to  be  given  to  all  parties  interested,  by  publication,  or  other- 
wise, and  uj)on  the  return  thereof  shall  proceed  to  examiue  the  assess- 
ment, or  call,  or  the  necessity  therefor,  and  all  matters  connected 
therewith.  Any  parties  interested  may  api)ear  and  be  heard 
thereon.  All  questions  that  arise  shall  be  heard  and  determined  as 
in  other  equity  cases.     {Ibid,  §  2.) 

137.  The  application  shall  be  referred  to  an  auditor,  who 
shall  appoint  a  time  and  place  to  hear  all  parties  interested  in  the 
assessment,  or  call,  and  shall  give  personal  notice  thereof  in  writ- 
ing to  the  Insurance  Commissioner,  and  through  the  post-office,  so 
far  as  he  is  able,  to  all  persons  liable  upon  said  assessment  or  call. 
The  auditor  shall  hear  the  parties,  and  report  upon  the  correctness 
of  the  assessment,  or  call,  and  all  matters  connected  therewith. 
The  court  may  refer  the  apportionment  or  calculation  to  any  com- 
petent person ;  and  upon  the  examination  may  ratifj',  amend,  or 
annul  the  assessment,  or  call,  or  order  one  to  be  made ;  and  may 
make  such  orders  and  decrees  in  the  premises  as  uuder  all  the  cir- 
cumstances justice  and  equity  require.  In  case  the  assessment,  or 
call,  is  altered  or  amended,  or  one  is  ordered  to  be  made,  the  direct- 
ors shall  forthwith  proceed  to  vote  the  same  in  legal  form,  and  the 
record  of  such  vote  shall  be  set  forth  in  a  supplemental  bill  or  an- 
swer.    {Ibid,  §  2 ;  1863,  240,  §§  3,  5.) 

138.  When  an  assessment  or  call  has  been,  as  above,  pro- 
vided, ratified,  ascertained,  or  established,  a  decree  shall  be  en- 
tered, which  shall  be  final  and  conclusive  upon  the  comjiany  and  all 
parties  liable  to  the  assessment  or  call,  as  to  the  necessity  of  the 
same,  the  authority  of  the  company  to  make  or  collect  the  same, 
the  amount  thereof,  and  all  formalities  connected  therewith.  And 
where  an  assessment  or  caU  hereafter  made  is  altered  or  amended 
by  vote  of  directors,  and  decree  of  the  court  thereon,  such  amended 
or  altered  assessment  or  call  shall  be  binding  upon  all  parties  who 
would  have  been  liable  under  it  as  originally  made,  and  in  all  legal 
proceedings  shall  be  held  to  be  such  original  assessment  or  call. 
All  ])roceedings  above  provided  for  shall  be  at  the  cost  of  the  com- 
pany, unless  the  court  for  cause  otherwise  order ;  and  in  all  cases 


358  HINE'S  I^'SURANCE   STATUTES. 

the  court  may  control  the  disposition  of  the  funds  collected  under 
these  proceedings.     {Ibid,  §  3.) 

IS®.  If  it  appears  to  the  presiding  judge  of  the  court  before 
which  such  application  is  pending,  that  the  net  proceeds  of  any 
assessment  or  call  will  not  be  sufficient  to  furnish  substantial  relief 
to  those  having  claims  against  the  company,  the  judge  may  decree 
that  no  assessment  shall  be  collected;  and  when,  upon  the  applica- 
tion of  the  Insurance  Commissioner,  or  any  person  interested,  the 
judge  is  of  opinion  that  further  attempts  to  collect  any  assessment 
then  partially  collected  will  not  benefit  those  having  claims  against 
the  company,  he  may  stay  the  further  collection  of  said  assessment. 
{Ibid,  18G3,  249,  §  3.) 

1 4®.  If,  within  two  months  after  the  assessments  have  become 
collectable,  the  amount  of  the  policies  whose  holders  have  settled 
for  both  assessments  does  not  equal  the  amount  required  by  the 
charter  of  the  company  for  the  commencement  of  business,  and  in 
no  case  less  than  two  hundred  and  fifty  thousand  dollars,  the  com- 
pany shall  cease  to  issue  policies ;  and  all  i)olicies  whose  holders 
have  not  settled  for  both  assessments  shall  then  be  void,  and  the 
company  shall  continue  only  for  the  purpose  of  adjusting  the  de- 
ficiency or  excess  of  premiums  among  the  members,  and  settling 
outstanding  claims.     {I  bid,  §  4.) 

141.  iSI^o  assessment  shall  be  laid  on  any  member  whose  policy 
has  expired  or  been  canceled  for  the  period  of  two  years ;  and  no 
assessment  shall  be  valid  against  any  person  who  has  not  been  didy 
notified  thereof  in  writing  within  two  years  after  the  expiration  or 
cancellation  of  his  i)olicy.  {General  Statutes,  58,  §  54;  Laics  of 
1865,  10.) 

14*J.  Whenever  it  appears  to  the  supreme  judicial  court, 
upon  a  petition  in  the  nature  of  a  bill  in  equity,  by  any  member  of 
a  mutual  fire  insurance  company,  or  by  the  Insurance  Commissioner, 
that  further  attempts  to  collect  any  assessment  then  partially  col- 
lected will  not  furnish  substantial  relief  to  those  having  claims 
against  the  comjiany,  the  court  may  stay  the  further  collection  of 
said  assessment.     (Laws  of  1864,  161,  §  1.) 

14JI.  Any  officer  or  director  of  a  mutual  fire  insurance  com- 
pany, who  either  officially  or  privately  gives  a  guaranty  to  any 
policy-holder  thereof  against  an  assessment  to  which  he  would 
otherwise  be  liable,  shall  be  punishable  with  a  fine  not  exceeding 
one  hundred  dollais  for  each  offense.     {Ibid,  1860,  149.) 

144.  When  sufficient  ju'operty  of  a  mutual  fire  insurance  com- 
pany can  not  be  found  to  satisfy  an  execution  issued  against  it,  and 
it  has  property  belonging  to  the  period  assessed,  the  proceeds  of 
which  can  be  applied  to  satisfy  such  execution,  if  the  directors  neg- 
lect to  pay  the  same,  or  neglect  for  thirty  days  after  the  rendition 
of  judgment  to  make  an  assessment  and  deliver  the  same  to  the 
treasurer  for  collection,  or  to  apply  such  assessment  when  collected 
to  the  payment  of  the  execution,  they  shall  be  personally  liable  for 
the  amount  of  the  execution.     {General  Statutes,  58,  §  48.) 

145,  When  the  directors  of  a  mutual  company  are  liable  to 
pay  an  execution  against  the  company,  the  creditor  may  recover  the 
same  by  a  suit  in  equity  or  by  an  action  at  law  against  the  direct- 
ors. Any  director  who  pays  an  execution  against  the  comi)any  for 
which  he  is  personally  liable,  may  have  a  suit  at  law  with  equitable 
remedies  for  contribution  against  any  of  the  directors  for  their  pro- 
portion, and  also  a  suit  at  law  with  equitable  remedies  against  the 


MASSACHUSETTS.  359 

company  or  tlie  iTidividual  members  thereof  who  are  liable  therefor, 
for  money  so  paid  for  them ;  Provided,  That  no  member  shall  be 
liable  to  pay  in  addition  to  his  premium  and  deposit  more  than  a 
sum  equal  thereto.     {Ibid,  §  50.) 

146.  If  the  treasurer  of  a  mutual  company  unreasonably  neg- 
lects to  collect  an  assessment  made  by  order  of  the  directors  and  to 
apply  the  same  to  the  payment  of  the  claims  for  which  it  was  made, 
he  shall  be  liable  in  his  private  capacity  to  the  party  having  such 
claims  for  the  amount  of  the  assessment ;  and  he  may  repay  himself 
out  of  any  money  afterward  received  for  the  company  on  account  of 
said  assessment.     {Ibid,  §  49.) 

147.  If  a  mutual  fire  insurance  company  is  owing  for  money 
borrowed  to  pay  losses  or  expenses,  or  is  owing  for  losses  or  ex- 
penses which  it  can  not  pay  otherwise  than  by  borrowing  money, 
and  the  directors  neglect  or  omit,  for  the  space  of  six  months  after 
such  losses  or  expenses  became  due  and  payable,  to  lay  and  collect 
with  all  practicable  diligence  an  assessment  wliich,  with  other  cash 
funds  on  hand,  if  any,  is  sufficient  to  discharge  all  the  existing  in- 
debtedness of  the  company,  they  shall  be  personally  liable  for  all 
debts  and  claims  then  outstanding  against  the  company,  and  for  all 
thereafter  accruing,  until  an  assessment  is  laid  and  put  in  process  of 
collection,  as  aforesaid  ;  Provided,  That  in  case  of  such  existing  in- 
debtedness by  any  company^  six  months  shall  be  allowed  after  the 
passage  of  this  act.     {Laws  of  1868,  317,  §  2.) 


STOCK   AND    MUTUAL    (COMBINED)     INSURANCE    COM- 
PANIES. 

148.  No  mutual  fire  insurance  company  shaU  issue  policies  on 
any  other  than  the  mutual  plan  of  insurance,  excepting  such  com- 
panies as  have  been  chartered  as  stock  and  mutual  companies ;  and 
such  companies,  if  doing  bnsiness  in  Boston,  either  directly  or 
through  agencies,  before  issuing  policies  or  transacting  any  business 
in  the  stock  department,  shall  have  a  guaranty  capital  of  at  least 
one  hundred  thousand  dollars,  paid  in  and  invested  as  required  by 
sections  eighty-eight,  eighty-nine  and  ninety,  exclusive  of  stock- 
holders' notes  (unless  such  notes  are  secured  by  mortgage  or  by 
pledges  of  stock  or  bonds,  as  provided  in  section  eighty-nine),  and 
of  all  debts  due  from  the  company,  and  such  proportion  of  all  pre- 
miums received  in  cash  for  risks  not  terminated,  as  would  be  requi- 
site to  reinsure  the  same.  If  doing  business  in  any  other  city  or 
town,  the  sum  of  at  least  fifty  thousand  dollars  shall  be  paid  in  and 
invested  in  like  manner,  and  be  subject  to  like  conditions  and  re- 
strictions.    {General  Statutes,  58,  §  56.) 

149.  All  business  and  investments  on  account  of  the  stock 
department  of  such  companies  shall  be  separately  Icept,  and  the 
returns  to  the  Insurance  Commissioner  respecting  the  same  sliall 
be  according  to  the  form  prescribed  or  authorized  for  joint  stock  in- 
surance companies.  The  business  done  on  the  mutual  })rincii)le  shall 
also  be  kept  separate,  and  returns  made  agreeably  to  the  form  pre- 
scribed or  authorized  for  mutual  fire  insurance  companies.  {Ibid, 
§  56.) 

150.  Such  combined  companies  shall  not  take  on  anyone  risk 
in  their  stock  department  a  sum  exceeding  one-tenth  of  their  capital 
stock  ;  and  when  the  capital  stock  is  reduced  iu  any  way,  the 


360  hine's  insueance  statujes. 

amount  thereafter  to  be  taken  on  any  one  risk  shall  forthwith  be 
correspondingly  reduced  to  the  limitation  in  section  ninety-four, 
until  tlie  capital  is  restored  to  its  original  amount.     {Ibid,  §  56.) 

151.  One-half  of  the  directors  of  every  mutual  fire  insurance 
company  with  a  guaranty  capital,  shall  be  chosen  from  the  hold- 
ers of  the  guaranty  stock,  and  the  other  half  from  the  members  of 
the  mutual  department.     (Ibid,  §  46.) 

l!i*2.  The  secretary  shall  keep  a  true  list  of  stockholders  of  the 
guaranty  capital,  and  of  the  number  of  shares  held  by  each,  and  a 
record  of  the  transfer  of  shares.     {Ibid,  §  46.) 

15*t.  Special  meetings  maybe  called  by  the  directors  when 
they  think  proper,  and  shall  be  called  by  them  upon  the  written  ap- 
plication of  the  owners  of  one-fifth  of  the  guaranty  stock,  or  of  twen- 
ty members  of  the  mutual  department,  setting  forth  the  purposes  of 
the  meeting.     {Ibid,  §  46.) 


mutual  maeine,  and  mutual  fire-marme,  insue- 

a:n'ce  companies. 

154.  Mutual  marine  and  mutual  fire  and  marine  insurance 
comjianies  established  by  the  laws  of  the  State  shall  be  subject  to 
the  provisions  of  sections  ninety-eight,  ninety-nine,  one  hundred  one, 
one  hundred  two,  and  one  hundi'ed  three,  relating  to  mutual  fire  in- 
surance companies,  and  shall  before  commencing  business  have  an 
agreement  substantially  as  follows,  viz. : 

"  The  subscribers,  members  of  the  insurance  company, 

severally  agree  to  pay  said  company  on  demand  the  sums  set  against 
our  names,  or  such  part  thereof  as  may  be  called  in  for  the  use  of 
the  company,  in  money  or  promissory  notes."    {Ibid,  §  35.) 

155.  Policies  of  insurance  maybe  issued  by  such  company 
when  two  hundred  thousand  dollars,  if  the  company  is  in  Boston,  or 
one  hundred  thousand  dollars,  if  the  company  is  in  any  other  city 
or  town  in  the  State,  has  been  subscribed  and  paid  in  cash  or  notes 
payable  on  time  not  exceeding  twelve  months ;  and  the  president 
and  majority  of  the  directors  have  certified  that  the  subscribers,  are 
known  to  them,  and  they  bebeve  them  solvent  and  able  to  pay  their 
subscriptions  ;  and  a  copy  of  the  certificate  has  been  deposited  with 
the  Insurance  Commissioner  and  approved  by  him.  Subsequent 
subscrijitions  shall  be  made  and  certified  in  like  manner;  and  a  like 
copy  shall  annually,  on  or  before  the  first  day  of  November,  be  filed 
with  the  Commissioner.     {Ibid,  §  35.) 

15<9.  The  subscriiitions  provided  for  in  the  two  preceding  sec- 
tions shall  constitute  a  permanent  fund,  to  be  used  when  necessary 
for  payment  of  the  losses  and  expenses  of  the  company  ;  but  shall 
not  be  applied  to  pay  the  premiums  for  insurance  effected  by  the  sub- 
scribers. The  subscription  notes  as  they  mature  shall  be  paid  in  or 
other  notes  substituted  therefor,  so  that  the  amount  of  the  original 
fund  shall  not  be  reduced.     {Ibid,  §  27.) 

157.  If  any  subscriber  fails  to  pay  his  subscription,  and  it  is 
proved  that  the  president  or  a  director  knowingly  certified  false- 
ly in  regard  to  such  subscriber,  the  person  certifying  shall  be  lia- 
ble to  the  company  for  such  sum  as  the  subscriber  fails  to  pay, 
{Ibid,  §  37.) 

158.  The  subscription  notes,  or  nny  pro  rata  portion  thereof 
may  be  canceled  Avhenever  the  net  profits  of  the  business  are  suflBcient 


MASSACHUSETTS.  3C1 

I 

i 


to  replace  the  same ;  and  such  profits  shall  then  be  invested  as  pre- 
scribed in  sections  eighty-nine  and  ninety,  thereafter  to  be  held  as 
the  permanent  fund  in  place  of  said  notes.  All  payments  made  on 
subscription  notes  and  all  cash  funds  not  required  for  the  current 
uses  of  the  company  shall  be  invested  iu  the  same  manner.  {Ibidy 
§37.) 

159.  Each  subscriber,  during  the  term  of  his  subscription, 
and  each  person  insured,  shall  be  a  member  of  the  company ;  but 
persons  insured  shall  not  remain  members  after  the  termination  of 
the  risk  and  the  payment  of  the  loss,  if  any,  thereon.     {Ibid,  §  36.) 

1 60.  No  companj^  shall  hold  on  one  risk  more  than  ten  per 
cent,  of  its  subscriptions  and  invested  funds,  not  pledged,  and  pre- 
mium notes  on  risks  absolutely  terminated,  after  deducting  there- 
from all  losses  and  claims  for  losses,  or  cash  received  for  risks  not 
terminated,  and  all  debts.  Whenever  by  means  of  open  policies  or 
indorsements  thereon  more  than  ten  per  cent,  is  so  at  risk,  the  di- 
rectors shall,  as  soon  as  may  be,  obtain  reinsurance  for  the  amount 
of  such  excess.     {Ibid,  §  37.) 

161.  If  a  company  is  at  any  time  liable  for  losses  beyond  the 
amount  of  its  cash  iund,  legal  investments,  premium  notes  received 
from  risks  terminated,  and  subscription  notes,  the  president  and 
directors,  knowing  the  condition  of  the  company,  shall  be  personally 
liable  for  all  losses  occurring  on  insurance  effected  during  such  state 
of  the  company.     {Ibid,  §  38.) 

162.  The  directors  shall  require  the  president  to  make  a 
monthly  statement  to  them  of  the  assets  and  liabilities  of  the  com- 
pany ;  which  statement  shall  be  entered  upon  their  records,  or  in  a 
book  kept  for  that  purpose.     {Ibid,  §  39.) 

1 63.  Mutual  marine  insurance  companies  incorporated  in  this 
State,  which  have  been  in  operation  not  less  than  twelve  months, 
shall  cause  an  annual  dividend  statement  to  be  made  up  in  each 
year,  containing  a  fair  estimate  of  the  net  profits  of  the  company 
not  before  divided,  taking  into  view  the  probable  amount  to  be  paid 
on  all  claims,  outstanding  risks,  and  demands  against  the  company, 
and  including  expenses,  interest,  and  allowances  for  previous  de- 
ficiencies. After  ascertaining  in  this  mode  the  net  profits  of  the 
year  on  the  risks  terminated,  the  directors  may  declare  a  dividend 
of  such  profits  of  a  certain  per  cent,  on  the  premiums  received  for 
such  terminated  risks,  and  the  subscriptions  made  to  the  safety 
fund  in  that  year,  and  may  issue  certificates  representing  said  divi- 
dend to  the  persons  in  whose  names  the  policies  of  insurance 
and  subscriptions  for  the  year,  in  conformity  to  the  provisions  of 
sections  one  hundred  thirty-three  and  one  hundred  thirty-four,  were 
originally  made,  or  to  their  legal  representatives.     {Ibid,  §  40.) 

1 64.  The  certificates  shall  be  transferable  only  on  the  books 
of  the  company,  under  regulations  to  be  prescribed  by  the  by- 
laws, and  shall  contain  a  provision  declaring  the  same  to  be  sub- 
ject to  future  losses  and  ex])enses  of  the  company  until  they  are  re- 
deemed as  hereinafter  provided,  and  subject  to  be  reduced  by  the 
directors  in  case  of  losses  and  expenses  in  any  subsequent  year  ex- 
ceeding the  estimated  profits  of  such  year.  But  such  original  certi- 
ficate need  not  be  issued  for  a  less  sum  than  ten  dollars.  All  such 
sums  may  be  passed  to  the  contingent  accounts  of  the  company. 
{Ibid,  §  40.) 

16o.  Such  companies  may  pay  on  the  certificates  issued  in 
conformity  with  the  preceding  sections,  from  the  accrued  income  of 


362  hine's  insurance  statutes. 

their  invested  funds,  interest  not  exceeding  six  per  cent,  per  annum ; 
and  whenever  the  net  profits  of  any  such  company  exceed  the  sum 
of  two  hundred  and  fifty  thousand  dollars,  the  excess  may  be 
applied  from  year  to  year  thereafter  to  the  redemption  of  the  certifi- 
cates of  the  previous  years  in  such  manner  as  the  directors  deter- 
mine ;  but  no  certificates  of  any  year  shall  be  redeemed  while 
certificates  of  previous  years  remain  unredeemed.  When  the  accu- 
mulations of  net  profits  of  such  company  exceed  the  sum  of  five 
hundred  thousand  dollars,  such  excess  shall  be  so  applied.  (Ibid, 
§41.) 

16®.  "WTien  a  person  entitled  to  a  certificate  of  profits  is  in- 
debted to  such  company  for  any  sum  i)ast  due,  the  comjiany  may 
withhold  the  certificate  and  deduct  such  sum  from  the  amount 
thereof,  and  reduce  or  cancel  the  same ;  but  persons  holding  policies 
of  the  company  or  entitled  to  certificates  shall  not  be  answerable 
by  reason  thereof,  or  for  anything  contained  therein,  except  for  the 
payment  of  their  premium  or  other  notes  in  advance  for  i^remiums. 
{Ibid,  §  42.) 

167.  No  insurance  company  hereafter  chartered,  with  author- 
ity to  effect  marine  insurance  on  the  mutual  principle,  shall  issue 
policies  until  at  least  one-half  of  the  subscribed  capital  or  safety 
fund  required  by  law  has  been  paid  in  in  cash.  The  provisions  of 
law  relating  to  the  capital  of  joint  stock  insurance  comi)anies  shall 
be  a})plicable  to  the  cash  capital  of  such  mutual  companies.  [Laics 
of  1868,  317,  §  3.) 


STOCK    OR   MUTUAL   FIEE,  MARINE,    OR   FIRE-MARINE 

INSURANCE  COMPANIES. 

168.  Any  ten  or  more  persons  residents  of  this  common- 
wealth, who  shall  have  associated  themselves  together  by  an  agree- 
ment, in  writing,  such  as  is  hereinafter  described,  with  the  intention 
to  constitute  a  cori)oration  for  the  purpose  of  transacting  the  busi- 
ness of  insurance,  either  upon  the  stock  or  mutual  principle,  against 
loss  or  damage  by  fire,  by  lightning,  by  tempest,  or  by  the  perils  of 
the  sea,  and  other  perils  usually  insured  against  by  marine  insurance 
companies,  including  risks  of  inland  navigation  and  transportation, 
shall  become  a  corporation  upon  complying  with  the  provisions  of 
section  nine  of  this  act,  and  shall  remain  a  corporation  with  all  the 
powers,  rights  and  privileges,  and  subject  to  all  the  duties,  liabilities 
and  restrictions  set  forth  in  all  general  laws  which  are  or  may  be  in 
force  relating  to  insurance  corporations.  [Laws  of  1872,  chap. 
375,  §  1.) 

1 6S>.  Such  agreement  shall  set  forth  the  fact  that  the  sub- 
scribers thereto  associate  themselves  with  the  intention  to  consti- 
tute a  corporation,  the  name  by  which  the  corporation  shall  be 
known,  the  class  or  classes  of  insurance  for  the  transaction  of  which 
the  corporation  is  constituted,  the  plan  or  principle  upon  which  the 
business  is  to  be  conducted,  the  town  or  city  (which  town  or  city 
shall  be  within  this  commonwealth)  in  which  it  is  established  or 
located,  and  if  a  joint  stock  comi)any,  the  amount  of  its  capital 
stock,  and  if  a  mutual  company  with  a  guarantee  capital,  the  amount 
thereof.  The  capital  stock  of  a  joint  stock  company  insuring  against 
loss  or  damage  by  fire,  or  by  fire  and  lightning  only,  shall  not  be  less 
than  two  hundred  thousand  dollars  if  the  comj)any  is  located  in 


MASSACHUSETTS.  363 

Boston,  and  not  less  than  one  bnndred  thousand  if  located  else- 
where. If  insuring'  marine  or  inland  risks,  either  alone  or  in  con- 
junction with  tire  risks,  its  caiiital  stock  shall  not  be  less  than  three 
hundred  thousand  dollars  if  the  company  is  located  in  Boston,  and 
not  less  than  two  hundi-ed  thousand  dollars  if  located  elsewhere. 
{Ibirl,  §  2.) 

1 70.  Any  mutual  fire  insurance  company  may  be  organized 
under  the  provisions  of  this  act  with  a  guarantee  capital  of  not  less 
than  one  hundred  thousand  dollars,  and  not  more  than  three  hun- 
dred thousand  dollars,  divided  into  shares  of  one  hundred  dollars 
each,  and  no  policy  shall  be  issued  by  such  corporation  until  the 
whole  amount  of  the  guarantee  capital  fixed  by  the  articles  of  as- 
sociation has  been  paid  in  in  cash,  and  invested  in  accordance  with 
the  13 ro visions  of  section  thirty-one  of  chapter  fifty-eight  of  the 
General  Statutes  and  chapter  twenty-nine  of  the  acts  of  the  year 
eighteen  hundred  and  sixty-four,      (i  bid,  §  3.) 

171.  Any  mutual  marine,  and  mutual  fire  and  marine  insur- 
ance company  may  be  organized  under  the  provisions  of  this  act, 
with  a  permanent  fund  of  not  less  than  four  hundred  thousand 
dollars,  subscribed  under  the  provisions  of  sections  thirty-five  and 
thirty  seven  of  chapter  fifty-eight  of  the  General  Statutes ;  and  no 
policy  shall  be  issued  by  such  corporation  until  one-half  said  per- 
manent fund  has  been  paid  in  in  cash,  which  shall  be  divided  into 
shares  of  one  hundred  dollars  each.  Such  corporations  may  increase 
said  permanent  fund  to  an  amount  not  exceeding  one  million  of 
dollars.     (Ibid,  §  4.) 

1 72.  Any  name  not  previously  in  use  by  an  existing  corpora- 
tion or  company,  may  be  adopted ;  Provided,  That  the  words  "  in- 
surance company''^  shall  constitute  a  part  of  the  title,  and  if  the  busi- 
ness is  to  be  conducted  upon  the  mutual  principle,  the  words 
"  m?<#?<annsurance  company  "  shall  constitute  a  part  of  such  title. 
No  certificate  shall  be  granted  to  any  corporation  as  hereinafter  pro- 
vided, if  in  the  judgment  of  the  Insurance  Commissioner  the  name 
adopted  too  closely  resembles  the  name  of  an  existing  corporation 
or  company,  or  is  likely  to  mislead  the  public.     {Ibid,  §  5.) 

1711.  The  first  meeting  for  the  purpose  of  organization  shall 
be  called  by  a  notice,  signed  by  one  or  more  of  the  subscribers  to 
such  agreement,  stating  the  time,  place  and  purpose  of  the  meeting, 
a  copy  of  which  notice  shall,  seven  days  at  least  before  the  day  ap- 
pointed, be  given  to  each  subscriber,  or  left  at  his  usual  place  of 
business  or  residence,  or  deposited  in  the  post-office,  postage  pre- 
paid, and  addressed  to  him  at  his  usual  place  of  business  or  resi- 
dence. And  whoever  gives  such  notices  shall  make  affidavit  of  his 
doings,  which  shall  be  entered  upon  the  records  of  the  company ; 
Provided,  however,  That  when  organizations  shall  be  commenced 
prior  to  the  first  day  of  January,  in  the  year  eighteen  hundred  and 
seventy-three,  the  foregoing  notice  may  be  waived  by  a  written  ac- 
knowledgment of  the  receipt  of  notice  signed  by  the  subscribers, 
which  shall  be  sufficient  evidence  that  due  notice  has  been  given. 
{Ibid,  §  6.) 

1 74.  At  such  first  meeting,  including  any  adjournment  thereof, 
an  organization  shall  be  effected  by  the  choice  by  ballot  of  a  tem- 
porary clerk,  who  shall  be  sworn  to  the  faithful  discharge  of  ids 
duty,  by  the  adoption  of  by-laws  and  by  the  election,  in  the  manner 
provided  by  law,  of  directors  and  such  other  officers  as  the  by-laws 
require ;  but  at  such  first  meeting  no  person  shall  be  elected  director 


364  hine's  insukance  statutes. 

who  has  not  subscribed  to  the  articles  of  association.  The  tempo- 
rary clerk  shall  record  the  proceedings  until  and  including  the  quali- 
fication of  the  secretary  of  the  corporation  by  his  being  duly  sworn. 
{Ibid,  §  7.) 

1 75.  The  directors  so  chosen  shall  elect  a  president,  a  secre- 
tary, and  any  other  officers  which  under  the  by-laws  they  are 
authorized  to  choose.     {Ibid,  §  8.) 

17^.  The  president,  secretary  and  a  majority  of  tbe  directors 
shall  forthwith  make,  sign  and  swear  to  a  certificate  setting  forth  a 
copy  of  the  articles  of  association,  with  the  names  of  the  subscribers 
thereto,  the  date  of  the  first  meeting,  and  of  any  adjournments 
thereof,  and  shall  submit  such  certificate  and  the  records  of  the  cor- 
poration to  the  inspection  of  the  Insurance  Commissioner,  who  shall 
examine  the  same,  and  who  may  require  such  other  evidence  as  he 
may  judge  necessary.  The  Commissioner,  if  it  shall  appear  that  the 
requirements  of  the  preceding  sections  of  this  act  have  been  com- 
plied with,  shall  certify  that  fact,  and  his  approval  of  the  certificate, 
by  indorsement  thereon.  Such  certificate  shall  thereupon  be  filed 
in  the  office  of  the  Secretary  of  the  Commonwealth  by  said  officers, 
and  upon  being  jiaid  by  them  the  fee  hereinafter  provided,  the  secre- 
tary shall  cause  the  same,  with  the  indorsement  thereon,  to  be  re- 
corded, and  shall  thereupon  issue  to  said  corporation  a  certificate  in 
the  followiug  form  : 

Commonwealth  of  Massachusetts  : 

Be  it  known,  that  whereas  [here  the  names  of  the  subscribers  to 
the  articles  of  association  shall  be  inserted]  have  associated  them- 
selves with  the  intention  of  forming  a  corporation  under  the  name 
of  [here  the  name  of  the  corporation  shall  be  inserted],  for  the  pur- 
pose [here  the  purpose  declared  in  the  articles  of  association  shall  be 
inserted],  with  a  capital  or  with  a  permanent  fund  of  [here  the 
amount  of  capital  or  permanent  fund  fixed  in  the  articles  of  asso- 
ciation shall  be  inserted],  and  have  complied  with  the  provisions  of 
the  statutes  of  this  commonwealth  in  such  case  made  and  provided, 
as  appears  from  the  certificate  of  the  president,  secretary  and  direc- 
tors of  said  corporation,  duly  approved  by  the  Insurance  Commis- 
sioner, and  recorded  in  this  office.  Now,  therefore,  I  [here  the  name 
of  the  secretary  shall  be  inserted],  secretary  of  the  commonwealth 
of  Massachusetts,  do  herebj^  certify  that  said  [here  the  names  of  the 
subscribers  to  the  articles  of  association  shall  be  inserted],  their 
associates  and  successors,  are  legally  organized  and  established  as, 
and  are  hereby  made  an  existing  corporation  under  the  name  of 
[here  the  name  of  the  corporation  shall  be  inserted],  with  the  pow- 
ers, rights,  and  privileges,  and  subject  to  the  duties,  liabilities,  and 
restrictions  which  by  law  appertain  thereto.  Witness  my  official 
signature  hereunto  subscribed,  and  the  seal  of  the  Commonwealth 
of  Massachusetts  hereunto  affixed  this  day  of  , 

in  the  year  of  our  Lord  .     [In  these  blanks  the  day, 

month,  and  year  of  execution  of  the  certificate  shall  be  inserted, 
and  in  the  case  of  purely  mutual  companies,  so  much  as  relates  to 
capital  stock  shall  be  omitted.] 

The  secretary  of  the  commonwealth  shall  sign  the  same,  and 
cause  the  seal  of  the  commonwealth  to  be  thereto  affixed,  and  such 
certificate  shall  have  the  force  and  effect  of  a  special  charter,  and 
be  conclusive  evidence  of  the  organization  and  establishment  of  such 


MASSACHUSETTS.  3G5 

corporation.  The  secretary  shall  also  cause  a  record  of  such  certifi- 
cate to  be  made,  and  a  copy  of  such  record,  duly  certified,  may, 
with  like  effect  as  the  original  certificate,  be  given  in  evidence  to 
prove  the  organization  and  establishment  of  such  corporation. 
(irt?rs  0/1872,  375,  §  9.) 

177.  No  policy  shall  be  issued  by  a  purely  mutual  company 
organized  under  the  provisions  of  this  act,  until  the  sum  of  five 
hundred  thousand  dollars  shall  have  been  subscribed  to  be  insured 
and  entered  on  the  books  of  the  company  :  Provided,  however,  That 
In  any  town  of  less  than  four  thousand  inhabitants,  a  company  may 
be  organized  under  the  provisions  of  this  act,  to  insure  dwelling- 
houses,  farm  buildings,  and  contents  only,  within  the  limits  of  the 
town  where  said  company  is  located,  and  may  issue  policies  when 
fifty  thousand  dollars  have  been  subscribed  to  be  insured.  {Laics 
0/1872,375,  §  10.) 

178.  The  holders  of  stock  in  mutual  fire  insurance  companies 
with  a  guarantee  capital  organized  under  the  provisions  of  this  act 
shall  be  entitled  to  a  net  semi-annual  dividend  not  exceeding  five 
per  centum  on  their  respective  shares,  if  the  net  profit,  after  pro- 
viding for  all  expenses,  losses,  and  liabilities  then  incurred,  includ- 
ing a  sum  sufficient  to  reinsure  all  outstanding  risks,  is  sufficient 
from  time  to  time  to  pay  the  same  ;  and  if  any  such  dividend  is  less 
than  five  per  centum  it  shall  be  made  up  when  such  net  profit  be- 
comes sufficient  therefor.  Three-fourths  of  said  net  profit,  after  the 
payment  of  said  dividends,  shall  be  credited  to,  and,  at  the  expira- 
tion of  the  policies,  divided  among  the  insured,  and  the  remaining 
one-fourth  shall  be  invested  and  be  a  reserve  for  the  security  of  the 
insured ;  but  when  from  time  to  time  the  reserve  shall  exceed  five 
per  centum  on  the  amount  insured,  the  whole  of  said  net  profit  in 
excess  of  said  reserve  of  five  per  centum  shall,  after  the  payment  of 
said  dividends,  be  divided  among  the  insured  at  the  expiration  of 
their  policies. 

The  guarantee  capital  shall  be  applied  to  the  payment  of  losses 
only  when  the  other  cash  funds  have  been  exhausted ;  and  if  the 
guarantee  capital  shall  at  any  time  be  reduced,  it  shall  be  replaced 
from  the  first  accumulation  of  the  reserve,  or  the  directors  may  at 
their  discretion  replace  the  whole  or  any  part  of  it  by  assessments 
upon  the  contingent  funds  in  the  possession  of  the  company  at  the 
time  of  said  reduction. 

Shareholders  and  policy-holders  in  cori^orations  referred  to  in 
this  section  shall  be  subject  to  the  same  provisions  of  law  in  voting 
at  all  meetings  of  such  corporations  as  api)ly  respectively  to  share- 
holders in  joint  stock  companies  and  policy-holders  in  purely  mutual 
companies,  and  the  directors  may  be  elected  from  the  stockholders 
or  policy-holders,  not  less  than  one-half  being  from  the  holders  of 
stock.  Such  companies  may  insure  property  located  in  any  pait  of 
the  United  States  and  for  its  full  value,  and  shall  be  subject  to  the 
provisions  of  chapter  two  hundred  and  eighty-three  of  the  acts  of 
the  year  eighteen  hundred  and  sixty-five.  {Laws  o/1872,  375,  §  11, 
as  amended  by  laics  o/1873,  chap.  177.) 

1 79.  The  holders  of  shares  in  the  permanent  fund  of  any  mutual 
marine,  or  mutual  fire  and  marine  insurance  comi)any,  shall  be  en- 
titled to  a  semi  annual  dividend  of  not  exceeding  six  i^er  centum, 
and  the  makers  of  the  promissory  notes  constituting  any  part  of 
such  fund  shall  be  entitled  to  a  semi-annual  dividend  not  exceeding 
two  and  one-half  per  centum  of  the  amount  of  such  notes,  if   the 


36G  hine's  insueance  statutes. 

profits  and  income  of  the  company,  after  providing  for  all  expenses, 
losses,  and  liabilities  then  existing,  including-  a  sum  sufficient  to  re- 
insure all  outstanding  risks,  as  provided  by  the  laws  of  the  com- 
mon weath,  are  sufticient  to  pay  the  same,  and  if  any  dividends  are 
less  than  those  amounts  respectively,  the  same  shall  be  made  up 
■when  such  net  profits  and  income  become  sufiicient  therefor. 

The  directors  may  declare  each  year  a  dividend  of  the  remain- 
der of  such  net  profits  and  income  on  the  premiums  received  on 
risks  terminated  during  the  year,  aud  issue  certificates  therefor,  as 
provided  in  the  general  laws  relating  to  mutual  marine,  or  mutual 
fire  aud  marine  insurance  companies ;  Provided,  That  no  such  cer- 
tificates shall  be  redeemed  until  the  accumulation  of  net  profits 
exceed  the  sum  of  five  hundred  thousand  dollars,  and  no  certificates 
shall  be  redeemed  until  the  directors  so  determine. 

The  shareholders  in  corporations  referred  to  in  this  section  shall 
be  the  members  of  the  company,  and  subject  to  the  same  provisions 
of  law  in  voting  at  all  meetings  of  such  corporations,  as  apply  to 
shareholders  in  joint-stock  comijanies.  All  such  companies  shall 
be  subject  to  the  provisions  of  chapter  two  himdred  and  eighty- 
three  of  the  acts  of  the  year  eighteen  hundred  and  sixty -five. 
{Ibid,  §  12.) 

180.  Any  joint-stock  insurance  comijauy  organized  under  the 
provisions  of  this  act,  may,  at  a  meeting  called  for  the  purpose, 
increase  the  amount  of  its  capital  stock  and  the  number  of  shares 
therein,  aud  within  thirty  days  after  the  pajonent  or  collection  of 
the  last  installment  of  such  increase,  shall  present  to  the  insuiance 
commissioner  a  certificate  setting  forth  the  amount  of  such  increase, 
and  the  fact  of  such  payment,  signed  and  sworn  to  by  the  president, 
secretary  and  a  majority  of  the  directors  of  such  corporation.  The 
Insurance  Commissioner  shall  examine  the  certificate  and  ascertain 
the  character  of  the  investments  of  such  increase ;  and  if  the  same 
conforms  to  law,  shall  indorse  his  approval  thereof,  and  such  cer- 
tificate shall  then  be  filed  with  the  Secretary  of  the  commonwealth, 
and  thereupon  the  company  shall  be  authorized  to  transact  business 
upon  the  capital  so  increased,  and  the  Insurance  Commissioner  shall 
issue  his  certificate  to  that  effect ;  and  any  mutual  iusui'auce  com- 
pany with  a  guaranty  capital  may,  within  the  limits  authorized  by 
this  act,  increase  its  capital  in  the  same  manner  as  a  joint-stock  in- 
surance company.     {Ibid,  §  13.) 

181.  Whenever  any  joint-stock  insurance  com^jany  organized 
under  the  provisions  of  chapter  three  hundred  and  seventy -five  of 
the  acts  of  the  year  eighteen  hundred  and  seventy -two,  shall  have 
increased  its  capital  stock  in  the  manner  provided  by  section 
thirteen  of  said  act,  to  the  sum  of  three  hundi-ed  thousand  dollars 
or  more,  such  company  shall  be  authorized  to  insure  against  loss  or 
damage  by  tempest  or  by  the  perils  of  the  sea,  and  other  perils 
usually  insured  against  by  marine  insurance  companies,  including 
risks  of  inland  navigation  aud  transportation ;  and  the  insurance 
commissioner  shall  issue  his  certificate  to  that  effect.  {Laws  of 
1873,  c/iop.  182,  §  1.) 

1  8S.  The  fees  to  be  paid  for  filing  and  recording  the  certifi- 
cates required  by  sections  nine  and  thirteen  to  be  filed  with  the 
Secretary  of  the  commonwealth,  shall  be  as  follows : — 

For  the  certificate  required  by  section  nine,  twenty-five  dollars. 

For  the  certificate  required  by  section  thirteen,  five  dollars. 
{Laws  of  1872,  375,  §  14.) 


MASSACHUSETTS.  3G7 

1  83.  Corporations  orfjaiiized  under  the  j)rovisions  of  tins  act 
may  liokl  real  estate  for  the  imrposes  of  their  business  to  an  aniouut 
not  exceeding  twenty-five  per  centum  of  their  cash  assets.  [Ibid, 
§15.) 

184.  No  insurance  corporation  or  association  of  any  other 
State  or  country  shall  be  hereafter  admitted  to  do  business  in  this 
State,  unless  it  has  at  least  the  amount  of  unimpaired  capital  stock 
or  iunds  required  of  like  corporations  or  associations  hereafter 
organized  in  this  State,  located  in  the  city  of  Boston  ;  and  the  pro- 
visions of  this  section,  relating  to  capital  stock  or  funds,  shall  be 
held  applicable  to  all  insurance  corporations  or  associations  of  any 
other  State  or  country  doing  business  in  this  State  after  the  first 
day  of  January,  eighteen  hundred  and  seventy  four.     {Ibid,  §  16.) 

1  8»>.  No  joint  stock  insurance  company  organized  under  the 
laws  of  this  commonwealth,  and  doing  the  business  of  insurance 
under  such  organization,  shall  declare  cash  dividends  exceedhig  in 
a-mount  six  per  centum  semi-annually  on  their  capital  stock ;  but 
any  such  company  liiay  issue  i^ro  rata  to  its  stockholders  certificates 
of  such  portion  of  its  profits  and  income  as  the  directors  may  from 
time  to  time  determine,  not  including  therein  any  portion  of  the 
premium  money  of  risks  not  terminated,  and  after  providing  for  all 
expenses,  losses  and  liabilities  then  incurred ;  and  the  capital  stock 
of  such  company  shall  be  increased  by  the  amount  of  the  certifi- 
cates of  stock  so  issued;  and  whenever  any  increase  of  capital 
shall  be  made  by  an  insurance  company  under  the  provisions  of 
this  act,  a  certificate  thereof  shall  be  filed  with  the  Insurance  Com- 
missioner, whose  duty  it  shall  be  to  certify  to  the  amount  of  the 
capital  stock  of  the  comx^any  so  increased  in  like  manner  as  by  law 
is  provided  in  case  of  the  organization  of  joint-stock  insurance 
companies.     {Ibid,  §  17.) 

180.  The  Mayor  and  Aldermen  of  the  several  cities  and  the 
Selectmen  of  towns  having  more  than  four  thousand  inhabitants, 
shall  before  the  first  day  of  October,  in  the  year  eighteen  hundred 
and  seventy-three,  divide  their  respective  cities  and  towns  into  fire 
insurance  districts,  and  immediately  thereafter  file  plans  and  speci- 
fications thereof  with  the  Insurance  Commissioner,  and  the  same 
shall  be  subject  to  his  approval ;  and  if  he  disapproves  the  same, 
the  Mayor  and  Aldermen  or  Selectmen  shall  furth\vith  re-district 
such  city  or  town  in  conformity  to  his  requirement.  And  no  com- 
pany or  association  transacting  the  business  of  fire  insurance  in 
this  commonwealth  shall  after  said  first  day  of  October  take  or 
have  at  risk  on  property  other  than  dwelling-houses,  farm  buildings 
and  their  contents  in  any  town  or  such  fire  insurance  district  of  a 
city  or  town  therein,  an  amount  exceeding  its  net  assets  available 
for  the  payment  of  losses  in  Massachusetts;  and  in  comiiuting  the 
assets  of  such  company  or  association  insuring  property  upon  the 
mutual  principle,  its  premium  notes  shall  be  included.  When  from 
any  cause  the  net  assets,  as  aforesaid,  of  any  such  company  or  as- 
sociation shall  be  reduced  to  a  sum  less  than  the  amount  taken 
or  held  at  risk  in  any  town,  or  any  such  fire  insurance  district 
as  provided  in  this  section,  such  company  or  association  shaU 
forthwith  either  cancel  and  return  to  the  holder  the  unearned 
portion  of  the  premium  upon  policies  upon  property  in  such 
territory  to  an  amount  equal  to  the  difference  between  the 
net  assets  and  the  amount  taken  or  held  at  risk,  as  aforesaid, 
or  effect  reinsurance  ui)on   such   property  for  a  like   sumj   and 


368  hine's  insurance  statutes. 

no  such  cancellation  sball  take  place  except  after  notice  to  the 
holder  of  the  policy.  Every  such  company  or  association  shall 
annually,  on  or  before  the  fifteenth  day  of  January,  return  to  the 
Insurance  Commissioner  a  sworn  statement  of  the  amount  taken  or 
held  at  risk  in  each  town  or  fire  insurance  district  of  a  city  in  this 
commonwealth,  on  the  thirty -first  day  of  December  next  ])receding. 
The  Insurance  Commissioner  may,  whenever  he  deems  expedient, 
require  of  said  companies  or  associations  such  a  statement,  or  any 
part  thereof;  he  may  also  require  such  other  information,  and 
adopt  such  rules  and  regulations  as  he  may  deem  proper  and  neces- 
sary to  jjrocure  reliable  information  upon  this  subject.  For  every 
policy  issued  in  violation  of  the  provisions  of  this  section  by  an 
insurance  company  incorporated  under  the  laws  of  this  common- 
wealth, the  president  and  secretary  thereof  shall,  severally,  upon 
conviction,  be  punished  by  a  fine  of  fifty  dollars.  Any  agent  of  a 
comjiany  or  association  not  incorporated  under  the  laws  of  this 
commonwealth,  but  duly  authorized  to  transact  business  therein, 
shall,  upon  conviction,  be  i^unished  by  a  fine  of  fifty  dollars  for 
each  policy  issued  in  violation  of  the  provisions  of  this  section,  and 
upon  a  second  conviction,  his  certificate  of  agency  or  license  shall 
be  revoked  by  the  Insurance  Commissioner.     {Ibid,  §  18.) 

187.  Any  existing  mutual  fire  insurance  company,  at  a  meet- 
ing specially  called  for  that  pmpose,  may,  by  a  major  vote  of  the 
policy-holders  present  and  voting  thereon,  acquire  a  guaranty  cap- 
ital, as  herein  before  provided  for  mutual  fire  insurance  companies 
with  a  guaranty  capital;  and  within  thirty  days  after  the  payment 
or  collection  of  the  last  installment  of  the  subscription  to  such 
guaranty  cai)ital,  shall  i>resent  to  the  Insui'ance  Commissioner  a 
certificate  setting  forth  the  fact  of  such  vote  and  of  such  payment, 
signed  and  sworn  to  by  the  president,  secretary,  and  a  majority  of 
the  directors  of  such  company.  The  Insui'ance  Commissioner  shall 
examine  the  certificate  and  ascertain  the  character  of  the  invest- 
ments of  said  capital,  and  if  the  same  conforms  to  law,  shall  in- 
dorse his  approval  thereof,  and  such  certificate  shall  then  be  filed 
with  the  Secretary  of  the  Commonwealth,  and  thereupon  such  com- 
pany shall  be  authorized  and  required  to  transact  business  as  a 
mutual  fire  insurance  company  with  a  guaranty  capital  under  this 
act,  and  the  Insuramce  Commissioner  shall  issue  his  certificate  to 
that  effect.     {Ibid,  §  19.) 

188.  If  any  corporation  organized  under  this  act  does  not 
commence  to  issue  policies  within  one  year  after  the  date  of  the  cer- 
tificate of  its  organization,  its  corporate  powers  and  existence  shall 
cease.     {Ibid,  §  '20.) 

1 89.  The  provisions  of  this  act,  and  the  franchises,  rights, 
powers,  lu'ivileges,  duties,  and  liabilities  of  insurance  companies  or- 
ganized under  this  or  any  other  general  act,  may  be  altered,  amended, 
or  repealed,  and  the  legislature  may  annul  or  dissolve  any  such 
corporation.     {Ibid,  §  21.) 


PLATE  GLASS  IXSURA:N"CE  COMPANIES. 

190.  Any  ten  or  more  persons,  residents  of  this  common- 
wealth, who  shall  have  associated  themselves  together  by  an  agree- 
ment in  writing,  as  set  forth  in  section  two,  chapter  three  hundred 
and  seventy-five  of  the  acts  of  the  year  one  thousand  eight  hundred 


MASSACHUSETTS.  3G9 

and  seventy -two,  with  the  intention  to  constitute  a  corporation  for 
the  piu'pose  of  transacting  the  business  of  insurance  on  pkite-glass 
against  loss  or  damage  by  breakage,  local,  or  in  transit,  shall  be- 
come a  corporation  upon  complying  with  the  provisions  of  sections 
five  to  nine,  inclusive,  of  chapter  three  hundred  and  seventy-five  of 
the  acts  of  the  year  eighteen  hundred  and  seventy-two,  and  shall 
remain  a  corporation,  with  the  powers  and  privileges,  and  subject 
to  the  duties,  liabilities,  and  restrictions  set  forth  in  the  general 
laws  which  are  or  may  be  in  force  relating  to  insurance  companies, 
80  far  as  the  same  are  applicable  to  this  class  of  insurance.  {Laws 
oflS13,chap.  107,  §  1.) 

191.  The  capital  stock  of  any  such  company  shall  not  be  less 
than  fifty  thousand  dollars,  and  no  policy  shall  be  issued  until  the 
whole  amount  of  its  capital  has  been  paid  m  in  cash.     {Ibid,  §  2.) 

19!3.  Foreign  corporations  insuring  plate-glass,  as  described 
in  section  one  of  this  act,  and  doing  business  in  this  State,  and  any 
agent  or  agents  of  such  corporations,  who  may  aid  in  receiving  or 
procuring  applications  for  insurance  on  plate-glass,  or  who  may  as- 
sist in  any  manner  in  transacting  the  business  aforesaid,  shall  be 
entitled  respectively  to  the  powers  and  privileges,  and  shall  be  sub- 
ject to  the  duties,  liabilities,  and  restrictions  set  forth  m  the  laws 
regidating  the  business  of  tire  insurance  by  foreign  corporations, 
and  bj^  the  agents  of  such  corporations,  so  far  as  such  laws  are  ap- 
plicable to  this  class  of  insurance ;  except  that  such  corporations 
shall  not  be  required  to  possess  a  larger  amount  of  actual  capital 
than  is  required  by  the  second  section  of  this  act  for  companies  in 
this  commonwealth.     {Ibid,  §  3.) 


LIFE  INSURANCE  COMPANIES. 

193.  Before  any  mutual  life  insurance  company  goes  into 
operation,  a  guaranty  capital  of  one  hundred  thousand  dollars 
shall  be  paid  in  money  and  invested  as  required  by  sections  eighty- 
eight,  eighty-nine  and  ninety.     {General  Statutes,  58,  §  60.) 

1 94.  The  subscribers  or  holders  of  guaranty  stock  in  a  mutual 
life  insurance  company  shall  choose  the  first  board  of  directors  ;  at 
all  subsequent  elections  they  shall  choose  one-half  of  the  directors 
until  the  redemption  of  the  guaranty  stock,  when  the  insured  shall 
choose  the  directors.     (Ibid,  §  GO.) 

19^.  The  stockholders  shall  be  entitled  to  such  annual  divi- 
dends not  exceeding  eight  per  cent.,  as  are  agreed  upon  at  the  time 
of  subscribing  the  capital,  if  the  net  surplus  over  a  requisite  reser- 
vation for  liabilities  and  contingencies  is  sufiicient  to  pay  the  same ; 
and  if  less  than  the  sum  originally  agreed  on,  it  shall  be  made  equal 
to  it  when  the  profits  of  the  company  are  sufficient.  {Ibid,  §  60,  as 
amended  by  laws  of  1870,  chap.  349,  §^6.) 

196.  One-quarter  of  the  estimated  surplus  fund  above  a  suf- 
ficient fund  to  provide  for  risks,  losses,  expenses,  and  dividends, 
shall  be  reserved  to  be  appropriated  to  the  redemption  of  the  guar- 
anty stock ;  and  after  the  expiration  of  ten  years  from  the  organ- 
ization, when  the  amount  reserved  is  sufficient  and  the  insured  so 
vote,  the  guaranty  stock  may  be  redeemed.     {Ibid,  §  60.) 

197.  At  the  expiration  of  every  five  years,  the  residue  of  the 
estimated  surplus  fund  may  be  di^ided  among  the  assured  in  pro- 
portion to  the  amount  of  premiums  paid  by  them  respectively  on 

24 


370  niNE'S  INSURANCE  STATUTES. 

account  of  the  risk  on  their  policies  for  any  part  or  the  whole  of 
the  preceding  five  years;  Provided^  That  any  policy  on  which  the 
premium  is  payable  otherwise  than  by  equal  annual  payments,  shall 
not  be  entitled  to  a  larger  distribution  than  if  the  premium  had  been 
so  paid.     {General  Statutes,  5S,  §  60.) 

198.  Life  insurance  companies  which  do  business  upon  the 
principle  of  mutual  insurance,  or  the  members  of  which  are  entitled 
to  share  in  the  surplus  funds  thereof,  may  make  distribution  of 
such  surplus  as  they  have  accumulated,  annually,  or  once  in  two, 
three,  four,  or  five  years,  as  the  directors  thereof  from  time  to  time 
determine.  In  determining  the  amount  of  the  surplus  to  be  dis- 
tributed, there  shall  be  reserved  an  amount  not  less  than  the  ag- 
gregate net  value  of  all  the  outstanding  policies,  said  value  being 
computed  by  the  "  Combined  Experience"  or  ''  Actuaries'"  rate  of 
mortality,  with  interest  at  four  per  cent.    {Laics  0/I8OO,  33,  §§  1,  2.) 

199.  Such  surplus  fund  may  be  distributed  among  the  mem- 
bers of  such  companies  in  pro} )ortion  to  the  sums  of  money  which 
each  member  has  contributed  to  the  entire  surplus  funds  to  be 
distributed  among  all  the  members,  and  including  in  such  contribu- 
tion a  just  and  equitable  allowance  for  interest.  Policies  which 
have  become  payable  before  the  time  when  such  distribution  is 
made,  and  after  the  date  of  the  last  previous  distribution  of  surplus, 
may  share  in  the  same  equitably  and  proportionally.    {Ibid,  §§  3,  4.) 

'200.  A  policy  of  insm-ance  on  the  Ule  of  any  person,  expressed 
to  be  for  the  benefit  of  any  married  woman,  whether  procured  by 
herself,  her  husband,  or  any  other  person,  shall  inure  to  her  sep- 
arate use  and  benefit  and  that  of  her  children,  independently  of  her 
husband  or  his  creditors,  or  the  person  eftecting  the  same  or  his 
creditors.  A  trustee  may  be  appointed  by  the  party  obtaining  the 
policy,  or  if  no  such  appointment  is  made,  then  by  the  judge  of  the 
probate  court  for  the  county  in  which  the  party  for  whose  benefit 
said  policy  is  made  resides,  to  hold  the  interest  of  the  married 
woman  in  such  policy  or  the  proceeds  thereof.  {General  Statutes,  58, 
§62.) 

tSOl.  A  policy  of  insurance  on  the  life  of  any  person,  duly  as- 
signed, transferred,  or  made  i)ayable  to  any  married  woman,  or  to 
any  person  in  trust  for  her  or  for  her  benefit,  whether  such  transfer 
be  made  by  her  husband  or  other  person,  shall  inure  to  her  separate 
use  and  benefit,  and  that  of  her  children,  independently  of  her  hus- 
band or  his  creditors,  or  of  the  i^erson  effecting  or  transferring  the 
same  or  his  creditors ;  Provided,  however,  That  if  the  premium  on 
such  policy  is  paid  by  any  person  with  intent  to  defraud  his  cred- 
itors, an  amount  equal  to  the  premium  so  paid,  with  interest  thereon, 
shall  inure  to  the  benefit  of  said  creditors,  subject,  however,  to  the 
statute  of  limitations.     {Laics  of  1864,  197.) 

SO^.  When  a  policy  is  effected  by  any  person  on  his  own  life 
or  on  the  life  of  another,  expressed  to  be  for  the  benefit  of  such 
other,  or  his  representatives  or  a  third  person,  the  person  for  whose 
benefit  it  was  made  shall  be  entitled  thereto  against  the  creditors 
and  the  representatives  of  the  person  effecting  the  same.  If  the 
premium  is  paid  by  any  person  with  intent  to  defraud  his  creditors, 
an  amount  equal  to  the  premium  so  paid,  with  interest  thereon, 
shall  inure  to  their  benefit.     {General  Statutes,  08,  §  62.) 

303.  No  policy  of  insurance  on  life,  issued  on  and  after  the 
tenth  day  of  May,  in  the  year  eighteen  hundred  and  sixty-one,  by 
any  com'ianv  chartered  by  the  authority  of  this  commonwealth, 


MASSACHUSETTS.  371 

shall  be  forfeited  or  become  void  by  the  iiou-p;iyment  of  premium 
thereou  any  further  than  re.yards  the  right  of  the  party  insured 
therein  to  liave  it  continued  in  force  beyond  a  certain  period,  to  be 
determined  as  follows,  to  wit:  The  net  value  of  the  policy,  when  the 
premium  becomes  due  and  is  not  paid,  shall  be  ascertained  according 
to  the  "  Combined  Experience"  or  "  Actuaries '"  rate  of  mortality, 
with  interest  at  four  per  centum  per  annum.  After  deducting  trom 
such  net  value  any  indebtedness  to  the  company  or  notes  held  by 
the  company  against  the  insured,  which  notes  if  given  for  premium 
vshall  then  be  canceled,  four-tifths  of  what  remains  shall  be  consid- 
ered as  a  net  single  premium  of  temporary  insurance,  and  the  term 
for  which  it  will  insure  shall  be  determined  according  to  the  age  of 
the  party  at  the  time  of  the  lapse  of  premium,  and  tiie  assumptions 
of  mortality  and  interest  aforesaid.     [Laws  o/lSGl,  ]8G,  §  1.) 

304.  If  the  death  of  the  party  occur  within  the  term  of  tem- 
porary insurance  covered  by  the  value  of  the  policy,  as  determined 
in  the  previous  section,  and  if  no  condition  of  the  insurance  other 
than  the  payment  of  premium  has  been  violated  by  the  insured,  the 
company  shall  be  bound  to  i)ay  the  amount  of  the  policy  the  same 
as  if  there  had  been  no  lapse  of  premium,  anything  in  the  policy  to 
the  contrary  notwithstanding ;  Provided^  however,  That  notice  of  the 
claim  and  proof  of  the  death  shall  be  submitted  to  the  company 
within  ninety  days  after  the  decease ;  and  Provide:!,  also,  That  the 
company  shall  have  the  right  to  deduct  from  the  amount  insured  in 
the  policy  the  amount  of  six  per  cent,  per  annum  of  the  premiums 
that  had  been  forborne  at  the  time  of  the  death.     {Ibid,  §  2.) 

•SOS.  All  corporations,  associations,  partnerships,  or  indivi- 
duals doing  business  in  this  State  under  any  charter,  compact, 
agreement,  or  statute  of  this  or  any  other  State,  involving  an  insur- 
ance, gu:iranty,  contract,  or  pledge  for  the  payment  of  annuities  or 
endowments,  or  for  the  payment  of  moneys  to  families,  or  represent- 
atives of  i)olicy  or  certificate-holders,  or  members,  shall  be  considered 
and  deemed  to  be  life  insurance  companies  within  the  meaning  of 
the  laws  relating  to  life  insurance  within  this  State,  and  shall  not 
make  any  such  insurance,  guaranty,  contract,  or  pledge  therein,  or 
to  or  with  any  citizen  or  resident  of  this  State,  which  shall  not  dis- 
tinctly state  therein  the  amount  of  such  life  benefits,  the  manner  of 
payment,  the  period  of  the  continuance  thereof,  and  the  amount  of 
the  annual,  semi-annual,  or  quarterly  premium,  or  by  which  the 
payment  of  the  life  benefit  assured  shall  be  contingent  upon  the 
payment  of  assessments  made  upon  surviving  members,  nor  except 
in  accordance  with  and  under  the  conditions  and  restrictions  of  the 
statutes  now  or  hereafter  regulating  the  business  of  life  insurance ;. 
Provided,  That  nothing  in  this  section  shall  be  held  to  conflict  with 
the  provisions  of  chapter  one  hundred  and  eighty-six  of  the  acts  of 
eighteen  hundred  and  sixty-one.     {Laws  o/1872,  chap.  325,  §  7.) 

S06.  Every  company  emj^owered  to  make  insurance  on  lives^ 
upon  land  shall  be  subject  to  the  same  obligations  for  the  payment 
of  a  certain  share  of  the  profits  to  the  Massachusetts  General  Hospi- 
tal as  are  imposed  on  the  Massachusetts  Hospital  Life  Insurance 
Company.     {Laws  o/1823,  51,  §  2;  General  Statutes,  58,  §  Gl.) 

3t>7.  No  life  insurance  company  shall  issue  policies  insuring 
fire  or  marine  risks.     {General  Statutes,  58,  §  65.) 

No  life  insurance  company  organized  or  incorporated  under 
the  laws  of  this  Commonwealth  shall  be  permitted  to  reinsure  its< 
risk,  except  by  permission  of  the  Insurance  Commissioner  j  but 


372  hine's  insurance  statutes. 

nothing  in  this  act  shall  be  construed  to  prevent  any  such  life  in- 
surance company  from  reinsuring  a  fractional  part,  not  exceeding 
one-half  of  any  individual  risk.     {Laws  of  1874,  chaj).  109,  §  1.) 

INSURANCE    CORPORATIONS    OF   OTHER    STATES    AND 

FOREIGN  COUNTRIES. 

CONDITIONS  OF  AD:\nSSION   TO  BUSINESS  IN   THIS   STATE. 

208.  No  insurance  company  not  incorporated  by  the  Legisla- 
ture of  this  Commonwealth,  and  having  a  specific  capital,  shall  by 
its  agent  in  this  State  insure  property  therein  or  contract  for  in- 
surance with  any  residents  in  this  State,  unless  its  capital  stock 
amounts  to  one  hundred  thousand  dollars,  all  of  which  sum  has 
been  paid  in  cash  and  invested,  exclusive  of  stockholders'  obliga- 
tions of  any  description  not  secured  as  required  in  section  eighty- 
nine,  and  the  debts  of  the  company ;  nor  unless  the  companj^  is  re- 
stricted by  its  charter  or  otherwise  from  incurring  any  greater 
hazard  in  one  risk  than  one-tenth  of  its  unimpaired  capital;  nor 
unless  the  company  has  complied  with  the  laws  of  this  State. 
{General  Statutes^  58,  §  66.) 

S09.  Mutual  tire  insurance  companies,  incorporated  by  or 
under  the  law  of  any  State  of  the  United  States,  other  than  the 
Commonwealth  of  Massachusetts,  and  by  such  law  authorized  to 
issue  policies  of  insurance  upon  both  the  cash  and  mutual  plans, 
are  and  shall  be  authorized  to  issue  policies  of  insurance  in  this 
commonwealth  either  for  premiiuns  payable  wholly  in  cash  or  for 
premiums  payable  partly  in  cash  and  partly  by  premium  notes ; 
Provided,  That  no  such  company  shall  be  permitted  to  transact 
business  in  this  commonwealth  until  it  shall  have  satisfied  the  In- 
surance Commissioner  that  it  is  possessed  of  a  reinsurance  fund, 
over  and  above  all  liabilities,  equal  to  fifty  per  centum  of  all  cash 
premiums  on  cash  policies  in  force,  and  that  it  has  j^remium  notes 
liable  to  assessment  amounting  to  the  sum  of  at  least  two  millions 
of  dollars,  which  notes  may,  by  law,  be  or  become  a  lien  upon  the 
property  insured  and  liable  to  assessment  for  the  payment  of  losses 
and  expenses  for  their  full  amount,  and  shall  keei)  a  cash  deposit 
in  this  Commonwealth  of  not  less  than  two  hundred  thousand  dol- 
lars for  the  security  of  policy-holders  ;  and  Provided,  further,  That 
no  such  mutual  fire  insurance  company  shall  insure  in  any  fire  in- 
surance district  in  the  Commonwealth  of  Massachusetts  to  an 
amount  exceeding  said  cash  deposits  and  its  net  cash  assets. 
{Laws  of  1875,  chap.  42,  §  1.) 

91#.  Before  any  company  not  incorporated  as  aforesaid, 
whether  doing  business  on  the  stock  or  mutual  plan,  transacts  by 
its  agents  any  business  in  this  State,  it  shall  satisfj^  the  Insurance 
Commissioner  that  it  has  the  amount  of  funds  required  by  the  laws 
of  this  commonwealth  and  has  complied  with  all  other  provisions 
of  the  same.     {General  Statutes,  58,  §  67.) 

GENERAL  AGENT  AND  ATTORNEY. 

91 1.     Every  such  company  shall,  before  doing  business  in  this 
State,  appoint  in  writing  a  citizen  thereof,  resident  therein,  a  general     •  / 
agent  upon  whom  all  lawful  processes  against  the  company  may  be       i 


\ 


MASSACHUSETTS.  373 

served  with  like  effect  as  if  the  company  existed  in  this  State ;  and 
said  writing  or  power  of  attorney  shall  stipulate  and  agree  on  the 
part  of  the  company  making  the  same,  that  any  lawful  process 
against  said  company  which  is  served  on  said  general  agent,  shall 
be  of  the  same  legal  force  and  validity  as  if  served  on  said  com- 
pany. A  copy  of  the  writing,  duly  certified  and  authenticated, 
shall  be  tiled  in  the  office  of  the  Insurance  Commissioner,  and  copies 
certified  by  him  shall  be  sufficient  evidence.  This  agency  shall  be 
continued  while  any  liability  remains  outstanding  against  the  com- 
pany iu  this  State,  and  the  power  shall  not  be  revoked  until  the 
same  power  is  given  to  another,  and  a  copy  tiled  as  aforesaid.  Ser- 
vice upon  such  agent  shall  be  deemed  sufficient  ser^■ice  upon  the 
principal.     {Ibid,  58,  §  68.) 

!21'2.  In  addition  to  the  stipulations  and  agreements  now  re- 
quired by  section  sixty-eight  of  chapter  tifty-eight  of  the  General 
Statutes,  relating  to  the  appoiutment  of  general  agents  or  attorneys 
to  accept  service  of  process  against  insurance  companies  not  in- 
corporated by  the  legislature  of  this  commonwealth  and  doing 
business  therein,  it  is  hereby  provided  that  said  appointment  shall 
stipulate  and  agree  that  the  general  agent  or  attorney  of  any  such 
life  insurance  company  withdrawing  from  the  State  or  ceasing  to  do 
business  therein,  shall  be  authorized  to  accept  payment  of  premiums 
thereafter  falling  due  on  policies  remaining  in  force  and  held  by  its 
citizens  in  such  company  at  the  time  of  its  withdrawal  or  cessation 
of  business  as  aforesaid  ;  and  in  case  of  the  removal  of  said  general 
agent  or  attorney  from  the  commonwealth,  and  the  neglect  of  the 
company  for  thirty  days  to  appoint  a  successor,  the  Insurance  Com- 
missioner shall  have  authority  to  make  such  appointment,  which, 
with  the  payment  of  premiums  as  herein  provided,  shall  have  the 
same  legal  force  and  validity  as  if  such  company  had  continued  its 
business  in  the  commonwealth.     (Laics  of  1872,  chap.  325,  §  4.) 

3 IS.  The  general  agent  shall,  before  any  insurance  is  made 
by  such  company,  give  a  bond  to  the  Treasurer  of  the  common- 
wealth, with  one  or  more  sureties,  to  be  approved  by  him,  in  tue  sum 
of  two  thousand  dollars,  with  condition  that  he  will  accept  service 
of  all  lawful  processes  against  the  company  in  the  manner  herein- 
before provided.     [General  Statutes^  58,  §  69.) 

314.  The  general  agent  of  every  such  company  shall,  before 
any  insurance  is  made,  deposit  with  the  Insurance  Commissioner  a 
copy  of  the  charter  of  the  company,  and  a  statement  signed  and 
sworn  to  by  the  president  and  secretarj^,  in  the  form  prescibed  or 
authorized  for  the  annual  statement  adapted  to  the  business  done 
by  such  company.     {Ibid,  §  71.) 

51 5.  Any  such  company  which  neglects  to  appoint  a  general 
agent  agreeably  to  the  provisions  of  section  one  hundred  and  sixty- 
three,  shall  not  recover  any  ]U'emium  or  assessment  made  by  it  on 
any  contract  of  insurance  with  a  citizen  of  this  State  until  such 
provisions  are  complied  with.     {Ibid,  §  72.) 

AGENTS. 

51 6.  Whoever  solicits  insurance  on  behalf  of  any  insurance 
com]>any  not  chartered  by  and  not  established  within  this  common- 
wealth, or  transmits  for  any  person  other  than  himself  an  api)lica- 
tion  for  insurance,  or  a  policy  of  insurance  to  or  from  such  com- 
pany, or  advertises  that  he  will  receive  or  transmit  the  same,  shall 


374  hine's  insueance  statutes. 

be  held  to  bean  agent  of  sncb  company,  to  all  intents  anrl  purposes, 
and  subject  to  all  the  duties,  requisitions,  liabilities,  and  i)enalties 
set  forth  in  the  laws  of  this  commonwealth  relating  to  insurance 
companies  not  incorporated  by  the  Legislature  thereof.  [Laivs  of 
1864,  114,  §  1.)  * 

Q17.  Every  agent  of  an  insurance  company  not  incorporated 
by  the  legislatiu-e  of  this  commonwealth,  and  doing  business 
therein,  excepting  agents  of  com])anies  included  in  the  provisions 
of  the  preceding  section,  shall,  before  any  business  is  done  by  him 
for  said  company,  give  a  bond  to  the  Treasurer,  with  one  or  more 
sureties  to  be  approved  by  the  Insurance  Commissioner,  in  the  sum 
of  one  thousand  dollars,  with  condition  that  he  will,  on  or  before 
the  fifteenth  day  of  November  in  each  year,  make  return  on  oath  to 
the  Treasurer  of  the  amounts  insured  by  bim,  the  premiums  received, 
and  assessments  collected,  during  the  year  ending  on  the  thirty -first 
day  of  the  October  preceding,  and  at  the  same  time  pay  to  the 
Treasurer  the  taxes  provided  by  law.  It  shall  be  the  duty  of  the 
said  Commissioner,  upon  his  approval  of  any  such  bond  to  indorse 
a  statement  of  that  fact  upon  the  bond,  and  to  forthwith  transfer 
the  same  to  the  Treasurer  of  the  commonwealth.  {General  JStatutes, 
58,  §  69  ;   Laics  of  1875,  79,  §  1.) 

218.  No  officer,  agent,  or  sub-agent  of  any  insurance  company 
not  incori)orated  in  this  commonwealth,  shall  act  or  aid  in  any 
manner  in  transacting  the  business  of  insurance  of  or  with  such 
comi)any,  or  placing  risks  or  effecting  insurance  therein,  without 
first  procuring  from  the  Insurance  Commissioner  a  certificate  of  au- 
thority so  to  do,  for  each  com]:>any  for  which  he  proposes  to  act, 
which  shall  state  in  substance  that  such  company  is  duly  authorized 
to  do  business  in  this  State  under  the  laws  thereof,  and  that  such 
agent  or  other  person  has  duly  complied  with  the  laws  relating  to 
the  agents  of  such  companies.  The  Commissioner,  upon  being 
satisfied  of  the  facts  to  be  stated  therein,  shall  grant  such  certifi- 
cate, which  shall  continue  in  force  until  the  first  day  of  April  next 
after  the  date  thereof,  unless  sooner  revoked  by  the  Commissioner 
for  non-compliance  with  the  laws  aforesaid,  and  shall  be  renewed  on 
said  day,  and  annnally  thereafter,  so  long  as  the  company  and  its 
agents  continue  to  comply  wth  said  laws.  For  such  certificate,  so 
granted,  and  for  each  renewal  thereof,  the  company  named  therein 
shall  pay  into  the  treasury  the  sum  of  two  dollars.  Whoever 
violates  the  provisions  of  this  section  shall  be  punished  by  a  fine 
not  exceeding  five  hundred  dollars  for  each  otfense.  {Laws  of  1867, 
267,  §  5.) 

Si@.  Every  person  acting  for  an  insurance  company  not  in- 
corporated in  this  State  shall  exhibit  in  conspicuous  letters  on  the 
sign  designating  his  place  of  business,  the  name  of  the  State  under 
whose  authority  the  company  he  represents  has  been  incorporated. 
And  said  company  and  agent  shall  also  have  printed  in  large  type 
the  name  of  such  State  and  the  kind  of  office,  whether  chartered  as 
a  mutual  or  stock  company  upon  all  policies  issued  to  citizens  of  this 
State,  on  all  cards,  placards,  and  pamphlets,  and  in  all  advertise- 
ments published,  issued  or  circulated  in  this  State,  by  it  or  him,  re- 
lating to  the  business  of  such  company.     {General  Statutes,  58,  §  73.) 

!3?30.  No  person  shall  act  as  agent  of  an  insm^ance  company 
not  incorporated  in  this  State  until  he  has  complied  mth  all  the  re- 
quirements of  the  laws  of  this  State  relating  to  such  companies  and 
their  agents;  and  every  person  so  acting  without  such  compliance, 


MASSACHUSETTS.  375 

or  who  knowingly  procures  payment  or  any  obligation  for  the  pay- 
ment of  any  premium  for  insurance,  by  fraudulent  representations, 
shall  be  punished  by  fine  not  exceeding  one  thousand  dollars  for 
each  ofiense.     {Ibid,  §  74.) 

S^l.  Every  agent  of  such  insurance  company  neglecting  to 
make  the  returns  required  by  law,  shall  forfeit  twenty-five  dollars 
for  each  ueglect,  to  be  recovered  by  the  Treasurer  of  the  common- 
wealth. Every  agent  so  neglecting  shall  be  immediately  notified 
thereof  by  the  Treasurer ;  and  if  he  continues  said  neglect  for  ten 
days  after  such  notice  is  deposited  in  the  post-office,  he  shall  forfeit 
five  hundred  dollars  for  every  such  neglect,  to  be  recovered  by  the 
Treasurer  ;  Provided,  That  no  agent  shall  be  held  liable  if  it  is  made 
to  appear  to  the  satisfaction  of  the  Treasurer  that  the  returns  w^ere 
duly  made  and  deposited  by  said  agent  in  the  post-office,  properly 
directed  to  the  Insurance  Commissioner,  and  that  there  was  no 
neglect  on  his  part.     {Ibid,  §  76.) 

S22.  If  insurance  is  made  by  such  insurance  company  with- 
out complying  with  the  requisitions  of  the  laws  of  this  State,  the 
contract  shall  be  valid  ;  but  the  agent  making  the  insurance  shall 
be  liable  to  a  fine  not  exceeding  one  thousand  dollars  for  each 
offense.      {Ibid,  §  72.) 

"2211.  The  agent  of  any  such  insurance  company  which  does 
not  comply  with  the  laws  of  this  commonwealth  as  to  the  appoint- 
ment of  a  general  agent,  the  filing  of  said  appointment,  and  the  con- 
tinuance of  such  agency,  shall  be  personally  liable  on  all  contracts 
of  insurance  made  by  or  through  him,  directly  or  indirectly,  for  and 
in  behalf  of  any  such  company.     {Laics  of  1864,  114,  §  3.) 

^iM4:,  The  agent  of  anj-  such  insurance  company  who  neglects 
to  pay  the  taxes  imposed  on  such  company  by  the  laws  of  this  com- 
monwealth, shall  be  personally  liable  therefor,  and  the  same  maybe 
recovered  of  him  in  an  action  of  tort  in  the  name  of  the  common- 
wealth.    {Ibid,  §  3.) 

ANNUAL   STATEMENTS,   TAXES,  FEES,   ETC. 

S25.  The  general  agent  of  every  insurance  company  chartered 
or  organized  in  any  other  State  of  the  United  States,  and  doing 
business  in  this  commonwealth,  shall,  on  or  before  the  fifteenth  day 
of  January  in  each  year,  transmit  to  the  Insurance  Commissioner, 
and  file  in  his  office,  a  statement  of  its  business,  standing  and  affairs 
in  the  form  prescribed  or  authorized  by  law  and  adapted  to  the 
business  done  by  such  company,  signed  and  sworn  to  by  the  presi- 
dent and  secretary,  and  made  out  for  the  year  ending  on  the  pre- 
ceding thirty-first  day  of  December.  {Ge:ieral  Statutes,  58,  §§  25,  71 ; 
Laics  0/1867,  267,  §§  2,  3.) 

336.  Insurance  companies  chartered  beyond  the  limits  of  the 
United  States  and  doing  business  in  this  State,  shall,  in  the  month 
of  November  in  each  year,  return  to  the  Insurance  Commissioner, 
and  file  in  his  office,  a  statement  of  their  standing,  made  out  at  the 
home  ofiice  for  the  preceding  calendar  year,  agreeably  to  the  form 
required  of  companies  doing  a  similar  business  in  this  State  ;  which 
statement  shall  be  verified  and  sworn  to  before  some  consul  or  vice- 
consul  of  the  United  States,  by  two  or  more  of  the  principal  officers 
of  such  insurance  companies.  Supplementary  annual  statements  of 
the  business  and  condition  of  their  American  branches  shall  also  be 
filed  within  the  time,  and  made  out  for  the  period  required  of  com- 


37G  HI^'E'S   INSURAIsCE   STATUTES. 

panies  of  tlie  United  States.      (Ibid,   §  75 ;   Laics   of  1867,  267, 
§§2,3.) 

2!27.  Chapter  one  hundred  and  sixty-five  of  the  acts  of  the 
present  year,  entitled  "  An  act  explanatory  of  an  act  to  levy  taxes 
on  certain  insurance  companies,"  shall  not  be  construed  to  repeal  or 
modify  the  provision  of  the  eighteenth  section  of  chapter  two  hun- 
di^ed  and  eighty-three  of  the  acts  of  the  year  eighteen  hundred  and 
sixty-five,  which  exempts  insurance  companies  Irom  paying  a 
tax  "  upon  premiums  received  for  insurance  in  other  States,  which 
are  subject  to  a  like  tax  in  the  State  where  received."  {Laws  of 
1868,  283.) 

2"38.  Every  insurance  comjiany  not  incorporated  in  this  com- 
monwealth, applying  for  admission  to  do  business  therein,  shall  pay 
into  the  treasury,  for  filing  copy  of  its  charter  or  deed  of  settlement, 
the  sum  of  thirty  dollars ;  for  filing  statement  preliminary  to  ad- 
mission, and  for  filing  each  annual  statement  after  admission,  the 
simi  of  twenty  dollars.     {Laics  of  1867,  267,  §  4.) 

S2©,  It  shall  not  be  lawful  for  any  insurance  company  or  as- 
sociation, created  by  or  organized  under  the  laws  of  any  foreign 
government,  other  than  the  States  of  this  Union,  or  for  any  partner- 
ship, association,  firm  or  individual  of  such  foreign  government,  or 
for  any  agent  or  agents  of  such  foreign  company,  association,  part- 
nership, firm  or  individual,  to  make  contracts  of  insurance,  or  ex- 
pose such  company,  association,  partnership,  firm  or  individual  to 
loss  in  this  State,  in  any  one  risk  or  hazard  to  an  amount  exceeding 
ten  per  cent,  of  the  value  of  the  securities  deposited  by  such  com- 
pany, association,  partnership,  firm  or  individual  with  the  several 
insurance  or  other  departments  of  the  States  of  this  Union,  and  ten 
per  cent,  of  the  net  assets  in  the  hands  of  trustees  resident  in  and 
citizens  of  any  of  the  United  States,  subject  at  all  times  to  the  ap- 
jjroval  of  the  Insurance  Commissioner  of  this  State,  for  the  general 
benefit  and  security  of  all  policy-holders  residing  in  the  United 
States,  which  shall  be  immediately  available  for  the  payment  of 
losses  in  this  State.  Nor  shall  it  be  lawful  for  any  such  foreign  or 
other  insurance  company,  association,  ])artnership,  firm  or  individ- 
ual, directly  or  indirectly,  to  contract  for  or  efl^ect  any  reinsurance 
of  any  risk  on  property  in  this  State  taken  by  such  company,  as- 
sociation, partnership,  firm  or  individual,  with  any  insurance  com- 
pany, association,  partnership,  firm  or  individual  not  authorized  to 
transact  the  business  of  insurance  in  this  State  in  accordance  with 
the  laws  thereof.     {Laws  of  1870,  349,  §  1.) 

3S4K  All  foreign  insurance  comj)anies,  associations,  partner- 
ships, firms  or  individuals,  whether  incorporated  or  not,  transacting 
the  business  of  fire,  marine  or  life  insurance,  or  any  other  kind  of 
insurance  in  this  State,  shall  make  full  annual  statements  of  their 
condition  and  affairs  to  the  insurance  department,  in  the  same  man- 
ner and  in  the  same  form,  without  erasure  or  addition  (except 
necessary  explanation),  and  subject  to  the  same  liabilities  as  similar 
companies  or  associations  organized  under  the  laws  of  this  State. 
{Lbid,  349,  §  2.) 

258 1 .  In  case  of  neglect  or  refusal  to  make  such  annual  state- 
ments, as  provided  in  the  preceding  section,  all  persons  acting  in  this 
State  as  agents  or  otherwise,  in  transacting  the  business  of  insur- 
ance for  said  com])anies,  associations,  partnerships,  firms  or  individ- 
uals, shall  be  subject  to  the  same  penalties  provided  by  law  in  case 
of  the  failure  of  an}^  insurance  company  or  association,  organized 


MASSACHUSETTS.  377 

under  the  laws  of  this  State,  to  make  an  annual  statement  as  now 
required  by  law,     {Ibid,  §  3.) 

*23*i.  Any  violation  of  the  provisions  of  this  act  shall  subject 
the  party  guilty  of  such  violation  to  a  penalty  of  five  hundred  dol- 
lars for  each  violation,  to  be  sued  for  and  recovered  in  the  manner 
provided  for  the  prosecution  and  recovery  of  penalties  prescribed 
by  the  insurance  laws  of  this  State.     {Ibid,  §  4.) 

MISCELLANEOUS. 

233.  "Whenever,  after  setting  aside  a  sum  equal  to  the  pre- 
miums for  the  unexpired  term  on  existing  risks,  the  cash  assets  of 
any  fire  insurance  company  not  incorporated  by  the  legislature  of 
this  commonwealth  and  having  a  specific  capital,  do  not  amount  to 
more  than  three-fourths  of  its  original  capital,  the  coin])any  shall, 
by  assessing  the  stock  for  the  difference,  repair  its  capital  to  the 
original  amount.  No  such  company  shall  be  permitted  to  do  busi- 
ness in  this  commonwealth  unless  it  complies  with  the  provisions  of 
this  section.     {Laivs  of  1863,  249,  §§  7,  10.) 

1334.  Insurance  companies  created  by  any  other  State,  having 
property  in  this  State,  shall  be  liable  to  be  sued  and  their  property 
shall  be  subject  to  attachment  in  like  manner  as  residents  of  other 
States  having  property  in  this  State  are  liable  to  be  sued  and  their 
property  to  be  attached.     {General  Statutes,  68,  §  15.) 

d3o.  The  provisions  of  all  general  laws  relating  to  insurance 
companies  chartered,  incorporated,  or  associated  in,  or  under,  the 
laws  of  any  foreign  country,  are  hereby  extended  to  all  companies, 
associations  and  indi\iduals  formed  or  associated  in  foreign  coun- 
tries and  doing  an  insurance  business  in  this  State,  whether  incor- 
porated or  not.     {Laws  of  1867,  267,  §  1.) 

230.  The  provisions  of  all  general  laws  which  are  or  may  be 
in  force  relating  to  insurance  companies  incorporated  in  other  States 
of  the  United  States,  are  hereby  extended  to  all  companies,  associ- 
tions  and  individuals  formed  or  associated  in  such  other  States,  and 
doing  an  insurance  business  in  this  State,  whether  incorporated  or 
not.      {Laws  of  1869,  317,  §  1.) 


GENEEAL  PEOVISIONS  RELATING  TO  INSURANCE  COM- 
PANIES DOING  BUSINESS  IN  THE  COMMONWEALTH, 
WHEREVER  CHARTERED  OR  ORGANIZED. 

AGENTS. 

237.  Whoever  solicits  insurance  on  behalf  of  any  fire  or  life 
insurance  company  [whether]  chartered  in  this  commonwealth  [or 
elsewhere],*  or  transmits  for  any  person  other  than  himself,  an  ap- 
plication for  insurance  or  a  policy  of  insurance,  to  or  from  said 
company,  or  advertises  that  he  will  receive  or  transmit  the  same, 
shall  be  held  to  be  an  agent  of  such  company  to  all  intents  and 
purposes,  and  within  the  meaning  of  the  following  section,  unless  it 
can  be  shown  that  he  receives  no  commission,  or  other  compensa- 

"  This  section,  so  far  as  it  relates  to  agents  of  companies  not  incorporated  in  thia 
State,  is  superseded  by  section  216,  which  is  a  later  enactment.  The  receipt  of  com- 
pensation is  not  material  upon  the  question  of  agencj  in  such  companies. 


378  hine's  insurance  statutes. 

tion  or  consideration,  for  such  service  from  said  company.  (Laws  of 
1861,  170.) 

338.  An  agent  making  insurance  in  violation  of  any  law  of 
this  State  regulating  insurance  companies,  shall  forfeit  for  each 
offense  a  sum  not  exceeding  one  thousand  dollars.  ( General  Statutes, 
p.  58,  §  77.) 

S:{9.  When  a  person  is  convicted  of  violating  any  law  regu- 
lating the  negotiation  of  contracts  of  insurance,  or  the  placing  of 
insurance  risks  in  companies  not  authorized  to  transact  the  busi- 
ness of  insurance  in  this  commonwealth,  and  is  sentenced  to  pay  a 
fine  therefor,  the  person  or  persons  upon  whose  complaint  such 
conviction  is  had,  shall  receive  one-half  of  the  fine  so  paid ;  Pro- 
vided, That  nothing  contained  in  this  section  shall  apply  to  any 
case  in  which  the  Insurance  Commissioner  or  his  deputy  is  the  com- 
plainant.    (Laws  0/1873,  chap.  142,  §  1.) 

TAXES   AND  FEES. 

310.  Every  corporation  or  association  of  persons  neglecting 
to  pay  the  taxes  imposed  by  sections  forty-three,  forty-five,  one  hun- 
dred and  seventy-nine,  and  one  hundred  and  eighty",  as  herein  pro- 
vided, shall  be  liable  for  the  same  with  costs  and  interest  in  an  ac- 
tion of  contract,  in  the  name  of  the  commonwealth,  at  the  suit  of 
the  Treasurer  and  shall  be  further  liable  on  application  of  the 
Treasurer  of  the  commonwealth  therefor  to  any  one  of  the 
justices  of  the  supreme  judicial  court,  to  injunction  restraining 
said  corporation  or  association  and  the  agents  thereof,  from  the 
further  prosecution  of  its  business  until  all  taxes  due  as  aforesaid 
with  costs  and  interest  are  fully  paid.     {Laivs  o/1862,  224,  §  11.) 

341.  Every  insurance  company  doing  business  in  this  com- 
monwealth shall  annually  pay  into  the  treasury  of  the  same,  by  the 
way  of  compensation  for  the  valuation  of  its  policies,  one  cent  on 
every  thousand  dollars  insured  bv  it  on  lives.  {General  Statutes,  58, 
§  64.) 

343.  For  each  copy  of  a  pai^er  filed  in  the  ofiice  of  the  Insur- 
ance Commissioner  there  shall  be  paid  at  the  rate  of  twelve  cents 
per  page  and  for  certifying  the  same  the  sum  of  one  dollar.  Said 
fees  shall  be  collected  by  the  Commissioner  and  paid  into  the  treas- 
ury.    {Laics  0/1867,  267,  §  6.) 

34*1.  Every  fire,  marine,  fire  and  marine,  and  other  insurance 
company,  incorporated  under  the  laws  of  this  commonwealth, 
except  life  insurance  companies,  and  except  such  companies  as  are 
subject  to  the  provisions  of  chapter  two  hundred  and  eighty-three 
of  the  acts  of  the  year  eighteen  hundred  and  sixty-five,  shall,  as 
hereinafter  provided,  annually  pay  a  tax  or  excise-  of  one  per 
centum  on  all  premiums  received  during  the  year  for  insurance, 
whether  in  cash  or  in  notes  absolutely  paj^able,  and  one  per  centum 
on  all  assessments  made  upon  policy-holders  by  such  company; 
Provided,  hotvever,  That  in  the  assessment  of  such  tax,  premiums 
received  in  other  States  where  they  are  subject  to  a  like  tax,  shall 
not  be  included.     {Laws  of  1873,  chaj).  141,  §  1.) 

344.  Every  fire,  marine,  fire  and  marine,  and  other  insurance 
company,  corporation,  association,  or  partnership,  which  is  incorpo- 
rated or  associated  by  authority  of  any  other  State  of  the  United 
States,  shall,  as  hereinafter  provided,  annually  pay  a  tax  or  excise 
upon  all  premiums  charged  or  received  on  contracts  made  in  this 


MASSACHUSETTS.  379 

commonwealth  for  the  insurance  of  property  or  interests  therein,  or 
received  or  collected  by  agents  in  this  commonwealth,  at  the  rate  of 
two  per  centum,  and  at  such  greater  rate,  if  any,  as  shall  be  equal 
to  the  highest  rate  imposed  during  the  year  by  the  laws  of  such 
other  State  upon  insurance  companies  incorporated  by  authority  of 
this  commonwealth,  or  upon  their  agents,  when  doing  business  in 
such  State.     {Ihid,  §  2.) 

345.  Every  life  insurance  company,  corporation,  association 
or  partnership,  incorporated  or  associated  by  authority  of  any 
other  State  of  the  United  States,  by  the  laws  of  which  State  a  tax 
is  imposed  upon  the  premium  receipts  of  life  insurance  companies 
chartered  by  this  commonwealth  doing  business  in  such  State,  or 
upon  their  agents,  shall  annually,  so  long  as  such  laws  continue  in 
force,  pay  a  tax  or  excise  upon  all  premiums  charged  or  received 
upon  contracts  made  in  this  commonwealth,  at  a  rate  equal  to  the 
highest  rate  imposed  during  the  year  upon  life  insurance  companies 
chartered  by  this  commonwealth,  or  their  agents,  doing  business  in 
such  other  State.     {Ibid,  §  3.) 

'34®.  Every  tire,  marine,  fire  and  marine,  and  other  insurance 
company,  corporation,  association  or  partnership,  incorporated  or 
associated  under  the  laws  of  any  government  or  State  other  than 
one  of  the  United  States,  shall,  as  hereinafter  provided,  annually 
pay  a  tax  of  four  per  centum  upon  all  premiums  charged  or  received 
on  contracts  made  in  this  commonwealth  for  insurance,  or  received 
or  collected  by  agents  in  this  commonwealth;  Provided,  however, 
That  whenever  it  is  made  to  appear  to  the  satisfaction  of  the  Tax 
Commissioner  that  any  such  company,  corporation,  association,  or 
partnership,  has,  during  the  whole  term  for  which  the  tax  is  to  be 
assessed,  kept  deposited  with  the  insurance  or  other  departments  of 
any  tstate  of  the  United  States,  or  in  the  hands  of  trustees,  resident 
in  and  citizens  of  such  States,  for  the  general  benefit  and  security 
of  all  iJolicY -holders  residing  in  the  United  States,  securities  ap- 
proved by  the  Insurance  Commissioner,  of  the  value  of  two  hun- 
dred thousand  dollars,  which  have  been  at  all  times  available  for 
the  payment  of  losses  in  this  commonwealth,  the  tax  upon  the  pre- 
miums of  such  company,  under  this  section,  shall  be  assessed  at  the 
rate  of  two  per  centum.  The  certificate  of  the  Insurance  Commis- 
sioner may  be  received  by  the  Tax  Commissioner  as  sufficient 
evidence  that  such  securities  have  been  so  deposited.     [Ibid,  §  4.) 

24:7,  In  determining  the  amount  of  tax  due  under  the  preced- 
ing sections  of  this  act,  there  shall  be  deducted  in  each  case,  from 
the  fidl  amount  of  premiums  and  assessments,  unused  balances  on 
notes  taken  for  j)remiums  on  open  policies,  all  sums  paid  for  return 
premiums  on  canceled  policies,  and  all  sums  actually  paid  to  other 
insurance  companies  incorporated  under  the  laws  of  this  common- 
wealth, or  to  the  agents  of  foreign  companies,  for  reinsurance  on 
risks,  for  which  a  tax  on  the  ]>remium  would  be  due,  had  no  rein- 
surance been  effected ;  Provided,  That  nothing  in  this  section  shall 
be  construed  as  to  allow  dividends  in  scrip  or  otherwise,  in  stock, 
mutual  or  mixed  companies,  to  be  considered  return  premiums. 
{Ibid,  §5.) 

948.  Like  fines,  fees,  penalties,  deposits,  obligations  and 
prohibitions  (not  being  less  in  amount  than  those  required  by  other 
provisions  of  law  of  this  commonwealth  in  similar  cases),  are 
imposed  upon  and  required  of  all  insurance  companies,  corpora- 
tions, associations,  and  partnerships,  incorporated  or  associated  by 


380  HINE'S  INSrHANCE  STATUTES. 

authority  of  any  other  State  of  the  United  States  doing  insurance 
business  in  this  State,  and  their  agents  doing  business  for  or  with 
them,  as  are  or  shall  hereafter  be,  by  law  of  such  State,  imposed 
upon  companies  incorjjorated  by  this  State,  or  upon  their  agents, 
doing  insurance  business  in  such  State.  Compliance  with  the  re- 
quirements of  the  provisions  of  this  section  as  to  deposits,  obligar 
tions  and  prohibitions,  may  be  enforced,  and  all  such  fines,  fees 
and  penalties  may  be  collected  by  information  brought  in  the 
supreme  judicial  court  by  the  Attorney-General  at  the  relation  of 
the  Insurance  Commissioner,  and  upon  such  information,  and  upon 
a  request  therefor,  the  court  shall  issue  an  injunction  restraining 
the  further  prosecution  of  the  business  of  such  comi^any,  corpora- 
tion, association,  partnership,  or  agent,  named  therein,  until  such 
requirements  are  complied  with,  and  until  such  fines,  fees,  and 
penalties  are  paid,  with  costs  and  interest.     {I hid,  §  6.) 

249.  Every  company,  which,  by  the  provisions  of  the  first  sec- 
tion of  this  act,  is  required  to  pay  a  tax,  shall,  between  the  first  and 
fifteenth  days  of  November,  in  each  year,  cause  to  be  made  to  the 
Tax  Commissioner  a  return,  signed  and  sworn  to  by  its  secretary,  or 
other  officer,  cognizant  of  the  facts,  which  shall  set  forth  the 
amount  insured  by  said  company,  the  premiums  received  and  assess- 
ments collected  during  the  year  ending  with  the  thirty-first  day  of 
October  the  next  preceding.  Every  agent  of  any  company,  corpo- 
ration, association  or  partnership,  which  is  incorporated  or  associat- 
ed by  authority  of  any  governmeQt  other  than  this  commonwealth, 
doing  or  authorized  to  do  insurance  business  in  this  commonAvealth, 
shall,  between  the  first  and  fifteenth  days  of  November,  in  each  year, 
make  to  the  Tax  Commissioner  a  return,  signed  and  sworn  to  by  him 
containing  the  names  of  every  such  com2)any,  corporation,  associa- 
tion or  partnership,  for  which  he  has  acted  as  agent  during  any  part 
of  the  year  ending  with  the  thirty -first  day  of  October  then  next 
preceding,  with  the  amount  insured  by  him,  the  premiums  received, 
and  assesments  collected  by  him,  or  by  his  authority,  for  each 
such  comi^any,  corporation,  association  or  partnership,  during  such 
year  ;  but  such  agents  only  of  life  insurance  companies  are  required 
to  make  return  as  are  not  accountable  to  any  other  agent  in  this 
commonwealth  for  premiums  received. 

Such  returns  shall  contain  a  statement  of  the  whole  amount  of 
premiums  charged  or  received  by,  or  in  behalf  of,  each  company, 
corporation,  association  or  partnership,  either  in  cash  or  notes  abso- 
lutely payable,  and  the  amount  claimed  as  a  deduction  therefrom, 
under  any  of  the  provisions  of  this  act,  specifying  the  whole  amount 
so  claimed,  and  also  the  classes  of  -deductions  and  amount  of  each 
class.     {Ibid,  §  7.) 

2»1<1>.  The  Tax  Commissioner  shall,  thereupon  upon  such  state- 
ments, and  on  such  other  evidence  as  he  may  obtain,  proceed  to  assess 
upon  such  companies,  corporations,  associations  and  ])artnershi)>s, 
and  their  agents,  the  taxes  prescribed  by  the  provisions  of  this  act, 
and  shall  forthwith,  upon  making  such  assessment,  forward  written, 
or  printed  notices  to  such  companies,  or  their  agents,  in  this  com- 
monwealth, stating  the  amounts  so  determined  by  him  to  be  paya- 
ble by  each  company,  corporation,  association,  partnership  or  agent, 
as  the  case  may  be.  Such  taxes  shall  be  paid  to  the  Treasurer  and 
Eeceiver-General  on  the  tenth  day  of  December  next  succeeding  the 
time  fixed  in  the  preceding  section  for  making  the  stateuent  therein 
required. 


MASSACHUSETTS.  381 

Tbe  Tax  Commissioner  shall,  on  or  before  such  tenth  djiy  of  De- 
cember, deliver  to  the  Treasurer  and  Receiver-General  a  certificate 
setting  forth  the  names  of  every  such  company,  corporation,  asso- 
ciation, partnership  and  agent,  upon  whom  such  tax  has  then  been 
assessed  ;  and  shall,  in  like  manner,  make  certificate  of  any  further 
assessments,  if  any,  as  may  be  made  atter  that  date.  All  such 
taxes,  whether  assessed  before  or  after  the  tenth  of  December, 
shall  bear  interest  from  that  date  until  they  are  paid,  at  the  rate  of 
twelve  per  centum  per  annum.     {Ibid,  §  8.) 

^51.  Every  company,  corporation,  association,  partnership  and 
agent,  failing  to  make  the  return  required  by  the  provisions  of  this 
act,  shall  forfeit  twenty-five  dollars  for  such  default;  and  continuing 
in  such  failure  for  the  space  of  ten  days  after  a  written  or  printed 
notice  thereof,  authorized  by  the  Tax  Commissioner,  has  been  depos- 
ited in  the  post-office,  postage  paid,  and  addressed  to  such  com- 
pany, corporation,  association,  partnership  or  agent,  shall  be  sub- 
ject to  a  further  penalty  of  five  hundred  dollars  ;  and  in  addition,  the 
company,  corporation,  association  or  agent  so  failing,  shall  be  liable, 
upon  information  by  the  Attorney-General,  at  the  relation  of  the 
Tax  Commissioner,  to  injunction,  restraining  it  or  him,  as  the  case 
may  be,  from  transacting  the  business  of  such  company,  corpora- 
tion, association  or  partnershij)  in  this  commonwealth,  until  such 
returns  are  made. 

If  any  such  return  contains  statements  which  are  false,  and  are 
known,  or  which  by  the  exercise  of  reasonable  care  might  have  been 
known  to  the  agent  making  it,  or  to  the  officers  making  it,  to  be  so, 
such  agent  or  corporation  shall  be  liable  for  the  amount  of  tax  there- 
by lost  to  the  commonwealth,  and,  in  addition,  to  a  jjenalty  of  not 
less  than  five  hundred  or  more  than  five  thousand  dollars. 

Such  penalties  may  be  recovered  by  an  action  of  tort,  brought 
at  the  instance  of  the  treasurer  against  the  company,  corporation, 
association,  partnership  or  agent  in  default ;  and  no  such  company, 
corporation,  association,  partnership  or  agent  shall  be  liable  to  the 
money  penalties  imposed  by  this  section,  if  it  is  made  to  ajjpear  that 
the  return  was  duly  made  and  deposited  by  said  agent  in  the  post- 
office,  postage  paid,  and  properly  directed  to  the  Tax  Commissioner, 
and  that  there  was  no  neglect  on  his  part.     {Ibid,  §  9.) 

95tJ.  Every  insurance  company  incorporated  by  authority  of 
this  commonwealth,  and  every  such  company,  corporation,  associa- 
tion or  partnership,  incorporated  or  associated  by  authority  of  any 
other  State  or  government,  shall  be  liable  for  the  full  amount  of  all 
taxes  so  assessed  upon  the  premiums  or  assessments  received  by 
such  company,  corporation,  association  or  partnership,  or  by  its 
agents  ;  and  each  agent  of  any  such  company,  corporation,  associa- 
tion or  partnership,  incorporated  or  associated  by  authority  of  any 
State  or  government  other  than  this  commonwealth,  shall  also  be 
liable  for  the  amount  assessed  upon  premiums  and  assessments  re- 
ceived by  him,  which,  with  interest  at  the  rate  of  tweve  yer  centum 
per  annum,  may  be  recovered  in  an  action  of  contract  brought  in 
the  name  of  the  commonwealth.  Such  corporation,  company,  asso- 
ciation or  partnershi]),  shall  be  further  liable,  upon  information  by 
the  Attorney-General  at  the  relation  of  the  Treasurer  and  Receiver- 
General,  to  injunction  restraining  said  company,  corporation,  asso- 
ciation or  partnership,  and  the  agents  thereof,  from  the  further  pro- 
secution of  its  business,  until  all  taxes  due  as  aforesaid,  with  costs 
and  interest,  are  fully  paid.     Any  return  made  or  tax  paid  by  an 


382  hine's  insurance  statutes. 

ageut  sliall  be  a  discharge  to  that  extent  of  the  compaay,  corpora- 
tion, association  or  partnership,  from  its  liability  to  make  a  return 
or  pay  a  tax  under  the  provisions  of  this.     {Ibid,  §  10.) 

^ijS.  IS'o  person  shall,  as  agent  of  any  insurance  company,  cor- 
poration, -association  or  partnership,  not  incorporated  or  associated 
under  the  laws  of  this  commonwealth,  make  or  procure  to  be  made 
any  insurance  in  this  commonwealth,  until  he  has  given  a  bond  to 
the  Treasurer  and  Receiver-General  of  the  commonwealth,  with  suih- 
cient  sureties,  to  be  approved  by  said  Treasurer,  in  the  sum  of  two 
thousand  dollars,  "with  condition  that  he  will  make  all  the  returns, 
and  i>ay  all  taxes,  fines  and  penalties,  which,  by  the  provisions  of 
this  act  and  of  any  other  laws  of  this  commonwealth,  he  is  or  shall 
hereafter  be  required  to  make  and  pay,  according  to  the  require- 
ments of  such  laws.  Any  [person  making  insurance,  or  causing  or 
procuring  insurance  to  be  made,  in  violation  of  the  provisions  of  this 
section,  shall  be  liable  to  pay  a  fine  of  not  exceeding  one  thousand 
dollars ;  Frovided,  however,  as  to  agents  in  this  commonwealth  of 
life-insurance  companies  incorporated  or  associated  by  authority  of 
any  State  or  government  other  than  this  commonwealth,  that  such 
agent  or  agents  only  of  such  life  insui-ance  companies  shall  give  the 
bond  required  by  this  section  as  are  not  accountable  to  any  agent  in 
this  State  for  premiums  received.     {Ibid,  §  11.) 

95 1.  The  bonds  which  by  section  sixty -nine  of  chapter  fifty- 
eight  of  the  General  Statutes  and  by  section  eleven  of  chapter  one 
hundred  and  forty-one  of  the  acts  of  the  year  eighteen  hundred 
and  seventy-three  are  required  to  be  apj^roved  by  the  Treasurer 
and  Receiver-General  of  the  commonwealth,  shall  hereafter  be  ap- 
proved by  the  Insnrance  Commissioner.  It  shall  be  the  duty  of 
said  Commissioner  upon  his  approval  of  any  such  bond  to  indorse  a 
statement  of  that  fact  upon  the  bond  and  to  forthwith  transfer  the 
same  to  the  Treasurer  of  the  commonwealth.  {Laws  of  1875,  chap. 
79,  §  1.) 

^55.  If  at  any  time  the  Treasurer  and  Receiver-General  shall 
become  satisfied  that  any  bond  already  filed  with  him  under  the 
provisions  of  this  or  any  other  law  of  this  commonwealth,  by  any 
agent  or  general  agent  of  any  insurance  company,  corporation, 
association  or  partnership,  has  become  insutficient  as  a  security, 
whether  from  death,  removal  from  the  State,  or  pecuniary  insuffi- 
ciency of  the  sureties,  he  shall  require  such  agent  to  file  a  new 
bond  with,  another  surety  or  sureties,  with  like  conditions.  The 
same  penalties  and  prohibitions  shall  apply  to  any  agent,  general 
agent  and  company,  corporation,  association  or  partnership  fail- 
ing, for  the  space  of  ten  days  after  notice,  to  file  such  new  bond,  as 
are  or  shall  be  provided  by  law,  for  failure  or  neglect  to  file  the 
original  bond.     {Ibid,  141,  §  12.) 

956.  The  duties  required  by  this  act  to  be  performed  by  the 
Tax  Commissioner  may  be  performed  by  his  deputy,  appointed  un- 
der the  provisions  of  chapter  two  hundred  and  eighty-three  of  the 
acts  of  the  year  eighteen  hundred  and  sixty-five.     [Ibid,  §  13.)' 

257.  All  general  laws  relating  to  the  duties,  obligations,  prohi- 
bitions and  penalties  appertaining  to  insurance  companies  incorpo- 
rated by  authority  of  this  commonwealth,  and  all  the  laws  defining  the 
powers  and  duties  of  the  Insurance  Commissioner  in  relation  thereto, 
shall,  except  as  herein  before  provided,  ai)ply  to  any  company  cor- 
poration, association,  partnership  or  individual,  doing  any  kind  of 


MASSACHUSETTS.  383 

insurance  business  in  this  Commonwealth,  by  whatever  authority 
incorporated,  formed,  or  associated.     {Ibid,  §  14.) 

ANNUAL   STATEMENTS. 

258.    The  form  of  annual  statement  for  insurance  companies 
with  specific  capitals,  shall  be  as  follows : 

1.  State  the  name  of  the  company. 

2.  Where  located. 

3.  When  incorporated. 

4.  Amount  of  capital. 

5.  Amount  of  capital  actually  paid  in. 

6.  Number  of  shares  and  par  value  of  each. 

7.  Amount  of  fire  risks  outstanding. 

8.  Amount  of  marine  risks  outstanding. 

9.  Total  amount  of  outstanding  risks. 

10.  Amount  of  United  States  stock  or  treasury  notes  owned 
by  the  company ;  state  amount  of  each  kind,  and  par  value 
and  market  value  of  each. 

11.  Amount  of  State  stocks;  state  amount  of  each  kind,  and 
par  value  and  market  value  of  each. 

12.  Amount  of  bank  stocks ;  state  amount  of  each  kind,  and 
par  value  and  market  value  of  each. 

13.  Amount  of  railroad  stocks;  state  amount  of  each  kind, 
and  par  value  and  market  value  of  each. 

14.  Amount  of  railroad  bonds ;  state  amount  of  each  kind, 
and  par  value  and  market  value  of  each. 

15.  Cash  value  of  real  estate  OAvned  by  the  company. 

16.  Amount  of  cash  on  hand. 

17.  Amount  of  cash  in  hands  of  agents. 

18.  Amount  loaned  on  mortgage  of  real  estate. 

19.  Amount  loaned  on  collateral. 

20.  Amount  loaned  without  collateral. 

21.  Amount  of  all  other  investments. 

22.  Amount  of  premium  notes  on  risks  terminated. 

23.  Amount  of  borrowed  money,  specifying  collaterals  given 
for  the  same. 

24.  Amount  of  losses  due  and  unj)aid. 

25.  Amount  of  losses  claimed  and  unpaid. 

26.  Amount  of  losses  reported,  upon  which  the  liability  of  the 
company  is  not  determined. 

27.  Amount  of  all  other  claims  against  the  company. 

28.  Amount  of  cash  received  for  premiums  on  fire  risks. 

29.  Amount  of  cash  received  for  premiums  on  marine  risks. 

30.  Amount  of  notes  received  for  premiums  on  fire  risks. 

31.  Amount  of  notes  received  for  premiums  on  marine  risks. 

32.  Amount  of  cash  received  for  interest. 

33.  Amount  of  income  received  from  all  other  sources. 

34.  Amount  of  fire  losses  paid  the  last  year. 

35.  Amount  of  marine  losses  paid  last  year. 

36.  Amount  of  dividends  paid  the  last  year. 

37.  Amount  paid  for  expenses  of  office. 

38.  Amount  of  other  expenditures. 

39.  Amount  received  in  cash  for  fire  risks  not  terminated. 

40.  Amount  required  to  reinsure  all  outstanding  risks. 

41.  Amount  of  i)remium  notes  on  risks  not  terminated. 


384  hike's  insurance  statutes. 

42.  Amount  of  delinquent  notes  not  charged  to  profit  and 
loss. 

43.  Highest  rate  of  interest  received. 

44.  Highest  rate  of  interest  paid  on  money  borrowed. 

45.  How  many  shares  of  the  capital  stock  are  pledged  to  the 
company. 

46.  Balance  to  credit  of  profit  and  loss  account. 

47.  Balance  to  debit  of  profit  and  loss  account. 

48.  How  many  shares  of  the  capital  stock  are  owned  by  the 
company,  or  not  subscribed  for, 

49.  What  amount  of  the  capital  consists  of  the  stockholders' 
notes.     {General  Statutefi,  58  A.) 

^♦19.     The  form  for  mutual  marine,  and  mutual  fire  and  marine 
insurance  companies,  shall  be  as  follows: 

1.  Name  or  title  of  the  company. 

2.  Where  located. 

3.  When  incorporated. 

4.  For  wliat  period. 

5.  Amount  invested  in  United  States  funded  debt,  with  the 
amount  of  each  kind  owned;  state  par  value  and  market 
value,  per  share. 

6.  Amount  of  United  States  treasury  notes  owned ;  state 
par  value  and  market  value,  per  share. 

7.  Amount  invested  in  State  stocks,  with  the  amount  of  each 
kind  owned;  state  per  value  and  market  value,  per  share. 

8.  Number  of  shares  owned  in  each  bank  which  are  not 
pledged;  state  par  value  and  market  vakie,  per  share. 

9.  Number  of  shares  owned  in  each  railroad;  amount  in- 
vested in  each,  at  cost  on  books ;  state  per  value  and  market 
value,  per  share. 

10.  Amount  received  in  railroad  bonds,  and  amount  of  each 
kind,  at  cost  on  books ;  state  par  value  and  market  value  per 
share. 

11.  Amount  invested  in  real  estate,  as  it  stands  on  the  books 
of  the  company. 

12.  State  specifically  all  other  investments  or  property. 

13.  Cash  on  hand. 

14.  Cash  in  hands  of  agents. 

15.  Amount  loaned  on  mortgage  of  real  estate. 

16.  Amount  loaned  on  notes  secured  by  collaterals  of  per- 
sonal ])roperty. 

17.  Amount  loaned  on  notes  without  collateral  security. 

18.  Amount  of  stock  notes  on  hand  not  overdue. 

19.  Amount  of  stock  notes  on  hand  that  are  past  due. 

20.  Amount  of  premium  notes  on  risks  terminated. 

21.  Amount  of  i)remium  notes  on  risks  not  terminated. 

22.  Amount  of  delinquent  premium  notes  not  charged  to 
profit  and  loss. 

23.  Amount  of  scrip  issued  for  profits  which  remains  out- 
standing. 

24.  Amount  of  debts  due  the  company  .other  than  those  be- 
fore enumerated  ;  state  particularly  their  respective  amounts 
and  origin. 

25.  Amount  of  marine  risks  not  terminated. 

26.  Amount  of  fire  risks  not  terminated. 

27.  Amount  received  in  cash  for  fire  risks  not  terminated. 


MASSACHUSETTS.  385 

28.  state  the  highest  rate  of  interest  received. 

29.  Amount  received  for  interest. 

30.  State  the  highest  rate  of  interest  paid  for  money  bor- 
rowed. 

31.  Amount  paid  for  interest. 

32.  State  the  amount  borrowed  which  remains  unpaid,  and 
state  particularly  the  collateral  given  for  each  loan. 

33.  Amount  of  fire  losses  paid  the  past  year. 

34.  Amount  of  marine  losses  paid  the  past  year. 

35.  Amount  of  losses  ascertained  and  unpaid. 

36.  Amount  of  losses  claimed  other  than  those  ascertained 
and  unpaid. 

37.  Amount  of  expenses,  taxes,  and  commissions,  paid  the 
past  year.     {Ibid,  58  B.  1800,  156,  §  1.) 

^60.  The  form  tor  mutual  tire  insurance  companies  shall  be 
as  follows.  All  companies  having  jiolicies  in  separate  classes,  shall 
in  their  answers  specify  the  respective  amounts  in  each  class : 

1.  Name  of  company. 

2.  Where  located. 

3.  When  incorporated. 

4.  Date  of  commencement  of  business. 

5.  Amount  insured  by  existing  policies. 

6.  Amount  of  premiums  and  deposits  on  same. 

7.  Amount  of  premiums  on  same  received  in  cash. 

8.  Amount  of  United  States  and  State  stocks  or  notes ;  state 
par  value  and  market  value  of  each. 

9.  Amount  of  bank  stocks,  railroad  stocks,  and  bonds ;  state 
number  of  shares  in  each  banlv  and  railroad  connDany,  and  par 
value  and  market  value  of  each. 

10.  Cost  value  of  real  estate  owned  by  the  company. 

11.  Amount  loaned  on  mortgage  of  real  estate. 

12.  Amount  of  other  investments. 

13.  Cash  on  hand  and  in  bank. 

14.  Cash  in  hands  of  agents. 

15.  Amount  of  assessments  regarded  good,  due  and  not  paid. 

16.  Amount  of  losses  ascertained  and  uni^aid. 

17.  Amount  of  other  losses  claimed. 

18.  Amount  owed  for  borrowed  money,  and  on  what  securi- 
ties. 

19.  Amount  owing  for  dividends  on  expired  policies. 

20.  Amount  and  particulars  of  all  other  liabilities. 

21.  Estimated  amount  in  cash  required  to  reinsure  all  out- 
standing risks. 

22.  Amount  of  policies  terminated  the  past  year. 

23.  Amount  of  policies  issued  the  past  year. 

24.  Amount  of  premiums  received  in  cash  the  past  year. 

25.  Amount  of  preniiuras  received  in  notes  the  j^ast  year. 

26.  Amount  received  on  assessments  the  past  year. 

27.  Amount  received  for  interest,  including  dividends  on 
stocks  and  all  other  revenue  on  investments^  the  last  year. 

28.  Amount  of  losses  paid  the  last  year. 

29.  Amount  of  cash  dividends  paid  to  policy-holders  the  past 
year. 

30.  Amount  paid  in  cash  as  return  premiums  on  policies  can- 
celed the  past  year. 

31.  Amount  for  expenses,  taxes  and  commissions. 
25 


386  niNE'S  INSURANCE  STATUTES. 

32.  State  the  gain  or  loss  in  investment  account  arising  from 
changes  in  market  values  of  securities  the  past  year. 

33.  Amount  assessed  the  last  year.  > 

34.  Amount  of  liability  to  future  assessment. 
35   Highest  rate  of  interest  paid. 

3(3.  Highest  rate  of  interest  received. 

37.  Amount  insured  on  real  estate. 

38.  Amount  in  suited  on  personal  estate. 

39.  What  proportion  of  the  property  insured  in  Massachu- 
setts. 

40.  What  proportion  of  the  losses  was  on  property  in  Massa- 
chusetts?    {Ibid,  58  C;  Laics  of  1860,  15(3,  §  1;  1802,  181,  §  6.) 

S4I1.     The  form  for  life  insurance  companies  shall  be  as  fol- 
lows : 

1.  iN^ame  of  the  company. 

2.  When  chartered. 

3.  For  what  period. 

4.  Where  located. 

5.  State  ip  full  the  assets  of  the  company. 

6.  Number  of  shares  owned  in  each  bank ;  state  par  value 
and  market  value,  per  share. 

7.  Number  of  shares  owned  in  each  railroad,  stating  the  cor- 
porate name  of  each,  and  amount  invested  in  each,  at  cost,  on 
books ;  state  par  value  and  market  value,  per  share. 

8.  Amount  owned  in  railroad  bonds ;  state  par  value  and 
market  value,  per  share. 

9.  Amount  invested  in  real  estate,  at  cost,  on  the  books  of 
the  comj)any. 

10.  Amount  loaned  on  mortgages  of  real  estate. 

11.  Amount  loaned  on  notes  secured  by  collaterals  of  personal 
property. 

12.  Amount  loaned  on  notes  without  collaterals. 

13.  State  m  full  all  other  investments. 

14.  How  much  included  in  the  foregoing  statements  of  assets 
consists  of  jiremium  notes  on  policies  not  returned  as  now  in 
force  1 

15.  Number,  date,  and  amount  of  each  outstanding  policy  not 
heretofore  returned,  and  age  of  the  insured. 

16.  Number,  date,  and  amount  of  each  policy  which  has  with- 
in the  year  ceased  to  be  in  force,  how  terminated,  what  has 
been  paid  to  the  legal  holder  of  the  policy,  and  age  of  the  in- 
sured. 

17.  Amount  of  losses  ascertained  and  unpaid. 

18.  Amount  of  losses  claimed  against  the  company,  whether 
acknowledged  as  due  or  not  by  the  company. 

19.  Amount  due  from  the  company  on  its  declared,  promised, 
or  acknowledged  indebtedness  or  other  claims,  including  divi- 
dends, bonuses  on  distribution  of  surplus,  or  as  })rotits. 

20.  Amount  received  for  premiums  the  past  year. 

21.  Amount  received  for  premiums  in  cash. 

22.  Amount  received  for  premiums  in  promissory  notes  or  se- 
curities. 

23.  Amount  received  for  interest  the  past  year. 

24.  Amount  paid  for  interest  the  past  year. 

25.  Amount  of  guaranty  funds;  and  state  particularly 
whether  the  same  are  in  cash  or  subscription  notes. 


MASSACHUSETTS.  387 

26.  How  are  divideuds,  distributious  of  surplus  funds,  bonus- 
es or  estimated  profits  paid,  whether  in  cash,  scrip,  or  other- 
wise on  credit,  and  whether  on  demand,  or  if  on  credit,  for  what 
length  of  time,  and  whether  payable  at  a  specific  time  or  indefi- 
nitely at  the  discretion  of  the  company. 

27.  Amount  paid  for  expenses,  taxes  and  commissions,  the 
past  year.     {Ibid,  D.;  Laws  of  ISiiO,  150,  §  2.) 

S^jO^S.  The  Insurance  Commissioner  is  hereby  authorized  to 
amend  and  revise  the  forms  of  annual  statements  hereinbefore  pre- 
scribed, and  to  propose  such  additional  inquiries  as  are  necessary 
to  elicit  a  full  exhibit  of  the  business  and  standing  of  the  various 
insurance  companies  doing  business  in  this  commonwealth.  {Laws 
0/18G7,  2G7,  §  3.) 

S6lt.  The  time  hereinbefore  prescribed  for  filing  annual  state- 
ments may  be  extended  by  the  Commissioner  in  favor  of  any  com- 
pany for  good  cause  shown,  but  not  beyond  the  first  day  of  the 
month  next  after  the  date  hereinbefore  specified  for  filing  the  same. 
(Ibid,  §  2.) 

!34>4.  Any  company  doing  business  in  this  State,  neglecting  to 
make  returns  in  the  manner  and  within  the  time  hereinbefore  au- 
thorized and  prescribed,  shall  forfeit  one  hundred  dollars  for  each 
day's  neglect ;  and  every  company  that  willfully  makes  false  state- 
ments shall  be  liable  to  a  fine  of  not  less  than  five  hundred  nor  more 
than  one  thousand  dollars.  Any  new  business  done  by  any  com- 
pany or  its  agents  in  this  State  after  neglect  to  make  the  prescribed 
returns,  shall  be  deemed  to  be  done  in  violation  of  law.  {General 
Statutes,  58,  §  20;  Laws  of  1867,  267,  §  3.) 

30«>.  The  Insurance  Commissioner  shall  have  authority  to  pre- 
vent the  publication  of  any  part  of  the  annual  statements  of  the  life 
insurance  companies,  until  such  time  as  the  annual  report  of  said 
Commissioner  is  made  to  the  legislature.     {Laws  o/1864,  2::0,  §  1.) 

FORM   OF  POLICY. 

366.  Any  insurance  company  authorized  to  issue  policies  in 
this  Commonwealth  may  print  uj)on  theii*  policies  the  words  "  Mas- 
sachusetts Standard  Policy,"  provided  that  the  printed  parts  of  such 
policies  are  in  the  following  form  and  language,  and  that  all  other 
provisions  of  said  policies,  except  as  provided  in  section  two,  are  in 
writing : 

The  Insurance  Company  of  , 

in  consideration  of  dollars,  insures 

to  the  amount  of  dollars,  on 

Bills  of  exchange,  uotes,  accounts,  evidences  and  security  of  prop- 
erty of  every  kind,  books,  wearing  apparel,  plate,  money,  jewels, 
musical  instruments,  medals,  paintings,  sculpture,  and  curiosities 
are  not  included  in  said  insured  property,  unless  specially  men- 
tioned. 

Said  property  is  insured  for  the  term  of  beginning 

on  the  day  of  in  the  year  one  thousand  eight 

hundred  and  at  noon,  and  continuing  until  the 

in  the  year  one  thousand  eight  hundred  and 
at  noon,  against  all  loss  or  damage  by  Jire,  originating  in  any  cause 
except  invasion,  foreign  enemies,  civil  commotions,  riot,  or  any  mil- 
itary or  usurped  power  whatever  ;  the  amount  of  said  loss  or  dam- 
age to  be  estimated  according  to  the  actual  value  of  the  insured 


388  mine's  insurance  statutes. 

property  at  the  time  wheD  such  loss  or  damage  happens,  but  not  to 
iachide  loss  or  damage  caused  by  explosions  of  any  kind,  unless  fire 
ensues,  and  then  to  include  that  caused  by  fire  only. 

This  policy  shall  be  void  if  any  material  fact  or  circumstance 
stated  in  writing  has  not  been  fairly  represented  by  the  insured, — 
or  if  the  insured  now  has  or  shall  hereafter  make  any  other  insur- 
ance on  the  said  property  without  the  written  assent  of  the  com- 
pany,— or  if,  without  such  assent,  the  said  property  shall  be  re- 
moved, unless  such  removal  shall  be  necessary  for  its  preservation 
from  fire, — or  if,  without  such  assent,  the  situation  or  circumstances 
affecting  the  risk  shall,  by  or  with  the  ad\ice,  agency  or  consent  of 
the  insured,  be  so  altered  as  to  cause  an  increase  of  such  risk,  the 
non-occupancy  of  the  i^remises  insured  or  containing  the  property 
insiu-ed  not  being  deemed,  however,  to  cause  such  increase, — or  if, 
without  such  assent,  the  said  property  shall  be  sold,  or  this  policy 
assigned, — or  if  the  insm-ed  shall  make  any  atteinpt  to  defraud  the 
company, — or  if  gunpowder  or  other  articles  subject  to  legal  restric- 
tion shall  be  kept  in  quantities  or  manner  diflerent  from  those 
allowed  or  j^rescribed  by  law, — or  if  cami)hene,  benzine,  naphtha,  or 
other  chemical  oils  or  burning  fluids  shall  be  used  by  the  insured  on 
the  premises  insured,  except  that  what  is  known  as  refined  petro- 
leum, kerosene,  or  coal  oil,  may  be  used  in  stores  or  dwelliugs  for 
lighting. 

If  the  insured  property  shall  be  exposed  to  loss  or  damage  by 
fire,  the  insured  shall  make  all  reasonable  exertions  to  save  and  j)ro- 
tect  the  same. 

In  case  of  any  loss  or  damage  under  this  jiolicy,  a  statement  in 
writing,  signed  and  sworn  to  by  the  insured,  shall  be  forthwith  ren- 
dered to  the  company,  setting  forth  the  value  of  the  property  in- 
sured, the  interest  of  the  insured  therein,  all  other  insurance  there- 
on, the  purposes  for  which  and  the  persons  by  whom  the  building 
insured,  or  containing  the  property  insured,  was  used,  and  the  time 
at  which  and  the  manner  in  which  the  fire  originated,  so  far  as 
known  to  the  insured.  The  company  may  also  examine  the  books 
of  account  and  vouchers  ot  the  insured,  and  make  extracts  from  the 
same. 

In  case  of  any  loss  or  damage,  the  company,  within  sixty  days 
after  the  insured  shall  have  submitted  a  statement,  as  provided  in  the 
preceding  clause,  shall  either  x)ay  the  amount  for  which  it  shall  be 
liable,  or  replace  the  pro])erty  with  other  of  the  same  kind  and 
goodness.— or  it  may,  within  fifteen  days  after  such  statement  is 
submitted,  notify  the  insured  of  its  intention  to  rebuild  or  repair  the 
premises,  and  shall  thereupon  enter  ui^on  said  juemises  and  proceed 
to  rebuild  or  repair  the  same  with  reasonable  expedition.  It  is 
moreover  understood  that  there  can  be  no  abandonment  of  the  prop- 
erty insmed  to  the  company,  and  that  the  company  shall  not  in  any 
case  be  liable  for  more  than  the  sum  insured,  with  interest  thereon 
from  the  time  w^hen  the  loss  shall  become  payable,  as  above  pro- 
vided. 

If  there  shall  be  any  other  insurance  on  the  property  insured, 
whether  prior  or  subsequent,  the  insured  shall  recover  on  this  policy 
no  greater  proportion  of  the  loss  sustained  than  the  sum  hereby 
insured  bears  to  the  whole  amount  insured  thereon.  And  whenever 
the  company  shall  pay  any  loss,  the  insured  shall  assign  to  it,  to  the 
extent  of  the  amount  so  i^aid,  all  rights  to  recover  satisfaction  for 
the  loss  or  damage  from  any  person,  town,  or  other  corporation, 


MASSACHUSETTS.  389 

excepting  other  insurers;  or  the  insured,  if  requested,  shall  prose- 
cute therefor  at  the  charge  and  for  the  account  of  the  company. 

This  policy  may  be  canceled  at  any  time  at  the  request  of  the  in- 
sured, who  shall  thereupon  be  entitled  to  a  return  of  the  i)ortion  of 
the  above  premium  remaining,  after  deducting  the  customary 
monthly  short  rates  for  the  time  this  policy  shall  have  been  in  force. 
The  company  also  reserves  the  right,  after  giving  written  notice  to 
the  insured,  and  tendering  to  the  insured  a  ratable  proportion  of 
the  premium,  to  cancel  this  policy  as  to  all  risks  subsequent  to  the 
expiration  of  ten  days  from  such  notice. 

If  this  policy  shall  be  made  payable  to  a  mortgagee,  no  act  or 
default  of  the  insured  shall  affect  such  mortgagee's  right  to  recover 
in  case  of  loss;  Provided,  That  he  shall,  on  demand,  pay  according 
to  the  established  scale  of  rates  for  any  increase  of  risks  not  paid  for 
by  the  insured,  and  shall,  if  the  companj^  shall  elect  upon  the  hap- 
pening of  a  loss  to  pay  him  the  whole  amount  secured  by  this  mort- 
gage, assign  to  the  company,  upon  such  payment,  his  said  mortgage, 
together  with  the  note  and  debt  thereby  secured,  and  all  other 
securities  held  by  him  as  collateral  for  the  same. 

In  case  any  difference  of  opinion  shall  arise  as  to  the  rights  of 
the  parties  under  this  policy,  the  subject  thereof  shall  be  referred 
to  three  disinterested  men,  the  company  and  the  insured  each 
choosing  one  out  of  three  persons  to  be  named  by  the  other,  and  the 
third  being  elected  by  the  two  so  chosen,  and  the  decision  of  a 
majority  of  said  referees  shall  be  final  and  binding  on  the  i^arties. 

In  witness  tchereof  the  said  company  has  caused  this  policy  to  be 
signed  by  its  president  and  countersigned  by  its  secretary  this 

day  of  in  the  year  one  thousand  eight 

hundred  and 

President. 
Secretary. 
{Laws  0/1873,  chap.  331,  §  1.) 

ii®7.  The  provisions  of  the  preceding  section  shall  not  prevent 
any  comi)any  from  printing  on  or  in  any  policy  so  to  be  designated 
as  "Massachusetts  Standard  Policy"  the  name,  location,  and  date 
of  incorporation  of  the  company,  the  amount  of  its  capital  stock,  the 
names  of  its  officers  and  agents,  and  the  number  and  date  of  the 
policy;  and  shall  not  prevent  the  use  of  printed  forms  of  descrip- 
tion and  specification  of  the  property  insured  under  said  policies  ; 
nor,  in  case  any  such  policy  is  issued  through  any  agent  of  such 
company,  shall  said  provisions  prevent  the  company  from  printing 
on  or  in  any  policy  the  following  words  :  "  This  policy  shall  not  be 
valid  until  countersigned  by  the  duly  authorized  agent  at  ." 

{Ibid,  §  2.) , 

3<»8.  Any  insurance  company,  and  any  agent  of  any  insurance 
company,  or  any  i^erson  soliciting  insurance,  who  shall  issue  any 
policy  of  insurance  not  conforming  to  the  provisions  of  this  act, 
which  shall  contain  on  or  in  such  policy  the  words  "  Massachusetts 
Standard  Policy,"  or  any  other  similar  designation,  shall  for  each 
offense  forfeit  and  pay  to  the  use  of  the  commonwealth  one  thousand 
dollars,  to  be  sued  for  and  recovered  with  costs,  in  the  name  of  the 
commonwealth,  in  an  action  of  tort.     {Ihid,  §  3.) 

961).  Any  insurance  company,  or  any  agent  of  such  company 
or  other  person  soliciting  insurance,  who  shall  after  July  first, 
eighteen  hundred  and  seventy-three,  issue  or  deliver  any  policy  of 
insurance  against  loss  or  damage  by  fire,  differing  as  to  any  of  its 


390  niNE'S  INSURANCE  STATUTES. 

printed  words  from  tlie  form  set  forth  in  tliis  act,  shall  first  file  with 
the  Insurance  Commissioner  a  copy  of  the  printed  form  of  contract 
or  policy  intended  to  be  tliereafter  used  and  issued  by  said  company, 
agent  or  person  in  this  commonwealth,  and  thereafter  in  case  of  any 
change  in  such  i^rinted  form,  a  statement  thereof  shall  also  be  filed 
with  the  Insurance  Commissioner  prior  to  the  use  of  a  form  contain- 
ing such  change  in  printed  words,  and  any  company,  agent,  or  per- 
son failing  or  refusing  to  comply  with  the  provisions  of  this  section, 
may  be  enjoined  on  complaint  of  the  Insurance  Commissioner  from 
issuing  any  more  policies  of  insurance  in  this  commonwealth.  And, 
upon  a  request  made  by  the  secretary  of  any  incorporated  board  of 
trade,  chamber  of  commerce,  or  corn  exchange,  said  insurance  com- 
panies, agents,  or  persons  shall  furnish  them,  through  the  Insurance 
Commissioner,  with  copies  of  the  printed  forms  of  policy  used  or 
issued  by  them  respectively  in  this  commonwealth,  and  of  all  changes 
made  in  such  forms  as  above  provided.     {Ibid,  §  4.) 

27©.  It  shall  be  the  duty  of  the  Insurance  Commissioner  to 
keep  such  forms  of  contract  or  policy  of  insurance,  and  changes 
therein,  in  a  book  provided  for  such  piu'pose,  and  also  to  examine 
such  forms,  and  to  note  in  said  book,  in  a  convenient  manner  for 
reference,  the  material  variations  of  such  forms  from  the  form  set 
forth  in  this  act,  which  book  shall  be  open  to  the  inspection  of  the 
public,  at  the  office  of  the  Insurance  Commissioner.  Said  Insurance 
Commissioner  shall  furnish  a  copy  of  such  variations  to  any  person 
applying  for  the  same,  and  may  charge  a  fee  not  exceeding  one 
dollar  for  each  such  service;  Provided,  Such  service  shall  be  per- 
formed in  his  individual  capacity,  and  that  the  commonwealth  shaU 
not  assume  any  responsibility  therefor.     {Ibid,  §  5.) 

271.  Any  policy  of  insurance  issued  or  delivered  in  this  com- 
monwealth in  violation  of  any  of  the  provisions  of  this  act,  shall 
nevertheless  be  binding  upon  the  company  issuing  the  same.  {Ibid, 
§6.) 

MISCELLANEOUS. 

272.  "^nien  the  actual  funds  of  any  life  insurance  company 
doing  business  in  this  commonwealth  are  not  of  a  net  cash  value 
equal  to  its  liabilities,  counting  (as  such)  the  net  value  of  its  policies 
according  to  the  "(Combined  Experience,"  or  "Actuaries'"  rate  of 
mortality,  with  interest  at  four  per  centum  per  annum,  it  shall  be 
the  duty  of  the  Insurance  Commissiq^er  to  give  notice  to  such  com- 
pany and  its  agents  to  discontinue  issuing  new  policies  within  this 
commonwealth  until  such  time  as  its  funds  have  become  equal  to  its 
liabilities,  valuing  its  policies  as  aforesaid.  Any  officer  or  agent 
who,  after  such  notice  has  been  given,  issues  a  new  policy  from  and 
on  behalf  of  such  company  before  its  funds  have  become  equal  to  its 
liabilities  as  aforesaid,  shall  forfeit  for  each  offense  a  sum  not  ex- 
ceeding one  thousand  dollars.     {Latcs  of  18G3,  148.) 

27J5.  Every  insurance  company  doing  business  in  this  State 
shall  conduct  the  same  in  the  ]>roper  and  corporate  name  of  said 
company,  and  not  by  various  and  different  names.  The  policies 
and  contracts  of  insurance  issued  by  any  company  shall  be  headed 
or  entitled  only  by  the  corporate  name  or  title  of  said  company. 
{General  Statutes,  58,  §  24.) 

274.  In  all  insurance  against  loss  by  fire  by  companies  char- 
tered or  doing  business  in  this  commonwealth,  the  conditions  of  the 


'     MASSACHUSETTS.  391 

insurance  shall  be  stated  in  the  body  of  the  p3licy,  and  neither  the 
application  of  the  insured  nor  the  by  laws  of  the  company  shall  be 
considered  as  a  warranty  or  a  part  of  the  contract,  except  so  for  as 
they  are  incorporated  in  full  into  the  jjolicy,  and  so  appear  on  its 
face,  before  the  signatures  of  the  officers  of  the  company.  {Laws  of 
1861,  152;  18G4,  196,  §  1.) 

275.  No  policy  shall  be  issued  for  a  term  exceeding  seven 
years.  But  this  section  shall  not  apply  to  life  insui-ance  companies. 
{General  Statutes,  58,  §  24;  Laics  of  1861,  189,  §  1.) 

970.  No  insurance  company  shall  deal  or  trade  in  buying  or 
selling  goods,  wares,  merchandise,  or  other  like  property,  excepting 
such  articles  as  have  been  insured  by  such  comi)any,  on  which 
losses  are  claimed  by  the  insured.     {Ihid,  §  23.) 

277.  The  Governor  and  Council  may  allow  such  reasonable 
compensation  for  services  rendered  and  expenses  incurred  in  en- 
forcing the  laws  relating  to  insurance  companies  as  they  deem 
proper.     {Ihid,  §  77.) 

278.  Whoever  acts  or  aids  in  any  manner  in  negotiating  con- 
tracts of  insurance,  or  i)lacing  risks,  or  effecting  insurance,  for  any 
person  otber  than  himself,  receiving  compensation  therefor,  and  is 
not  the  officer,  agent  or  sub-agent  of  the  company  or  companies  in 
which  such  insurance  is  effected,  shall  be  deemed  to  be  an  insurance 
broker.     {Laws  of  1869,  93,  §  1.) 

279.  Whoever  acts  or  aids  in  any  manner  in  negotiating  con- 
tracts of  reinsurance,  or  placing  such  risks,  or  effecting  such  insur- 
ance, for  any  party  other  than  himself,  receiving  compensation 
therefor,  shall  be  deemed  an  insurance  broker  within  the  meaning 
of  section  one  of  chapter  ninety-three  of  the  acts  of  the  year  eighteen 
hundred  and  sixty -nine.     {Laws  of  1871,  297,  §  8.) 

280.  No  person  shall  act  as  an  insurance  broker  until  he  has 
procured  a  certiiicate  of  authority  so  to  act,  from  the  Insurance 
Commissioner.  Such  certificate  shall  authorize  the  person  named 
therein  to  negotiate  contracts  of  insurance,  or  place  risks,  or  effect 
insurance  with  any  insurance  company  established  in  this  common- 
wealth, or  its  agents,  and  with  the  agents  of  any  insurance  com- 
pany not  incorporated  in  this  commonwealth,  which  hns  complied 
with  all  of  the  laws  thereof,  and  is  duly  authorized  to  do  business 
therein;  Provided,  Such  agents  have  duly  given  bond  to  make  re- 
turns and  pay  taxes,  and  have  complied  with  all  other  requirements 
of  said  laws. 

Whoever  assumes  to  act  as  an  insurance  broker  otherwise  than 
as  aforesaid,  shall  be  held  to  be  an  insurance  agent,  and  subject  to 
aU  the  duties,  requisitions,  liabilities  and  penalties  set  forth  in  the 
laws  relating  to  such  agents.     {Laws  of  1869,  93,  §  2.) 

281.  The  Insurance  Commissioner  shall  grant  certificates  of 
authority  as  aforesaid,  which  shall  continue  in  force  for  one  year 
from  the  date  thereof. 

For  each  certificate  so  granted,  and  for  each  renewal  thereof, 
there  shall  be  collected  and  paid  into  the  Treasury  of  the  common- 
wealth, the  sum  often  dollars.  {Laws  o/'1869,  93,  §  3,  as  amended  by 
laws  of  1873,  chap.  164.) 

282.  Whoever  violates  any  of  the  provisions  of  this  act  shall 
be  punished  by  a  fine  not  exceeding  fiv^e  hundred  dollars.  {Ibid, 
§4.) 


392  HINE'S   INSUHANfJE   STATUTES. 

FKAUDS  ON  INSUEANCE  COMPANIES. 

283.  Whoever  willfully  burns  a  building  or  any  goods,  wares, 
merchandise,  or  other  chattels,  which  are  at  the  time  insured 
against  loss  or  damage  by  fire,  with  intent  to  injure  the  insurer, 
whether  such  person  is  the  owner  of  the  property  burned  or  not, 
shall  be  punished  by  imprisonment  in  the  State  j)rison  not  exceed- 
ing twenty  years.     {General  IStatutes,  101,  §  7.) 

284.  Whoever  willfully  casts  away,  burns,  sinks,  or  otherwise 
destroys  a  ship  or  vessel  with  intent  to  injure  or  defraud  an  insurer 
of  such  ship  or  vessel,  or  of  any  property  laden  on  board  the  same, 
or  of  any  part  thereof,  shall  be  punished  by  imprisonment  in  the 
State  prison  for  life  or  any  term  of  years.     {Ibid,  §  7(3.) 

285.  Whoever  lades,  equips  or  fits  out,  or  assists  in  lading, 
equipping  or  fitting  out,  a  ship  or  vessel,  with  intent  that  the  same 
shall  be  willfully  cast  away,  burnt,  sunk  or  otherwise  destroyed,  to 
injure  or  defraud  an  insurer  of  such  ship  or  vessel,  or  of  an 3'  property 
laden  on  board  the  same,  shall  be  punished  by  imprisonment  in  the 
State  prison  not  exceeding  twenty  years,  or  fine  not  exceeding  five 
thousand  dollars  and  imprisonment  in  the  jail  not  exceeding  three 
years.     {Ibid,  §  77.) 

286.  If  the  owner  of  a  ship  or  vessel,  or  of  property  laden  or 
pretended  to  be  laden  on  board  the  same,  or  if  any  other  person  con- 
cerned in  the  lading  or  fitting  out  of  a  ship  or  vessel,  makes  out  or 
exhibits,  or  causes  to  be  made  out  or  exhibited,  a  false  or  fraudulent 
invoice,  bill  of  lading,  bill  of  ijarcels,  or  other  false  estimates,  of  any 
goods  or  property  laden,  or  pretended  to  be  laden,  on  board  such 
ship  or  vessel,  with  intent  to  injure  or  deft'aud  an  insurer  of  such 
ship,  vessel  or  property,  or  any  part  thereof,  he  shall  be  punished  by 
imprisonment  in  the  State  prison  not  exceeding  ten  years,  or  by  fine 
not  exceeding  five  thousand  dollars  and  imprisonment  in  the  jail  not 
exceeding  two  years.     Ibid,  §  78.) 

287.  If  a  master,  or  other  ofiicer,  or  mariner,  of  a  ship  or 
vessel,  makes,  or  causes  to  be  made,  or  swears  to  any  false  affidavit 
or  protest,  or  if  an  owner  or  other  person  concerned  in  such  ship  or 
vessel,  or  in  the  goods  or  i^roperty  laden  on  board  the  same,  pro- 
cui^es  any  such  false  affidavit  or  protest  to  be  made,  or  exhibits  the 
same,  with  intent  to  injure,  deceive  or  defraud  an  insurer  of  such  ship 
or  vessel,  or  of  any  goods  or  property  laden  on  board  the  same,  he 
shall  be  punished  by  imprisonment  in  the  State  prison  not  exceed- 
ing ten  years,  or  by  fine  not  exceeding  five  thousand  dollars  and 
imprisonment  in  the  jail  not  exceeding  two  years.     {Ibid,  §  79.) 


BOSTON  PROTECTIVE  DEPARTMENT. 

288,  George  A.  Curtis,  Joseph  F.  Hovey,  Joseph  W.  Kinsley, 
William  B.  Sears,  Henry  B.  White,  George  F.  Osborne,  C.  E.  Guild, 
Charles  E.  Lane,  John  W.  Porter,  and  all  other  officers  for  the  time 
being  of  any  incorporated  company  or  association  and  any  agent 
doing  the  business  of  fire  insurance  in  the  city  of  Boston,  who  may 
become  associated  with  them  and  their  successors,  are  hereby 
created  a  body  corporate  by  the  name  of  the  "  Boston  Protective  De- 
l)artment,"  with  power  to  sue  and  be  sued,  and  may  hold  by  pur- 
chase, devise  or  otherwise,  real  and  personal  property  for  the  use  of 
said  corporation,  to  an  amount  not  exceeding  one  hundred  thousand 


MASSACHUSETTS.  393 

dollars,  and  may  sell  and  convey  any  part  thereof,  subject,  however, 
to  the  laws  of  this  State.     {Laics  o/1874,  chap.  Gl,  §  1.) 

289.  Said  corporation  shall  have  power  to  provide  and  main- 
tain a  corps  of  men,  withi)roper  officers,  whose  duty  it  shall  be,  so 
far  as  practicable,  to  discover  and  prevent  fires;  and  whose  appoint- 
ment shall  be  subject  to  the  approval  of  the  Board  of  Fire  Commis- 
sioners ;  shall  provide  suitable  apparatus  to  save  and  preserve  life 
and  propert3^  at  or  after  a  tire,  and  power  is  hereby  granted  to  such 
corps  and  its  officers  to  enter  any  building  on  fire,  or  which  in  their 
judgment  is  immediately  exposed  to,  or  in  danger  of  taking  fire  from 
other  burning  buiklings,  to  protect  and  save  life  and  property 
therein,  and  to  remove  such  property  or  any  part  thereof  at  or  im- 
mediately after  a  fire ;  Provided,  however,  that  nothing  in  this  act 
shall  be  so  construed  as  to  lessen  in  any  way  the  authority  of  the 
officers  or  members  of  the  Boston  fire  department,  or  to  warrant  or 
justify  any  interference  with  them  in  the  performance  of  their  duties, 
nor  shall  it  in  any  way  justify  the  owner  of  any  building  or  personal 
property  in  the  abandonment  of  his  property,     {Ibid,  §  2.) 

290.  The  officers  and  men  of  the  Boston  Protective  Depart- 
ment, with  their  teams  and  apparatus,  shall  have  the  right  of  way, 
while  going  to  a  fire,  through  any  street,  lane  or  alley  in  the  city  of 
Boston,  subject  to  such  rules  and  regulations  as  the  City  Council 
and  the  Fire  Commissioners  may  prescribe,  and  subject  also  to  the 
rights  of  the  Boston  Fire  Department,  and  any  violation  of  the 
street  rights  of  the  Boston  Protective  Department  shall  be  punished 
in  the  same  manner  as  is  provided  for  the  punishment  of  violations 
of  the  rights  of  the  Boston  Fire  Department  in  chapter  three  hun- 
dred and  seventy -four  of  the  acts  ot  eighteen  hundred  and  seventy- 
three.     {Ibid,  §  3.) 

29 1 .  In  the  month  of  March  eighteen  hundred  and  seventy- 
foui',  and  in  the  month  of  March  of  every  year  thereafter,  there  shall 
be  held  a  meeting  of  the  corporation  hereby  created,  of  which  ten 
days'  previous  notice  shall  be  inserted  in  at  least  two  newspapers 
published  m  the  city  of  Boston,  at  which  meeting  each  incorporated 
insiu'ance  company  or  association  doing  business  in  the  city  of 
Boston,  whether  its  officers  or  its  agents  be  members  of  this  cor- 
poration or  not,  shall  have  the  right  to  be  represented  by  one  of  such 
officers  or  agent,  and  each  organization  represented  at  such  meet- 
ing shall  be  entitled  to  one  vote. 

A  majority  of  the  whole  number  so  represented  shall  have  power 
to  decide  upon  the  question  of  sustaining  the  corjis  herein  before 
mentioned,  and  of  fixing  the  maximum  amount  of  exiienses  which 
shall  be  incurred  therefor  during  the  fiscal  year  next  to  ensue ;  and 
the  whole  of  such  amount  or  so  much  thereof  as  may  be  necessary 
may  be  assessed  upon  the  organizations  belonging  to  this  corpora- 
tion, and  upon  all  other  organizations  and  agencies,  as  hereinbefore 
mentioned,  in  proportion  to  the  several  amounts  of  premiums  re- 
turned as  received  by  each,  as  hereinafter  provided,  and  such  as- 
sessment shall  be  collectable  by  this  corporation  in  any  court  of  law 
in  the  State  of  Massachusetts.     {Ibid,  §  4.) 

292.  To  provide  for  the  payment  of  persons  employed  and  to 
maintain  the  apparatus  for  saving  life  and  property  contemplated, 
this  corporation  is  empowered  to  require  a  statement  to  be  furnished 
semi-annually  by  all  corporations,  associations,  underwriters,  agents 
or  persons,  of  the  aggregate  amount  of  premiums  received  for  in- 
suring i)roperty  in  the  city  of  Boston,  for  and  during  the  six  months 


394  hine's  insurance  statutes. 

next  preceding  the  thirtieth  day  of  June  and  the  thirty -first  day  of 
December  of  each  year,  which  statement  shall  be  sworn  to  by  the 
president  or  secretary  of  the  corporation  or  association,  or  by  the 
agent  or  person  so  acting  and  effecting  such  insurance  in  said  city, 
and  shall  be  handed  to  the  treasurer  of  this  corporation,  within 
thirty  days  after  the  time  to  which  such  returns  are  to  be  made. 
{Ibid,  §  5.) 

S9*t.  It  shall  be  lawful  for  the  Treasurer  or  other  appointed 
officer  of  this  corporation,  within  ten  days  after  the  first  day  of 
January  and  the  first  day  of  July,  in  each  year,  by  written  or 
printed  demand  signed  by  him,  to  require  from  every  corporation, 
association,  underwriter,  agent  or  person  engaged  in  the  business  of 
fire  insurance  in  the  city  of  Boston,  the  statement  provided  for 
in  the  last  preceding  section  of  this  act ;  and  every  officer  of  such 
corporation  or  association,  and  every  individual,  agent  or  underwri- 
ter who  shall,  for  thirty  days  after  such  demand,  neglect  to  render 
the  account,  shall  forfeit  fifty  dollars  for  the  use  of  the  corporation 
created  by  this  act;  and  he  shall  also  forfeit,  for  their  use,  five  dol- 
lars in  addition  for  every  day  he  shall  so  neglect  after  the  exi^ira- 
tion  of  the  said  thirty  days ;  and  such  additional  penalty  may  be 
computed  and  recovered  up  to  the  time  of  the  trial  of  any  suit  for 
the  recovery  thereof,  which  penalty  may  be  sued  for  and  recovered, 
with  costs  of  suit,  in  any  court  of  record  within  this  State.  {Ibid, 
§6.) 

INQUESTS  IN  CASES  OF  FIRE. 

294.  When  property  is  destroyed  b.y  fire,  and  a  complaint  is 
subscribed  and  sworn  to  by  any  person  before  any  ])olice  court,  or 
any  municipal  court,  or  any  trial  justice,  alleging  that  reasonable 
grounds  exist  for  believing  that  the  fire  was  caused  by  design,  and 
a  majority  of  the  Mayor  and  Aldermen  or  Selectmen  of  the  city  or 
town  respectively  in  which  said  property  is  situated  certify  in  writ 
ing,  that  in  their  opinion  the  same  is  a  proper  case  for  investi- 
gation, such  court  or  justice  shall  forthwith  issue  a  warrant  to  a 
constable  of  the  place  where  the  property  was  destroyed  requiring 
him  forthwith  to  summon  six  good  and  lawful  men  of  the  county  to 
appear  before  the  court,  or  justice,  at  a  time  and  place  expressed  in 
the  warrant,  to  inquire  when  and  by  what  means  the  fire  originated ; 
which  warrant  shall  be  served  and  returned  in  the  manner  pre- 
scribed in  section  three  of  chapter  one  hundred  and  seventy-five  of 
the  General  Statutes ;  and  the  constables  and  jurors  shall  be  subject 
to  the  penalties  therein  specified  for  similar  neglects.  If  any  person 
so  summoned  does  not  appear,  the  constable  shall  by  order  of  the 
justice  or  court,  return  some  person  from  the  bystanders  to  com- 
plete the  number.  {LawsoflSQl,  303,  §1,  as  amended  by  laws  of 
1874,  chap.  267,  §  2.) 

295.  The  justice  or  court  shall,  in  view  of  the  spot  on  which 
the  property  was  destroyed,  administer  to  the  persons  thus  sum- 
moned or  returned  the  following  oath  :  "You  solemnly  swear  that 
you  will  diligently  inquire  and  true  presentment  make,  on  behalf  of 
this  commonwealth,  when  and  by  what  means  the  tire  which  has 
here  occurred  was  caused,  and  that  you  will  return  a  true  inquest 
according  to  your  knowledge  and  such  evidence  as  shall  be  laid  be- 
fore you.     So  help  you  God."     {Ibid,  §  2.) 

296.  The  justice  or  court  may  issue  subpoenas  for  witnesses 


MASSACHUSETTS.  395 

returnable  forth^vitli  at  a  time  and  place  therein  set  forth.  Their  at- 
tendance may  be  enforced  in  like  manner  as  if  they  had  been  sub- 
poenaed in  behalf  of  the  commonwealth.     {Ibid,  §  3.) 

297.  An  oath  to  the  following  effect  shall  be  administered  to 
such  witnesses :  "  You  solemnly  swear,  that  the  evidence  which  you 
shall  give  to  the  inquest,  concerning  the  origin  of  the  fire  of  which 
inquiry  is  now  to  be  made,  shall  be  the  truth,  the  whole  truth,  and 
nothing  but  the  truth.     So  help  you  God."     {Ibid,  §  4.) 

•598.  The  testimony  shall  be  reduced  to  writing  by  the  presid- 
ing justice,  or  some  person  by  his  direction,  and  subscribed  by  the 
witnesses.     {Ibid,  §  5.) 

299,  The  jury  after  hearing  the  testimony  and  making  all 
needful  inquiry,  shall  draw  up  and  deliver  to  thejustice  or  court  their 
inquisition  under  their  hands,  in  which  they  shall  find  and  certify 
when  and  by  what  means  the  fire  was  caused ;  and  said  inquisition 
and  testimony  thus  subscribed  shall  within  one  week  thereafter,  be 
filed  by  the  magistrate  with  the  clerk  of  the  courts  for  the  county, 
or  in  the  county  of  Suffolk  with  the  clerk  of  the  municipal  court. 
{Ibid,  §  6.) 

309.  The  fees  of  the  magistrates  and  the  expenses  of  any  in- 
quisition hereafter  held  under  the  provisions  of  chapter  three  hun- 
dred and  three  of  the  acts  of  the  year  eighteen  hundred  land  sixty- 
seven,  shall  be  returned  to  the  mayor  and  aldermen  or  selectmen  of 
the  city  or  town  where  the  property  was  destroyed,  and  being  au- 
dited and  certified  by  them  shall  be  paid  by  such  city  or  town. 
{Laws  0/1874,  chap.  267,  §  1.) 


ARSON  AND  mCENDIAEISM. 

301.  Whoever  willfully  and  maliciously  burns  the  dwelling- 
house  of  another,  or  any  building  adjoining  such  dwelling-house,  or 
willfully  and  maliciously  sets  fire  to  any  building  bj^  the  burning 
whereof  such  dwelling-house  is  burnt,  shall  be  punished  by  imprison- 
ment in  the  State  prison  for  life,  or  for  any  term  of  years.  {General 
Statutes,  1860,  p.  796,  §  1,  as  amended  by  act  approved  March  3,  1871.) 

302.  Whoever  willfully  and  maliciously  burns  in  the  night- 
time a  meeting-house,  church,  court-house,  town-house,  college, 
academy,  jail,  or  other  building  erected  for  public  use,  or  a  banking 
house,  warehouse,  store,  manufactory,  or  mill,  of  another  (being, 
with  the  property  therein  contained,  of  the  value  of  one  thousand 
dollars),  or  a  barn,  stable,  shop,  or  office  of  another,  within  the 
curtilage  of  a  dwelling-house,  or  any  other  building,  by  the  burning 
whereof  any  building  mentioned  in  this  section  is  burnt  in  the  night- 
time, shall  be  ])unished  by  imprisonment  in  the  State  prison  for  life 
or  for  any  term  of  years.  {Ibid,  §  2,  as  amended  by  act  approved 
March  3,  1871.) 

303.  Whoever  willfully  and  maliciously  burns  in  the  day-time 
any  building  mentioned  in  the  preceding  section,  the  punishment 
for  which  if  burnt  in  the  night-time  would  be  imprisonment  in  the 
State  prison  for  life,  shall  be  punished  by  imi^risonment  in  the  State 
prison  not  exceeding  ten  years.     {Ibid,  §  3.) 

304.  Whoever  willfully  and  maliciously  burns  a  banking  house, 
warehouse,  store,  manufactory,  miU,  barn,  stable,  shop,  office,  out- 
house, or  any  other  building  whatsoever,  of  another,  other  than  is 
mentioned  in  section  two,  or  a  bridge,  lock,  dam,  or  flume,  or  a  ship, 


396  hine's  insueance  statutes. 

or  vessel,  of  another,  sliall  be  pimisbed  by  imprisoument  in  tbe 
State  prison  not  exceeding  ten  years.     {Ibid,  §  4.) 

305.  Whoever  willt'ullj'  and  malicionsly  burns,  or  otherwise 
destroys,  or  injures  a  pile  or  parcel  of  wood,  boards,  timber,  or  other 
lumber,  or  any  fence,  bars,  or  gate,  or  a  stack  of  grain,  hay,  or  other 
vegetable  product,  or  any  vegetable  product  severed  from  the  soil 
and  not  stacked,  or  any  standing  trees,  grain,  grass,  or  other  stand- 
ing product  of  the  soil,  or  the  soil  itself,  of  another,  shall  be  pun- 
ished by  imprisonment  in  the  State  prison  not  exceeding  five  years, 
or  by  a  fine  not  exceeding  five  hundred  dollars  and  imprisonment 
in  the  jail  not  exceeding  one  year.     {Ibid,  §  5.) 


EMBEZZLEMENT. 

,106.  If  auy  officer,  agent,  clerk,  or  servant,  of  any  incorpor- 
ated company,  or  if  a  clerk,  agent,  or  servant,  of  any  private  per- 
son, or  copartnership,  except  apprentices  and  other  persons  under 
the  age  of  sixteen  years,  embezzles,  or  fraudulently  converts  to  his 
own  use,  or  takes,  or  secretes,  with  intent  so  to  do,  without  consent 
of  his  employer,  or  master,  any  property  of  another,  Avhich  has  come 
to  his  possession  or  is  under  his  care  by  virtue  of  such  employment, 
he  shall  be  deemed  guiltj^  of  simple  larceny.    {Ibid,  p.  800,  §  38.) 

;i07.  For  General  Provisions  relating  to  Corporations,  see 
Revised  Statutes,  1860,  pp.  384-389,  599;  Laws  of  1873,  p.  15.) 


INDEX   TO   MICHiaAK 


FAGB 

Agext  of  Foreign  Companies — 

For  Service  of  Process  (.39,  82,  105- 
111) 411,429,437 

Must  File  and  Publish  Certificate  (39).  411 
Penalties  for  Failiuf^to  make  Statement 

(41) 413 

Whea  Capital  is  Impaired  (39) •- . . .  411 

"When  Certificate   has    been    Revoked 

(•44) 414 

Who  shall  be  Regarded  as  (39) 411 

Agent— 

Of  Life  Companies  may  not  Make  TTn- 

authoiized  Insurance  (78,  84)  ..427,  430 
Of  Life  Companies,  Penalties  for  Non- 
compliance (66) 421 

Of  Life  Companies,  Penalties  for  Non- 
payment of  Tax  (72) 425 

Of  Mutual  Marine    Companies,    when      , 

Certificate  is  Revoked  (104) 436 

Embezzlement  by  (122,  123) 439,  440 

Annual  Statements— 

Of  Fire  and  Marine  Cos.  (36,  40)408,412 
Of  Foreign  Companies  (39,  40)..  .411,  412 

Of  Life  Insurance  Companies  (67) 422 

Of  Mutual  Fire  Companies  (92,  93t  . .  432 
Insurance  Commissioner  shall  Furnish 

Blanks  (3  S) 410 

Penalties  for  Failure  to  Make  (41). . . .  413 
Arson,  Crime  and  Penalty  of  (114-121).  438, 

439 

Broker  Regarded  as  Ag?nt,  when  (39). .-  411 

Capit.\l— 

Of  Fire  and  Marine  Companies  (22) . . .  403 

How  Increased  (33) 408 

Investment  of  (24) 40.5 

Organised  under  Act  of  1859  (34) 408 

When  Insufficient  (42-44) 413,  414 

Of  Foreign  Companies  (39) 411 

False  Statements  as  to  ( 5  2) 416 

Certificato— 

Of  Fire  and  Marine  Cos.  (26  > 405 

Of  Foreign  Companies  (39,  47)  .  -  411,  415 

Of  Life  Companies  (61) 419 

Of  Mutual  Marine  Companies  of  other 

States  (104) 436 

Revocation  of  (44) 414 

Charter — 

Amendment  of  (55) 417 

Duration  of  (4,  46) 400,  415 

Forfeiture  of  (28)  406 

Of  Foreign  Companies  to  be  Filed  (39)  411 
Of  Life  Companies  (68,  61) 418,419 


PASS 

Charter  (Continued)— 

Of  Life  Cos.,  Amendment  of  (7 1) 424 

Of  Life  Cos.,  Effect  of  Expiration  (81).  428 
Of  Mutual  Fire  Companies   (86,  89, 

90,  98) ■ 430,  431,  434 

Notice  for  Alteration  of  (7) 400 

Restrictions  on  Amendment  of  (3) 400 

Corporations — 

Defined  (5) 400 

Duration  of  Charter  (4,  46) 400,  415 

General  Provisions  concerning  (124)..  440 

Holdingof  Real  Estate  (6) 400 

Liability  of  Stockholders  (2) 400 

Must  be  Formed  tinder  General  Laws 

(1) 400 

Notice  for  Alteration  of  Chai'ter  (7) 400 

Restrictions  on  Amendment  of  Charters 
(3j 400 

Deposit— 

Of  Home  Life  Insurance  Companies  (60, 

65,  68,  77) 419,  421,423,  427 

Of  Foreign  Life  Insurance  Companies 

(66; 421 

Dividends  of  Fire   and  Marine  Insurance 

Companies  (28) 406 

Embezzlesiekt(122,  123) 439,  440 

FiRK  and  Marine  Insurance  Companies — 

Annual  Statement  (36) 408-10 

Amendment  of  Charter  (55) 417 

Authority  to  Commence  Business  (26)  405 

Articles  of  Association  (20) 403 

Books  of  Subscription  (23) 404 

By-Laws  and  Seal  (27) 406 

Capital  (22) 403 

Capital,  how  Increased  (33) 408 

Corporations  and  Tmstees  Liable,  when 

(32) 4C8 

Companies  Organized  under  Act  of  1859 

(34) 408 

Corporate  Existence,  how  Proved  (42).  413 

Compliance,  when  to  be  Made  (51) 416 

Dividends,  Ilestrictiong  on  (28) 406 

Duration  of  Charter  (.46) 415 

Directors  shall  bo  l.,iable,  when  (44)..  414 

Examination  of  (42,  48) 413,  415 

Formation  of  (1  7 1 402 

False  Statements  as  to  Capital  (52)  -- .  417 

Farm  Mutuals  Excepted  (53) 417 

Insurance  Commissioner  may  Enquire  of 

(37) 410 


398 


INDEX   TO  MICHIGAN. 


PAGE 

Fire  and  Marine  Ins  Cos.  (Continued) — 

Investment  of  Capital  (24) 405 

Limitation  ot  Eisli  (22) 403 

May  not  Engage  in  Trade  (22) 403 

Must   File    Declaration    of    Intention 

(19) 403 

Must  be  Stock  or  Mutual  (49) 416 

Mutuals  Limited  to  Two  Counties  (22)  403 
Mutuals   Insui-ing   Farm   £isks  (22, 

53' 403,  417 

Power  to  Reinsure  (18) 403 

Premium  Notes  ot  Mutuals  (22,29)403,  407 
Premium  Xotes  not  Debts,  when  (32).  408 
Premium  Notes,  Amount  and  Liability 

of  (29) 407 

Purchase  and  Sale  of  Real  Estate  (25).  405 
Penalties  for  Failure  to  Make  Statement 

(37) 410 

Penalties  for  Failure  to  Comply  (51)..  416 

Proceedings  to  Close  (42,44) 413,  414 

Provisions  Applicable  to  Mutuals  (44)  414 
Eeinsurance  Reserve,  Computation  of 

(56) 418 

ShaU  be  Examined  (26) 405 

Shall  be  Deemed  Bodies  Politic  ^35)  ..  408 
Suits  to  Recover  on  Premium   Notes 

(29) 407 

Suits  by  and  agaiust  Stockholders  and 

Members  (31) 407 

Taxes  on  Premium  (14; 402 

Tiausterof  Stock  Pending  Examination 

(44) 414 

When  Premium  Notes  will   not   Pay 

Losses  (29) 407 

When  Assets  arelnsufficient(42-44)413,414 
Whether  Mutual  or  Stock  Designated 

(30) 407 

Fees  for  Filing  Certificate  (47) 415 

Foreign  Insurauce  Companies — 

Annual  Statement  (39,  40) 411, 412 

Capital  (39) 411 

Charter  and  Statement  must  be  Filed 

(39) 411 

Compliance  to  the  Act  (51) 416 

Examination  (15,  42,  48)  ..  402,  413,  415 

Must  Appoint  Attorney  (39) 411 

Must  File  and  Publish  Certificate  (39, 

47) 411,415 

Penalty  for  Non-compliance  39,41)411,413 

Penalty  for  Failure  to  Comply  (51) 416 

Reinsurance  Reserve,  Computation  of 

(56) 418 

Service  of  Process  (39,  105-111)411,437 

Taxes  on  Premiums  (14) 402 

Taxes  ou  Gross  Pj-emiums  (50) 416 

When  Unsound  (44) 414 

When  Capital  is  Impaired  (39,44)411,  414 
(See  Life  Insurance  Companies  aud  Mu- 
tual Marine  Insurance  Companies.) 

Insukauce  Commissioner- 
Appointment  and  Staff  (9)  401 

Call  on  Stockholders  (43) 414 


PAGE 

Insurance  Commissioner  (Continued) — 
Examination  of  F.  aud  M.  Cos.  (2<?j 

42) 405,  413 

Examination  of  Mutuals  (90,100)431,  435 

Expenses  of  Examination  (48) 415 

Governor  may  Remove,  when  (16)....  402 
May  Examine  Foreign  Companies  (15, 

42) 402,  413 

May  Address  Enquiries  (37) 410 

iMust  Report  to  Legislature  (67) 422 

Office  of  (1 3) 402 

Powers  and  Duties  (10) 401 

Proceedings  to  Close  a  Company  (42) . .  413 

Seal  of  Office  (11) 401 

Shall  Furnish  Blank  Forms  (38) 410 

Shall  Examine  Lite  Cos.,  when  (68)  . . .  423 
Shall.Accept  Service  for  Foreign  Com- 
panies (105-111) 437 

Transfer  of  Books  by  Secretary  of  State 

(12) 438 

Valuation  of  Policies  (74) 426 

When  Assets  are  Insufficient  (42,  43)  413, 

414 
When  a  Life  Company  is  Unsound  (68)  423 
When  a  Mutual  Company  is  Unsound 

(93,  99,   101) 432,434,435 

Insurance  Companies — (See  Fire  and  Ma- 
rine Insurance  Companies,  Foreign 
Insurance  Companies,  aud  Life  In- 
surance Companies) 

Insurauce  Department,  Creation  of  (8) 408 

Life  Insurance  Companies — 

Articles  of  Association  (58,  71)..  418,  424 

Annual  Statement  (67) 422 

Authority  to  Commence  Business  (61)  419 

By-Laws  (64) 420 

Books  of  Subscription  (59) 419 

Capital  of  Stock  Companies  (60) 419 

Corporate  Existence,  how  Proved  (62)  420 
Control   and  Application   of    Deposit 

(65) 421 

Deposit  of  (60,  68) 419,  423 

Deposit  of  Foreign  Companies  (66) 421 

Examination  (61,  68) 419,  423 

Formation  (57) 418 

False   Repregentations    as    to    Capital 

(76) 426 

False  Statements  of  Medical  Examiners 

(76) 427 

Insurauce  Commissioner  shall  be  Attor- 
ney (105-111) 437 

May  Insure,  what  (5  7) 418 

Mutual     Companies     may   Commence 

Business,  when  (60) 419 

Purchase  and  Sale  of  Real  Estate  (63)  420 

Proceedings  when  Unsound  (68) 4S3 

Proceedings  to  Annul  Articles  of  As- 
sociation (71) 424 

Penalty  in    Case  of  False  Statement 

(69) 424 

Penalty  for  Non-compliance  (84) 430 

Policies  shall  be  Non-forfeiting  (73). . .  425 


INDEX  TO  MICHIGAN. 


> 


399 


FAOB 

Life  Insurance  Companies  (Continued) — 

Policies  must  State,  what  (84) 430 

Previously  Organized,  may  Avail  them- 
selves of  the  Act  (71) 424 

Powers  and  Liabilities  of  State  Treas- 
urer (77) 427 

Perpetual  Existence  (80 428 

Eeciproc.il  Taxation  (83) 429 

Shall  Appoint    Attorney  (S2j    105- 

111) 429,  437 

Taxes  on  Premiums  (14) 402 

Taxes  on  Foreign  Companies  (72) 425 

To  be  Deemed  Bodies  Politic  (.70) 424 

Unauthorized  Business  Prohibited  (78)  427 

Valuation  of  Policies  (74) 426 

Wives' Policies  i79,  112,  113)  .428,  438 
"When  Charter  has  Expired  (81) 428 

Medical  Examiner,  False  Statements  by 

(76) 427 

Mutual  Insui'ance  Companies — 

Amendments  to  Charter  (98; 434 

Appointment  and  Duties  of  Keceiver 

(101,  102; 435,436 

Annual  Statement  (92,  93) 432 

By-Laws  (91) 432 

ChartertoContain,  what  (89) 431 

Commissioner   shall    Furnish    Blanks 

(95) 433 

Directoii   aud    Officers    Liable,    when 

(94,  95) 433 

Exammatiou  ^90,  100) 431,435 

How  Formed  (85) 430 

Insuring  Farm  Kisks  (22,  53) 403,  417 

Limited  to  Two  Counties  (87) 431 

May  Insure  Farm  and  Village  Kisks 

(85) 430 

May  Commence  Business,  when  (87, 

90) 431 

Must  File  Charter  (86) 430 

Petition  tor  Winding  up,  when  (99). ..  434 
Previously  Organized,  shall  Conform  to 

Act(103> 436 

Premium  ^'otes  and  Assessments  shall 

be  Lien  (.96) 434 

Restrictions  as  to  Real  Estate  (88; 431 

Shall  be  Deemed  Bodies  Politic  (97)  434 

Shall  be  Examined  Annually  (1 00) 435 

Wheu  Insolvent  (93,  99,  lol)  -.432,  434, 

435 
(See  Fire  and  Marine  Insurance  Cos.) 
Mutual  Marine  Cos.  of  Other  States — 

May  do  Business,  when  (104) 436 

Peualiies  for  Unauthorized  Insurance 

(104) 436 

Revocation  of  Authority  (1 U4) 436 

Penalties— 

For  Arson  (114-121) 438,  439 

For  Embezzlement  (122,  123)  ...439,  440 
For  Embezzlement  by  State  Treasurer 

(77) 427 

For  Failing  to  make  Statements  (37, 

67) 410,422 


Penalties  (Continued)— 

For   Failure  of  Mutual   Directors    to 

Comply  (95; 433 

For  False  Statement  as  to  Capital  (52)  417 
For  False  Statement  by  Life  Companies 

(69,  75) 424,426 

For  Making  Unauthorized   Insurance 

(44) 414 

For  Medical  Examiners,  for  False  State- 
ments (76) 427 

For  Kon-compliance  (51) 416 

For  !Non-compliance  of  Foreign  Life 

Companies  (66) 421 

For  Non  payment  of  Taxes  by  Foreign 

Life  Companies  (72) 425 

For  Unauthorized  Life  Insurance  (78, 

84) 427,430 

For  Unauthorized  Mutual  Marine   In- 
surance (104) 436 

For  Unlawfully   Declaxing   Dividends 

(28) 406 

In  Case  of  Insufficient  Assets  (42) ...    413 

Suits  for  (45) 415 

Policies — 

Of  Fire  and   Marine  Insurance   Com- 
panies shall  be  Void,  when  (42) 413 

Of  Lite  Companies  shall  be  Xon-forfeit- 

ing(73) 425 

Of  Life  Cos.  must  State,  what  (81) 430 

Of  Life  Companies,  Valuation  of  (74)..  426 

Wives'(79,  112,  113) 428,438 

Premium  JJotes — 

Of  Mutual  Companies  (22) 403 

Assessment  by  Receiver  ilOl) 435 

Amount  and  Liabilities  of  (2  9) 407 

And  Assessments  shall  be  Lien  (96).. .  434 

Not  Debts,  when  (32) 408 

Suits  to  Recover  on  (29) 407 

Insufficient  to  Pay  Losses  (29> 407 

Real  Estate- 
Holding  of  (6) 400 

Purchase  and  Sale  of,  by  Fire  and  Ma- 
rine Companies  (25) 405 

Purchase  and  Sale  of  by  Life  Cos.  (63)  420 
Purchase  and  Sale  of,  by  Mutual  Com- 
panies (88) 431 

Receiver  of  Mutual  Fire  Companies,  Ap- 
pointment and  Duties  of  (101,  102)  435, 

436 
Reinsurance  Reserve,  Computation  of  (56)  418 
Risk,  Limitation  of  (22) 403 

State  Treasurer  as  Custodian  of  Deposits 

(77) 427 

Taxes — 

On  Premiums  of  Foreign  Cos.  (50) 416 

On  Premiutns  of  Foreign  Life  Compa- 
nies (72) 425 

On  Premiums,  Payment  of  (14) 402 

Reciprocal  (83) 429 

Wives' Policies  (79,  112,  113) 428,438 


INSURANCE  STATUTES  OF  MICHIGAN. 


Revised  hy  Hon.  Samuel  H.  Roic,  Commissioner  of  Insurance. 


CONSTITUTIONAL  PROVISIONS  CONCERNING  CORPORA- 
TIONS. 

1.  Corporations  may  be  formed  under  general  laws,  but  shall 
not  be  created  by  special  act,  except  for  municipal  piu'poses.  All 
laws  passed  pursuant  to  this  section  may  be  amended,  altered,  or 
repealed.     [Art.  15,  §  1.) 

2.  The  stockholders  of  all  corporations  and  joint  stock  associa- 
tions shall  be  individually  liable  for  all  labor  performed  for  such 
corporation  or  association.     {Ibid,  §  7.) 

3.  The  Legislature  shall  pass  no  law  altering  or  amending  any 
act  of  incorporation  heretofore  granted,  without  the  assent  of  two- 
thirds  of  the  members  elected  to  each  House ;  nor  shall  any  such 
act  be  renewed  or  extended.  This  restriction  shall  not  a{)ply  to 
municipal  corporations.     {Ibid,  §  8.) 

4.  No  corporation,  except  for  municipal  purposes,  or  for  the 
construction  of  railroads,  i)lank  roads,  and  canals,  shall  be  created 
for  a  longer  term  than  thirty  years,     (ibid.,  §  10.) 

5.  The  term  "corporation,"  as  used  in  the  preceding  sections 
of  this  article,  shall  be  construed  to  include  all  associations  and 
joint  stock  companies  having  any  of  the  powers  or  privileges  of  cor- 
porations, not  possessed  by  individuals  or  partnerships.  All  corpo- 
rations shall  have  the  right  to  sue,  and  be  subject  to  be  sued  in  all 
courts,  in  like  cases  as  natural  persons.     [Ibid,  §  11.) 

<5.  No  corporation  sball  hold  any  real  estate  hereafter  acquired, 
for  a  longer  period  than  ten  years,  except  such  real  estate  as  shall 
be  actually  required  by  such  corporation  in  the  exercise  of  its 
franchises.     {Ibid,  §  12.) 

7.  Previous  notice  of  any  application  for  an  alteration  of  the 
charter  of  any  corporation  shall  be  given  in  such  manner  as  may  be 
prescribed  by  law.     {Ibid,  §  16.) 


INSURANCE  BUREAU. 

8.  There  is  hereby  established  in  the  State  Department  a 
separate  and  distinct  bureau,  which  shall  be  especially  charged 
with  the  execution  of  the  laws  heretofore  passed,  or  that  may  be 
hereafter  passed,  in  relation  to  fire,  fire  and  marine,  life  and  other 
methods  and  practices  of  insurance.  {laics  of  1871,  Act  No.  108,  §  1.) 

9.  The  chief  officer  of  said  department  shall  be  denominated 
the  Commissioner  of  Insurance.  He  shall  be  a  citizen  of  this  State, 
and  shall  reside,  during  the  tenn  of  his  office,  at  the  seat  of  govern- 
ment, and  personally  superintend  the  duties  of  his  office ;  and  shall 


^iicniGAN.  401 

not  be  directly  or  indirectly  connected  with  the  management  or 
uftairs  of  any  insurance  company.  He  shall  be  appointed  by  the 
Governor,  by  and  with  the  consent  of  tlie  Senate,  and  shall  hold 
his  office  for  the  term  of  two  years;  he  shall  receive  an  annual 
salary  of  two  thousand  dollars,  to  be  jjaid  quarterly',  on  the  warrant 
of  the  Auditor  General.  He  may  appoint  a  dejjuty,  with  the  appro- 
bation of  the  Governor,  and  revoke  such  appointment  at  plea:5ure. 
Such  deputy  shall  take  and  subscribe  the  oath  prescribed  by  the 
constitution,  and  whenever  the  Commissioner  of  Insm-ance  shall,  by 
reason  of  sickness,  absence,  or  other  cause,  be  disabled  from 
executing  the  duties  of  his  office,  his  deputy,  duly  appointed,  shall 
execute  the  duties  thereof  until  such  disability  be  removed,  or  until 
a  Commissioner  shall  be  appointed,  and  such  deputy  shall  receive 
an  annual  salary  of  twelve  hundred  dollars.  The  Commissioner 
may  employ  a  regular  clerk  to  discharge  such  duties  as  he  may 
assign  him,  whose  compensation  shall  not  exceed  one  thousand  dol- 
lars per  annum ;  the  salaries  of  such  deputy  and  clerks  to  be  paid 
monthly,  on  the  warrant  of  the  Auditor-General.  Whenever  a 
vacancy  shall  occur  in  said  office  of  Commissioner,  by  reason  of 
death,  removal,  or  otherwise,  the  Governor  shall  fill  such  vacancy 
by  appointment,  by  and  with  the  advice  and  consent  of  the  Senate, 
if  in  session.  Within  fifteen  days  from  the  time  of  notice  of  his 
appointment,  the  Commissioner  shall  take  and  subscribe  the  oath  of 
office  prescribed  by  the  constitution,  and  file  the  same  in  the  office 
of  the  Secretary  of  State ;  and  the  said  Commissioner  of  Insurance 
shall  give  to  the  people  of  the  State  of  Michigan  a  bond  in  the 
penalty  of  ten  thousand  dollars,  with  sureties  to  be  approved  by 
the  Auditor-General,  conditioned  for  the  faithful  discharge  of  the 
duties  of  his  office.  [Ibid,  §  2,  as  amended  by  laws  of  1873,  Act  Xo. 
30.) 

10.  The  Commissioner -of  Insurance  shall  possess  all  the 
powers,  perform  all  the  duties,  and  be  subjected  to  all  the  obliga- 
tions and  penalties  now  conferred  by  law  upon  the  Secretary  of 
State,  or  to  which  the  Secretary  of  State  is  subject,  in  relation  to 
insurance  companies  and  the  formation  thereof,  under  the  laws 
relating  thereto,  so  that  every  power  and  duty  thereby  conferred  on 
the  Secretary  of  State  shall,  from  and  after  the  appointment  of  such 
Commissioner,  be  transferred  to  and  conferred  ujion  the  said  Com- 
missioner. The  Commissioner  shall  be  required  to  annually  report 
the  name  and  compensation  of  the  clerk  employed  by  him,  and  the 
whole  amount  of  ex})enses  of  the  department  during  the  year ;  such 
report  shall  be  made  on  or  before  the  last  day  of  June  in  each  year, 
and  fifteen  hundred  copies  shall  be  i)rinted  for  x)ublic  information 
and  use.     {Ibid,  §  3.) 

1 1 .  The  said  Commissioner,  with  the  approval  of  the  Gov- 
ernor, shall  devise  a  seal,  with  suitable  inscriptions,  for  his  office,  a 
description  of  which,  with  certificate  of  the  approval  of  the  Gover- 
nor, shall  be  filed  in  the  office  of  the  Secretary  of  State,  with  an 
impression  thereof,  which  seal  shall  thereupon  be  and  become  the 
seal  of  office  of  the  Commissioner  of  Insurance,  and  the  same  may 
be  renewed  whenever  necessary.  Every  certificate,  assignment,  or 
conveyance,  executed  by  the  said  Commissioner  in  pursuance  of  any 
authority  conferred  on  him  by  law,  and  sealed  with  his  said  seal  of 
office,  shall  be  received  as  evidence,  and  may  be  recorded  in  the 
proper  recording  offices,  in  the  same  manner,  and  with  the  like 
effect,  as  a  deed  regularly  acknowledged  or  approved  before  an 

26 


402  niNE'S  INSUEANCE   STATUTES. 

ofiBcer  authorized  by  law  to  take  the  proof  or  acknowledgment  of 
deeds,  or  filed  in  the  office  of  any  county  clerk  or  clerk  of  a  court  of 
record ;  and  all  copies  of  papers  in  the  office  of  the  said  Commis- 
sioner, certified  by  him,  and  authenticated  by  the  said  seal,  shall  in 
all  cases  be  evidence  in  all  couits  of  this  State,  equally  and  in  like 
manner  as  the  original.  An  impression  of  said  seal  directly  on 
paper  shall  be  as  valid  as  if  made  on  a  wafer  or  wax.     {Ibid,  §  4.) 

l!2.  All  books,  papers,  and  documents,  and  all  other  papers 
whatever  in  the  office  of  the  Secretary  of  State,  relating  to  the 
business  of  insurance,  shall  be  transferred  to  the  custody  of  the 
Commissioner  of  the  Isurance  Bureau,  and  be  and  remain  in  his 
charge  and  custody.     {Ibid,  §  5.) 

1 S.  There  shall  be  assigned  to  the  said  Commissioner  by  the 
Secretary  of  State,  at  Lansing,  suitable  rooms  for  conducting  the 
business  of  said  bureau ;  the  necessary  expenses  of  which  shall  be 
audited  by  the  Board  of  State  Auditors  on  the  certificate  of  the 
Commissioner,  and  paid  on  the  warrant  of  the  Auditor-General. 
{Ibid,  §  6,  as  amended  by  laws  o/1873.  Act  No.  30.) 

14.  The  taxes  on  premiums  from  insurance  comiianies  shall 
continue  to  be  paid  to  tlie  State  Treasurer  on  the  first  day  of  Janu- 
ary, or  within  sixty  days  thereafter,  in  each  year,  and  shall  be  upon 
the  premiums  which,  during  the  year  or  part  of  the  year  ending  on 
the  preceding  thirty-first  day  of  December,  shall  have  been  received 
by  any  insurance  company,  or  by  any  person  acting  as  agent  there- 
tor,  both  upon  policies  issued  by  agents  in  this  State,  or  policies 
issued  at  the  office  of  the  companies  upon  application  of  sub-agents 
or  others,  or  for  any  individuals  or  association  of  individuals,  not 
Incorporated  or  authorized  by  the  laws  of  this  State,  to  effect  insur- 
ance against  fire,  inland,  marine,  life,  casualty,  or  other  losses  and 
risks,  or  which  shall  have  been  received  by  any  i^erson  for  such 
company  or  agent,  or  shall  have  been  agreed  to  be  paid  for  any  in- 
surance effected  or  agreed  to  be  effected  or  procured  by  such  com- 
pany or  agent,  or  against  fire,  inland,  marine,  life,  casualty,  or  other 
risks,  although  such  companies,  associations,  or  individuals  may  be 
incorporated  or  authorized  for  that  purpose  by  the  laws  of  any  other 
State  of  the  United  States,  or  of  any  foreign  government.  The  !^tate 
Treasurer,  on  receiving  such  tax  from  any  company,  shall  issue 
therefor  duplicate  receipts,  one  of  which  he  shall  deliver  to  the  com- 
pany and  the  other  shall  be  filed  with  said  Commissioner     {Ibid, 

§  7.) 

15.  It  shall  be  i)roi)er  and  lawful  for  the  Commissioner  of  In- 
surance to  visit  any  insurance  company  in  the  other  States,  for  the 
examination  of  its  atiairs,  the  expenses  in  all  cases  to  be  paid  by 
said  insurance  companies.     {Ibid,  §  8.) 

1 6.  The  Governor  shall  have  the  power,  and  it  is  hereby  made 
his  duty,  to  remove  the  said  Commissioner  for  neglect  of  duty, 
breach  of  trust,  incompetence,  or  malfeasance  in  office,  upon  reason- 
able cause  shown ;  and  in  case  of  such  removal,  the  Governor  shall 
file  in  the  office  of  the  Secretary  of  State,  and  report  to  the  legisla- 
ture at  its  next  session,  the  reasons  for  such  removal.      {Ibid,  §  10.) 

FIRE  AND  MARIJ^E  INSURANCE  COMPANIES.  jjj 

1 7.  Any  number  of  persons,  not  less  than  seven,  may  associate  ]  H 
together  and  form  an  incorporated  company  for  either  of  the  follow-  i  i 
ing  purposes,  to  wit : 


MICHIGAN.  403 

First— To  make  insurauce  on  dwelliug-honses,  stores,  and  all 
kinds  of  buildings,  and  upon  houseliold  furuiture,  goods,  wares  and 
mei'cbaudise,  and  any  other  property,  against  loss  or  dauiage  by  fire ;. 

SeooniL — To  make  insurauce  as  aforesaid  upou  vessels,  freights,: 
goods,  wares,  merchandise,  and  other  property,  against  the  risks  of 
inland  navigation  and  transportation.     (Laws  of  ISO'J,  Act  Xo.  138, 

§1.) 

1  8.    Any  company  organized  uuder  this  act  sball  bave  power 

to   effect  reinsurance  of    any  risks  taken  by  tbem  respectively. 

{Ibid,  §  2.) 

111.  Sucb  persons  sball  file  in  the  ofSce  of  the  Commissioner  of 
Insurance,*  a  declaration,  signed  by  them,  expressing  their  inten- 
tion to  form  a  company  for  the  purj)ose  of  transacting  the  business 
of  insurance,  as  expressed  iu  the  first  section  of  this  act,  wbicb 
declaration  sball  also  comprise  a  copy  of  the  articles  of  association 
proposed  to  be  adopted  by  them,  and  shall  publisb  a  notice  of  sucb 
intention,  once  in  each,  week,  for  at  least  six  weeks,  in  a  j)ublic 
newspaper  iu  the  county  iu  which  sucb  insurance  company  is  pro- 
posed to  be  located.     {Ibid,  §  3.) 

30.  The  articles  of  association  shall  set  fortb  the  name  of  tbe 
company ;  tbe  place  where  the  principal  office  for  tbe  transaction  of 
its  business  shall  be  located;  tbe  mode  and  manner  in  wbicb  tbe 
corporate  powers  granted  by  this  act  are  to  be  exercised  ;  the  mode 
and  manner  of  electing  trustees  or  directors,  a  majority  of  whom 
sball  be  citizens  of  this  State ;  and  of  filling  vacancies  (but  each 
director  of  a  stock  company  sball  be  tbe  owner  in  bis  own  right  of 
at  least  five  liundred  dollars'  worth  of  tbe  stock  of  sucb  company, 
at  its  par  value) ;  the  period  for  the  commencement  and  termination 
of  its  fiscal  year,  and  the  amount  of  capital  to  be  employed  in  tbe 
transaction  of  its  business;  and  tbe  Commissioner  of  Insurance 
shall  have  tbe  right  to  reject  any  name  or  title  of  any  company  ap- 
plied for,  when  be  sball  deem  the  name  too  similar  to  one  already 
appro})riated,  or  likely  to  mislead  tbe  public  in  any  respect.  {Ibid, 
§4.) 

21.    "N^o  company  formed  under  tbis  act  sball,  directly  or  in- 
directly, deal  or  trade  in  buying  or  selling  any  goods,  wares,  mer- 
chandise, or  other  commodities  whatever,  excepting  sucb  articles  as 
may  bave  been  insured  by  sucb  company,  and  are  claimed  to  be . 
damaged  by  fire  or  water.     {Ibid,  §  5.) 

*2iS,  Tbe  capital  stock  of  any  stock  company  organized  under 
this  act  sball  not  be  less  than  one  liundreLl  thousand  dollars,  in 
shares  of  not  less  than  twenty-five  or  more  than  fifty  dollars  eacb, 
which  ca;)ital  stock  may  be  increased  by  a  vote  of  two-thirds  of  tbe 
stockholders,  to  not  more  than  one  million  dollars ;  nor  sball  any 
company  hereafter  organized  on  the  plan  of  mutual  insurauce,  com- 
mence  businesst  in  tbis    State,  until  agreements    bave    been  en- 

*  The  words  "  Commissioner  of  Insurance  "  are  substituted  for  "Secretary 
of  State"  throughout  these  laws,  iu  accordance  with  the  provisiona  of  Sec.  '6  of 
Act  No.  108  of  Session  Laws  of  1871. 

t  The  above  regulates  the  or^^anization  of  mutual  companies  which  insure 
other  risks  than  farm  buildings  and  contents.  The  following  is  applicable  to-- 
mutual  compauie-*  organized  for  the  purpose  of  insuring  farm  buildings  and  con- 
tents solely  (as  per  Sec.  37):  "  (2918)  Sec.  5.  *  *  *  And  no  mutual  insurance  com- 
pany organized  as  aforesaid  shall  commence  business  until  bona  fide  agreements 
have  been  entered  into  for  insurance  with  at  least  one  hundred  individual3,.cov- 
ering  property  to  the  insured  tu  the  amount  of  not  less  than  fifty  thousand  dol- 
lars."    ( Compiled  Laws  of  laTl,  p.  967.) 


404  hine's  insurance  statutes. 

tered  into  for  insurance  with  at  least  two  hundred  applicants,  the 
premiums  upon  which  shall  amount  to  not  less  than  twenty-live 
thousand  dollars,  of  which  at  least  five  thousand  dollars  shall  have 
been  paid  in  actual  cash,  and  for  the  remainder  of  which,  notes  of 
solvent  piarties,  founded  upon  actual  and  bona  fide  application  for 
insurance,  shall  have  been  received.  No  one  of  the  notes  received 
as  aforesaid  shall  amount  to  more  than  five  hundred  dollars ;  and 
no  two  thereof  shall  be  given  for  the  same  lisk,  or  made  by  the 
same  i»erson  or  firm,  excei)t  where  the  whole  amount  of  such  notes 
does  not  exceed  the  sum  of  five  hundred  dollars ;  nor  shall  anv  note 
be  regarded  or  represented  as  capital  stock  unless  a  policy  [is]  to  be 
issued  upon  the  same  within  thirty  days  after  the  organization  of 
the  comjiany  taking  the  same,  upon  a  risk  which  shall  be  for  no  shorter 
period  than  twelve  months.  Each  of  said  notes  shall  be  payable, 
in  whole  or  in  part,  at  any  time  wlien  the  directors  shall  deem  the 
same  requisite  for  the  payment  of  losses  by  fire,  and  such  incidental 
expenses  as  may  be  necessary  for  transacting  the  business  of  said 
company;  and  no  note  shall  be  accepted  as  part  of  such  ca|)ital 
stock  unless  the  same  shall  be  accompanied  by  a  certificate  ot  the 
Clerk  of  the  Circuit  Court  of  the  county  in  which  the  person  execut- 
ing such  note  shall  reside,  that  the  person  making  tlie  same  is,  in 
his  opinion,  pecuniarily  good  and  resi)onsible  for  the  same  in  prop- 
erty not  exempt  from  execution  by  the  laws  of  this  State;  and  no 
such  note  shall  be  surrendered  while  the  policy  for  which  it  was 
given  continues  in  force.  But  no  company  organized  on  the  plan 
of  mutual  insurance,  and  insuring  against  any  other  [of  the]  risks 
mentioned  in  section  one  of  this  act  shall  hereafter  do  any  business, 
or  take  any  risks,  or  make  any  insurance,  in  any  more  than  two 
counties  in  this  State,  which  counties  shall  be  contiguous,  and  which 
counties,  in  the  case  of  companies  hereafter  organized,  shall  be 
named  and  set  forth  in  their  articles  of  association,  and  in  the 
statement  required  by  section  three  to  be  filed  in  the  office  of  the 
Commissioner  of  Insurance.  No  fire  insurance  comj)any  organized 
under  this  act,  or  transacting  business  in  this  State,  shall  expose 
itself  to  any  loss  on  any  one  fire  or  inland  navigation  risk,  or  haz- 
ard, to  an  amount  exceeding  ten  per  cent,  of  its  paid-up  cajutal,  nor 
shall  any  fire  insurance  company  organized  under  the  laws  or  by 
authority  of  any  foreign  government,  expose  itself  to  any  loss  on 
any  one  fire  or  inland  navigation  risk,  or  hazai-d,  to  an  amount  ex- 
ceeding ten  per  cent,  of  its  deposit  capital  in  the  United  States. 
{Ibid,  §  6,  as  amended  by  laics  o/1878.  Act  No.  52.) 

S;§.  It  shall  and  may  be  lawful  for  the  individuals  associated 
for  the  purpose  of  organizing  any  company  under  this  act,  after 
having  published  the  notice  and  filed  the  declaration  and  a  copy  of 
their  articles  of  association  as  required  by  the  third  section  of  this 
act,  and  also  on  filing  in  the  office  of  tlie  Commissioner  of  Insurance 
proof  of  such  publication,  by  the  atiidavit  of  the  publisher  of  such 
newspaper,  his  foreman,  or  clerk,  to  open  books  for  subscrii)tion  to 
the  capital  stock  of  the  company  so  intended  to  be  organized,  and 
to  keep  the  same  open  until  the  full  amount  specified  in  the  articles 
of  association  is  subscribed ;  or,  in  case  the  business  of  such  com- 
pany is  proposed  to  be  conducted  on  the  plan  of  mutual  insurance, 
then  to  open  books  to  receive  propositions,  and  enter  into  agree- 
ments, in  the  manner  and  to  the  extent  specified  in  the  sixth  section 
of  this  act.     {Ibid,  §  7.) 

2!4.     It  shall  be  lawful  for  any  fire  insurance  comjiany  organ- 


MICHIGAN.  405 

ized  under  this  act,  or  incorporated  under  any  law  of  this  State,  to 
invest  its  capital,  and  the  funds  accumulated  in  the  course  ot  its 
business,  or  any  part  thereof,  in  bonds  and  mortgages  on  unincum- 
bered improved  real  estate  within  the  State  of  Michigan,  worth 
double  the  sum  loaned  thereon,  exclusive  of  buildings,  unless  such 
buildings  are  insured  and  the  policy  transferred  to  such  company ; 
said  mortgages  shall  not,  how^ever,  be  accounted  a  i)art  of  the  capi- 
tal stock  of  a  company  until  they  have  been  recorded  agreeable  to 
the  provisions  of  law,  and  a  certificate  thereof  from  the  Register  of 
Deeds  filed  with  the  Commissioner  of  Insiu-ance,  together  with  an 
abstract  of  the  title  of  the  lauds  therein  mortgaged,  and  also  a  cer- 
tificace  of  the  liegister  of  Deeds  of  the  county  in  which  tlie  lands  are 
located,  that  the  same  are  worth  at  least  double  the  amount  loaned 
thereon  ;  and  also  in  the  bonds  of  this  State,  or  bonds  or  treasury 
notes  of  the  United  States,  and  also  in  the  bonds  of  any  county, 
munici])ality,  or  school  district  in  this  State  authorized  to  be  issued 
by  law,  and  to  lend  the  same,  or  any  part  thereof,  on  the  security 
of  such  bonds,  or  treasury  notes,  or  upon  bonds  and  mortgages  as 
aforesaid,  aud  to  change  and  reinvest  the  same  as  occasion  may 
from  time  to  time  require.     {Ihid^  §  8.) 

25.  No  com]3any  formed  under  this  act  shall  purchase  or  hold 
any  real  estate,  except — 

First. — Such  as  shall  be  necessary  for  its  immediate  accommoda- 
tion in  transacting  business ;  or, 

SecoivJ. — Such  as  shall  have  been  conveyed  or  mortgaged  to  the 
comi)any  in  good  faith,  by  way  of  security  for  debts;  or, 

Third. — Such  as  shall  have  been  conveyed  to  the  company  in  sat- 
isfaction for  debts  •,  or, 

Fourth.  — ^\iq\i  as  shall  have  been  purchased  at  sales,  upon  judg- 
ments, decrees,  or  mortgages  in  favor  of  such  company,  or  held  or 
owned  by  it.  And  all  real  estate  obtained  by  virtue  of  any  pro- 
visions of  this  section,  except  that  mentioned  in  the  first  subdi- 
vision, shall  be  sold  or  disposed  of  within  five  years  after  the  title 
has  been  perfected  in  such  company,  unless  the  company  shall  pro- 
cure a  certificate  from  the  Commissioner  of  Insurance  that  the  in- 
terest of  said  company  will  materially  suffer  by  forced  sale,  in 
which  event  the  sale  may  be  postponed  for  such  period  as  the  said 
Commissioner  of  Insurance  shall  direct  in  said  certificate,  not  to  ex- 
tend ten  years  in  all.     {Ibid,  §  9.) 

26.  The  articles  of  association,  and  proof  of  publication,  here- 
in required  to  be  filed  by  every  such  company,  shall  be  examined  by 
the  Attorney-General,  and  if  found  conformable  to  this  act,  and  not 
inconsistent  with  the  Constitution  and  laws  of  this  State,  shall  be 
certified  by  him  to  the  Commissioner  of  Insurance,  who  shall  there- 
upon nuike  an  examination,  or  cause  one  to  be  made  by  some  disin- 
terested person  officially  appointed  by  him  for  that  purpose;  and  if 
it  shall  be  found  (if  the  examination  be  made  by  other  than  the  Com- 
missioner of  Insurance,  then  the  finding  shall  be  certified  under 
oath)  that  the  capital  herein  required  of  the  company  named,  ac- 
cording to  the  nature  of  the  business  proposed  to  be  transacted  by 
such  company,  has  been  paid  in,  and  that  it  is  possessed  of  such 
seciu-ities  as  is  required  by  the  eighth  section  of  this  act,  then  he 
shall  so  certify;  and  if  the  examination  be  made  by  other  than  the 
Commissioner  of  Insurance,  then  the  finding  shall  be  certified  under 
oath,  or  if  it  is  i)roposed  to  be  a  mutual  insurance  company,  that  it 
has  received  and  is  in  actual  possession  of  the  capital,  premiums,  or 


406  hike's  insurance  statutes. 

bona  fide  eiig:agements  of  insurance  or  other  securities,  as  the  case 
may  be,  to  the  extent  and  value  required  by  the  sixth  section  of  this 
act-  The  name  and  rei«idence  of  tlie  maker  of  each  iiremium  note 
forming:  part  of  the  capital  of  any  such  proposed  mutual  insurance 
company,  and  the  amount  of  such  note,  shall  be  returned  to  the  Com- 
missioner of  Insurance.  The  cor[)orators  or  ofhcers  of  any  such 
company  or  proposed  company,  contemplated  by  this  act,  shall  be 
required  to  certify,  under  oath,  to  the  Commissioner  of  Insurance, 
that  the  capital  exhibited  to  the  person  making  the  examination 
directed  in  this  section,  was  bona  fide  proi)erty  of  the  comi>any  so 
examined.  Such  certificates  shall  be  filed  in  the  office  of  the  said 
Commissioner  of  Insurance,  who  shall  thereujion  deliver  to  such 
company  a  certified  copy  of  the  articles  of  association,  and  of  said 
certificates,  which,  on  being  filed  in  the  office  of  the  clerk  of  the 
county  where  the  company  is  to  be  located,  shall  be  their  authoritj' 
to  commence  business  and  issue  i)olicies  ;  and  such  certified  copy  of 
the  articles  of  association,  and  of  said  certificates,  may  be  used 
in  evidence  for  or  against  said  company  with  the  same  effect  as  the 
originals.     {Ibid,  §  10.) 

^7.  The  corporators,  or  the  trustees  or  directors,  as  the  case 
may  be,  of  any  company  organized  under  this  act,  shall  have 
power  to  make  such  by-laws,  not  inconsistent  with  their  articles  of 
association  or  with  the  Constitution  or  laws  of  this  State,  as  may 
be  deemed  necessary-  for  the  government  of  its  officers  and  the  con 
duct  of  its  affairs,  and  the  same,  when  necessary,  to  alter  and 
amend;  and  they  and  their  successors  may  have  a  common  seal, 
and  may  change  and  alter  the  same  at  their  i)leasure.     {Ibid,  §  11.) 

28.  It  shall  not  be  lawful  for  the  directors,  trustees,  or  mana- 
gers of  any  fire  insurance  comjiany  to  make  any  dividend,  except 
from  the  sur])lus  ])rofits  arising  from  their  business;  and  in  estimat- 
ing such  profits,  there  shall  be  reserved  therefrom  a  sum  equal  to 
the  whole  amount  of  premiums  on  unexpired  risks  and  policies, 
which  are  hereby  declared  to  be  unearned  premiums;  and  also 
there  shall  be  reserved  all  sums  due  the  corporation  on  bonds  and 
mortgages,  bonds,  stocks,  and  book  accounts,  of  which  no  part  of 
the  principal  or  the  interest  thereon  has  been  j^aid  rluring  the  last 
year,  and  for  which  foreclosure  or  suit  has  not  been  commenced  for 
collection,  or  which,  after  judgment  obtained  thereon,  shall  have  re- 
mained more  than  two  years  unsatisfied,  and  on  which  interest  shall 
not  have  been  jiaid,  and  also  there  shall  be  reserved  all  interest  due 
or  accrued  and  remaining  unpaid  ;  Provided  always.  That  auy  com- 
pany may  declare  dividends  not  exceeding  ten  per  cent,  on  its  capi- 
tal stock,  in  anv  one  year,  that  shall  have  accumulated  and  be  in 
possession  of  a  fund,  in  addition  to  the  amount  of  its  capital  stock, 
and  of  such  dividend,  and  all  actual  outstanding  liabilities,  equal  to 
one-half  of  the  amount  of  all  premiums  on  risks  not  terminated  at 
the  time  of  making  such  dividend.  Any  dividend  made  contrary 
to  these  provisions,  shall  sulrect  the  comi)any  making  the  same  to 
a  forfeiture  of  its  corporate  rights,  and  each  stockholder  receiving 
it  to  a  liability  to  the  creditors  of  such  company,  to  the  extent  of 
the  dividend  received,  in  addition  to  the  other  penalties  and  punish- 
ments in  such  case  made  and  provided.*  {Ibid,  §  12.) 

20.  All  notes  deposited  with  any  mutual  insurance  company  at 
the  time  of  its  organization,  as  provided  in  section  six,  shall  remain 
as  security  for  all  losses  and  claims  until  the  accumidation  of  the 
profits,  invested  as  required  by  the  eighth  section  of  this  act,  shall 


MICHIGAN.  407 

equal  tlie  amouut  of  cash  capital  required  to  be  possessed  by  stock 
coiupaiiies  organized  under  this  act;  but  any  note  which  may  have 
been  deposited  with  any  mutual  insurance  company  subsecjuent  to 
its  organization,  in  addition  to  the  cash  premium  on  any  insurance 
effected  with  such  company,  may,  at  the  expiration  of  the  time  of 
such  insurance,  be  relinquished  and  given  up  to  the  maker  thereof, 
or  his  representative,  upon  his  imying  his  proi)ortion  of  all  losses 
and  expenses  which  may  have  accrued  i hereon  during  such  term  ; 
and  all  such  premium  notes  shall  be  a  lien  upon  the  premises  in- 
sured, to  the  amouut  of  principal  an<l  interest  due  tliereon.  The 
directors  or  trustees  of  any  such  company  shall  have  the  right  to 
determine  the  amount  of  the  note  to  be  given  in  addition  to  the  cash 
])remium  by  any  i)erson  insured  in  sucli  company;  but  in  no  case 
shall  the  note  be  more  than  five  times  the  whole  amount  of  the  cash 
premium.  Aiul  every  person  effecting  insurance  in  any  mutual 
company,  and  also  their  heirs,  executors,  administrators,  and  as- 
signs, continuing  to  be  so  insured,  shall  thereby  become  members  of 
said  corporation  during  the  period  of  insurance,  and  shall  be  bound 
to  pay  for  losses  and  such  necessary  expenses  as  aforesaid,  accruing 
in  and  to  said  company,  in  proportion  to  the  amount  of  liis  deposit 
note  or  notes.  The  directors  shall,  after  receiving  notice  of  any  loss 
or  damage  by  fire  sustained  by  any  member,  and  ascertaining  the 
same,  or  after  the  rendition  of  any  judgment  against  said  company 
for  loss  or  damage,  settle  and  determine  the  sums  to  be  paid  by  the 
several  members  thereof,  as  their  respective  portion  of  such  loss, 
and  publish  the  same  in  such  manner  as  they  shall  see  fit,  or  as  the 
by-laws  shall  have  prescribed ;  and  the  sura  to  be  paid  by  each 
member  shall  always  be  in  proportion  to  the  original  aaiount  of  his 
deposit  note  or  notes,  and  shall  be  paid  to  the  officers  of  the  com- 
pany within  thirty  days  next  after  the  publication  of  said  notice. 
And  if  any  member  shall,  for  the  space  of  thirty  days  after  the 
publication  of  said  notice,  and  alter  personal  demand  for  payment 
shall  have  been  made,  neglect  or  refuse  to  pay  the  sum  assessed 
upon  him  as  his  proportion  of  any  loss,  as  aforesaid,  in  such  case 
the  directors  may  sue  for  and  recover  the  whole  amount  of  his  de- 
posit note  or  notes,  with  costs  of  suit ;  but  execution  shall  only  is- 
sue for  assessments  and  costs  as  they  accrue,  and  every  such  execu- 
tion shall  be  accompanied  by  a  list  of  the  losses  for  which  the  as- 
sessment is  made.  If  the  whole  amount  of  deposit  notes  shall  be 
insufficient  to  i)ay  the  loss  occasioned  by  any  fire  or  fires,  in  such 
case  the  sufferers  insured  by  the  said  company  shall  receive,  to- 
wards making  good  their  respective  losses,  a  proportional  share  of 
the  whole  amount  of  said  notes,  accoj'ding  to  the  sums  by  them  re- 
spectively insured  ;  but  no  member  shall  ever  be  required  to  pay  for 
any  loss  occasioned  by  fire,  more  than  the  whole  amount  of  his 
deposit  note.     [IbiiJ.  §  13.) 

SO.  Every  insurance  company  hereafter  organized  under  this 
act  shall,  if  it  be  a  mutual  company,  embody  the  word  "mutual"  in 
its  title,  which  shall  appear  on  the  first  page  of  every  policy  and  re- 
newal receipt ;  and  every  company  doing  business  as  a  cash  stock 
company  shall,  upon  the  face  of  its  policy,  in  some  suitable  m  .  '^r, 
express  that  such  policy  is  a  stock  policy.     {ILidj  §  14.) 

ti  1 .  Suits  at  law  may  be  maintained  by  any  cori)oration  formc^d 
under  this  act,  against  any  of  its  members  or  stockholders,  for  any 
cause  relating  to  the  business  of  such  corporation  ;  also,  suits  at 
law  may  be  i^rosecuted  and  maintained  by  any  member  or  stock- 


408  hine's  i>;sueance  statutes. 

holder  against  such  corporation  for  any  losses  which  may  have  ac- 
crued, if  payment  is  withheld  more  than  sixty  days  after  such  losses 
may  have  become  due.     {Ibid,  §  15.) 

lltS.  The  trustees  and  corporators  of  any  company  organized 
under  this  act,  shall  be  jointly  and  severally  liable  for  all  debts  or 
responsibilities  of  such  company,  until  the  whole  amount  of  the 
capital  of  such  company  shall  have  been  paid  in  and  a  certificate 
thereof  recorded,  as  hereinbefore  provided.  Notes  taken  in  advance 
of  premiums,  under  this  act,  are  not  to  be  considered  debts  of  the 
companv  in  determining  whether  a  company  is  insolvent,  but  are  to 
be  regarded  as  assets  of  the  company.     {Ibid,  §  16.) 

S5I.  Any  existing  fire  insurance  company,  and  any  company 
formed  under  this  law,  may  at  any  time  increase  the  amount  of  its 
capital  stock,  after  notice  given  once  a  week  for  six  weeks  in  a 
newspai)er  published  in  the  county  where  such  company  is  located, 
of  such  intentions,  with  the  written  consent  of  three-fourths,  in 
amount,  of  its  stockholders,  unless  otherwise  provided  in  its  articles 
of  association  ;  or  if  a  mutual  company,  with  the  unanimous  consent 
of  its  trustees,  unless  otherwise  provided  in  its  articles  of  associa- 
tion, by  altering  or  amending  such  articles  of  association  in  this 
respect,  and  filing  a  copy  thereof,  so  amended,  togetlier  with  a 
declaration  under  its  corporate  seal,  if  it  have  any,  signed  by  its 
l)resideut  and  directors,  of  their  desire  so  to  do,  with  such  written 
consent  of  three-fourths,  in  amount,  of  its  stockholders,  or  the 
unanimous  consent  of  the  trustees,  as  aforesaid,  to  such  increase,  in 
the  office  of  the  Commissioner  of  Insurance,  and  upon  the  same  pro- 
ceedings being  had  as  are  required  by  the  tenth  section  of  this  act. 
{Ibid,  §  17.) 

S4.  Such  companies  as  may  have  been  organized  under  the 
"Act  to  i)rovide  for  the  incorporation  of  insurance  companies,  and 
defining  their  powers  and  duties,"  ajiproved  February  15,  1859,  and 
the  acts  amendatory  thereof,  are  hereby  brought  under  all  the  ])ro- 
visions  of  this  act,  exce])t  that  their  capitals  may  continue  of  the 
amounts  named  in  their  respective  articles  of  association  during  the 
existing  term  thereof,  and  excei)t  as  i)rovided  in  section  thirty-seven 
of  this  act.     {Ibid,  ^18.) 

ti5.  All  companies  organized  under  this  act  shall  be  deemed 
and  taken  to  be  bodies  corporate  and  ]!olitic,  in  fact  and  in  name, 
and  shall  be  subject  to  all  the  i)rovisions  of  the  compiled  laws  in  re- 
lation to  corporations,  so  far  as  the  same  are  api)licable.   {Ibid,  §  19.) 

J{®.  It  shall  be  tlie  duty  of  the  president,  or  vice-president  and 
secretary  of  each  stock  company  organized  under  this  act,  or  under 
any  law  of  this  State,  annually,  on  the  first  day  of  January,  or  with- 
in one  month  thereafter,  to  prepare,  under  their  own  oath,  and  de- 
posit in  the  office  of  the  Commissioner  of  Insurance,  a  statement  of 
the  condition  of  such  company  on  the  thirty-first  day  of  December 
then  next  preceding,  exhibiting  the  following  facts  and  items,  in  the 
following  form,  namely: 
.    First. — The  amount  of  the  capital  stock  of  the  company. 

Second. — The  property  or  assets  held  by  the  comi)auy,  speci- 
fying— 

1 .  The  value,  as  nearly  as  may  be,  of  the  real  estate  held  by 
such  com])any; 

2.  The  amount  of  cash  on  hand  and  deposited  in  banks  to 
the  credit  of  the  company,  specifying  in  what  banks  the  same 
is  dejjosited ; 


MICHIGAN.  409 

3.  The  amount  of  cash  in  the  hands  of  agents  and  in  course 
of  transmission; 

4.  The  amount  of  loans  secured  by  bonds,  and  mortgages 
constituting  the  first  lien  on  real  estate,  on  which  there  shall  be 
less  than  one  year's  interest  due  or  owing ; 

5.  The  amount  of  loans  on  which  interest  shall  not  have  been 
paid  within  one  year  i)revious  to  such  statement ; 

6.  The  amount  due  the  company  on  which  judgments  have 
been  obtained ; 

7.  The  amount  of  bonds  of  this  State,  of  the  United  States, 
and  of  any  otlier  bonds  owned  by  the  company,  specifying  the 
amount,  number  of,  and  par  and  market  value  of  each  kind ; 

8.  The  amount  of  bonds  held  thereby  as  collateral  security 
for  loans,  with  the  amount  loaned  on  each  kind,  its  par  value 
and  the  market  value ; 

9.  The  amount  of  accmed  interest  not  due; 

10.  The  amount  of  interest  actually  due  and  uni^aid; 

11.  Amount  due  from  agents  ; 

12.  The  amount  due  for  i)remiums; 

13.  The  amount  of  all  otlier  loans  and  securities; 

14.  The  amount  of  all  other  property  and  investments  of  the 
company. 

Third. — The  liabilities  of  such  company,  specifying — 

1.  The  amount  of  losses  due  and  yet  unpaid ; 

2.  The  amount  of  claims  for  losses  resisted  by  the  company ; 

3.  The  amount  of  losses  incurred  during  the  year,  including 
those  claimed  and  not  yet  due,  and  of  those  reported  to  the 
company  upon  which  no  action  has  been  taken ; 

4.  The  amount  of  dividends  declared  and  due,  and  remaining 
unpaid  ; 

5.  The  amount  of  dividends,  either  cash  or  scrip,  declared 
but  not  yet  due ; 

6.  The  amount  of  money  borrowed,  and  security  given  for  the 
payment  thereof; 

7.  The  amount  of  unearned  premiums ; 

8.  The  amount  of  aU  other  existing  claims  against  the  com- 
pany. 

Fourth. — The  income  of  the  company  during  the  preceding  year, 
specifying — 

1.  The  amount  of  cash  premiums,  and  whether  the  same  shall 
have  been  received  for  fire  or  marine  insurance,  and  the  amount 
of  each  class ; 

2.  The  amount  of  interest  money  received  ; 

3.  The  amount  of  income  received  from  other  sources. 
Fifth — The  expenditures  during  the  preceding  year,  specifying : 

1.  The  amount  of  losses  paid  during  the  year,  stating  how 
much  of  the  same  accrued  ])rior  and  how  much  subsequent  to 
the  date  of  the  preceding  statement,  and  the  amount  at  which 
such  losses  were  estimated  in  such  i^receding  statement ; 

2.  The  amount  of  dividends  paid  during  the  year ; 

3.  The  amount  of  exi^enses  paid  during  the  year,  including 
commissions  and  fees  to  agents  and  officers  of  the  company ; 

4.  The  amount  paid  in  taxes  ; 

5.  The  amount  of  all  other  payments  and  expenditures. 
If  it  be  a  mutual  company,  such  report  shall  state  and  show : 

1.  The  whole  number  of  members  belonging  thereto; 


410  HENE'S  mSURANCE   STATUTES. 

2.  Tlie  number  of  new  members  tliat  have  been  added  thereto 
dnrinfj  the  year ; 

3.  The  amount  of  property  insured  duiing  the  year,  and  tlie 
whole  amount  then  at  risk; 

4.  The  amount  of  premium  or  deposit  notes  taken  during  the 
year,  and  the  whole  amount  of  such  notes  then  in  force  and 
held  by  the  company ; 

5.  The  amount  of  cash  premiums  received  during  the  year, 
and  the  total  amount  of  such  premiums  then  belonging  to  the 
company,  and  what  amount  of  the  same  is  in  actual  cash  on 
hand ; 

(5.  The  amount  of  assessments  levied  upon  the  members 
during  the  year ; 

7.  The  rate  per  cent,  of  such  assessments  on  the  property  in- 
sured, and  the  rate  per  cent,  of  such  assessments  on  the  pre- 
mium or  deposit  notes,  or  other  obligations  uj)on  which  the  as- 
sessments are  made ; 

8.  The  amount  collected  and  paid  in  on  assessments  made 
during  the  year,  and  what  amount  has  been  collected  on  assess- 
ments levied  prior  to  that  year,  and  the  gross  amount  of  assess- 
ments tlieu  outstanding  and  not  canceled  by  the  board  of 
directors,  the  gross  amount  re-assessed  for  assessments  not 
paid ; 

9.  The  amount  of  losses  paid  during  the  year ; 

10.  The  amount  of  salary  and  fees  j)aid  to  each  officer  and 
director,  and  to  whom  paid ; 

11.  The  items  and  amount  of  all  other  expenses  paid  during 
the  year; 

12.  The  amount  of  all  claims  for  losses,  and  other  debts  ex- 
isting against  the  company,  showing  what  amount  of  claims 
and  losses  is  then  due  and  payable ;  what  amount  has  not  ma- 
tured according  to  the  terms  of  the  contract ;  what  amount  is 
resisted  for  any  cause,  or  for  which  the  company  do  not  con- 
sider themselves  legally  liable.  The  statement  herein  provided 
for  shall  be  in  lieu  of  any  or  all  statements  now  required  by 
any  existing  law.     [Ibid,  §  20.) 

37.  The  Commissioner  of  Insurance  is  hereby  authorized  and 
empowered  to  address  any  inquiries  to  any  insurance  company,  or 
the  secretary  thereof,  in  relation  to  its  doings  or  condition,  or  any 
other  matter  connected  with  its  transactions;  audit  shall  be  the 
duty  of  any  company  so  addressed  to  promptly  reply  in  writing  to 
any  such  inquiries.  Every  fire  insmauce  company  organized  under 
any  law  of  this  State,  failing  to  make  and  deposit  such  statements, 
or  to  reply  to  any  inquiry  of  the  said  Commissioner  of  Insurance, 
shall  be  subject  to  the  penalty  of  five  hundred  dollars,  and  an  ad- 
ditional five  hundred  dollars  for  everj"  month  that  such  company 
shall  continue  thereafter  to  transact  any  business  of  insurance. 
(Ibid,  §  21.) 

38.  It  shaU  be  the  duty  of  the  Commissioner  of  Insurance  to 
cause  to  be  prepared  and  furnished  to  each  of  the  comi)anies,  and 
to  the  attorneys  of  companies  incorporated  by  other  States  and 
foreign  governments,  printed  forms  of  the  statements  required  by 
this  act ;  and  he  may,  from  time  to  time,  make  such  changes  in  the 
form  of  such  statements  as  shall  seem  to  him  best  adapted  to  elicit 
from  the  com])anies  a  true  exhibit  of  their  condition  in  respect  to 
the  several  points  hereinbefore  enumerated.     It  shall  be  the  duty  of 


MICHIGAN.  411 

the  Commissioner  of  Insurance  to  cause  the  information  contained 
in  the  statements  required  by  this  act  to  be  arranged  in  a  tabuUir 
form,  sjnd  prepare  the  same  in  a  single  document  for  printing,  which 
he  shall  communicate  to  the  Legislature.     {Ihid,  §  21'.) 

SS>.  It  shall  not  be  lawful  for  any  insurance  company,  associa- 
tion, or  j)artnership  incorporated  by  or  organized  under  the  laws  of 
any  other  State  of  the  United  States,  or  any  foreign  government, 
directly  or  indirectly,  to  take  risks  or  transact  any  business  of  in- 
siu-ance  in  this  State,  unless  possessed  of  the  amount  of  actual 
capital  requked  of  similar  companies  formed  luider  the  provisions 
of  this  act ;  and  any  such  company  desiring  to  transact  any  such 
business  as  aforesaid,  by  any  agent  or  agents  in  this  State,  shall 
first  appoint  an  attorney  in  this  State  on  whom  process  of  law  can 
be  served,  which  process  shall  issue  from  the  courts  of  this  State, 
and  such  courts  shall  have  exclusive  jurisdiction  of  all  cases  arising 
under  this  act,  and  shall  file  in  the  office  of  the  Commissioner  of  In- 
surance a  certified  copy  of  the  vote  or  resolution  of  the  directors 
ax)pointing  such  attorney,  which  appointment  shaU  continue  until 
another  attorney  be  substituted ;  and  in  case  any  such  insurance 
company  sliaU  cease  to  transact  business  in  this  State  according  to 
the  laws  thereof,  the  agent  last  designated,  or  acting  as  such  for 
such  corporation,  shall  be  deemed  to  continue  agent  for  such  corpo- 
ration for  the  inu'pose  of  serving  process  for  commencing  actions 
upon  any  policy  or  liability  issued  or  contracted  while  such  corpo- 
ration transacted  business  in  this  State ;  and  service  of  such  pro- 
cess for  the  causes  aforesaid  upon  any  such  agent  shall  be  deemed  a 
valid  personal  service  upon  such  corporation.  And  shall  also  file  a 
certified  copy  of  its  charter,  or  deed  of  settlement,  together  with  a 
statement  under  the  oath  of  the  i^resident  or  vice-president  and 
other  chief  officer,  and  secretary,  of  the  company  for  which  he  or 
they  may  act,  stating  the  name  of  the  company  and  place  where  lo- 
cated; the  amount  of  its  capital,  ^vith  a  detailed  statement  of  its 
assets,  showing  the  amount  of  cash  on  hand,  in  bank,  or  in  the 
hands  of  agents ;  the  amount  of  real  estate,  and  how  much  the 
same  is  encumbered  by  mortgage;  the  number  of  shares  of  stock 
of  every  kind  owned  by  the  company  ;  the  par  or  market  value  of 
the  same;  amount  loaned  on  bond  and  mortgage;  the  amount 
loaned  on  other  security,  stating  the  kind  and  the  amount  loaned  on 
each,  and  the  estimated  value  ot  the  whole  amount  of  such  securi- 
ties ;  any  other  assets  or  pro])erty  of  the  company ;  also,  stating 
the  indebtedness  of  the  company,  the  amount  of  losses  adjusted 
and  unpaid,  the  amount  incurred  and  in  process  of  adjustment,  the 
amount  resisted  h\  the  company  as  illegal  and  fraudulent,  and  any 
other  claims  existing  against  the  company  ;  also  a  copy  of  the  last 
annual  report,  if  any,  made  under  any  law  of  the  State  by  which 
such  company  was  incorporated ;  and  no  agent  shall  be  allo^ved  to 
transact  business  for  any  company  whose  capital  is  impaired  to  the 
extent  of  fifteen  per  cent,  thereof,  while  such  deficiency  shall  con- 
tinue ;  nor  shall  it  be  lawful  for  any  person  to  act  as  agent  for  any 
company  or  companies  referred  to  in  this  section,  directly  or  in- 
directly, in  taking  risks  or  transacting  the  business  of  fire  or  inland 
navigation  insirrance  in  this  State  without  procuring  or  receiving 
from  the  Commissioner  of  Insurance  a  certificate  of  authority,  stat- 
ing that  such  company  has  comi)lied  with  all  the  requisitions  of  this 
act  which  apply  to  such  companies,  and  the  name  of  the  attorney 
api)ointed  to  act  for  the  company.     A  certified  copy  of  such  certili- 


412  bine's  insurance  statutes. 

cate  of  authority,  with  statement,  must  be  filed  by  tlie  agent  in  the 
office  of  the  clerk  of  every  county  where  such  company  has  agents, 
and  shall  be  published  in  some  paper  of  general  circulation  in  the 
State,  four  successive  times  after  the  filing  such  statement  as  afore- 
said, and  within  thirty  days  thereafter  proof  of  such  publication, 
Ijx  the  affidavit  of  the  publisher  of  such  newsi)aper,  his  foreman,  or 
clerk,  shall  be  filed  in  the  office  of  the  said  Commissioner  of  Insur- 
ance. The  statements  and  evidences  of  investments  required  by 
this  section  shall  be  renewed  from  year  to  year,  in  such  manner  and 
form  as  may  be  required  by  said  Commissioner  of  Insurance,  with  an 
additional  statement  of  the  amount  of  premiums  received  and  losses 
incurred  upon  fire  and  marine  risks,  sejjarately,  in  tliis  State,  during 
the  preceding  year,  so  long  as  such  agency  continues  ;  and  the  said 
Commissioner  of  Insurance,  on  being  satisfied  that  the  capital, 
securities,  and  investments  remain  secure,  as  hereinbefore  provided, 
shall  furnish  a  renewal  of  his  certificate  as  aforesaid;  and  the  agent 
or  agents  obtaining  said  certificate  shall  file  a  certified  copy  of  the 
same  in  the  office  of  the  Clerk  of  the  county  in  which  such  agency 
shall  be  established,  within  thirty  days  after  receiving  the  same. 
Any  violation  of  an}"  of  the  provisions  of  this  section  shall  subject 
the  company  violating  to  a  penalty  of  five  hundred  dollars  for  each 
violation,  and  the  additional  sum  of  one  hundred  dollars  for  each 
month  during  which  any  such  company  shall  neglect  to  make  such 
publication,  or  to  file  such  affidavits  and  statements  as  are  herein 
required.  Every  agent  of  any  fire  insurance  company  shall,  in  all 
advertisements  of  such  agency,  publish  the  location  of  the  com- 
pany, giving  the  name  of  the  city,  town,  or  village  in  which  the 
company  is  located,  and  the  State  or  government  under  the  laws  of 
which  it  is  organized.  The  term  agent  or  agents,  used  in  this  sec- 
tion, shall  include  any  acknowledged  agent,  siu'veyor,  broker,  or 
any  other  person  or  persons  who  shall  in  any  manner  aid  in  trans- 
acting the  insurance  business  of  any  insurance  company  not  incor- 
porated by  the  laws  of  this  State.  The  i)rovisions  of  this  section 
shall  apply  to  all  foreign  insurance  companies,  partnerships,  associ- 
ations, and  individuals,  whether  incorporated  or  not.  {Ibid,  §  23, 
as  amended  by  laws  of  1871,  Act  No.  51.) 

40.  All  insurance  companies,  associations,  corporations,  iiart- 
nerships,  or  individuals  transacting  the  business  of  fire,  or  fire  and 
marine  insurance  in  this  State,  incorporated  by  or  organized  under 
the  laws  of  any  other  State  of  the  United  States,  shall  make  annual 
statements  to  the  Commissioner  of  Insurance,  in  such  manner  and 
on  such  detailed  forms  as  may  be  prescribed  or  furnished  by  him,  of 
their  condition  and  affairs  upon  the  thirty-first  day  of  December 
preceding,  on  the  first  day  of  January  in  each  year,  or  within  thirty" 
days  thereafter.  Companies,  associations,  corporations,  partner- 
ships, or  individuals  incorporated  and  organized  under  the  laws  and 
authority  of  any  foreign  government,  authorized  to  transact  busi- 
ness in  this  State,  shall  be  required  to  make  and  file  their  annual 
statements  on  the  first  day  of  June  in  each  year,  or  within  sixty 
days  after  their  annual  meeting,  as  specified  in  their  respective 
charters  or  acts  of  incorporation.  They  shall  also  cause  to  be  made 
out  and  filed  supplementary  annual  statements  of  their  business  in 
the  United  States  for  the  year  ending  the  thirty-first  day  of  Decem- 
ber, on  the  first  day  of  January  in  each  year,  or  within  sixty  days 
thereafter.  Such  supplementary  reports  shall  be  made  out  in  the 
same  manner  as  the  reports  required  from  companies   organized 


MICHIGAN.  413 

under  the  laws  of  other  States  of  the  United  States,  and  the  man- 
agers, resident  directors,  or  general  agents  for  the  United  States 
shall,  for  the  pm-i)0ses  of  making  such  supplementary  reports,  be 
deemed  the  legal  and  proper  officers  of  such  companies  or  cor- 
jjorations.     {Ibid,  §  24,  as  amended  hy  laics  of  1871,  Act  No.  92.) 

41.  In  case  of  neglect  or  refusal  to  make  such  annual  state- 
ments as  aforesaid,  all  persons  acting  in  this  State  as  agents  or 
otherwise  in  transacting  the  business  of  insurance  for  said  com- 
panies, corjiorations,  associations,  i)artnerships,  or  individuals,  shall 
be  subject  to  the  same  penalties  provided  by  law  in  case  of  the  fail- 
ure of  any  insurance  company  organized  under  the  laws  of  this 
State  to  make  an  annual  statement  as  now  provided  by  law.  {Ibid, 
§25.) 

4S.  It  sball  be  the  duty  ot  the  Commissioner  of  Insurance,  as 
often  as  once  in  six  months,  to  appoint  one  or  more  competent  per- 
sons, not  officers  of  any  fire  insurance  company  doing  business  in 
this  State,  to  examine  into  the  affairs  of  any  fire  insurance  company 
incorporated  under  any  law  of  this  State,  and  whenever  he  shall 
deem  it  expedient  so  to  do,  to  examine  into  the  affairs  of  any  such 
company,  incorporated  or  organized  under  the  laws  of  any  other 
State  of  the  United  States,  doing  business  by  its  agents  in  this 
State  ;  and  it  shall  be  the  duty  of  the  officers  or  agents  of  any  such 
company  doing  business  in  this  State,  to  cause  their  books  to  be 
opened  for  the  inspection  of  the  pers(m  or  persons  so  appointed,  and 
otherwise  to  facilitate  such  examination,  so  far  as  it  may  be  in  their 
power  to  do ;  and  for  that  purpose  the  traid  Conmiissioner  of  Insur- 
ance, or  the  person  or  persons  so  api)ointed  by  him,  shall  have 
power  to  examine,  under  oath,  the  officers  and  agents  of  any  com- 
pany relative  to  the  standing  and  condition  of  said  company ;  and 
whenever  the  said  Commissioner  of  Insurance  shall  deem  it  for  the 
interest  of  the  public  so  to  do,  he  shall  publish  the  result  of  such 
investigation  in  one  or  more  papers  in  this  State  ;  and  whenever  it 
shall  appear  to  the  said  Commissioner  of  Insurance,  from  such 
examination,  that  the  assets  of  any  company  incorporated  under 
any  law  of  this  State  are  insufficient  to  justify  the  continuance  in 
business  of  any  such  company,  he  may  direct  the  officers  thereof  to 
require  the  stockholders  to  pay  in  the  amount  of  such  deficiency 
within  such  jieriod  as  he  may  designate  in  such  requisition,  and 
in  case  any  such  company  shall  fail  to  pay  in  and  make  good  the 
full  amount  of  such  deficiency  within  thirty  days  after  such  requisi- 
tion and  direction  as  aforesaid,  it  shall  be  the  duty  of  the  Commis- 
sioner of  Insurance  to  give  notice  of  such  failure  in  some  newspaper 
published  in  the  county  where  the  office  of  such  company  is  located 
by  its  charter ;  such  notice  shall  contain  a  brief  statement  of  the 
fact  of  such  failure  to  comply  with  this  section,  and  shall  be  pub- 
lished in  such  paper  once  in  each  week  for  three  successive  weeks. 
It  shall  not  be  lawful  alter  the  first  publication  of  such  notice  for 
such  company  to  issue  any  policy  of  insurance,  or  to  make  any  con- 
tract for  the  same,  or  to  transact  any  business  imder  its  charter, 
excej)t  to  close  up  its  business  ;  and  all  contracts  of  insurauce  and 
policies  issued  after  such  first  publication  of  such  notice  shall  be 
void  and  of  no  binding  force,  and  the  person  or  persons  making  such 
contracts  or  issuing  such  policy  shall  be  liable,  in  an  action  of  trover, 
to  the  person  assured,  in  double  the  sum  named  as  premium  in  such 
contract  or  policy,  and  the  Commissioner  of  Insurance  may  apply 
to  any  circuit  court  in  the  State,  or  if  in  vacation  to  any  judge 


414  hine's  insurance  statutes. 

thereof,  for  an  order  requiring-  tliem  to  show  cause  why  the  business 
of  such  company  should  not  be  closed  and  a  receiver  appointed  of 
its  assets  and  funds,  and  the  court  or  judge  shall  thereupon  proceed 
to  hear  the  allegations  and  proofs  of  the  respective  parties;  and  in 
case  it  shall  appear  to  the  satisfaction  of  such  court,  or  the  judge 
thereof,  on  the  hearing  of  such  i)roofs,  that  the  assets  and  funds  of 
such  company  are  not  sufficient,  as  aforesaid,  or  that  for  any  cause 
such  comi)any  is  not  entitled  to  transact  business  in  this  iState,  the 
said  court  or  judge  thereof  shall  decree  a  dissolution  of  such  com- 
jiany,  and  a  distribution  of  its  effects.  The  said  court  or  judge 
thereof  shall  have  power  to  refer  the  application  of  the  Commis- 
sioner of  Insurance  to  a  referee,  to  inquire  into  and  report  ui)on  the 
facts  stated  therein.  Upon  any  such  investigation  before  such 
court,  judge,  or  referee,  the  report  of  the  persons  appointed  by  the 
Commissioner  of  Insurance  to  examine  into  the  affairs  of  such  com- 
pany shall  be  prima  facie  evidence  of  the  facts  therein  contained. 
The  corporate  existence  of  such  company  may  be  proved,  if  neces- 
sary, by  a  copy  of  the  articles  of  association,  with  a  certiticate  of 
the  Commissioner  of  Insurance  attached,  that  such  copy  is  a  dupli- 
cate of  the  copy  on  file  in  his  oflice.  It  shall  be  the  duty  of  the 
procuting  attorney  of  the  county  where  such  proceedings  are  insti- 
tuted, on  apj)lication  of  the  Commissioner  of  Insurance  or  the 
Attorney-General,  to  appear  for  the  people  and  prosecute  the  same. 
{Ibid.,  §  20,  as  amended  by  laws  of  1871,  Act  No.  92.) 

4iS.  Any  company  receiving  the  aforesaid  requisition  from  the 
said  Commissioner  of  Insurance,  shall  forthwith  call  upon  its  stock- 
holders for  such  amounts  as  will  make  its  capital  equal  to  the 
amount  fixed  by  the  charter  of  said  company;  and  in  case  any 
stockholder  of  such  company  shall  refuse  or  neglect  to  pay  the 
amount  so  called  for,  after  notice  personally  given  or  by  advertise- 
ment, in  such  time  and  manner  as  the  said  Commissioner  of  Insur- 
ance shall  approve,  it  shall  be  lawful  for  the  said  company  to  re- 
quire the  return  of  the  original  certificate  of  stock  held  by  such 
stockholder,  and  in  lieu  thereof  to  issue  new  certificates  for  such 
number  of  shares  as  the  said  stockholder  may  be  entitled  to  in  the 
proportion  that  the  ascertained  value  of  the  funds  of  the  said  com- 
jjany  may  be  found  to  bear  to  the  original  capital  of  the  said  com- 
pany ;  the  value  of  such  shares  for  which  new  certificates  shall  be 
issued,  to  be  ascertained  under  the  direction  of  the  said  Commis- 
sioner of  Insurance,  and  the  company  i^aying  for  the  fractional  parts 
of  shares ;  and  it  shall  be  lawful  for  the  directors  of  such  company** 
to  create  new  stock  and  dispose  of  the  same,  and  to  issue  new  cer- 
tificates therefor,  to  an  amount  sufiicient  to  make  up  the  original 
capital  of  the  company.     {Ibid,  §  27.) 

44.  And  it  is  hereby  declared  that  in  the  event  of  any  addi- 
tional losses  accruing  upon  new  risks,  taken  aftsr  the  expiration  of 
the  period  limited  by  the  said  Commissioner  of  Insurance  in  the 
aforesaitl  requisition  for  the  filling  up  of  the  deficiency  in  the  cap- 
ital and  assets  of  such  company,  and  before  said  deficiency  shall 
have  been  made  up,  the  directors  shall  be  individually  liable  to  the 
extent  thereof.  And  if,  upon  such  examination,  it  shall  appear  to 
the  said  Commissioner  of  Insurance  that  the  assets  of  any  company 
chartered  on  the  plan  of  mutual  insurance  under  any  law  of  this 
State,  are  insufficient  to  justify  the  continuance  of  such  company  in 
business,  it  shall  be  his  duty  to  proceed  in  relation  to  such  company 
in  the  same  manner  as  is  herein  required  in  regard  to  joint  stock 


MICHIGAN.  415 

companies;  and  the  trustees  or  directors  of  such  company  are  hereby 
made  personally  liable  for  any  losses  which  may  be  sustained  upon 
risks  taken  after  the  expiration  of  the  period  limited  by  the  said 
Commissioner  of  Insurance  for  filling  up  the  deficiency  in  the  cap- 
ital and  assets  of  such  company,  and  before  such  deficiency  shall 
ha^e  been  made  up.  Any  transfer  of  the  stock  of  any  company, 
organized  under  this  act,  made  during  the  pending  of  any  such  in- 
vestigation, shall  not  release  the  party  making  the  transfer  from  his 
liability  for  losses  which  may  have  accrued  i^revious  to  the  transfer. 
All  the  provisions  of  section  twenty-six  of  this  act  shall  apply  to  any 
company  chartered  on  the  plan  of  mutual  insurance  under  the  laws 
of  this  kState ;  and  whenever  it  shall  appear  to  the  said  Commissioner 
of  Insurance  that  the  affairs  of  any  company  not  incorporated  by 
the  laws  of  this  State  are  in  an  unsound  condition,  he  shall  revoke 
the  certificates  granted  iu  behalf  of  such  company,  and  shall  cause 
a  notification  thereof  to  be  published  in  some  paper  of  general  cir- 
culation in  this  State  for /bitr  weeks;  and  the  agent  or  agents  of 
such  company  are,  after  such  notice,  required  to  discontinue  the  is- 
suing of  any  new  policy,  and  the  renewal  of  any  previously  issued ; 
and  the  agent  or  agents  of  any  such  company  not  incorporated  by  the 
laws  of  this  State,  who  shall  issue  any  new  policy,  or  make  any  con- 
tract for  the  same,  after  such  publication,  shall  be  liable  in  an  ac- 
tion of  trover  to  the  i)ersons  assured  in  double  the  sum  named  as 
premium  in  such  policy  or  contract.  [Ibid,  §  28,  as  amended  by  laws 
0/1871,  Act.  No.  92.) 

4«5.  Every  penalty  provided  for  by  this  act,  or  by  any  other 
act  heretofore  enacted  by  the  legislature  of  this  State  relating  to  in- 
sarance,  shall  be  sued  for  and  retiovered  in  the  name  of  the  people 
by  the  prosecuting  attorney  of  the  county  in  which  the  comi)any  or 
the  agent  or  agents  so  violating  shall  be  situated ;  one-fourth  of  said 
I)enalty,  when  recovered,  shall  be  i^aid  to  the  i)arty  making  the  com- 
plaint, and  the  remainder  shall  be  paid  into  the  treasury  of  said 
county ;  and  in  the  case  of  the  non-payment  of  &i\ch  penalty  the 
party  so  offending  shall  be  liable  to  imiirisonmeut  for  a  period  not 
exceeding  six  months,  in  the  discretion  of  any  court  having  cogni- 
zance thereof;  such  penalties  may  also  be  sued  for  and  recovered  in 
the  name  of  the  people,  by  the  Attorney-General,  and,  when  sued 
for  and  collected  by  him,  shall  be  paid  into  the  State  Treasury. 
{Ibid,  §  29,  as  amended  by  laws  of  1811,  Act  No.  92.) 

40,  All  companies  incorporated  under  this  act  may  provide,  in 
their  articles  of  association,  for  not  more  than  thirty  years'  duration ; 
but  the  legislature  may  at  any  time  alter,  amend,  or  repeal  this  act, 
and  provide  for  the  closing  up  of  the  business  and  affairs  of  any 
company  formed  under  it.     {Ibid,  §  30.) 

47.  The  certificates  of  authority  required  by  section  twenty- 
three  of  this  act,  and  all  necessary  duplicates  and  copies,  shall  be 
furnished  to  the  several  companies  by  the  Commissioner  of  Insur- 
ance without  charges  or  fees,  but  every  County  Clerk  may  demand 
and  receive  for  every  such  certificate  filed  in  his  office  under  this  act 
the  sum  of  twenty -five  cents.  {Ibid,  §  31,  as  amended  by  laws  of  1871, 
Act  No.  92.) 

48.  The  necessary  expenditures  of  any  examination  made  or 
ordered  to  be  made  by  the  Commissioner  of  Insurance  under  this 
act  shall  be  certified  to  by  him,  and  paid  on  his  requisition,  by  the 
company  which  is  the  subject  of  such  examinati<m,  not  exceeding 
five  dollars  per  day  and  exi^enses ;  Provided^  That  cost  and  expenses 


416  hine's  insueance  statutes. 

of  the  examination  of  any  company  incorporated  under  the  laws  of 
any  other  State,  or  any  foreign  goverumeut,  the  central  or  general 
office  of  which  is  outside  this  State,  shall  be  certified  by  the  Secre- 
tary of  State  to  the  Auditor-General  as  proper  and  reasonable,  and 
upon  the  receipt  of  such  certificate  the  Auditor-General  shall  draw 
his  warrant  for  the  same,  iiayable  out  of  the  general  or  contingent 
fund  of  the  State,  and  the  State  Treasurer,  on  the  presentation  of 
any  such  warrant,  is  hereby  authorized  and  directed  to  jjay  the 
same.  {Ibid,  §  32,  as  amende  I  by  laws  o/1871,  Act  No.  92;  also  see 
§  1  of  Act  No.  108  0/1871,  "^o  establish  an  Insurance  Bureau.''^) 

49.  It  shall  not  be  lawful  for  any  company  organized  upon  the 
mutual  plan,  to  do  business  and  take  risks  upon  the  stock  i^lan ; 
neither  for  a  company  organized  as  a  stock  company,  to  do  business 
upon  the  plan  of  a  mutual  iusui-ance  comi)any.     {Ibid,  §  33.) 

50.  Any  fire  insurance  company,  association,  or  partnership 
incorporated  by  or  organized  under  the  laws  of  any  other  State,  or 
any  foreign  gov  erument,  doing  business  within  this  State,  shall,  as 
a  condition  precedent  to  the  renewal  of  an  annual  certificate  by  the 
Commissioner  of  Insurance,  make  and  file  in  the  ofSce  of  the  State 
Treasurer,  annually,  in  the  month  of  January  of  each  year,  on  oath 
or  aflirmation,  a  statement  of  tbe  number  of  fire  policies  issued  by 
its  agents,  and  procured  by  or  written  for  sub-agents,  solicitors,  or 
brokers,  upon  ]3roperty  owned  by  residents  of,  or  situate  in  the 
State  of  Michigan ;  also,  a  like  statement  of  the  marine  insurance 
business  transacted  in  the  State  of  Michigiiu,  and  the  gross  amount 
of  ijremiums  received  or  secured  thereon,  during  the  year  then  ter- 
minated ;  and  shall  i)ay  into  the  hands  of  the  State  Treasurer  a 
specific  tax  of  three  per  cent,  on  the  gross  amount  of  all  premiums 
received  in  money  or  securities  during  the  said  year,  which  said 
siJecific  tax  may  be  recovered  from  any  company  neglecting  or  re- 
fusing to  pay  the  same,  in  any  court  at  the  suit  of  this  State,  and 
shall  be  and  hereby  is  appropriated  to  the  same  uses  and  purposes 
as  the  specific  tax  on  such  corporations  are  (u*  hereby  after  may  be; 
and  it  shall  be  the  duty  of  the  State  Treasurer  to  give  his  receipt 
for  all  moneys  paid  into  the  State  treasury  uiuier  the  provisions  of 
this  act.     {Ibid,  §  31,  as  amended  by  laws  o/1871.  Act  No.  92.) 

5 1 .  Every  insurance  company  organized  under  the  laws  of,  or 
doing  business  in  this  State,  shall  conform  to  all  the  provisions  of 
this  act,  ai)plicable  thereto,  on  or  before  the  thirty-first  day  of  Jan- 
uary, 1870,  and,  when  necessary,  any  existing  company  shall  change 
its  articles  of  association  and  by-laws,  so  as  to  conform  hereto,  by  a 
vote  of  a  majority  of  its  board  of  directors  ;  and  any  president,  sec- 
retary, or  other  officer  of  any  company  organized  under  the  laws  of 
Michigan,  or  any  offleer,  agent,  or  i)erson  doing  or  attempting  to  do 
business  in  this  State  for  any  insurance  company  organized  without 
this  State,  failing  to  comply  with  any  of  the  requirements  of  this 
act,  or  violating  any  of  the  provisions  thereof  shall  be  deemed 
guilty  of  a  misdemeanor,  and,  upon  conviction  thereof  shall  be 
fined  in  a  sum  not  exceeding  one  thousand  dollars,  and  be  impris- 
oned in  the  county  jail  for  a  period  of  not  less  than  thirty  days  nor 
more  than  six  months.     {Ibid,  §  35.) 

53.  If  any  stock  company,  or  any  company  organized  under 
the  plan  of  mutual  insurance  under  this  act,  or  the  act  or  acts  of 
which  this  is  amendatory,  shall,  by  means  of  any  advertisement,  no- 
tice, or  statement  printed  in  any  newspaper,  or  by  means  of  any  writ- 
ten or  printed,  or  partly  written  and  partly  jirinted  notice,  circular. 


MICHIGAN.  417 

or  handbill,  or  by  any  agent,  or  other  person  acting  for  said  company, 
or  by  other  means,  falsely  represent,  publish,  or  hold  out  to  the  pub- 
lie  that  the  capital  stock  of  such  company,  or  the  stock  or  guaranty 
capital  of  any  such  mutual  company  is  greater,  or  of  a  larger  amount, 
than  the  actual  cash  market  value  of  such  capital  stock  or  guaranty 
capital,  every  director,  officer,  or  agent  of  such  company  guilty  of  any 
particii)ation  therein  shall  be  deemed  guilty  of  a  misdemeanor,  and 
on  conviction  thereof  shall  be  punished  as  provided  in  section  thir- 
ty-five of  this  act;  and  if  any  such  company,  after  any  such  false 
statement  or  representation,  notice,  advertisement,  or  circular  shall 
have  been  given  out,  circulated,  or  published,  shall  receive  any 
money,  note,  or  obligation  for  the  payment  of  money  from  any  per- 
son, as  a  consideration  for  any  insurance  made,  or  policy  issued  or 
to  be  issued  by  such  company,  the  directors,  officers,  or  agents  of 
such  company  shall  be  deemed  to  have  obtained  such  money,  note, 
or  obligation  by  false  pretenses,  designedly,  with  intent  to  delraud 
or  cheat  the  person  paying  such  consideration,  and  shall  be  pun- 
ished the  same  as  persons  guilty  of  obtaining  property  or  money  by 
false  pretenses,  designedly,  with  intent  to  defraud  or  cheat  another, 
and  shall  also  be  liable  in  damages  to  the  person  from  whom  the 
money,  note,  or  obligation  was  obtained,  in  an  action  in  the  case  for 
double  the  amount  of  the  money,  and  note  or  obligation  so  ob- 
tained, and  shall  also  be  jointly  and  severally  liable  to  the  person 
insiu"ed,  to  pay  all  losses  covered  by  such  insurance;  Provided^ 
That  the  said  company  may  proceed  with  its  business,  receiving 
money,  issuing  policies,  whenever  the  Circuit  Judge  for  the  judicial 
circuit  where  the  office  of  said  company  is  located  shall  certify,  from 
proof  adduced  before  him,  either  that  such  publication  was  by  mis- 
take, or  that  the  directors,  officers,  or  agents  making  the  same  have 
been  diwsmissed  from  the  service  of  the  said  company,  and  whenever, 
also,  the  said  company  shall  publish  such  true  statement  of  its 
affairs  as  the  said  Circuit  Judge  shall  direct.     {Ibid,  §  36.) 

5JJ.  The  provisions  of  this  act  shall  not  apply  to  farmers'  mu- 
tual insurance  companies,  which  insure  farm  buildings  and  contents 
solely,  as  now  organized,  or  that  may  hereafter  be  organized  under 
act  No.  2G2  of  Session  Laws  of  1S59,  and  the  acts  amendatory 
thereof  relative  to  insurance  comi)anies,  but  such  companies  shall 
continue  to  be  subject  to  the  provisions  of  Act  No.  202  of  the  laws 
of  1859,  approved  February  15,  1859,  entitled  "An  act  for  the  in- 
corporation of  insurance  companies,  and  defining  their  powers  and 
duties,"  and  the  acts  amendatory  thereof.     {Ibid,  §  37.) 

54.  Any  persons  required  by  the  provisions  of  this  act  to  take 
any  oath  or  affirmation,  who  shall  make  any  false  oath  or  affirma- 
tion, shall  be  deemed  guilty  of  perjury.     {Ibid,  §  38.) 

*i!i.  Any  company  formed  under  this  act  shall  have  the  power 
to  amend  its  articles  of  association  at  any  regular  meeting  of  the 
stockholders  or  members  called  by  the  directors  for  that  purpose ; 
but  notice  of  such  meeting,  and  of  the  purpose  for  which  it  is  called, 
shall  be  served  on  each  of  the  stockliolders,  or,  if  it  is  a  mutual 
company,  on  each  of  the  members,  either  personally  or  by  directing 
the  same  through  the  post-office,  to  the  last  known  post-office  ad- 
dress of  such  stockholder  or  member,  at  least  three  weeks  [)re\ious 
to  such  meeting.  But  such  amendments  shall  not  take  effect  until 
submitted  to  the  Attorney-General,  and  certified  by  him  not  to  conflict 
with  the  constitution  or  laws  of  this  State,  nor  until  a  cop}'  thereof, 
signed  by  the  president  and  secretary  of  the  comj)any,  shall  be  filed 
27 


418  nilSTl'S  INSURANCE   STATUTES. 

in  the  oflSce  of  the  Secretary  of  State,  and  of  the  county  clerk  where 
the  original  articles  were  filed.     {Laws  o/1871,  Act  No.  92,  §  2.) 

30.  It  is  hereby  made  the  duty  of  the  Commissioner  of  Insur- 
ance to  (calculate  the  reinsurance  reserve  for  every  fire  and  fire- 
marine  insurance  company  organized  under  the  laws  of  this  State 
or  doing  business  therein,  by  taking  fifty  per  cent,  of  the  premiums 
received  on  all  unexpired  risks  that  have  less  than  one  year  to  run, 
and  a  pro  rota  of  all  premiums  received  on  risks  that  have  more 
than  one  year  to  run ;  Provided^  That  when  the  reinsurance  reserve, 
calculated  as  above,  is  less  than  forty  per  cent,  of  all  the  premiums 
received  during  the  year,  the  reinsurance  reserve  in  any  such  case 
shall  be  the  whole  of  the  premiums  received  on  all  unexpired  risks; 
Provided,  further,  In  the  case  of  perpetual  risks  or  policies,  the 
whole  amount  of  the  deposit  or  premium  paid  by  the  assured  shall 
be  deducted;  and  Provided,  further.  That  no  installment,  part-paid, 
or  other  notes  shall  be  accepted  or  allowed  as  assets  in  calculating 
the  reinsurance  reserve  of  any  fire  insurance  comjiany  organized  or 
doing  business  upon  the  stock  plan ;  and  in  marine  and  inland  in- 
surance he  shall  charge  all  the  ju'emiums  received  on  unexpired  risks 
as  a  reinsurance  reserve.     [Laws  o/1873,  Act  No.  149.) 


LIFE  mSUEA^Clil  COMPANIES. 

57.  Anj'  number  of  persons  not  less  than  thirteen  may  asso- 
ciate together  and  form  an  incorporated  company,  for  the  j)uriJOse 
of  making  insurance  upon  the  lives  of  individuals,  and  every  insur- 
ance pertaining  thereto,  and  to  grant,  purchase,  and  dispose  of  an- 
nuities Every  company  organized  under  this  act  shall  have  author- 
ity to  reinsure  any  risk  herein  authorized  to  be  undertaken  by  them, 
and  to  grant  reinsurance  upon  any  similar  risk  undertaken  by  any 
other  company,  but  shall  not  have  power  to  undertake  marine  and 
fire  risks,  or  any  other  species  of  insurance  whatever,  except  upon 
lives,  or  to  be  in  any  way  connected  in  their  business  with  any  com- 
pany undertaking  other  risks  than  upon  the  lives  of  individuals. 
{Laics  of  18G9,  Act  No.  11,  §  1.) 

58.  The  persons  so  associating  shall  subscribe  articles  of  asso- 
ciation, which  shall  contain : 

First. — The  names  of  the  associates,  and  their  places  of  residence 
respectively ; 

Second. — The  name  by  which  the  corporation  shall  be  known, 
and  the  place  where  its  principal  office  for  the  transaction  of  busi- 
ness is  to  be  established,  and  the  period  for  which  it  is  to  be  incor- 
porated ; 

Third. — The  purposes  of  the  incorporation,  as  mentioned  in  the 
first  section  of  this  act ; 

Fourth. — The  manner  in  which  the  corporate  powers  are  to  be 
exercised;  the  number  of  directors  and  other  officers,  and  the  man- 
ner of  electing  the  same,  and  how  many  of  the  directors  shall  con- 
stitute a  quorum,  and  the  manner  of  filling  all  vacancies ; 

Fifth. — The  amount  of  the  capital  stock,  if  any,  and  what  pro- 
portion is  to  be  paid  in  before  the  corporation  shall  commence  busi- 
ness; 

Sixth. — The  time  for  the  holding  of  the  annual  meetings  of  the 
corporation ;  and. 

Seventh. — Any  terms  and  conditions  of  membership  therein  which 


MICHIGAN.  410 

the  corporators  may  have  agreed  upon,  and  which  they  may  deem 
important  to  have  set  fortli  in  such  articles. 

And  the  said  corporators  shall  publish  a  copy  of  said  articles, 
with  notice  of  their  intention  to  become  incorpoz^ited  under  the 
same,  in  some  newspaper  published  in  tlie  county  Avhere  their  prin- 
cii)al  office  is  to  be  located,  once  in  eacli  week,  for  at  least  four  weeks 
before  filing  such  articles,  as  hereinafter  provided ;  and  at  the  time 
of  filing  such  articles  they  shall  also  file  with  the  Commissioner  of 
Insurance  proof  of  such  publication.     {Ibid,  §  2.) 

51>.  The  persons  so  associating  shall,  after  having  published 
such  articles  and  notice,  open  books  of  subscription  to  the  capital 
stock  of  the  corporation,  and  keep  the  same  open  until  the  whole 
amount  specified  in  the  articles  shall  be  subscribed  ;  or  if  said  cor- 
poration is  to  transact  business  on  the  mutual  plan,  then  they  shall 
open  books  to  receive  propositions  and  enter  into  agreements,  as 
hereinafter  specified.     {Ibid,  §  3.) 

60.  The  capital  stock  of  any  stock  company  organized  under 
this  act  shall  not  be  less  than  one  hundred  thousand  dollars,  in 
shares  of  fifty  dollars  each,  which  capital  stock  may  be  increased, 
by  a  vote  of  two-thirds  of  the  stockholders  present  or  represented 
at  any  regular  meeting  called  for  the  purpose,  to  not  more  than  five 
hundred  thousand  dollars;  and  no  such  stock  company,  and  no  com- 
pany organized  to  do  business  on  the  mutual  plan,  shall  be  author- 
ized to  issue  policies,  or  assume  any  risks  whatever,  until  they  shall 
have  deposited  with  the  State  Treasurer,  as  seciu-ity  for  any  liability 
to  insured  parties,  stocks  or  bonds  of  this  State  or  of  the  United 
States,  to  the  amount,  in  par  valne,  exclusive  of  interest,  of  not 
less  than  one  hundred  thousand  dollars,  which  stock  or  bonds  shall 
be  retained  by  the  State  Treasurer  and  disposed  of  as  hereinafter 
directed;  Provided,  however.  That  ])ersonal  obligations,  secured  by 
first  mortgages  on  real  estate  within  this  State,  worth,  exclusive 
of  all  buildings,  at  least  double  the  amount  of  the  lien,  and  bearing 
an  interest  of  not  less  than  seven  j^er  centum  per  annum,  may  be 
received  by  the  State  Treasurer,  instead  of  bonds  or  stocks,  to  the 
amount  of  not  exceeding  fifty  thousand  dollars;  but  any  examina- 
tion by  the  State  Treasurer,  or  under  his  direction,  to  satisfy  him 
respecting  the  title  or  value  of  the  property  mortgaged,  shall  be  at 
the  expense  of  such  company;  and  no  mutual  insurance  company 
shall  commence  business,  by  issuing  policies,  until  they  shall  have 
received  at  least  five  hundred  applications  for  insurance,  on  which 
the  premiums  shall  amount  to  at  least  five  thousand  dollars,  nor 
until  the  examination  hy  the  Attorney-General  and  Commissioners, 
as  hereinafter  provided.     {Ibid,  §  4.) 

61.  The  articles  of  association  shall  be  submitted  to  the  At- 
torney-General for  his  examination,  and  if  found  by  him  to  be  in 
compliance  with  this  act,  he  shall  so  certify  to  the  Commissioner  of 
Insurance,  and  the  Commissioner  of  Insurance  shall  thereupon  ap- 
point three  disinterested  persons  residing  in  the  county  where  the 
principal  business  office  of  the  corporation  is  proposed  to  be  estab- 
lished, who  shall  certify,  under  oath,  if  they  find  such  to  be  the  fact, 
that  the  provisions  in  the  articles  of  association,  in  respect  to  capital 
stock,  as  sho'svni  to  them  to  have  been  fully  complied  with  ;  and  if 
the  company  is  organized  to  do  business  on  the  mutual  plan,  that 
the  company  is  in  tlie  actual  possession  of  the  applications  for  in- 
surance hereinbefore  provided  for,  and  that  it  was  shown  to  them, 
by  the  affidavit  of  the  president  and  secretary  of  the  company  that 


420  hine's  insurance  statutes. 

siicli  applications  have  been  taken  in  good  faith,  and  not  merely 
colorab^y,  and  that  such  officers  believe  it  to  be  the  intention  of 
each  of  the  applicants  to  receive  and  pay  for  policies  thereon  when 
the  coinx)any  shall  be  prepared  to  issue  the  same.  A  copy  of  the 
articles  of  association,  together  with  such  certificate  and  affidavit, 
shall  thereupon  be  filed  with  the  Commissioner  of  Insurance,  and 
another  copy  of  the  articles  and  a  copy  of  such  certificate  and  affi- 
davit with  the  county  clerk  of  the  county  in  which  the  company's 
princijial  office  is  to  be  established ;  and  the  tiling  of  the  same  with 
such  officers,  and  the  deposit  with  the  State  Treasurer  of  the  stocks 
or  bonds  and  mortgage  securities,  as  hereinbefore  provided,  shall  be 
the  authority  of  the  comj^any  to  commence  business  and  issue  poli- 
cies.    {I  bid,  §  5.) 

62.  Whenever  it  shall  be  necessary,  in  any  legal  proceedings, 
to  prove  the  corporate  existence  of  any  such  company,  a  copy  of 
the  articles  of  association,  with  a  certificate  by  the  Commissioner  of 
Insurance  attached,  that  such  copy  is  a  duplicate  of  the  coj)y  on  file 
in  his  office  ;  that  the  certificate  and  affidavit  required  to  be  filed  by 
examining  commissioners  are  also  on  file  in  his  office,  and  that  it 
has  been  made  to  appear  to  him,  by  the  certificate  of  the  projjer 
county  clerk,  that  another  copy  of  such  articles  has  been  duly  filed 
in  the  office  of  such  clerk,  and  by  the  certificate  of  the  State  Treas- 
urer, that  the  securities  required  to  be  deposited  with  him  have  been 
deposited,  shall  be  prima  facie  evidence  of  the  corporate  existence 
of  the  comi)any  ;  and  except  in  proceedings  by  or  under  the  author- 
ity of  the  State,  to  question  its  corporate  right,  by  information  in 
the  nature  of  a  quo  warranto,  or  otherwise,  shall  be  conclusive  evi- 
dence of  the  authority  of  the  company  to  issue  policies  and  transact 
business  as  contemplated  by  its  articles,  until  such  authority  has 
been  terminated  by  the  expiration  of  the  term  of  incorporation,  or 
on  some  one  of  the  grounds  hereinafter  specified.     [Ibid,  §  6.) 

03.  No  company  formed  under  this  act  shall  j)urchase  or  hold 
any  real  estate,  except— 

First. — Such  as  shall  be  necessary  fijr  its  immediate  accommoda- 
tion in  transacting  business ;  or. 

Second. — Such  as  shall  have  been  conveyed  or  mortgaged  to  the 
company  in  good  faith,  by  way  of  security  for  debts ;  or. 

Third. — Such  as  shall  have  been  conveyed  to  the  company  in 
satisfaction  for  debts ;  or. 

Fourth.  — Huch  as  shall  have  been  purchased  at  sales  upon  judg- 
ments, decrees,  or  mortgages  in  favor  of  such  comj)any,  or  held  or 
owned  by  it ; 

And  all  real  estate  obtained  by  virtue  of  any  provisions  of  this 
section,  except  that  mentioned  in  the  first  subdivision,  shall  be  sold 
or  disposed  of  within  five  years  after  the  title  has  been  perfected  in 
such  com])any.     {Ibid,  §  7.) 

64.  The  directors  of  any  comi)any  organized  under  this  act 
shall  have  power  to  make  such  by-laws,  not  inconsistent  with  the 
constitution  and  laws  of  this  State,  or  with  their  articles  of  associa-  ■ 
tion,  as  they  may  deem  necessary  for  the  government  of  the  officers 
and  members  of  the  company  and  the  conduct  of  its  affairs.  {Ibid, 
§8.) 

65.  The  bonds  or  stocks  and  mortgage  securities  deposited 
by  any  such  company  with  the  State  Treasurer  shall  be  held  by  him 
as  security  for  policy-holders  in  such  company;  but,  so  long  as  it 
continues  solvent,  the  company  shall  have  the  right  from  time  to 


MIOniGAN.  421 

time  to  collect  and  receive  the  dividends  or  interest  tbereon,  and  to 
withdraw  any  of  the  same,  on  depositing  with  the  State  Treasurer 
other  securities  of  the  kinds  specified,  so  that  the  amount  in  his 
hands  for  the  security  of  policy-holders,  at  any  time,  shall  not  be 
less  than  one  hundred  thousand  dollars,  exclusive  of  interest.  If  at 
any  time  a  claim  shall  be  made  against  any  such  company  on  one 
of  its  i)olicies,  and  the  same  shall  not  be  adjusted  and  paid,  and 
the  claimant  shall  recover  judgment  thereon  against  the  conipanj^, 
the  State  Treasurer,  on  being  served  with  an  affidavit  by  the  claim- 
ant or  his  attorney,  setting  forth  the  recovery  of  the  judgment,  and 
that  tlie  same  has  remained  unpaid  for  three  months,  and  that  no 
proceedings  are  pending  for  the  review  or  reversal  of  the  same,  shall 
proceed  to  sell,  at  the  current  market  value,  sufficient  of  the  stocks 
or  bonds  so  deiwsited  with  him,  to  satisfy  the  amount  of  such  judg- 
ment, together  with  one  per  centum  for  his  services  and  expenses ; 
or,  if  said  stocks  or  bonds  shall  ])reviously  have  been  disposed  of 
for  the  satisfaction  of  claims,  then  he  shall  proceed  to  collect  suffi- 
cient of  the  mortgage  securities  to  pay  the  amount  of  the  claim 
mentioned  in  such  affidavit,  -with  his  reasonable  costs  and  expenses; 
and  said  company,  after  notice  of  the  service  of  such  affidavit,  shall 
not  be  at  liberty  to  issue  any  new  policies  until  any  deficiency  of 
securities  caused  by  the  necessity  of  meeting  such  claims  shall  have 
been  made  good  by  further  deposit  with  said  State  Treasurer  of  the 
like  securities ;  Provided,  hoivevcr,  That  if  any  such  company  shall 
become  insolvent,  and  proceedings  shall  be  taken  in  equity  with  a 
view  to  its  dissolution,  nothing  in  this  section  contained  shall  pre- 
vent an  equal  and  just  distribution  of  all  its  assets,  including  the 
securities  so  deposited  with  the  State  Treasurer,  aimong  the  persons 
equitably  entitled  thereto.     {Ibid,  §  9.) 

60.  No  company  organized  or  existing  under  any  authority 
whatsoever,  other  than  the  statutes  of  this  State,  shall  be  at  liberty  to 
transact  the  business  of  life  insurance  within  this  State  until  such 
company,  in  addition  to  the  requirements  now  made  by  law,  shall 
have  deposited  with  the  State  Treasurer  one  hundred  thousand  dol- 
lars of  the  like  securities  required  to  be  deposited  by  companies 
formed  under  this  act,  which  shall  be  held  as  security  for  any  losses 
suffered  by  policy-holders  therein,  upon  the  same  terms  and  condi- 
tions, and  with  the  same  authority  of  sale  or  collection  to  satisfy 
judgments  as  are  set  forth  in  the  last  preceding  section  ;  and  any 
person  who  shall  solicit  and  obtain  within  this  State  applications 
for  insurance  upon  lives,  or  issue  policies  of  insurance  upon  lives,  or 
contracts,  guarantees,  or  pledges  for  the  jiayment  of  annuities,  or 
endowments  to  families,  or  representatives  of  policy  or  certificate- 
holders,  in  any  company  not  organizeil  under  the  statutes  of  this 
State  before  such  securities  are  deposited,  shall  be  liable  to  a  ])en- 
alty  of  one  hundred  dollars  for  every  application  obtained,  policy 
issued,  or  contract,  guaranty,  or  pledge  made,  to  be  sued  for  and 
recovered  in  the  name  of  the  people  by  the  Attorney-General  or 
prosecuting  attorney  of  the  iiro[)er  county,  either  by  action  for  debt 
or  criminal  prosecution  ;  ancl  any  person  who  shall  have  paid  to  any 
agent  of  such  company  any  premium  moneys  before  sucli  securities 
are  deposited,  shall  be  entitled  to  recover  the  same  back  from  such 
agent,  or  at  his  option  from  the  company,  by  action  of  assumi)sit,  to 
be  brought  at  any  time  within  six  years  after  such  payment ;  Pro- 
vided, however,  That  when,  by  the  statutes  of  any  other  State,  life 
insurance  companies  organized  or  doing  business  therein  are  re- 


I 

422  hine's  insurance  statutes. 

quired  to  keep  on  deposit  with  the  State  Treasurer,  or  other  State 
officer,  securities  for  the  protection  of  policy -hoklers  generally,  and 
anj^  such  company  shall  fiu^nish  to  the  Couimissioner  of  Insurance 
of  this  State  the  certificate  of  the  proper  officer  of  such  other  State, 
showing-  the  amount  and  character  of  the  securities  so  deposited 
with  hiu),  and  it  shall  appear  therefrom  that  the  said  securities  are 
equal  in  market  value  and  availability  to  one  hundred  thousand 
dollars  of  the  interest-bearing  bonds  of  this  State,  and  that  a  por- 
tion equal  in  market  value  to  fifty  thousand  dollars  of  the  interest- 
bearing  bonds  of  this  State  are  of  State  or  United  States  bonds, 
and  it  shall  further  appear  from  the  laws  of  such  other  State  that 
the  securities  so  deposited  are  subject  to  be  made  available  to  sat- 
isfy judgments  of  policy-holders  in  auy  manner  corres])onding  to 
that  provided  for  the  care  of  securities  deposited  under  this  act,  the 
Commissioner  of  Insurance  shall  thereui^on  be  authorized  to  issue 
to  such  company  an  authority  or  license  to  transact  the  business 
of  life  insirance  within  this  State  without  any  such  deposit  of  securi- 
ties with  the  State  Ti-easurer  of  this  State  as  is  above  provided. 
{Ibid,  §  10,  as  amended  by  Laics  of  1871,  Act  No.  80,  §  1.) 

67.  It  shall  be  the  duty  of  the  president,  or  vice-president 
and  secretary,  or  actuary,  or  a  majority  of  the  directors  or  trustees 
of  any  life  insurance  company  transacting  business  within  this 
State,  annually,  in  the  mcntb  of  January,  to  prepare,  under  oath, 
and  deposit  with  the  Commissioner  of  Insurance,  a  statement, 
showing: 

First. — The  number  of  policies  issued  during  the  year. 
Second. — The  amount  of  insurance  effected  thereby. 
Third. — The  amount  of  premiums  received  during  the  year,  and 
what  portion  thereof  was  received  within  this  State,  or  on  risks 
upon  the  lives  of  persons  resident  therein. 

Fourth  — The  amount  of  interest  and  other  receipts,  specifying 
the  items. 

Fifth. — The  amount  of  losses  paid  during  the  year. 
Sixth. — The  amount  of  losses  claimed  which  remain  unpaid,  and 
what  ])ortion  thereof  are  disputed,  and  the  ground  on  which  the 
company  disputes  the  same. 

Seve7ith.    The  expenses  for  the  year,  stating  separately  the  sum 
paid  to  officers  as  salary,  fees,  or  other  comj)ensation. 
Eight)). — The  whole  number  of  policies  in  force. 
Ninth. — The  amount  of  liabilities  or  risks  on  such  policies,  and  of 
all  other  liabilities. 

Tenth. — The  amount  of  the  capital  stock,  and  how  much  thereof 
is  paid  in. 

Eleventh. — The  amount  of  accumulation,  specifying  whether  re- 
ceived upon  insurance,  annuities,  or  iow  otherwise. 

Twelfth. — The  amount  of  assets,  and  manner  in  which  they  are  in- 
vested, siiccifying  the  amount  in  real  estate,  on  bond  and  mortgage, 
stocks,  loan  on  stocks,  premium  notes,  or  other  securities,  and  the 
cash  or  market  value  thereof. 

Thirteenth. — The  amount  of  dividend,  if  any,  declared  in  favor  of 
])olicy -holders,  and  what  proportion  thereof  has  been  paid,  and  also 
the  amount  of  dividend,  if  any,  declared  in  favor  of  stockholders, 
and  what  proportion  thereof  has  been  paid. 

Fonrteenth. — A  tabular  statement  of  the  policies  in  force  for  the 
whole  term  of  life,  showing  how  many  thereof  for  each  age  of  life, 
and  for  what  amount  of  risk,  were  issued  or  in  force  for  the  first 


MICHIGAN.  423 

year  of  the  existence  of  the  company,  during  the  second  year,  and 
so  on  up  to  the  time  of  making  such  statement. 

Fifteenth.— A.  tabular  statement  of  the  policies  in  force  for  a 
shorter  period  than  the  whole  term  of  life,  showing  how  many 
thereof  for  each  age  of  life,  and  for  what  amount  of  risk,  were  issued 
or  in  force  diu'ing  the  first  year  of  the  existence  of  the  company, 
diu'ing  the  second  year,  and  so  on  up  to  the  time  of  making  such 
statement.  And  the  Commissioner  of  Insurance  shall  prepare  and 
fui'nish  to  every  company  applying  therefor,  printed  forms  i'or  the 
statements  herein  required ;  and  no  company  in  default  in  making 
such  statement  shall  receive  any  application  or  issue  any  policy  of 
insurance,  while  so  in  default,  under  a  penalty  of  one  hundred 
dollars  for  every  such  application  or  policy,  to  be  recovered  of  the 
agent  or  officer  taking  or  issuing  the  same,  in  the  same  manner  that 
the  penalties  heretofore  piovided  for  are  recovered  ;  and  any  i^erson 
paying  any  i>remium  money  to  such  company,  or  to  anj?  agent 
thereof,  upon  a])plication  made,  or  policy  issued,  while  the  company 
is  so  in  default,  shall  be  entitled  to  recover  the  same  from  such  com- 
pany, or,  at  his  option,  from  the  agent  securing  the  same,  in  an 
action  of  assumpsit.  It  shall  be  tlie  duty  of  the  Commissioner  of 
Insurance  to  arrange  the  information  contained  in  the  statements 
required  in  this  section,  in  tabular  form  or  abstracts,  and  so  report 
the  same  annually  to  the  Governor,  and  cause  the  same  to  be  pub- 
lished in  pamphlet  form.     {Ibid,  §  11.) 

68.  Whenever  IheCommissioner  of  Insarance  shall  have  reason 
to  suspect  the  correctness  of  any  annual  statement,  or  that  the  af- 
fahs  of  the  company  making  the  same  are  in  an  unsound  condition, 
it  shall  be  his  duty  to  cause  an  examination  to  be  made  into  the 
books,  papers,  and  securities  of  such  company,  at  its  expense,  and 
ibr  that  i)urpose  he  shall  be  vested  with  power  to  examine  under 
oath  any  of  the  officres  or  agents  of  such  company,  relative  to  the 
business  and  assets  thereof,  and  to  make  any  other  or  further  in- 
quiries necessary  forobtaining  full  information  of  its  condition  ;  and 
if  in  his  opinion  the  condition  of  the  company  is  such  as  to  render 
it  imi)roper  that  it  slioidd  continue  to  issue  policies  in  this  State, 
he  shall  have  the  power  to  revoke  the  license  of  such  company  •,  and 
whenever  he  shall  deem  it  for  the  public  interest  so  to  do,  he  shall 
publish  the  result  of  such  investigation  in  such  newsi)aper  as  he  shall 
select,  or  if  the  company  is  one  organized  under  the  laws  of  this 
State,  then  in  some  newspaper  published  in  the  county  where  the 
principal  business  office  of  the  company  is  located,  and  he  shall  call 
the  attention  of  the  Attorney-General  to  the  information  obtained, 
whose  duty  it  shall  be  to  apply  to  the  Supreme  Court  for  an  order 
re(piiiing  the  company  to  show  cause  why  their  business  within  the 
State  should  not  be  closed,  and  such  cornet  maj^  give  direction  for 
the  hearing  of  the  proofs  and  allegations  of  the  parties ;  and  in  case 
it  shall  ai^pear  to  the  satisfaction  of  the  court,  from  said  i)roofs  and 
allegations,  that  the  assets  and  funds  of  the  company  are  not  suffi- 
cient to  warrant  its  C/Ontinuing  to  issue  policies,  the  said  court  shall 
make  an  order  prohibiting  such  comi)any  from  issuing  auy  further 
policies,  and  it  shall  thereupon  become  unlawful  for  the  company,  or 
any  of  its  agents  or  ofiicers,  to  receive  any  further  applications,  or 
to. issue  any  further  policies,  or  make  any  further  contracts  of  insur- 
ance. The  securities  so  dei^osited  with  the  State  Treasurer  shall 
remain  in  his  hands,  notwithstanding  the  cimipany  may  cease  or  be 
I^rohibited  to  do  business  within  the  State,  and  shall  only  be  with- 


424  hine's  insurance  statcttfs. 

drawn  on  the  order  of  the  Supreme  Court,  or  when  the  officers  of  the 
company  shall  show  by  affidavit  to  the  satisfaction  of  the  Commis- 
sioner of  Insurance  and  State  Treasurer  that  the  risks  for  which  the 
company  remains  liable,  and  for  the  secmity  of  which  the  same 
are  held,  are  less  than  the  securities  so  deposited,  in  which  case 
the  company  may  be  permitted  to  withdraw  the  surplus  securities 
over  aud  above  the  risks  which  then  remain.  {I lid,  §  12,  as 
amended  by  laivs  o/1871.  Act  No.  80,  §  2.) 

69.  Any  false  statement  in  any  report  required  to  be  made 
under  this  act,  or  any  statement  so  made  as  fraudulently  to  conceal 
the  real  facts,  if  intentionally  so  made,  shall,  if  the  company  be 
organized  under  the  laws  of  this  State,  be  cause  of  forfeiture  of  the 
corporate  francliises,  and  if  the  company  be  organized  under  the 
laws  of  any  other  State  or  government,  be  cause  of  forfeiture  of  the 
right  to  transact  business  within  this  State,  and  such  forfeitures 
may  be  declared  by  the  Supreme  Court,  in  any  proper  proceeding 
instituted  by  the  Attorney-General  for  the  purpose ;  aud  any  officer 
or  agent  guilty  of  any  such  false  or  fraudulent  statement,  or  of  any 
intentional  violation  of  the  provisions  of  this  act,  or  who  shall  aid 
or  abet  others  in  any  such  violation,  shall  be  deemed  guilty  of  a 
misdemeanor,  and  upon  conviction  thereof  shall  be  punishable  by  fine 
not  exceeding  one  thousand  dollars,  or  by  imprisonment  in  the 
county  jail  not  exceeding  three  months,  or  by  both  such  fine  and 
imprisonment ;  and  it  shall  be  the  duty  of  the  Commissioner  of  In- 
surance to  notify  the  prosecuting  attorney  of  the  i)roper  county, 
of  any  offense  under  this  act  which  may  come  to  his  knowledge,  and 
it  shall  thereupon  become  the  duty  of  such  prosecuting  attorney  to 
cause  proceedings  to  be  taken  for  the  punishment  thereof.  {Ibid, 
§13.) 

70.  All  comi^anies  formed  under  this  act  shall  be  deemed 
bodies  corporate  and  politic,  and  shall  be  subject  to  all  the  j)ro- 
visions  of  the  general  laws  of  this  State  regarding  corporations,  so 
far  as  the  same  may  be  applicable;  and  they  may  maintain  all 
proi)er  suits  at  law  and  in  equity  against  their  members  and  stock- 
holders, or  any  other  person  or  persons,  and  be  liable  to  be  sued  on 
any  obligation  they  may  have  assumed,  or  for  any  loss  which  may 
have  occurred,  if  payment  for  such  loss  is  withheld  more  than  sixty 
days  after  proofs  thereof  are  furnished.     {Ibid,  §  14.) 

7 1 .  Any  company  formed  under  this  act  shall  have  the  power 
to  amend  its  articles  of  association,  at  any  regular  meeting  of  the 
stockholders  or  members,  called  by  the  directors  for  that  i)urpose. 
But  notice  of  such  meeting  and  of  the  pur])ose  for  which  it  is  called 
shall  be  served  on  each  of  the  stockholders,  or,  if  it  is  a  mutual 
company,  on  each  of  the  members,  either  personally  or  by  directing 
the  same  through  the  post-office,  to  the  last  known  post-office  ad- 
dress of  such  stockholder  or  member,  at  least  three  weeks  previous 
to  such  meeting.  But  such  amendments  shall  not  take  efl'ect  until 
submitted  to  the  Attorney-General,  and  certified  by  him  not  to  con- 
Hict  with  the  Constitution  or  laws  of  this  State,  nor  until  a  copy 
thereof,  signed  by  the  president  and  secretary  of  the  company,  shall 
be  filed  in  the  office  of  the  Commissioner  of  Insurance  and  of  the 
County  Clerk  where  the  original  articles  were  filed ;  and  any  com- 
pany heretofore  organized  to  transact  the  business  of  life  insurance 
under  any  prior  law  of  this  State,  may  reorganize  under  this  law, 
and  have  the  benefit  of  all  its  provisions,  by  a  vote  of  the  stock- 
holders, or,  if  it  be  a  mutual  company,  then  by  a  vote  of  the  mem- 


MICHIGAN.  425 

bers  called  for  that  purpose,  in  pursuance  of  its  present  articles,  on 
entering  into  new  articles  of  association,  signed  by  its  charter  offi- 
cers, setting  forth  the  particulars  required  by  the  second  section  of 
this  act,  and  filing  a  copy  of  such  articles  with  the  Commissioner  of 
Insurance  and  the  proper  County  Clerk,  after  such  a  certificate  of  the 
Attorney-General  has  been  obtained,  as  is  required  when  articles  are 
amended ;  and  such  company,  in  so  reorganizing,  shall  be  at  liberty 
to  make  any  change  in  its  mode  of  doing  business,  not  inconsistent 
with  the  provisions  of  this  act,  and  to  increase  its  capital  stock,  or 
to  retire  any  guaranteed  capital  stock,  as  the  stockholders  or  mem- 
bers ma}"  seem  fit;  but  in  so  reorganizing  they  shall  be  subject  to 
all  the  i)rovisions  of  this  act  in  regard  to  the  deposit  of  securities, 
and  to  all  its  other  pro\isions,  in  the  same  manner  and  to  the  same 
extent  as  if  such  company  had  not  previously  had  a  corporate  exist- 
ence.    {Ibid,  §  15.) 

72.  All  insurance  companies  insuring  life  within  this  State, 
and  not  deriving  cori>orate  existence  from  its  laws,  shall  annually, 
at  the  time  of  filing  their  annual  report  with  the  Commissioner  of 
Insurance,  pay  to  the  State  Treasurer  a  tax  of  two  per  centum  on 
all  premiums  received  in  cash  or  otherwise,  by  such  comi^anies  or 
their  agents  within  this  State,  or  from  insured  parties  residing 
therein  during  the  preceding  year  ;  and  in  case  of  neglect  or  refusal 
of  such  company  to  pay  such  tax  within  ten  days  after  the  filing  of 
such  report,  the  State  Treasurer  may  proceed  to  collect  the  same 
out  of  the  interests  or  dividends  on  any  securities  that  such  com- 
pany may  have  deposited  with  him,  as  hereinbefore  provided  ;  and 
in  case  no  such  securities  are  deposited,  then  it  shall  not  be  lawful 
for  the  company  in  default  to  receive  any  application  for  insurance 
or  to  issue  any  policy  until  such  tax  is  paid;  and  any  agent  or 
oflficer  receiving  any  such  application  or  issuing  any  such  policy 
while  such  default  continues  shall  be  liable  to  a  penalty  of  one  hun- 
dred dollars,  to  be  collected  in  the  same  manner  with  the  other 
penalties  hereinbefore  provided,  and  the  specific  tax  herein  pro%ided 
for  shall  be  in  lieu  of  all  other  taxes  in  this  State.  {Ibid,  §  16,  as 
amended  by  laivs  of  1875,  Act  JVb.  223.) 

7S.  No  policy  of  insurance  on  life,  issued  after  this  act  shall 
take  effect  by  au}-  company  organized  under  the  laws  of  this  State, 
shall  be  forfeited  or  become  void  by  the  non-payment  of  any  pre- 
mium thereon,  after  the  first,  any  further  than  as  follows  :  The  net 
value  of  the  policy  when  the  premium  becomes  due  and  is  not  paid, 
shall  be  ascertained,  according  to  the  "  American  Experience 
Table"  rate  of  mortality,  with  interest  at  four  and  one-half  per 
centum  per  annum.  Three-fourths  of  such  net  value  shall  be  con- 
sidered a  net  single  premium  of  the  whole  life  insurance,  and  the 
amount  it  will  insure  shall  be  determined  according  to  the  age  of 
the  party  at  the  time  when  the  unpaid  premium  became  due,  and 
the  assumption  aforesaid  in  regard  to  interest  and  rate  of  mortality ; 
but  if  no  application  be  made  to  the  company  for  such  paid-up 
policy  within  one  year  after  default  shall  have  been  made  in  pay- 
ment, then  all  liability  on  the  part  of  the  company  on  the  policy  on 
which  the  party  is  in  "default  shall  cease.      (Ibid,  Act  No.  77,  §  17.) 

74.  Every  company  doing  a  business  of  life  insurance  within 
this  State  shall  annually,  in  the  month  of  January,  furnish  to  the 
Commissioner  of  Insurance  the  data  necessary  for  determining  the 
amonnt  of  all  its  liabilities ;  and  the  valuation  of  all  its  outstanding 
policies,  to  be  made  by  the  Commissioner  of  Insurance,  or  under  his 


426  hine's  insurance  statutes. 

authority;  and  in  making  such  vakiation,  the  rate  of  interest  to  be 
assumed  shall  be  four  and  oue-half  per  centum  per  annum,  and  the 
rate  of  mortality  shall  be  that  established  by  the  "  American  Ex- 
perience Life  Table,"  as  shown  in  the  scliedule  hereto  annexed  ;  and 
such  company  shall  pay  to  the  Commissioner  of  Insurance,  as  a  com- 
pensation for  such  estimate,  one  cent  for  each  thousand  dollars  in- 
sured; Provided,  That  where,  by  the  laws  of  any  other  State,  an 
annual  valuation  is  required  to  be  made  by  an  Insurance  Commis- 
sioner or  other  State  officer,  the  official  certificate  of  any  such  Com- 
missioner or  officer,  being  filed  with  the  Commissioner  of  Insurance, 
and  showing  the  annual  official  valuation  of  the  policies  of  any 
company  doing  business  within  such  State,  and  showing  also  the 
basis  of  such  valuation,  shall  be  sufficient,  and  stand  in  the  place  of 
any  valuation  of  the  policies  of  such  company  by  order  or  under  the 
directions  of  the  Commissioner  of  Insurance  of  this  State ;  but  no 
company  shall  be  permitted  to  transact  business  within  this  State, 
unless  the  amount  of  its  assets  shall  equal  the  net  value  of  all  its 
outstanding  obligations,  as  determined  according  to  the  assump- 
tions in  regard  to  the  rates  of  interest  and  mortality  as  hereinbefore 
provided  ;  and  in  case  the  assets  of  any  company  transacting  busi- 
ness within  this  State  shall  at  any  time  be  less  than  is  required  by 
the  pro\asions  of  this  act,  the  Commissioner  of  Insurance  shall  serve 
a  written  notice  upon  the  person  designated  by  such  comi)auy  to  re- 
ceive service  of  process  under  the  laws  of  this  State,  or  shall  address 
such  notice  by  mail  to  the  principal  office  of  such  company,  and 
publish  the  same  at  least  three  times  in  some  newspaper  circulated 
daily  in  this  State;  and  if,  after  the  expiration  of  ten  days  from  the 
service  or  publication  of  such  notice,  any  agent  or  officer  of  such 
comj)any  shall  receive  applications  for  policies,  or  issue  policies, 
while  such  deficiency  of  assets  exists,  and  the  cost  of  giving  such 
notice  remains  unpaid  by  such  company,  he  shall  be  subject  to  the 
penalties  provided  in  section  ten  of  this  act ;  Provided  farther,  That 
when  the  certificate  of  the  Commissioner  of  Insurance  of  the  official 
valuation  of  the  policies  issued  by  any  company  organized  under  the 
laws  of  this  State,  shall  not  be  accepted  by  any  other  State  in  lieu  of 
a  valuation  of  the  same  by  the  insurance  officer  of  such  other  State, 
then  all  companies  organized  under  the  law^s  of  such  other  State 
shall  be  required  to  have  a  separate  valuation  made  under  the 
authority  of  the  Commissioner  of  Insurance  of  this  State,  as  herein 
provided.     {Ibid,  §  18.) 

75.  If  any  company  insuring  life  within  this  State  shall,  by 
means  of  any  advertisement,  circular,  notice  or  statement,  printed 
or  written,  published,  posted,  or  circulated  through  and  by  the 
agency  of  any  officer,  agent,  or  other  person,  or  by  any  other  means, 
falsely  represent  or  hold  out  to  the  ])ublic  that  the  capital  stock  of 
such  company  is  greater  than  its  actual  amount,  or  that  the  accu- 
mulation of  such  company  is  greater  than  its  actual  cash  or  market 
value,  every  director,  officer,  or  agent  of  such  company  guilty  of  any 
participation  therein  shall  be  deemed  guilty  of  a  misdemeanor,  and 
on  conviction  thereof  shall  be  punished  by  a  fine  not  exceeding  one  |i 
thousand  dollars,  or  by  imprisonment  in  the  county  jail  not  exceed-  !) 
ing  three  months,  or  by  both  such  fine  and  imprisonment,  in  the  dis-  j- 
cretion  of  the  court ;  and  if  any  such  company,  after  any  such  false  ]i 
advertisement,  circular,  notice,  or  statement  shall  have  been  pub-  \ 
lished,  posted,  or  circulated,  shall  receive  any  money,  note,  or  obliga-  '•; 
tion  for  the  payment  of  money,  from  any  x)erson  as  a  consideration 


I 


MICHIGAN.  427 

for  any  insurance  made  or  i)olicy  issued  or  to  be  issued  by  such 
company,  such  money,  note,  or  obligation  shall  be  deemed  and  taken 
to  have  been  received  Avlthout  consideration ;  and  the  directors  of 
such  comi)any,  and  any  officer  or  agent  receiving  the  same,  shall  be 
jointly  and  severally  liable  in  an  action  of  assumpsit  for  the  repay- 
ment thereof,  and  shall  also,  in  like  manner,  be  liable  to  the  person 
insured,  for  the  amount  of  the  insurance.  And  any  such  false  ad- 
vertisement, circular,  notice,  or  statement  shall  be  sufficient  ground 
for  proceedings  on  the  part  of  the  Attorney-General,  in  the  Supreme 
Court,  for  a  forfeiture  of  the  chartered  privileges  of  such  comi)any, 
or  for  an  order  prohibiting  the  further  transaction  of  business  by  it 
within  this  State ;  Provided,  That  no  such  forfeiture  shall  be  declared 
on  that  ground,  solely,  if  it  shall  appear  either  that  the  publica- 
tion was  by  mistake,  or  that  the  directors,  officers,  or  agents  mak- 
ing the  same  have  been  dismissed  from  the  service  of  such  company, 
and  that  the  company  has  jiulilished  such  true  statement  of  its  af- 
fairs as  may  have  been  directed  by  the  Attorney-General,  or  such 
coiu-t.     (Ibid,  §  19.) 

76.  Any  jihysician  who,  as  medical  examiner  for  any  such 
company,  or  as  the  reference  of,  or  medical  examiner  for,  any  i)erson 
seeking  insurance  therein,  shall  knowingly  make  any  false  statement 
or  report  to  the  company,  or  any  officer  thereof,  concerning  the  bod- 
ily health  or  condition  of  any  a])plicant  for  insurance,  or  concerning 
any  other  matter  or  thing  which  might  aflect  the  pro])riety  or  pru- 
dence of  granting  such  insurance,  shall  be  deemed  guilty  of  a  misde- 
meanor, and  on  conviction  thereof  shall  be  liable  to  a  fine  not  ex- 
ceeding one  thousand  dollars,  or  to  imprisonment  in  the  jail  not  ex- 
ceeding three  months,  in  the  discretion  of  the  court,  and  he  shall 
also  be  liable  to  the  company  in  an  action  on  the  case  for  the  fidl 
amount  of  any  insurance  obtained  from  such  company  by  means  or 
through  the  assistance  of  such  false  statement  or  report.  {Iliid,  §  20.) 

77.  The  mortgages  authorized  to  be  deposited  with  the  State 
Treasurer,  under  this  act,  shall  be  made  or  assigned  to  him  in  his 
name  of  office,  but  shall  not  be  subject  to  assignment  or  sale  by  him, 
exce])t  as  the  company  depositing  the  same  may  become  entitled  to 
receive  the  same  back  according  to  the  conditions  of  this  act;  but 
said  State  Treasurer  may  enforce  the  same  in  his  name  of  office, 
whenever  necessary  to  pay  claims  as  hereinbefore  provided.  The 
custody  of  any  securities  l)y  the  State  Treasurer  under  this  act  shall 
be  deemed  the  custody  of  the  State,  and  any  sale,  transfer  by  hypo- 
thecation, or  conversion  of  any  such  securities  by  the  State  Treas- 
urer, or  l)y  any  officer,  clerk,  or  other  person  employed  in  his  office, 
except  as  authorized  by  this  act,  shall  be  deemed  an  act  of  eml)ezzle- 
ment,  and  shall  be  punished  by  imprisonment  in  the  State  Prison 
not  more  than  fourteen  years,  or  by  fine  not  exceeding  two  thousand 
dollars,  or  by  both  such  fine  and  imprisonment,  in  the  discretion  of 
the  court.     {Ibid,  §  21.) 

78.  The  business  of  insuring  lives  within  this  State,  by  any 
private  individual,  association,  or  partnership,  or  by  any  incorpor- 
ated comjiany,  organized  or  existing  under  any  authority  whatso- 
ever, other  than  the  statutes  of  this  State,  is  hereby,  except  as  is 
provided  by  this  act,  wholly  jirohibited  ;  and  any  jierson  who  shall 
solicit  or  obtain  within  this  State,  applications  for  insurance  upon 
lives  by  any  such  private  individual,  association,  partnershii>,  or  in- 
corporated company,  contrary  to  the  jirovisions  of  this  act,  sliall  be 
liable  to  a  penalty  of  one  hundred  dollars  for  every  application  ob- 


428  hine's  insurance  statutes. 

tallied,  to  be  sued  for  and  recovered  in  tlie  name  of  the  people,  by 
the  Attorney-General,  or  prosecuting  attorney  of  the  proper  county, 
eitlier  by  action  of  debt  or  criminal  prosecution ;  and  any  person 
who  shall  have  paid  to  any  agent  of  such  unauthorized  individual, 
associatiou,  partnershi]>,  or  company,  any  premium  moneys  for  in- 
surance granted  or  to  be  granted,  shall  be  entitled  to  recover  the 
same  back  from  such  agent,  or,  at  his  0])tion,  from  the  person,  as- 
sociation, partnership,  or  comi)any  for  which  he  acted,  by  action  of 
assumjisit,  to  be  brought  at  any  time  Avithin  six  years  after  such 
payment.     {Ihid,  §  22.) 

7B,  It  shall  be  lawful  for  any  husband  to  insure  his  life  for 
the  bench t  of  his  wife,  and  for  any  father  to  insure  his  life  for  the 
benefit  of  his  children,  or  of  any  one  or  more  of  them ;  and  in  case 
that  any  money  shall  become  payable  under  the  insurance,  the  same 
shall  be  payable  to  the  person  or  persons  for  whose  benefit  the  in- 
surance was  procured,  his,  her,  or  their  representatives  or  assigns, 
for  his,  her,  or  their  own  use  and  benefit,  free  from  all  claims  of  the 
representatives  of  sucli  husband  or  father,  or  of  any  of  his  creditors ; 
and  any  married  woman,  either  in  her  own  name  or  in  the  name  of 
any  third  i)ersoii  as  her  trustee,  may  cause  to  be  insured  the  life  of 
her  husband,  or  of  any  other  person,  for  any  definite  period,  or  for 
the  term  of  life,  and  the  moneys  that  may  become  payable  on  the 
contract  of  insurance  shall  be  j)ayab'e  to  her,  her  representatives  or 
assigns,  free  from  the  claims  of  the  representatives  of  the  husband, 
or  of  such  other  person  insured,  or  of  any  of  his  creditors  ;  and  in  any 
contract  of  insurance,  it  shall  be  lawful  to  provide  that  on  the  de- 
cease of  the  person  for  whose  benefit  it  is  obtained,  before  the  sum 
insured  shall  become  payable,  the  benefit  thereof  shall  accrue  to  any 
other  person  or  persons  designated  ;  and  such  other  person  or  per- 
sons shall,  on  the  liapi>ening  of  such  contingency,  become  the  lawful 
owner  or  owners  of  the  policy  of  insurance,  and  entitled  to  enforce 
the  same  to  the  fnll  extent  of  its  terms,  notwithstanding  he,  she,  or 
the}"  may  not  at  the  time  have  any  such  insurable  interest  as  would 
have  enabled  him,  her,  or  them  to  obtain  a  new  insurance.  {Ibid, 
§23.) 

^O.  In  case  any  amendment  to  the  constitution  shall  hereafter 
be  adopted  which  shall  authorize  sucli  corporations  to  organize  for 
per})etual  existence,  or  for  any  period  longer  than  that  now  permit- 
ted, any  corporation  that  may  be  formed  or  reorganized  under  this  act 
shall,  by  a  vote  of  the  stockholders  or  members  to  that  effect,  adopt- 
ed at  any  annual  meeting,  or  at  any  special  meeting  duly  called  for 
the  purpose,  be  entitled  to  the  benefit  of  such  constitutional  amend- 
ment; and  its  corporate  existence  shall  thereupon  and  thereby  be 
extended  for  the  period  specified  in  such  vote,  within  the  limits  of 
such  amendment ;  and  all  the  contracts  and  policies  of  the  corpora- 
tion shall  be  as  valid,  binding,  and  effectual,  for  all  purposes,  as  if 
the  original  term  of  corporate  existence  had  been  the  same  as  pre- 
scribed by  such  vote  for  the  extension  thereof     {Ibid,  §  24.) 

81.  In  case  no  such  constitutional  amendment  shall  be  adopted 
during  the  corporate  existence  of  any  company  organized  under  this 
law,  and  in  case  the  stockholders  or  members  thereof  shall  not,  be- 
fore the  expiration  of  such  corporate  existence,  organize  a  new  cor- 
poration for  the  same  puri)Oses,  on  the  basis  of  receiving  the  assets 
of  the  old  corporation  and  assuming  the  performance  of  all  its  exist- 
ing contracts  and  policies,  the  officers  of  such  corijoration,  at  the 
expiration  of  its  corporate  life,  shall  be  trustees  for  the  [)urpose  of 


MICHIGAN,  429 

keeping  its  funds  invested  for  the  security  of  policy-holders,  settling 
its  affairs,  and  fulfilling  and  discharging  its  obligations,  and,  as 
such,  shall  be  under  the  control  aiul  direction  of  the  proj^er  circuit 
court  in  chancery,  or  other  equity  court,  as  in  the  case  of  other  trus- 
tees; but  the  officers  of  such  corporation  shall  not,  at  the  time  of 
the  termination  of  the  corporate  existence,  or  in  anticipation  there- 
of, make  or  declare  any  dividend,  or,  except  in  satisfaction  of  the 
demands  of  creditors  or  policy-holders,  make  any  other  disposition 
of  the  assets  of  the  corjjoration,  or  of  any  part  thereof,  which  shall 
leave  the  available  amount  of  such  assets  below  the  amount  of  ex- 
isting debts  and  of  the  net  value  of  outstanding  ijolicies,  to  be 
determined  as  hereinbefore  provided;  and  any  such  attempted  divi- 
dend or  distribution  shall  be  voi<l,  and  may  be  enjoined  on  the 
application  of  the  Commissioner  of  Insurance ;  and  such  officers, 
before  entering  upon  their  duties  as  such  trustees,  shall  give  bond 
to  the  people  of  the  State  to  the  satisfaction  of  the  Commissioner  of 
Insurance,  and  be  filed  with  him,  conditioned  for  the  faithful  dis- 
charge of  their  duties  as  such ;  and  they  shall  be  at  all  times  subject 
to  the  supervision  of  the  Commissioner  of  Insurance,  in  the  same 
manner  that  cori)orations  are  under  the  i)rovisions  of  this  act;  but 
such  trustees  shall  not  be  at  liberty  to  make  dividends  among 
stockholders,  nor  to  members,  unless  in  reduction  of  ijremiums  on 
outstanding  i>olicies,  except  under  the  order  of  the  proper  court  of 
equity;  nor  shall  such  court  be  at  liberty  to  order  any  such  divi- 
dends as  shall  at  any  time  reduce  the  available  assets  of  the  com- 
pany below  the  amount  of  existing  debts  and  the  net  value  of 
outstanding  i)o]icies,  to  be  determined  as  hereinbefore  i^rovided. 
{Hid,  §  25.) 

8'^.  That  every  life  insurance  company  not  organized  under 
the  sta^tutes  of  this  State  shall,  as  a  condition  precedent  to  doing 
business  in  this  State,  appoint  an  agent  or  attorney  resilient  there- 
in, upon  whom  all  lawful  process  against  the  company  may  be 
served  with  the  like  effect  as  if  served  upon  the  com[»any  m  the 
manner  provided  by  law,  and  said  appointment  shall  stipulate  and 
agree,  on  the  part  of  the  company  making  the  same,  that  service  of 
lawful  i)rocess  against  such  comj^any  upon  such  agent  or  attorney 
shall  be  valid  service  upon  such  company.  A  copy  of  such  appoint- 
ment, duly  authenticated,  shall  be  filed  with  the  Commissioner  of 
Insurance,  and  shall  not  be  revoked  luitil  the  same  power  is  given 
to  another  resident,  and  a  like  copy  filed  as  aforesaid.  Service  upon 
such  agent  or  attorney  shall  be  deemed  sufflcient  service  upon  the 
comi)any.     {Laivs  of  1871,  Act  No.  80,  §  3.) 

8tJ.  That  whenever  the  existing  or  future  laws  of  any  other 
State  of  the  United  States  shall  require  of  life  insurance  companies 
incorporated  or  organized  under  the  laws  of  this  State,  and  having 
agencies  in  such  other  State,  or  of  the  agents  thereof,  any  payment 
for  taxes,  fines,  penalties,  certificates  of  authority,  license,  or  other 
fees,  greater  than  the  amount  required  for  such  ijurposes  from  sim- 
ilar companies  of  other  States  by  tlie  then  existing  laws  of  this 
State,  then,  and  in  every  such  case,  all  life  insurance  com- 
panies establishing  or  having  theretofore  established  agencies  in 
this  State,  shall  be  required  to  pay  for  taxes,  fines,  penalties,  ceiiifi- 
cates  of  authority,  license,  or  other  fees,  an  amount  equal  to  the 
amount  of  such  chaTges  and  payments  imposed  by  the  laws  of  such 
other  State  upon  the  companies  of  this  State  and  the  agents  there- 
of.    {Ibid,  §  4.) 


430  hine's  insurance  statutes. 

84,  That  all  corporations,  associations,  partnersliips,  or  indi- 
viduals doing  business  in  this  State  under  any  charter,  compact, 
agreement,  or  statute  of  this  or  any  other  State,  involving  an  insur- 
ance, guaranty,  contract,  or  pledge  for  the  payment  of  annuities  or 
endowments,  or  for  the  ])ayment  of  moneys  to  families,  or  represent- 
atives of  policy  or  certificate-holders,  or  members,  shall  be  consid- 
ered and  deemed  to  be  life  insurance  companies  within  the  meaning 
of  the  laws  relating  to  life  insurance  within  this  State,  and  shall  not 
make  any  such  insiu'ance,  guaranty,  contract,  or  pledge  therein,  or 
to  or  with  any  citizen  or  resident  of  this  State,  which  shall  not  dis- 
tinctly state  therein  the  amount  of  such  life  benefits,  the  manner  of 
payment,  the  period  of  the  continuance  thereof,  and  the  amount  of 
the  annual,  semi-annual,  or  quarterly  premium,  or  by  which  the 
payment  of  the  life  benefit  assured  shall  be  contingent  upon  the 
payment  of  assessments  made  upon  surviving  members,  and  not 
until  the  securities  required  of  life  insurance  companies  are  de- 
posited, nor  except  in  accordance  with,  and  under  the  conditions 
and  restrictions  of  the  statutes  now  or  hereafter  regulating  the 
business  of  life  insurance.  And  any  person  soliciting  applications 
for  insurance,  or  making  any  such  insurance,  guaranty,  contract,  or 
pledge  as  aforesaid,  before  the  deposit  of  such  securities,  or  before 
compliance  with  any  condition  precedent  provided  by  the  laws  of 
this  State  for  life  insurance  companies,  shall  be  liable  to  a  penalty 
of  one  hundred  dollars  for  every  api^lication  obtained,  or  insurance, 
guaranty,  contract,  or  pledge  made,  to  be  sued  for  and  recovered  in 
the  name  of  the  people,  by  the  Attorney-General,  or  prosecuting 
attorney  of  the  proper  county,  either  by  action  of  debt  or  criminal 
prosecution ;  and  any  person  who  may  have  paid  moneys  therefor 
shall  be  entitled  to  recover  the  same  back  from  the  x)erson  to  whom 
it  was  paid,  or  in  case  such  person  was  an  agent,  then  at  his  option 
irom  the  principal  of  such  agent,  by  action  of  assumi)sit,  to  be 
brought  at  any  time  within  six  years  after  such  payment.  {Ibid, 
^  5,  as  amended  by  laws  of  1872,  Act  No.  55.) 

MUTUAL  FIRE  INSURANCE  COMPANIES. 

85,  Any  number  of  persons  not  less  than  seven  may  associate 
together  and  form  an  incorporated  company  for  the  purpose  of  mu- 
tual insui'ance  of  th^;  property  of  its  members  against  loss  by  fire 
or  damage  by  lightning  ;  which  property  to  be  insured  shall  em- 
brace dwelling-houses,  barns,  accompanying  out-buildings  and  their 
contents,  farm  implements,  hay,  grain,  wool,  and  other  products, 
live  stock,  wagons,  carriages,  harness,  household  goods,  wearing- 
apparel,  i)rovisions,  musical  instruments,  and  libraries,  being  upon 
farms  as  farm  property,  or  in  dwellings  or  in  accompanying  out- 
buiklings  that  constitute  detached  risks  in  villages  and  belonging 
to  the  members.     {Laics  of  1873,  Act  No.  82,  §  1.) 

86,  Such  persons  so  associating  shall  file  in  the  office  of  the 
Commissioner  of  Insurance  a  statement,  signed  by  all  the  corpor- 
ators, stating  their  purpose  of  forming  a  company  for  the  transac- 
tion of  the  business  of  insurance,  as  expressed  in  the  first  section 
of  this  act ;  which  statement  shall  also  comprise  a  coi)y  of  the 
charter  proposed  to  be  adopted  by  them,  and  shall  publish  a  notice 
of  such,  their  intention,  once  in  each  week  for  at  least  five  succes- 
sive weeks,  in  a  public  newspaper  in  the  county  in  which  such  com- 
pany     proposed  to  be  located.     {1  bi  /,  §  2.) 


MICHIGAN.  431 

87.  The  persons  so  associating,  after  having  filed  the  state- 
ment and  published  the  notice  as  aforesaid,  may  open  books  to  re- 
ceive propositions  and  enter  into  agreements  in  manner  hereinafter 
specified  ;  but  no  company  organized  by  this  act  shall  do  any  busi- 
ness or  take  any  risks  or  make  any  insuran<;e  in  any  more  than  two 
counties  in  this  State  ;  which  counties  shall  be  contiguous,  and  shall 
be  named  and  set  forth  in  their  charter  and  in  the  statement  re- 
quired by  section  two  of  this  act.  No  insurance  comi)any  organ- 
ized as  aforesaid  shall  commence  business  until  bona  fide  agreements 
have  been  entered  into  for  insurance,  with  at  least  one  hundred  in- 
dividuals, covering  property  to  be  insured  to  the  amount  of  not 
less  than  fifty  thousand  dollars.     (Ibid,  §  3.) 

88.  No  company  formed  under  this  act  shall  purchase  or  hold 
any  real  estate,  except — 

First. — Such  as  shall  be  necessary  for  its  immediate  accommoda- 
tion in  transacting  business;  or, 

Second. — Such  as  shall  have  been  conveyed  or  mortgaged  to  the 
company  in  good  faith,  by  way  of  security  for  debts ;  or. 

Third. — Such  as  shall  have  been  conveyed  to  the  company  in  sat- 
isfaction for  debts ;  or. 

Fourth. — Sucb  as  shall  have  been  purchased  at  sales,  upon  judg- 
ments, decrees,  or  mortgages  in  favor  of  such  company,  or  held  or 
owned  by  it.  And  all  real  estate  obtained  by  virtue  of  any  pro- 
visions of  this  section,  except  that  mentioned  in  the  first  subdi- 
vision, shall  be  sold  or  disposed  of  within  five  years  after  the  title 
has  been  perfected  in  such  company,  unless  the  company  shall  pro- 
cure a  certificate  from  the  Commissioner  of  Insurance  that  the  in- 
terest of  said  company  will  materially  suffer  by  forced  sale,  in 
which  event  the  sale  may  be  postponed  for  such  i)eriod  as  the  said 
Commissioner  of  Insurance  shall  direct  in  said  certificate,  not  to 
exceed  ten  years  in  all.     {Ibid,  §  4.) 

89.  In  addition  to  the  foregoing  provisions,  it  shall  be  the 
duty  of  the  cori)orators  of  any  company  organized  under  the  pro- 
visions of  this  act  to  declare  in  the  charter  which  is  hereby  required 
to  be  filed,  the  mode  and  manner  in  which  the  corporate  powers 
given  under  and  by  virtue  of  this  act  are  to  be  exercised,  the  mode 
and  manner  of  electing  trustees  or  directors,  who  shall  be  citizens 
of  the  county  or  counties  in  which  the  company  is  doing  business, 
the  filling  of  vacancies,  the  period  for  the  commencement  and  ter- 
mination of  its  fiscal  year  ;  and  may  prescribe  therein  the  liabilities 
of  the  members  to  be  assessed  toward  defraying  the  losses  and  ex- 
penses of  the  company,  and  the  mode  and  manner  of  collecting- 
such  assessments.     {Ibid,  §  5.) 

90.  The  charter  thus  to  be  filed  by  the  corporation  shall  be 
examined  by  the  Attorney-General,  and  if  found  to  be  in  accord- 
ance with  the  requirements  of  this  act,  he  shall  certify  the  same  to 
the  Commissioner  of  Insurance,  and  said  Commissioner  may  ap- 
point three  disinterested  persons,  residents  of  the  county  wherein 
such  corporation  is  proposed  to  be  formed,  who  shall  certify  under 
oath  that  it  has  received  and  is  in  actual  possession  of  the  pre- 
miums or  engagements  of  insurance  as  the  case  may  be,  to  the  full 
extent  required  in  this  act ;  Provided,  however,  The  Commissioner 
of  Insurance  may  make  such  examination  personally  or  by  his 
deputy.  Copies  of  such  certificate  shall  l)e  filed  in  the  office  of  the 
Commissioner  of  Insui'ance,  whose  duty  it  shall  then  be  to  furnish 
the  corporation  with  a  certified  copy  of  the  charter  and  ceitificates 


432  hike's  insurance  statutes. 

aforesaid,  which,  upon  being  filed  by  them  in  the  County  Clerk's 
office  of  the  county  in  which  such  company  is  located,  shall  be  their 
authority  to  commence  business  and  issue  policies,  and  the  same 
may  be  used  in  evidence  for  or  against  such  corporation.  {Ibid, 
§6.) 

91.  The  corporators,  or  the  trustees  or  directors,  as  the  case 
may  be,  of  any  company  organized  under  this  act,  shall  have  power 
to  make  such  by-laws,  noi  inconsistent  with  the  constitution  or  laws 
of  this  State,  as  may  be  deemed  necessary  for  the  government  of 
its  officers  and  memberts,  and  the  conduct  of  its  affairs.     {Ibid,  §  7.) 

9tl.  It  shall  be  the  duty  of  the  president  or  vice-president  and 
secretary  of  each  company  organized  under  this  act,  annually,  on 
the  first  day  of  January,  or  within  one  month  thereafter,  to  prepare, 
under  their  own  oath,  and  deposit  in  the  office  of  the  Commissioner 
of  Insurance,  a  statement  of  the  condition  of  snch  company  on  the 
thirty-first  day  of  December  then  next  preceding,  exhibiting  the 
following  facts  and  items,  namely: 

First. — The  number  of  members,  December  thirty  first  of  the  pre- 
vious year ;  the  number  of  members  added  during  the  year ;  the 
number  of  members  who  have  withdrawn,  or  whose  policies  have 
been  canceled  during  the  year,  and  the  number  of  members  belong- 
ing to  the  company. 

Second. — The  amount  of  property  at  risk  December  thirty-first  of 
previous  year;  the  amonnt  of  risks  added  during  the  year;  the 
amount  of  risks  canceled,  withdrawn,  or  terminated  during  the 
year ;  and  the  net  amount  at  risk  by  the  comi)any. 

Third.  — The,  amount  of  premium  or  deposit  notes  in  force;  the 
amount  of  cash  premiums  (or  assessments)  actually  on  hand  ;  the 
amount  of  outstanding  assessments  not  canceled ;  the  nature  and 
amount  of  all  other  resources  ;  the  total  amount  of  resources. 

Fourth. — The  claims  for  losses  due  and  ])ayable ;  the  claims  for 
losses  not  matured ;  the  claims  for  losses  resisted  ;  the  nature  and 
amoimt  of  all  other  claims  due  or  accrued,  and  the  total  amount  of 
liabilities. 

Fifth. — The  amount  of  premiums  on  deposit  notes  taken  during 
the  year  ;  the  amount  of  cash  premiums  received  during  the  year  ; 
the  amount  collected  on  assessments  which  were  levied  during  the 
year ;  the  amount  collected  during  the  year  on  assessments  which 
were  levied  in  prior  years ;  the  amount  received  from  membership 
or  policy  fees,  or  from  any  other  sources  constituting  an  expense  to 
[the]  insured ;  the  amount  received  from  i)ercentage  on  increased 
or  decreased  insurance  ;  the  income  from  all  other  sources;  and  the 
total  income. 

Sixth. — The  amount  paid  for  losses  during  the  year,  stating  the 
amount  of  same  which  was  for  losses  of  previous  years ;  the  amount 
of  salarj^  and  fees  paid  to  officers  and  dh-ectors ;  the  amount  of  all 
other  expenditures  during  the  year;  and  the  total  expenditures 
during  the  year.     {Ibid,  §  8.) 

l>a».  A  copy  of  every  such  sworn  statement  and  report  shall,  in 
said  month  of  January,  be  filed  in  the  office  of  the  County  Clerk  of 
the  county  where  the  principal  business  office  of  the  company  is 
located,  and  another  copy  theieof  shall  be  published  at  least  twice 
during  said  month  in  a  newspaper  printed  in  such  county  ;  and  the 
persons  or  officers  making  such  sworn  statement  or  report  to  be  filed 
in  the  office  of  the  Commissioner  of  Insurance  as  atoresaid,  shall 
make  and  annex  thereto  and  file  therewith,  in  the  office  of  the  Com- 


MICHIGAN.  433 

missioner  of  Insurance,  an  additional  affidavit,  showing  tbat  sach 
report  and  statement  has  been  published,  and  a  copy  thereof  filed 
in  the  office  of  the  County  Clerk  as  above  provided ;  and  if,  upon 
examination  of  such  annual  statement  or  the  examination  of  the 
company  hereafter  provided  for,  it  shall  appear  to  the  Commissioner 
of  Insurance  that  the  losses  and  expenses  of  any  company  chartered 
under  this  act  have,  during  the  year,  exceeded  the  cash  i^remiums 
and  assessments  collected  to  such  an  extent  as  to  imply  a  doubt  in 
the  mind  of  said  Commissioner  of  Insurance  as  to  the  solvency  of 
said  company  and  its  ability  to  pay  all  its  losses  and  other  debts,  it 
shall  be  the  duty  of  said  Commissioner  of  Insurance  to  serve  a 
notice  upon  the  officers  of  such  mutual  company  requiring  them,  at 
the  expiration  of  sixty  days  from  the  date  of  such  notice,  to  discon- 
tinue the  issuing  of  policies  and  proceed  to  wind  up  its  business, 
unless  within  that  time  the  directors  of  such  company  shall  collect 
assessments  and  pay  such  losses  and  debts.     {Ibidj  §  9.) 

94,  In  case  any  company  shall  continue  to  issue  policies  after 
the  expiration  of  the  sixty  days,  they  having  failed  to  comply  with 
the  requirements  of  the  Commissioner  of  Insurance  in  said  notice, 
or  if  any  company  having  failed  to  make  their  annual  report  to  the 
Commissioner  of  Insurance,  at  the  time  and  in  the  manner  herein 
prescribed  therefor,  shall  thereafter  issue  any  policy  or  make  any 
insurance ;  or  if  such  report  to  the  Commissioner  of  Insurance  shall 
be  imperfect  or  contain  false  statements,  or  shall  be  so  made  as 
fraudiilently  to  conceal  the  actual  condition  or  responsibility  of  the 
company,  the  directors  and  officers  of  such  company  shall  be, 
jointly  and  severally,  jiersonally  liable  and  responsible  for  any  losses 
that  may  thereafter  occur  in  said  company,  or  to  any  person  insured 
therein  or  thereby ;  and  the  persons  sustaining  such  losses  may  sue 
for  and  recover  the  amount  of  such  losses  from  such  directors  and 
officers,  or  from  any  one  or  more  of  them.     (Ibid,  §  10.) 

95.  It  shall  be  the  duty  of  the  Commissioner  of  Insurance,  on 
or  before  the  first  day  of  December  in  each  year,  to  furnish  all  com- 
panies organized  under  this  act,  with  blanks  for  the  purpose  of 
making  thereon  the  statement  hereby  required  to  be  filed,  which 
blanks  shall  be  used  by  the  proper  officers  in  making  said  state- 
ments, which  statements  slftiU  be  full  and  in  accordance  with  the 
requirements  heretofore  set  forth ;  and  he  ma 3,  from  time  to  time, 
make  such  changes  in  the  form  of  such  statements  as  shall  seem  to 
him  best  adapted  to  elicit  from  the  comjianies  a  true  exhibit  of  their 
condition  in  respect  to  the  several  points  hereinbefore  enumerated. 
And  in  case  the  officers  or  directors  of  any  company  shall  fail,  neg- 
lect, or  refuse  to  perform  any  of  the  duties  required  of  them  by  law, 
within  the  time  and  in  the  manner  prescribed  for  the  performance 
of  such  duty,  or  shall  knowingly  make  or  permit  any  false  or  imper- 
fect statement  to  be  made  in  any  annual  or  other  report  or  state- 
ment required  to  be  made  by  them  or  by  any  of  them  or  by  the 
company  to  the  Commissioner  of  Insurance,  or  shall  do  or  aid  or 
assist  in  doing  anything  which  any  such  company  is  hereby  prohib- 
ited from  doing,  or  shall  in  any  manner  violate  any  of  the  provisions 
of  this  act,  or  shall  aid  in  or  consent  to  any  violation  of  any  of  the 
provisions  of  this  act,  then  and  in  every  such  case,  every  director  or 
officer  or  person  so  offending  shall  be  deemed  guilty  of  a  misde- 
meanor, and  upon  con\dctiou  thereof  shall  be  punished  by  a  fine 
not  exceeding  one  thousand  dollars,  nor  less  than  five  hundred 
dollars,  or  by  imprisonment  in  the  county  jail  not  less  than  three 

28 


434  hine's  insurance  statutes. 

months  nor  more  tban  one  year,  or  by  both  such  fine  and  imprison- 
ment, in  the  discretion  of  the  court ;  and  when  such  failure,  neglect 
or  refusal  on  the  part  of  the  officers  of  any  company  is  known  to  the 
Commissioner  of  Insurance,  it  sball  be  his  duty  to  notify  the  prose- 
cuting attorney  of  the  county  where  such  company  is  located, 
whose  duty  it  shall  then  be  to  commence  legal  proceedings 
against  such  officers  to  enforce  the  penalty  hereby  imposed.  (Ibid, 
§11.) 

96.  Suits  at  law  may  be  maintained  by  any  corporation  formed 
under  this  act  against  auy  of  its  members  for  any  cause  relating  to 
the  business  of  such  corporation ;  also,  suit  at  law  may  be  pros- 
ecuted and  maintained  by  any  member  against  such  corporation 
for  claims  which  may  have  accrued,  if  payments  are  withheld  more 
than  sixty  days  after  such  claims  shall  have  become  due.  In  all 
cases  whereby  the  charter  and  by-laws  of  auy  company  now  organ- 
ized, or  which  may  be  hereafter  organized  under  the  provisions  of 
this  act,  and  doing  business  in  any  county  or  counties  in  this  State 
upon  applications  or  agreements,  with  or  without  taking  from  the 
insured  any  premium  note  or  notes,  it  shall  be  lawful  for  any  such 
mutual  insurance  company  to  make  assessments  upon  such  agree- 
ments, or  the  policies  issued  thereon  pro  rata,  according  to  the 
amount  of  such  agreements  or  policies,  for  the  payment  of  the 
losses  and  expenses  incurred  by  such  company,  and  all  such  pre- 
mium notes  or  assessments  shall  be  a  lien  upon  the  property  insured 
to  the  amount  of  such  note  or  assessments,  costs,  and  interest  due 
thereon.     {Ibid,  §  12.) 

97.  All  companies  formed  under  this  act  shall  be  deemed 
bodies  corporate  and  politic  in  fact  and  in  name,  and  shall  be  sub- 
ject to  all  the  provisions  of  the  statute  in  relation  to  corporations 
so  far  as  they  are  ai^plicable.     {Ibid,  §  13.) 

98.  Any  such  company  formed  under  this  act  shall  have 
I>ower  to  amend  their  articles  of  association  or  charter,  at  the 
regidar  annual  meeting,  held  according  to  the  j)rovisions  of  said 
charter  or  articles  of  association,  and  upon  giving  a  notice  of  their 
intention  so  to  do,  and  of  the  time  and  place  of  meeting  for  that 
purpose;  such  notice  shall  be  published  five  successive  times  in 
some  newspaper  of  general  circulation,  published  weekly  in  the 
county  or  counties  where  such  company  does  business.  Said 
amendments  shall  be  submitted  to  the  Attorney-General  and  his 
certificate  of  compliance  with  the  law  obtained ;  and  said  amend- 
ments shall  be  filed  in  the  office  of  the  Commissioner  of  Insurance, 
and  also  with  the  clerk  of  the  county  in  which  the  office  of  the  com- 
pany is  located.     {Ibid,  §  14.) 

99.  If  any  insurance  company,  organized  or  to  be  organized 
under  this  act,  shall  not,  within  sixty  days  after  the  Commissioner 
of  Insurance  shall  have  given  the  notice  required  by  section  nine, 
pay  up  and  discharge  all  outstanding  claims  against  such  company, 
it  shall  be  the  duty  of  the  Commissioner  of  Insurance  to  file  a 
])etition  in  the  circuit  court  for  any  county  where  such  company 
has  transacted  business,  either  in  vacation  or  term  time,  stating 
that  the  sixty  days  within  which  such  company  was  required  to 
proceed  to  wind  up  its  business  have  exi)ii'ed,  and  that  there  are 
outstanding  claims  against  such  company,  a  copy  of  which  said 
petition  shall  be  published  for  three  successive  weeks  in  a  public 
newspaper  printed  in  such  county,  or  if  no  newspaper  is  published 


MICHIGAN.  435 

in  such  county,  then  such  notice  shall  be  published  in  any  paper 
published  nearest  the  office  of  such  company.     {Ibid,  §  15.) 

iOO.  It  shall  be  the  duty  of  the  Commissioner  of  Insurance, 
as  often  as  once  in  each  year,  in  person  or  by  deputy,  to  \isit  and 
examine  into  the  affairs  of  any  mutual  insurance  company  now 
organized  or  hereafter  to  be  organized  under  this  act ;  and  it  shall 
be  the  duty  of  the  officers  or  agents  of  any  such  company  to  cause 
their  books  to  be  opened  for  inspection,  and  otherwise  to  facilitate 
such  examination  so  far  as  it  may  be  in  their  power  to  do ;  and  for 
that  puri)ose  the  said  Commissioner  of  Insurance  shall  have  power 
to  examine,  under  oath,  the  officers  and  agents  of  any  company 
relative  to  the  standing  and  condition  of  said  company.  And  all 
necessary  expenses  of  such  examination  shall  be  paid  by  each  com- 
pany so  examined.     {Ibid,  §  16.) 

101.     At  any  time  after  the  publication  required  by  section 
fifteen  of  this  act,  the  Commissioner  of  Insurance  may  appear  in 
said  coiu't,  in  person  or  by  counsel,  and  move  for  the  appointment 
of  a  receiver  for  said  company ;  and  the  said  company  may  also  be 
heard,  and  upon  such  hearing  the  report  of  such  company  filed  in 
the  office  of  the  Commissioner  of  Insurance  shall  be  conclusive  evi- 
dence of  the  facts  therein  stated,  and  of  the  liability  of  such  com- 
pany, unless  such  company  shall  show  that  they  have  since  paid  and 
discharged  the  liaVnlities  ;  and  if,  upon  the  hearing  thereof,  it  shall 
appear  to  such  court  that  the  statements  in  such  petition  are  ma- 
terially true,  the  said  court  shall  appoint  a  receiver  for  such  com- 
pany, who  shall  be  and  is  hereby  empowered  to  take  possession  of  all 
books  and  papers  and  personal  property  of  said  company,  and  shall 
ascertain  the  amount  due  from  said  company  on  property  insured, 
and  shall  at  once  proceed  to  assess  upon  all  of  the  members  and 
persons  insured  in  such  company  such  sums  of  money  as  will  in  the 
aggregate  be  sufficient  to  pay  all  the  losses  and  liabilities  of  said 
company,  together  with  the  services  and  expenses  of  such  receiver, 
according  and  in  proportion  to  the  amount  of  their  insurance  or  in- 
terest in  such  company ;  and  upon  payment  of  such  assessment  the 
said  members  shall  be  discharged  of  and  from  all  Ibrnier  assess- 
ments made  bj'  such  company ;  and  it  shall  be  the  duty  of  said  re- 
ceiver to  give  notice  of  such  assessment  by  publishing  in  some 
weekly  newspaper  printed  in  the  county  or  counties  where  the  office 
or  offices  of  the  company  are  located,  or  in  the  county  where  such 
proceedings  were  had,  once  in  each  week  for  three  successive  weeks, 
a  general  notice,  stating  therein  the  aggregate  amount  assessed  in 
said  company ;  and  upon  application  he  shall  furnish  to  any  i^erson 
assessed  a  statement  showing  the  amount  of  his  assessment ;  and  in 
case  any  member  or  person  insured,  so  assessed,  shall  neglect  for 
thirty  days  after  such  publication  to  pay  the  amount  of  such  assess- 
ment to  said  receiver,  he  may  sue  for  the  same  in  the  circuit  court 
wherein  he  was  appointed,  and  in  such  cases  service  may  be  made 
upon  the  persons  sued  in  any  county  in  the  State,  or  at  his  election 
the  receiver  may  sue  in  the  circuit  court  for  the  county  wherein  the 
person  assessed,  or  who  is  liable  to  pay  such  assessment,  niay  reside 
or  be,  in  an  action  of  debt  or  assumpsit,  in  his  own  name,  as  recoiv- 
er  of  said  company ;  and  upon  such  suit  said  assessment  shall  be 
prima  facie  evidence  of  the  regularity  and  correctness  of  all  pro- 
ceedings up  to  and  including  the  assessment,  and  of  the  receiver's 
right  to  recover  therein  the  amount  assessed,  with  costs.     If  the 
amount  realized  by  such  receiver  bo  insufficient  to  pay  the  losses.. 


436  hike's  insurance  statutes. 

and  liabilities  therein,  and  the  services  and  expenses  aforesaid,  he 
shall  x^ioteed  to  make  a  second  assessment,  and  such  further  or 
other  assessments  as  may  be  necessary  to  realise  the  same,  in  the 
same  manner  and  with  the  like  eft'ect  as  is  herein  provided  for 
making  the  first  assessment ;  and  shall  sue  for  and  collect  the  same 
in  the  same  manner.  If,  after  paying  the  losses  and  liabilities  of 
such  comi)any,  and  the  services  and  expenses  aforesaid,  there  shall 
remain  any  funds  in  the  hancts  of  the  receiver,  the  same  shall  be 
paid  back  to  the  persons  assessed,  in  just  and  equal  proportions  to 
the  sums  contributed  and  paid  by  them,     (i  hid,  §  17.) 

103.  Such  receiver  shall  keep  an  accurate  account  of  all 
moneys  or  other  property  received  by  him,  and  shall  pay  over  all 
moneys  by  him  collected,  and  the  proceeds  of  all  personal  property 
pro  rata  upon  said  liabilities,  after  deducting  therefrom  for  his 
services  and  expenses  (if  the  court  making  such  appointment  shall 
deem  the  amount  thereof  reasonable).  The  court  making  such  ap- 
pointment may  also  require  such  receiver  to  give  a  bond,  with  suffi- 
cient siu-eties,  in  such  penal  sum  as  such  court  shall  determine, 
which  said  bond  shall  run  to  the  people  of  the  State  of  Michigan, 
and  be  conditioned  for  the  faithful  discharge  of  his  duties  as  such 
receiver,  and  be  approved  by  the  clerk  or  judge  of  such  court ;  and 
said  court  may  from  time  to  time  require  such  receiver  to  make  a 
report,  and  upon  the  coming  in  of  his  final  report,  showing  a  full 
and  faithful  performance  of  such  trust,  may  discharge  him  from  all 
further  liability.  It  shall  also  be  the  duty  of  such  receiver,  annu- 
ally, during  the  month  of  January  in  each  year,  to  make  a  report  to 
the  Commissioner  of  Insurance,  showing  the  condition  and  atfairs  of 
such  receivership  on  the  thirty-first  day  of  December  preceding. 
This  act  shall  be  construed  as  applying  to  all  receivers  heretofore 
appointed,  as  well  as  to  receivers  which  may  hereafter  be  appointed 
under  this  act.     {Ihid,  §  18.) 

lOSI.  Every  mutual  fire  insurance  comjjany  heretofore  organ- 
ized under  the  laws  of  this  State  shall  conform  to  all  the  provisions 
of  this  act ;  but  no  such  company  whose  organization,  articles  of 
association  and  by-laws  already  conform  to  the  provisions  hereof 
shall  be  required  to  reorganize.     {Ibid,  §  19.) 


MUTUAL  MARmE   INSURANCE  COMPANIES  OF  OTHER 

STATES. 

104.  It  shall  be  lawful  for  such  mutual  insurance  companies, 
organized  under  the  laws  of  any  other  State,  as  transact  the  business 
of  marine  or  inland  insurance  exclusively,  to  do  business  in  this 
State,  with  the  consent  of  the  Commissioner  of  Insurance  of  this 
State,  upon  tiling  the  statements,  making  the  applications,  and  com- 
plying in  all  respects,  so  far  as  applicable  with  the  provisions  of  an 
act  entitled  "  An  Act  relative  to  the  Orgauization  and  Powers  of*» 
Fire  and  Marine  Insurance  Companies,  transacting  business  in  this 
State,"  chapter  ninety -nine  (99)  of  the  compiled  laws  of  eighteen 
hundred  and  seventy-one,  and  all  acts  amendatory  thereof  5  and  the 
Commissioner  of  Insurance  is  hereby  authorized  to  admit  such  mu- 
tual insurance  companies  to  do  marine  and  inland  insurance  exclu- 
sively, upon  their  complying  with  all  the  provisions  of  said  act,  ex- 
cept the  requirement  as  to  paid  in  capital  stock;  Provided,  Said 
Commissioner  of  Insurance  may  at  any  time,  when  he  shall  have 


I 


MICHIGAN-  437 

knowledge  or  good  reason  to  believe  any  such  company  is  not  sound, 
or  has  made  any  false  statement  of  its  condition,  to  revoke  such 
permit  and  all  certificates  granted  to  such  company  and  its  agents, 
and  require  them  to  discontinue  business  in  this  State.  Any  agent 
of  such  company  refusing  to  obey  the  order  of  such  Commissioner 
to  discontinue  business,  or  writing  risks  in  any  company  excluded 
by  such  Commissioner,  after  notice  of  such  exclusion,  or  of  a  revo- 
cation of  its  certificate  of  authority  by  such  Commissioner,  shall 
be  guilty  of  a  misdemeanor,  and  may  be  punished  upon  conviction 
thereof,  as  in  other  cases  of  misdemeanor,  in  the  discretion  of  the 
court.     {Ibid,  Act  No.  34:.) 


SERVICE  OF  PROCESS  ON  INSURANCE  COMPANIES. 

1 05.  No  life,  fire,  inland,  or  marine  insurance  company,  not 
incorporated  under  the  laws  of  this  State,  shall  insure  property  or 
do  business  in  this  State,  until  it  has  filed  with  the  Commissioner  of 
Insurance  a  written  stipulation,  duly  authenticated  by  the  com- 
pany, stipulating  and  agxeeing  that  any  legal  process  affecting  such 
company,  served  on  the  Insurance  Commissioner  or  his  deputy,  shall 
have  the  same  effect  as  if  personally  served  on  the  company  or  its 
authorized  attorney  in  this  State.     {Ibid,  Act  No.  155,  §  1.) 

lOO.  The  Commissioner  of  Insurance  shall,  within  three 
months  from  the  passage  of  this  act,  transmit  a  copy  thereof,  with 
proper  blanks  for  such  stipulation,  to  every  company  authorized  to 
do  business  in  this  State,  and  shall  receive  and  file  the  stipulations 
herein  provided  for,  and  the  same  shall  be  safely  kept  in  his  office. 
{Ibid,  §  2.) 

107.  So  long  as  any  liability  of  such  stipulating  company  to 
any  resident  of  this  State  shall  continue,  such  stipulation  shall  not 
be  revoked  or  modified,  except  that  another  shall  be  filed  according 
to  law.     {Ibid,  §  3.) 

108.  Service  of  process,  according  to  a  stipulation  provided 
in  this  act,  shall  be  sufficient  i)ersonal  service  on  the  company. 
{Ibid,  §  4.) 

100.  A  copy  of  such  stipulation,  certified  by  the  Commissioner 
of  Insm-ance  or  his  deputy,  and  a  certificate  that  process  has  been 
duly  served  on  him  or  his  deputy,  shall  be  a  sufficient  evidence 
thereof.     {Ibid,  §  5.) 

110.  When  process  against  or  affecting  any  company  is  served 
on  the  Commissioner  of  Insurance  or  his  deputy,  the  same  shall 
be  by  duplicate  copies,  one  of  which  shall  be  filed  in  the  office  of 
said  Commissioner  and  the  other  by  him  immediately  mailed,  post- 
age prepaid,  to  the  home  office  of  the  company,  or  such  branch  or 
general  agency  of  the  company,  or  to  the  address  of  the  authorized 
resident  attorney  in  this  State,  as  the  company  may  designate  in 
such  stipulation.     {Ibid,  §  6.) 

111.  The  word  "  process"  in  this  act  shall  include  any  writ, 
declaration,  summons,  or  order  whereby  any  action,  suit,  or  pro- 
ceeding shall  be  commenced,  or  which  shall  be  issued  in  or  upon 
any  action,  suit  or  proceeding  authorized  by  law  in  this  State. 
{Ibid,  §  7.) 


438  hike's  insueance  statutes. 


lESUEANCE  OK  LIVES  FOR  THE  BENEFIT  OF  MARRIED 

WOMEN  AND  CHILDREN. 

112.  It  shall  be  lawful  for  any  married  woman,  by  herself,  and 
in  her  name,  or  in  the  name  of  any  third  person,  with  his  assent,  as 
her  trustee,  to  cause  to  be  insured  for  her  sole  use,  the  life  of  her 
husband,  or  the  life  of  any  other  person,  in  any  life  insurance  com- 
pany of  any  nature  whatever,  located  in  either  of  the  states  of  the 
United  States  of  America  or  in  Great  Britain,  for  any  definite  pe- 
riod, or  for  the  term  of  his  natural  life ;  and  in  case  of  her  surviving 
her  husband,  or  such  other  person  insured  in  her  behalf,  the  sum  or 
net  amount  of  the  policy  of  insurance  due  and  payable  by  the  terms 
of  the  insurance  shall  be  payable  to  her,  to  and  for  her  own  use,  free 
from  the  claims  of  the  representatives  of  her  husband,  or  of  such 
other  person  insured,  or  of  any  of  his  creditors ;  but  such  exemption 
shall  not  apply  where  the  amount  of  premium  annually  paid  shall 
exceed  the  sum  of  three  hundred  dollars.  {Compiled  Laws,  1871,  p. 
1478,  §  4808.) 

113.  In  case  of  the  death  of  the  wife  before  the  decease  of  her 
husband,  or  of  such  other  person  insured,  the  amount  of  the  insur- 
ance may  be  made  i)ayable  after  her  death  to  her  children,  for  their 
use,  and  to  their  guardian,  if  under  age,  or  the  amount  of  the  policy 
may  be  disposed  of  by  such  married  woman  by  a  last  will  and  testa- 
ment.    (Jitrf,i).  1479,  §  4809.) 


ARSON  AND  INCENDIARISM. 

114.  Every  fjerson  who  shall  willfully  and  maliciously  burn, 
in  the  night  time,  the  dwelling-house  of  another,  or  shall,  in  the 
night-time,  willfidly  and  maliciously  set  fire  to  any  other  building 
owned  by  himself  or  another,  by  the  burning  whereof  such  dwelling- 
house  shall  be  burnt  in  the  night-time,  shall  be  punished  by  impris- 
onment in  the  State  Prison  for  life ;  but  if  it  shall  appear  on  the 
trial,  and  the  jury  shall  find,  that  at  the  time  of  committing  the 
oifense  there  was  no  person  lawfully  in  the  dwelling-house  so 
burned,  the  punishment,  instead  of  imprisonment  for  life,  may  be 
imprisonment  in  the  State  Prison  for  any  term  of  years.     {Ibid, 

1 15.  Every  iierson  who  shall  willfully  and  maliciously  burn, 
in  the  day-time,  the  dwelling-house  of  another,  or  any  building  ad- 
joining such  dwelling-house,  or  shall  willfully  and  maliciously  set 
fire  to  any  building  owned  by  himself,  or  another,  by  the  burning 
whereof  such  dwelling  house  shall  be  burnt  in  the  day-time,  or  shall, 
in  the  day-time,  willfully  and  maliciously  set  fire  to  any  building 
owned  by  himself  or  another,  by  the  burning  whereof  such  dwelling- 
house  shall  be  burnt  in  the  night-time,  shall  be  punished  by  impris- 
onment in  the  State  Prison  for  life,  or  for  any  term  of  years.  {Ibid, 
§2.) 

1 1 C5.  Every  person  who  shall  willfully  and  maliciously  bum, 
in  the  night-time,  any  meeting-house,  church,  court-house,  college, 
academy,  jail,  railroad  depot,  or  other  building  erected  for  public 
use  ;  or  any  banking  house,  warehouse,  store,  manufactory,  or  mill 
of  another,  being,  with  the  i)roperty  therein  contained,  of  the  value 
of  one  thousand  dollars  ;  or  any  barn,  stable,  shop,  or  ofiice  of  an- 


MICHIGAN.  439 

other,  within  the  curtilage  of  any  dwelling-house;  or  any  other 
building  by  the  burning  whereof  any  building  mentioned  in  this 
section  shall  be  burnt  in  the  night-time,  shall  be  punished  by  im- 
prisonment in  the  State  Prison  for  any  term  of  years.     [Ibid,  §  3.) 

117.  Every  person  who  shall  willfully  and  maliciously  burn, 
in  the  day-time,  any  building  mentioned  in  the  ijreceding  section, 
the  punishment  for  which,  if  burnt  in  the  night-time,  would  be  im- 
prisonment in  the  State  Prison  for  any  term  of  years,  shall  be  pun- 
ished by  imprisonment  in  the  State  Prison  not  more  than  ten  3  ears. 
{Ibid,  p.  2079,  §  4.) 

118.  Every  person  who  shall  ^villfully  and  maliciously  burn, 
either  in  the  night-time  or  in  the  day-time,  any  banking-house, 
warehouse,  store,  manufactory,  mill,  barn,  stable,  shop,  office,  out- 
house, or  other  building  whatsoever  of  another,  other  than  is  men- 
tioned in  the  third  section  of  this  chapter,  or  any  bridge,  lock,  dam, 
or  flume,  or  any  ship,  boat,  or  vessel,  of  another,  lying  within  the 
body  of  any  county,  shall  be  punished  by  imprisonment  in  the  State 
Prison  not  more  than  ten  years.     (Ibid,  §  5.) 

119.  Every  person  who  shall  set  fire  to  any  building  men- 
tioned in  the  preceding  sections,  or  to  any  other  material,  with  in- 
tent to  cause  any  such  building  to  be  biunt,  or  shall  by  any  other 
means  attempt  to  cause  any  building  to  be  burnt,  shall  be  punished 
by  imprisonment  in  the  State  Prison  not  more  than  fifteen  years, 
or  by  fine  not  exceeding  one  thousand  dollars,  and  imprisonment  in 
the  county  jail  not  more  than  one  year.     [Ibid,  §  6.) 

1 90.  Every  person  who  shall  willfully  and  maliciously  burn, 
or  otherwise  destroy  or  injure,  any  pile  or  parcel  of  wood,  boards, 
timber,  or  other  lumber,  or  any  fence,  bars,  or  gate,  or  any  stack  of 
grain,  hay,  or  other  vegetable  product,  or  any  vegetable  product 
severed  from  the  soil  and  not  stacked,  or  any  standing  trees,  grain, 
grass,  or  other  standing  product  of  the  soil,  or  the  sod  itself,  of  an- 
other, shall  be  punished  by  imprisonment  in  the  State  Prison  not 
more  than  five  years,  or  by  fine  not  exceeding  five  hundred  dollars, 
or  imjjrisonment  in  the  county  jail  not  more  than  one  year.  (Ibid, 
§7.) 

121.  Every  person  who  shall  willfully  burn  any  building,  or 
any  goods,  wares,  merchandise,  or  other  chattels,  which  shall  be  at 
the  time  insured  against  loss  or  damage  by  fire,  or  shall  willfully 
cause  or  procure  the  same  to  be  burned,  with  intent  to  injure  the 
insurer,  whether  such  person  be  the  owner  of  the  property  or  not, 
shall  be  punished  by  imprisonment  in  the  State  Prison  not  more 
than  ten  years.     {Ibid,  p.  2080,  §  9.) 


EMBEZZLEMENT. 

123.  Any  person  who  shall  be  appointed  or  who  shall  act  as 
agent  for  any  insurance  company  within  this  State,  or  who  shall 
solicit  applications,  issue  policies  or  renewals,  and  collect  premiums, 
either  for  original  insurances  or  renewals,  or  who  shall  receive  or 
collect  moneys  from  any  source  or  on  any  account  whatsoever,  as 
such  agent,  for  any  insurance  company  doing  business  in  this  State, 
whether  such  company-  be  organized  under  the  laws  of  this  State  or 
any  other  State  of  the  Union,  such  person  shall  be  held  personally 
responsible  to  such  company  for  any  moneys  received  by  him  for 
such  company.     {Lmcs  of  1S71,  Act  No.  95,  §  1.) 


440  hike's  iksueance  statutes. 

1 23.  If  any  such  agent  or  person  shall  embezzle  or  convert  to 
his  own  use,  or  shall  take  or  secrete,  or  otherwise  dispose  of,  with 
intent  to  embezzle  or  use,  or  shall  withhold  or  appropriate,  invest, 
loan  or  otherwise  fraudulently  apply,  or  make  use  of  without  the 
consent  of  such  company,  or  contrary  to  its  instructions,  any  money 
belonging  to  such  company  which  shall  have  come  into  his  posses- 
sion, or  shall  be  under  his  care  by  reason  of  such  agency,  he  shall 
be  deemed  by  so  doing  to  have  committed  the  crime  of  larceny,  and 
on  conviction  shall  be  subject  to  the  fines  and  penalties  provided  by 
the  laws  of  this  State  in  such  cases.     {Ibid,  §  2.) 

124.  For  General  Provisions  relating  to  Corporations,  see  Com- 
piled Laws  of  1871,  pp.  1148-1155, 1837-1855 ;  Laws  of  1872,  pp. 
83,  84,  89^91. 


INDEX  TO  MINNESOTA. 


PAGE 

Annual— 

Eeport    of    Insorance     Commissioner 

(14) 445^ 

Statement  of  Insurance  Cos.  (33-41).  •  452, 

455 

Statement  of  Town  CompanieB  (94).-.  465 

Agent — 

Definition  ofPower  to  Bind  Co.  (11).-  444 

Embezzlement  by  (50) 457 

For  Service  of  Process  (42-46) 455, 456 

Included  in  term  "  Company"  (7) 443 

Must  haveCertificateof  Authority  (28)  451 

Must  Publish  Statement  (29) 451 

Penalty  for  False  Eepresentations  (32)  4.52 
"When  Judgment  is  Unsatisfied  (47).--  456 
American  Insurance  Company — 

Definition  of  Term  (8) 444 

(See  Foreign  Insurance  Companies.) 
Arson,  Crime  and  Penalty  of   (100- 
106) 465,466 

CAPITAIy— 

Investment  of  (25) ^52 

Of  Fire  Insurance  Companies  (52) 457 

Of  Foreign  Insurance  Cos.  (61,  62)  --  459 

Of  Mariue  Companies  (78,80) 462 

Premium  Kotes  Excluded  from  (1 4) .  .445-8 

Reduction  of  (14) 445-8 

When  Impaired  (14) 445-8 

Certificate  of  Authority- 
Agent  must  Have  (28) 451 

Kevocation  of  (47) *^^ 

Charters  must  be  Submitted  to  Attorney- 
General  (24) 450 

Company,  Definition  of  Term  (7,  8)  ...443,  444 
Corporation — 

Definition  of  Term  (1) 443 

General  Provisions  Concerning  (111).  467 

Liability  of  Stockholders  (3) 443 

Must  Organise  under  General  Law  (2) .  443 

Deposits— 

Companies  must  Examine  (31) 452 

Of  Foreign  Cos.  (57,  58,  59,  61)..-  459 
Of  Life  Companies  (IJ6-71,  7  5)  -.460,  461 

Of  Marine  Companies  (79,  81) 462 

Directors — 

Definition  of  Term  (11) 444 

Of  Town  Mutuals  (84-86) 463 

Dividends- 
May  be  Paid,  when  (25) 452 

Of  Fire  Insurance  Company  (55,  56).  458 

Embezzlement  by  Agents  (50) 457 


PAGE 

Farm  Insurance  Companies  (64,  99)  .459,  465 
Fees  of  Insurance  Commissioner  (18,19)  449 

Fire  Inquests  (107-110) 467 

Fire  and  Inland  Insurance  Companies- 
Capital  of  (52) 457 

Deposit  of  (57-59) 459 

Dividends  (55) 458 

Doing  Farm  Business  (64,  99) 459 

Limitation  of  Risk  (54,  60) 458 

Notes  Excluded  from  Capital  (14)  .  .445-8 

Participation  in  Profits  (56) 458 

Reserve,  how  Computed  (14) 445-8 

(See  Foreign  Insurance  Companies  and 
Town  Insurance  Companies.) 
Foreign  and  other  State  Companies — 

Capital  and  Investments  of  (53,  61, 

62) 457,459 

Conditions  for  Commencing   Busineea 

(27,28) 451 

Definition  of  Terms  (8) 444 

Deposits  of  Fire  Companies  (5T-59).-  459 

Limitation  of  Risk  (60) 459 

Mutual  Fire  Cos.  Prohibited  (53) 457 

Service  of  Process  (42-46) 455,456 

Taxation  shall  be  Reciprocal  (6) 443 

(See   Insurance   Cos.,    Fire  InsuTg,nce 
Cos.,  and  Life  Insurance  Cos.) 

Inland  Insurance  Companies- 
Reinsurance  Reserve  (14) 445-8 

(See  Fire  Insurance  Companies.) 

Insurance  Act,  how  to  Construe  (4-6) 443 

Insurance  Commissioner — 

Appointment  and  Term  of  OflBce  (12).  444 

Annual  Report  (14) 445-8 

Certified  Papers  shall  be  Evidence  (17)  449 
Compensation  and  Duties  (13,  14).. 444 -8 
Compensation  of  Reinsurance  Reserve 

(14) 445-8 

Fees  and  Expenses  (18,19) 449 

Powers  to  Examine  (15,  16) 448,  449 

Powers,  Suits,  Revocation  of  Authority 

(15,16) 448,449 

Shall  Examine  Companies  (14) 445-8 

To  Accept  Service,  when  (42,  46)  455,  4.56 
Transfer  of  Securities  (20,  21 ) .  ■  ■  449,  450 

Transferof  Duties  to  (48) 457 

Valuation  of  Life  Policies  1 1 4,  76)  445-8, 

462 

When  Company  is  Unsound  (14) 445-8 

When  Judgment  is  Unsatisfied  (47)..  453 


442 


INDEX  TO   MINNESOTA. 


PAGE 

Insurance  Companies — 

"When  Capital  is  Impaired  (14) 445-8 

Agent  must  Publish  Statement  (29)  ..  451 

Annual  Statements  (33,  41) 453,  455 

Charters    Submitted  to  Attorney-Gen- 
eral (24) 450 

Commissioner  shall  Examine  (14) 445-8 

Conditions  for  Commencing   Business 

(26,  27) 451 

Dividends  (25) 450 

Fees  and  Expenses  to  be  Paid  by  (1 8)  -  449 
Failure  to  make  Statement  (37-39)..  4.55 

Investment  of  Capital  (25) 450 

May  Reduce  Capital,  when  (14) 445-8 

Must  Examine  Deposit  (31) 452 

Penalty  for  False  Representations  (32)  452 
Purchase  and  Sale  of  Eeal  Estate  (30)  4.52 

Reserve,  how  Computed  (14) 445-8 

Shall  not  do  Fire  and  LifeBusinessd  4)445-8 

Taxation  (49) 457 

When  Capital  is  Impaired  (14) 445-8 

"When  Unsound  (14) 445-8 

"When  Judgment  is  Unsatisfied  (47)  --  456 

Inquests  in  Case  of  Fire  (107-110) 467 

Life  Insurance  Companies — 

Capital  of  (66,  77) 360,  462 

Deposit  of(66,  71,  75,  7  7) -.460,  461,462 

Exemptions  as  to  "Mutuals  (77) 462 

Must  Insure  Lives  Exclusively  (23)..-  450 

Registered  Policies  of  (70-74) 461 

State  not  Liable  for  Registered  Policies 

(74) 461 

Valuation  of  Policies  (14,  76)  -.445-8,  462 

"When  Unsound  (14) 445-8 

Withdrawal  of  Deposits  (69) 460 

Marine  Insurance  Company — 

Capital  and  Deposit  of  (78,  81 462 

Reinsurance  Reserve  (14) 445-8 

(See  Insurance  Cos.  and  Foreign  Cos.) 

Mutual  Fire    Companiea   of  other   States 

Prohibited  (53) 457 

Penalty— 

For  Acting  as  Agent  without  Certifi- 
cate (28) 451 

For  Embezzlement  (50) 457 

For  False  Representation  (32) 452 


FAGB 

Penalty  (Continued)— 

For  False  Statement  in  Proof  of  Loss 
(51) 457 

For  Unlawful  Compensation  of  Insur- 
ance Commissioner  (13) 444 

For  Unlawful  Dividends  (55) 458 

Policies,  Registered  Provisions  for  (70-74)  461 

State  not  Liable  for  Registered  (74'). .  -  461 

Valuation  of  (1 4,  76) 445-8,  462 

Premium  Notes  Excluded  from  Capital(l  4)445-8 
Proofs  of  Loss,  False  Statement  in  (51) 457 

Real  Estate,  Purchase  and  Sale  of  (30)..  -  452 

Reciprocal  Taxation  (6) 443 

Reinsurance  Reserve,  how  Computed  (14)445-8 
Risks — 

Limitation  of  (54,  60) 458,459 

Of  Town  Cos.  to  be  Classified  (89)  ....  464 

Service  of  Process  (42-46) 455,  456 

State  Treisnrer,  Transfer  of  Securities  by 
(20,  21) 450 

Taxation— 

Of  Insurance  Companies  (49) 457 

Reciprocal  (6) 443 

Town  Insurance  Companies — 

Annual  Statements  (94") 465 

Assessments,  how  Made  (90) 464 

By-laws  and  Direction  of  (97,  98) 465 

Directors  of  (84,  93) 463,464 

Formation  of  (83) 463 

Losses,  how  Provided  for  (8  7) 463 

Losses,  how  Settled  (88-91) 464 

Limitation  of  Business  (92 ) 

Members  may  Withdraw,  how  (95)  -.  465 
Must  File  Charter  and    keep  Record 

(85) 463 

Non  Residents  may  be  Members,  when 

(96) 465 

Risks  to  be  Classified  (89) 464 

Suits  and  Directors'  Liability  (91 ) 464 

"When  Organized   for   Farm    Business 
(99) 465 

Transfer  of  Securities  (20,21) 449 

Vested  Rights  not  Affected  by  Acts  Re- 
pealed (82) 462 


INSURANCE  STATUTES  OF  MINNESOTA. 


CONSTITUTIONAL  PROVISIONS  CONCERNING  CORPORA- 
TIONS. 

1 .  The  term  "  corporations,"  as  used  in  tMs  article,  shall  be 
construed  to  include  all  associations  and  joint-stock  companies 
having  any  of  the  powers  and  privileges  not  possessed  by  individuals 
or  partnerships,  except  such  as  embrace  banking  privileges,  and  all 
corporations  shall  have  the  right  to  sue,  and  shall  be  liable  to  be 
sued  in  all  courts  in  like  manner  as  natural  persons.     {Art  10,  §  1.) 

2.  No  corporation  shall  be  formed  under  special  acts,  except 
for  municipal  purposes.     {Ibid,  §  2.) 

3.  Each  stockholder  in  any  corporation  (excepting  those  or- 
ganized for  the  purpose  of  carrying  on  any  kind  of  manufacturing 
or  mechanical  business)  shall  be  liable  to  the  amount  of  the  stock 
held  or  owned  by  him.     {Ibid,  §  3.) 

4.  The  object  of  this  act  is  to  revise,  simplify,  and  amend  the 
laws  of  this  State  in  relation  to  insurance,  with  due  regard  to  the 
legislation  of  other  States,  so  as  to  secure  mutual  harmony  in  the 
promotion  of  the  public  interest,  to  define  the  relation  of  the  State 
to  companies  and  individuals,  to  insure  the  stability  of  companies, 
to  protect  the  interests  of  the  assured,  and  to  encourage  the  employ- 
ment of  capital.  And  its  provisions  are  to  be  construed  liberally  in 
furtherance  of  the  protection  of  the  insured,  and  so  far  as  may  be 
in  harmony  with  the  construction  which  may  be  given  by  the  courts 
of  other  States  adopting  a  like  act.  {Statutes  at  Large,  1873,  p. 
477,  §  1.) 

5.  The  words,  "the  substantial  provisions  of  this  act  shall  be 
enacted,"  shall  be  construed  to  mean  the  provisions  of  this  act  which 
define  the  right  to  do  insurance  business  and  provide  for  the  stability 
of  companies  and  the  protection  of  the  insured ;  and  differences  in 
respect  to  the  organization  of  the  Insurance  Department,  the  consti- 
tution of  companies,  or  the  form  of  judicial  remedies,  shall  not  be 
deemed  to  impair  the  uniformity  which  this  act  is  intended  to  secure. 
{Ibid,  p.  478,  §  2.) 

6.  When,  by  the  laws  of  any  other  State  or  nation,  any  taxes, 
fines,  penalties,  licenses,  fees,  deposits  of  money,  or  of  securities,  or 
other  obligations  or  prohibitions,  are  imposed  on  insurance  com- 
panies of  this  State  doing  business  in  such  other  State  or  nation,  or 
upon  their  agents  therein,  so  long  as  such  laws  continue  in  force,  the 
same  obligations  and  prohibitions,  of  whatever  kind,  shall  be  im- 
posed upon  all  insurance  companies  of  such  other  State  or  nation 
doing  business  in  this  State  and  upon  their  agents  here.     {Ibid,  §  3.) 

7.  The  term  "  company,"  as  used  in  any  provision  of  this  act, 
subjecting  companies  to  any  obligation  or  restriction,  includes  indi- 
viduals, partnershii)s,  joint-stock  associations  and  corporations. 
{Ibid,  §  4.) 


444  hine's  insukance  statutes. 

8.  The  term  "  American  company,"  as  used  in  tliis  act,  desig- 
nates a  company  which  exists  by  the  laws  of  any  State  or  Territory 
of  the  United  States,  or  by  any  law  of  the  United  States.  All 
others  are  designated  as  foreign.     {Ibid,  §  5.) 

9.  The  expression  "  company  of  a  State,  territory,  or  nation," 
as  used  in  this  act,  means  a  company  incorporated  by  or  organized 
under  the  laws  of  such  State,  territory  or  nation.     {Ibid,  §  6.) 

1 0.  The  word  "  Commissioner,"  designates  the  officer,  by  what- 
ever name  called,  who  is  charged  for  the  time  being  with  the  duties 
of  Commissioner  of  Insurance.     {Ibid,  §  7.) 

11.  The  term  "  oath,"  in  this  act,  includes  affirmations.  The 
term  ''  directors,"  in  this  act,  designates  the  trustees,  managers, 
or  officers  constituting  the  executive  board  of  a  company.  Di- 
rectors are  included  in  the  term  "  officers,"  unless  a  contrary  in- 
tention appears.  The  term  "agent"  or  "  agents,"  in  this  act,  in- 
cludes an  acknowledged  agent,  surveyor,  and  all  other  persons  who 
shall  in  any  manner,  directly  or  indirectly,  aid  in  transacting  the 
business  of  insurance.  Nothing  contained  in  this  act  shall  be  con- 
strued to  imply  that  an  agent  has  any  power  to  bind  a  company, 
not  expressly,  or  by  necessary  implication,  given  him  by  the  com- 
pany.    {Ibid,  §  8.) 

mSUKANCE  COMMISSIONER. 

12.  It  shaU  be  the  duty  of  the  Governor,  by  and  with  the  ad- 
vice and  consent  of  the  Senate,  to  appoint  one  competent  person,  a 
resident  and  citizen  of  the  State,  and  with  the  other  qualifications 
hereinafter  provided,  who  shall  be  styled  the  Insurance  Commis- 
sioner, who  shall  be  sworn  in  the  manner  provided  by  law  for  other 
State  officers.  He  shall  hold  his  office  for  two  years,  and  execute 
the  duties  thereof  as  herein,  until  his  successor  is  appointed  and 
qualified,  and  in  case  of  a  vacancy  by  death,  removal,  resignation, 
or  other\vise,  the  governor  shall  fill  the  same  by  appointment.  No 
person  who  is  a  director,  officer,  agent,  attorney,  or  stockholder  of, 
or  directly  or  indirectly  interested  in,  any  insurance  company,  ex- 
cept as  insured,  shall  be  Commissioner  ;  and  no  officer  or  agent  of 
any  insurance  company  doing  business  in  this  State  shall  be  de|)uted 
to  examine  the  aftairs  of  a  company  under  this  act ;  The  said 
Commissioner  shall  keep  his  office  at  the  capital  of  the  State,  and 
shall  give  bonds  in  the  sum  of  $5,000,  with  two  sureties  to  be  ap- 
proved by  the  Governor,  for  the  faithful  discharge  of  his  duties. 
{Ibid,  p.  479,  §  9.) 

13.  Said  Commissioner  shall  be  entitled  to  a  salary  of  (2,000) 
two  thousand  dollars  per  annum,  which  shall  include  and  cover 
postage,  stationery,  and  all  other  office  expenses.  Provided,  That 
said  salary  or  expenses  shall  in  no  event  be  a  charge  upon  the 
State  Treasury,  over  and  above  the  fees  and  license  receipts  paid 
into  the  same  by  said  Commissioner.  All  necessary  blanks,  forms, 
and  circulars,  together  with  such  j^amphlet  copies  of  the  insurance 
law  as  may  be  required  for  distribution  among  persons  affected  by 
the  provisions  of  this  act,  shall  be  furnished  at  the  expense  of  the 
State.  And  if  the  said  Commissioner  shall  directly  or  indirectly 
receive  any  compensation  or  pay  for  any  service  or  extra  service,  or 
for  neglect  or  omission  of  service,  other  than  is  provided  in  this  act, 
he  shall  be  deemed  guilty  of  a  felony,  and,  on  conviction  thereof, 
shall  be  subject  to  a  fine  not  exceeding  five  thousand  dollars,  or  im- 


MINNESOTA.    .  445 

prisonment  in  the  State  Prison  for  a  term  not  exceding  five  years, 
or  both,  in  the  discretion  of  the  conrt.     [Ibid,  §  10.) 

1 4.     It  shall  be  the  duty  of  such  Insurance  Commissioner : 

1.  To  see  that  all  laws  of  this  State  respecting  insurance  com- 
panies are  faithfully  executed. 

2.  To  file  in  his  office  every  charter  or  declaration  of  organ- 
ization of  a  company,  with  the  certificate  of  the  Attorney-Gen- 
eral ;  and,  on  application  of  the  corj)orators,  to  furnish  to  them 
a  certified  copy  thereof. 

3.  He  shall,  as  soon  as  practicable,  in  each  year  following  the 
passage  of  this  act,  calculate,  or  cause  to  be  calculated,  in  his 
office,  by  officers  or  employees,  of  his  department,  [or  bureau,] 
the  net  value,  on  the  31st  day  of  December  of  the  previous  year, 
of  all  the  policies  in  force  on  that  day,  in  each  life  insurance 
company  doing  business  in  this  State,  organized  by  authority 
of  this  State ;  and  every  other  life  insurance  company  doing 
business  in  this  State,  that  shall  fail  to  furnish  him  as  herein- 
after provided,  a  certificate  of  the  Insurance  Commissioner  of 
the  State  by  whose  authority  the  company  was  organized,  or 
by  the  State  in  which  it  may  elect  to  have  its  policies  valued 
and  its  deposits  made  in  case  the  company  is  chartered  by  the 
government  of  the  United  States,  giving  the  net  values  of  all 
l^olicies  in  force  in  the  compaaiy  on  the  3 1st  daj'  of  December 
of  the  preceding  year. 

4.  Calculations  of  the  net  value  of  each  jjolicy  must  be  based 
upon  the  American  Experience  Table  of  Mortality,  and  six  j)er 
cent,  interest  per  annum.  And  the  net  value  of  a  policy  at  any 
time  shall  be  taken  to  be  the  net  single  premium  which  will  at 
that  time  effect  the  insui'ance,  less  the  value  at  that  time  of  the 
future  net  premiums  called  for  by  the  table  of  mortality  and 
rate  of  interest  designated  above. 

5.  In  case  it  is  found  that  any  life  insurance  company  doing 
business  in  this  State  has  not  on  hand  the  net  v&lue  of  all  its 
policies  in  force,  after  all  other  debts  of  the  company  and  claims 
against  it,  exclusive  of  capital  stock,  have  been  provided  for, 
it  shall  be  the  duty  of  the  Insurance  Commissioner  to  publish 
the  fact  that  the  then  existing  condition  of  the  affairs  of  the 
company  is  below  the  standard  of  legal  safety  established  by 
this  State,  and  he  shall  require  the  company  at  once  to  cease 
doing  new  business ;  and  he  shall  immediately  institute  pro- 
ceedings, as  required  in  this  act,  to  determine  what  further 
shall  be  done  in  the  case. 

6.  It  is  hereby  made  the  duty  of  the  Insurance  Commissioner, 
after  having  determined  as  above,  the  amount  of  the  net  value 
of  all  the  policies  in  force,  and  added  thereto  the  amount  of  all 
other  debts  and  claims  against  the  company,  exclusive  of  its 
capital  stock,  to  see  that  the  sum  of  all  liabilities  so  ascertained, 
is  fully  equaled  by  the  total  of  admitted  assets  of  such  com- 
pany, comprising  its  real  estate,  premiums,  loans  and  notes, 
cash  on  hand,  rents,  and  other  convertible  property,  together 
with  the  safe  legal  securities  of  the  description  and  character 
hereafter  provided  in  this  act. 

7.  He  shall  accept  the  valuations  made  by  the  Insurance 
Commissioner  of  the  State  under  whose  authority  a  life  insur- 
ance company  was  organized,  when  such  valuations  have  been 
properly  made  on  sound  and  recognized  principles  and  legal 


446  hine's  insurance  statutes. 

basis,  as  above ;  Provided,  The  company  shall  furnish  to  the  In- 
surance Commissioner  of  this  State  a  certificate  from  the  Insur- 
ance Commissioner  of  such  State,  setting  forth  the  value,  cal- 
culated on  the  data  designated  above,  of  all  the  policies  in  force 
in  the  company  on  the  previous  31st  day  of  December ;  and 
stating  that,  after  aU  other  debts  of  the  company,  and  claims 
against  it  at  that  time,  were  provided  for,  the  company  had,  in 
safe  securities  of  the  character  specified  in  this  act,  an  amount 
equal  to  the  net  value  of  all  its  policies  in  force  ;  and  that  said 
company  is  entitled  to  do  business  in  its  own  State. 

8.  Every  life  insurance  company  doing  business  in  this  State 
during  the  year  for  Avhich  the  statement  is  made,  that  fails 
promptly  to  furnish  the  certificate  aforesaid,  shall  be  required 
to  make  full  detailed  lists  of  policies  and  securities  to  the  Insur- 
ance Commissioner  of  this  State,  and  shall  be  liable  for  all 
charges  and  expenses  consequent  ujion  not  having  furnished 
said  certificate. 

9.  For  every  company  doing  fire  insurance  business  in  this 
State,  he  shall  calculate  the  reinsurance  reserve  for  unexpired 
fire  risks  by  taking  fifty  per  cent,  of  the  premiums  received  on 
all  unexpired  risks  that  have  less  than  one  year  to  run,  and  a 
pru)  rata  of  all  premiums  received  on  risks  that  have  more  than 
one  year  to  run  ;  Provided,  That  when  the  reinsurance  reserve 
calculated  as  above,  is  less  than  forty  per  cent,  of  all  the 
premiums  received  during  the  year,  the  reinsurance  reserve  in 
this  case  shall  be  the  whole  of  the  premiums  received  on  all  its 
unexpired  risks. 

10.  In  marine  and  inland  insurance  he  shall  charge  all  the 
premiums  received  on  unexpired  risks  as  a  reinsurance  reserve. 

11.  Having  charged  against  a  company  the  reinsurance  re- 
serve, as  above  determined,  for  fire,  inland,  and  marine  insur- 
ance, and  adding  thereto  all  other  debts  and  claims  against 
the  company,  he  shall,  in  case  he  finds  the  capital  stock  of  the 
company  impaired  to  the  extent  of  twenty  per  cent.,  give  notice 
to  the  company  to  make  good  its  whole  capital  stock  within 
sixty  days ;  and  if  this  is  not  done,  he  shall  require  the  com- 
pany to  cease  to  do  new  business  within  this  State,  and  shall 
thereupon,  in  case  the  comi)any  is  organized  under  the  authority 
of  this  State,  immediately  institute  legal  proceedings,  as  re- 
quired in  this  act,  to  determine  what  further  shall  be  done  in 
the  case.  Any  company  receiving  the  aforesaid  notice  of  the 
Commissioner  to  make  good  its  whole  capital  stock  within  sixty 
days,  shall  forthwith  call  upon  its  stockholders  for  such  amounts 
as  will  make  its  capital  equal  to  the  amount  fixed  by  the  charter 
of  said  company ;  and  in  case  any  stockholder  of  such  company 
shall  neglect  or  refuse  to  i)ay  the  amount  so  called  for,  after 
notice  personally  given,  or  by  advertisement,  in  such  time  and 
manner  as  the  said  Commissioner  shall  approve,  it  shall  be  law- 
ful for  the  said  company  to  require  the  return  of  the  original 
certificate  of  stock  held  by  such  stockholder,  and  in  lieu  thereof 
to  issue  new  certificates  for  such  number  of  shares  as  the  said 
stockholder  may  be  entitled  to,  in  the  proportion  that  the  ascer- 
tained value  of  the  funds  of  the  said  company  may  be  found  to 
bear  to  the  original  capital  of  the  said  company ;  the  value  of 
such  shares,  for  which  new  certificates  shall  be  issued,  to  be  as- 
certained under  the  direction  of  the  said  Commissioner,  and  the 


MINNESOTA.  447 

company  paying  for  the  fractional  parts  of  shares ;  and  it  shall 
be  lawful  for  the  directors  of  such  company  to  create  new  stock 
and  dispose  of  the  same,  and  to  issue  new  certificates  therefor, 
to  any  amount  sufficient  to  make  up  the  original  cai^ital  of  the 
company.  Whenever  the  capital  stock  of  any  joint-stock  fire  or 
marine  insurance  company  of  this  State  becomes  impaired,  the 
Commissioner  may,  in  his  discretion,  permit  the  said  company 
to  reduce  its  capital  stock  and  the  par  value  of  its  shares  in 
proportion  to  the  extent  of  impairment;  Provided,  That,  in 
fixing  such  reduced  capital,  no  sum  exceeding  twenty-five 
thousand  dollars  shall  be  deducted  from  the  assets  and  property 
on  hand,  which  shall  be  retained  as  surplus  assets  ;  and 
Provided,  That  no  part  of  such  assets  and  property  shall  be  dis- 
tributed to  the  stockholders ;  and  Provided  further,  That  the 
capital  stock  shall  not  be  reduced  to  an  amount  less  than  that 
required  by  law  for  the  organization  of  a  new  company.  To 
examine,  or  cause  to  be  examined,  every  detail  of  the  business 
of  any  company  transacting  business  of  insurance  within  this 
State,  whenever  in  his  judgment  such  examination  is  required 
by  the  interests  of  the  policy-holders  of  such  company. 

12.  It  shall  be  the  duty  of  the  Insurance  Commissioner,  after 
he  has  notified  a  life  insurance  company,  organized  under  au- 
thority of  this  State,  to  cease  doing  new  business  until  the  net 
value  of  its  policies  in  force  is  equal  to  that  called  for  by  the 
standard  of  safety  established  by  the  State,  at  once  to  cause  a 
rigid  examination  in  regard  to  all  the  affairs  of  such  company. 
In  case  it  shall  appear  that  there  is  no  fraud  or  gross  incompe- 
tency or  recklessness  shown  to  exist  in  the  management,  he 
may,  upon  j)ublishing  the  facts  in  the  case,  permit  such  com- 
pany to  continue  in  charge  of  its  business  for  one  year,  provided 
there  is,  in  his  opinion,  reason  to  believe  that  the  company  may 
eventually  be  able  to  re-establish  the  legal  net  value  of  all  its 
policies  in  force. 

13 .  In  case  the  Insurance  Commissioner  does  not  permit  the 
company  to  continue  in  the  control  of  its  old  business,  it  is 
hereby  made  his  duty  to  institute  the  necessary  proceedings  for 
the  protection  of  its  policy-holders,  in  accordance  with  the  laws 
of  this  State. 

14.  To  publish  the  result  of  his  examination  of  the  affairs  of 
any  company,  whenever  he  deems  it  for  the  interest  of  the  pub- 
lic so  to  do,  in  one  or  more  papers  of  this  State. 

15.  To  suspend  the  entire  business  of  any  compauy  of  this 
State,  and  the  business,  within  this  State,  of  any  other  com- 
pauy, during  its  non-compliance  with  any  provisions  of  this  act, 
or  whenever  its  assets  appear  to  him  insufticient  to  justify  its 
continuance  in  business,  by  suspending  or  revoking  the  certifi- 
cate granted  by  him ;  and  to  give  notice  thereof  to  the  Insur- 
ance Commissioner,  or  other  similar  ofiicer  of  every  State,  and 
publish  the  same  in  the  papers  in  which,  by  law.  State  notices 
are  requiied  to  be  published. 

16.  To  institute,  or  cause  to  be  instituted,  the  necessary  pro- 
ceeding[s],  under  the  laws  of  this  State,  to  close  the  affaii-s  of 
any  company  of  this  State  which  shall  appear  to  him  upon  ex- 
amination to  be  insolvent,  or  fraudulently  conducted. 

17.  To  report  in  detail,  to  the  Attorney-General,  any  viola- 


448  hine's  insurance  statutes. 

tion  of  law  relative  to  insurance  companies,  their  ofiBcers  or 
agents,  or  the  business  of  insurance. 

18.  To  furnish  to  the  companies  required  by  this  act  to 
report  to  him  the  necessary  blank  forms  for  the  statements 
required. 

19.  To  preserve,  in  permanent  form,  a  full  record  of  his  pro- 
ceedings, and  a  concise  statement  of  the  condition  of  each  com- 
pany or  agency  visited  or  examined. 

20.  At  the  request  of  any  person,  and  on  payment  of  a  [the] 
fee,  to  give  certified  copies  of  any  record  or  papers  in  his 
office,  when  he  deems  it  not  prejudicial  to  public  interests 
so  to  do,  and  to  give  such  other  certificates  as  this  act  pro- 
vides for. 

21.  To  make  a  written  report  to  the  Governor  on  or  before 
the  first  day  of  July  ot  each  year,  showing  his  oflicial  acts,  the 
receipts  and  expenses  of  his  department  for  the  year,  the  con- 
dition of  the  companies  doing  business  in  this  State,  and  such 
other  information  as  will  exhiljit  the  affairs  of  his  department ; 
which  report  shall  be  printed  to  the  number  of  one  thousand, 
at  the  expense  of  the  State,  and  distributed  among  the  mem- 
bers of  the  succeeding  legislature,  and  otherwise,  as  provided 
in  this  act. 

22.  To  send  a  copy  of  his  annual  report  to  the  Insurance 
Commissioner,  or  other  similar  officer,  of  every  other  State,  and 
to  each  company  doing  business  in  this  State. 

23.  On  request,  to  communicate  to  the  Insurance  Commis- 
sioner of  any  other  State  in  which  the  substantial  provisions  of 
this  act  shall  be  enacted,  any  facts  which,  by  law,  it  is  his  duty 
to  ascertain  respecting  companies  of  this  State  doing  business 
within  such  State. 

24.  To  adopt  and  to  renew,  from  time  to  time,  when  neces- 
sary, with  the  approval  of  the  Governor,  a  seal  of  office,  an  im- 
pression and  description  whereof,  with  the  Governor's  certificate 
of  approval,  should  [shalljbe  filed  in  the  office  of  the  Secretary 
of  State. 

25.  It  shall  be  his  duty  to  see  that  no  company  shaU  be  here- 
after permitted  to  issue  policies  of  insurance  on  lives  in  this 
State  that  does  a  fire,  marine,  or  inland  insurance  business. 
And  in  determining  the  capital  or  assets  of  any  fire  insurance 
company,  the  Commissioner  shall  exclude  all  notes  given  for 
premium[s]  upon  policies  issued.    {Ibid,  §  11.) 

15.  The  Insurance  Commissioner,  for  the  purposes  of  exam- 
inations authorized  by  law,  has  power,  either  in  jiersonor  by  one  or 
more  examiners  by  him  commissioned  in  writing: 

1.  To  require  free  access  to  all  books  and  papers  within  this 
State,  of  any  insurance  company,  or  the  agents  thereof,  doing 
business  within  this  State. 

2.  To  summon  and  examine  any  person  being  within  this 
State,  under  oath,  which  he  or  any  examiner  may  administer, 
relative  to  the  aftairs  and  condition  of  any  company. 

3.  For  probable  cause,  to  visit,  at  its  principal  office,  where- 
ever  it  may  be,  any  insurance  company  not  of  a  State  in  which 
the  provisions  of  law  contained  in  this  act  shall  be  in  force,  and 
doing  business  in  this  State,  for  the  purpose  of  investigating 
its  affairs  and  condition ;  and  to  revoke  its  certificate  in  this 
State,  if  it  does  not  permit  an  examination. 


MINNESOTA.  449 

4.  To  revoke  or  modify  any  certificate  of  authority,  when  any 
conditions  prescribed  by  law  for  granting  it  no  longer  exist. 

5.  The  Insurance  Commissioner  has  also  power  to  institute 
suits  and  prosecutions,  either  by  the  Attorney-General,  or  such 
other  attorney  as  the  Commissioner  may  designate,  for  any 
violation  of  this  act ;  and  the  Commissioner  is  a  necessary  party 
to  any  proceeding  instituted  for  the  purpose  of  closing  up  the 
affairs  of  any  company,  w^hen  the  same  shall  not  be  in  the  name 
of  the  State.     {Ibid,  p.  483,  §  12.) 

lO.  Whoever,  without  justifiable  cause,  being  within  this 
State,  refuses  to  appear  and  testify  before  the  Commissioner,  when- 
ever so  required,  or  obstructs  him  in  the  discharge  of  his  duty,  shall 
for  each  oliense  be  punished  by  a  fine  not  exceeding  one  thousand 
dollars,  or  by  imprisonment  not  exceeding  one  year,     {Ibid,  §  13.) 

17.  Every  instrument  executed  by  the  Commissioner  of  this 
State,  or  any  other  State  in  which  the  substantial  pro^^sions  of  this 
act  shall  be  enacted,  pursuant  to  authority  conferred  by  this  act, 
and  authenticated  by  his  seal  of  office,  shall  be  received  as  evidence 
in  this  State ;  and  copies  of  papers  in  his  office  certified  by  him,  and 
so  authenticated,  shall  be  received  as  evidence  in  this  State  with 
the  same  effect  as  the  originals.  Every  such  instrument  so  exe- 
cuted and  authenticated  by  the  Commissioner  of  this  State  shall  be 
recorded  in  the  same  manner,  and  the  same  and  its  record  shall 
have  the  like  eflect,  as  if  acknowledged  or  proved  according  to  law. 
The  impression  of  the  seal  may  be  directly  on  paper,  with  or  with- 
out tenacious  substance.     {Ibid,  §  14.) 

1  8.  There  shall  be  paid  by  every  company  to  whom  this  act 
applies,  the  following  fees  toward  defraying  the  expenses  of  exe- 
cuting its  provisions :  Ui)on  filing  the  declaration  or  certified  copy 
of  charter,  twenty-five  dollars.  Upon  filing  the  annual  statement 
or  certificate  in  lieu  thereof,  twenty  dollars.  For  each  certificate  of 
authority  and  certified  copy  thereof,  one  dollar.  For  every  copy  of 
any  paper  filed  with  the  Commissioner,  the  sum  of  twenty  cents  per 
folio ;  and  for  afi&xing  the  official  seal  to  such  copy  and  verifying 
the  same,  one  dollar.  For  valuing  policies  of  life  insurance  com- 
panies, ten  dollars  per  million  of  insurance,  or  any  fraction  thereof. 
For  official  examinations  of  companies  under  this  act,  the  actual  ex- 
penses incurred.  For  countersigning  and  registering  policies  and 
annuity  bonds,  the  reasonable  expenses  of  custody,  registration,  and 
issue.  All  fees  or  fines  received  or  collected  by  the  Commissioner 
under  the  provisions  of  this  act  shall  be  paid  over  to  the  State 
Treasurer  accompanied  with  a  statement  in  detail  on  the  last  week- 
day of  every  month.     {Ibid,  §  15.) 

19.  In  case  the  necessary  expense  of  said  Commissioner  exceed 
the  amount  of  fees  collected  under  this  act,  and  paid  into  the  State 
treasury  (exclusive  of  the  tax  upon  premiums),  the  excess  of  such 
expense  shall  be  annually  assessed  by  the  Commissioner,  in  equal 
shares  upon  all  the  insurance  companies  doing  business  in  this 
State,  and  the  Commissioner  has  power  to  collect  such  assessments 
and  pay  the  same  into  the  State  treasury.     (Ibid,  p.  484,  §  16.) 

20.  No  transfer  by  the  Insurance  Commissioner  of  securities 
of  any  kind,  in  any  way  held  by  him  in  his  official  capacity,  is  valid 
until  countersigned  by  the  Treasurer  of  the  State. 

It  is  the  duty  of  the  State  Treasurer: 

1.  To  countersign  any  such  transfer  presented  to  him  by  the 
Commissioner,  when  satisfied  of  the  propriety  thereof; 
29 


450  hike's  insurance  statutes. 

2.  To  keep  a  record  of  all  such  transfers,  stating  tlie  name  of 
the  company  Irom  whose  account  the  transfer  is  made ;  the 
name  of  the  transferee,  unless  transferred  in  blank;  and  a  de- 
scription of  the  security ; 

3.  Upon  countersigning,  to  advise  by  mail  the  company  con- 
cerned of  the  particulars  of  the  transaction  ; 

4.  In  his  annual  report  to  the  legislatui'e,  to  state  the  amount 
of  transfers  countersigned  by  him.     {Ibid,  §  17.) 

*J1.  For  the  purpose  of  verifying  the  correctness  of  records, 
the  Commissioner  is  entitled  to  free  access  to  the  treasurer's  record 
required  by  section  9,  and  the  treasurer  is  entitled  to  free  access  to 
the  books  and  other  documents  of  the  Insurance  Commissioner,  re- 
lating to  securities  held  by  the  Commissioner.     {Ibid,  §  18.) 


peovisio:ns  applicable  to  all  classes  of  com- 
panies. 

S3.  It  is  unlawful  for  insurers  or  their  agents  to  make,  nego- 
tiate, or  solicit,  within  this  State,  any  contract  of  insurance,  except 
as  authorized  in  this  act.     {Ibid,  §  19.) 

23.  No  compan}^  hereafter  organized  in  this  State  shall  make 
insurance  upon  the  lives  of  individuals,  nor  gTant,  i)urchase,  or  dis- 
pose of  annuities,  unless  organized  solely  therefor,  and  doing  such 
business  exclusively.     {Ibid,  §  20.) 

94.  No  declaration  of  organization  or  charter  of  an  insurance 
company  formed  under  any  general  law  of  this  State,  and  no  altera- 
tion or  amendment  thereof,  shall  be  operative  until  it  has  been  sub- 
mitted to  the  Attorney-General  for  examination  ;  and  found  by  him 
to  be  in  accordance  with  the  provisions  of  this  act,  and  of  such  gen- 
eral law,  and  not  inconsistent  with  the  constitution  and  laws  of  the 
United  States  and  of  this  State ;  and  so  certified  by  him,  and  de- 
livered to  the  Insurance  Commissioner.     {Ibid,  §  21.) 

25.  The  capital  stock  and  accumulations  of  any  insurance 
company  of  this  State  shall  be  invested  in  the  bonds  or  treasury 
notes  of  the  United  States,  or  national  bank  stocks,  or  bonds  of  this 
State  or  any  other  State  of  the  United  States,  or  of  any  city,  town, 
or  county  of  this  State  or  of  any  other  State  of  the  United  States 
having  legal  authority  to  issue  the  same,  bearing  interest  at  their 
market  value,  or  in  any  interest  or  dividend  paying  stocks  or  bonds 
issued  under  the  laws  of  this  State  at  their  known  market  value,  or 
they  may  be  invested  or  loaned  on  mortgages  of  unencumbered  real 
estate  in  this  or  any  other  State  of  the  United  States,  worth  at  least 
double  the  amount  loaned  thereon,  exclusive  of  buildings,  except 
when  such  buildings  are  insured  and  the  policies  duly  assigned  as 
additional  security ;  or  loaned  on  pledges  of  any  of  the  securities 
named  in  this  section;  Provided,  always,  That  the  current  market 
value  of  such  pledged  securities  shall  be  at  all  times  during  the  con- 
tinuance of  such  loans  at  least  twenty  per  cent,  more  than  the  sum 
loaned  on  them,  and  all  such  loans  are  subject  to  the  power  of  the 
company  to  terminate  the  same  in  case  of  depreciation  of  the  se- 
curities below  the  limit ;  and  Provided,  That  in  all  investments  made 
upon  mortgage  securities  the  evidence  of  the  debt  shall  accompany 
the  mortgage  or  deed  of  trust.  No  dividends  shall  be  paid  except 
from  surplus  in  excess  of  the  minimum  capital  stock  requued  by 
law,  reserve  fund  for  reinsurance  of  policies,  and  other  liabilities  of 


MINNESOTA.  451 

the  company.  But  this  section  shall  not  be  construed  to  affect  the 
power  of  a  company  to  make  dividends  not  impairing  its  capital 
and  its  reserve.     [Ibidj  p.  485,  §  22.) 

26.  Before  any  insurance  company  of  this  State  shall  do  any 
business,  the  Insurance  Commissioner  shall  cause  an  examination 
to  be  made,  either  by  himself  or  a  disinterested  person  appointed 
by  him  for  that  purpose,  who  shall  certify,  under  oath,  that  the 
capital  herein  required  of  the  company  named  in  the  charter,  ac- 
cording to  the  nature  of  the  business  proposed  to  be  transacted  by 
such  company  has  been  paid  in  in  money,  and  invested  in  such  se 
curities  as  are  required  by  section  four  of  this  title.     {Ibid,  §  23.) 

27.  Before  any  insurance  company  shall  commence  business 
in  this  State,  the  following  conditions  must  be  complied  with : 

1.  It  must  be  fully  organized. 

2.  If  it  be  a  company  not  of  this  State,  a  coi^y  of  its  charter, 
duly  accepted,  or  its  declaration  of  organization  or  deed  of  set- 
tlement, duly  approved,  in  section  3,  and  duly  certified  by  the 
Insurance  Commissioner  or  other  proper  officer  of  his  own  State 
or  nation,  with  his  certificate  that  the  company  is  entitled  to 
assume  risks  and  issue  policies  therein,  together  with  the  stip- 
ulation respecting  service  of  process  in  this  State,  required  by 
section  21,  of  this  title,  and  a  statement  of  the  place  where  it  is 
located,  must  be  filed  with  the  Insurance  Commissioner  of  this 
State. 

3.  It  must  procure  from  the  Insurance  Commissioner  of  this 
State  a  certificate  that  it  has  complied  with  the  provisions  of 
the  law  of  this  State  applicable  to  it,  and  is  entitled  to  assume 
risks  and  issue  policies  in  this  State.     {Ibid,  §  24.) 

28.  No  person  shall  act  as  agent,  in  this  State  for  any  com- 
pany not  of  this  State,  in  any  manner  whatever  relating  to  risks, 
until  the  last  section  has  been  complied  with  on  the  part  of  the  com- 
pany, and  he  has  received  from  the  Insurance  Commissioner  a  cer- 
tificate of  authority,  stating  that  the  foregoing  requirements  have 
been  complied  with,  a  record  of  which  certificate  shall  be  kept  in 
the  office  of  the  Commissioner.  A  renewal  certificate  must  be  jjro- 
cured  and  filed  within  sixty  days  from  the  first  day  of  January  in 
each  year.  Any  such  person  or  agent  doing  or  attempting  to  do 
business  in  any  way  relating  to  insurance  in  this  State  without  such 
certificate  of  authority,  in  violation  of  this  section,  or  after  said  cer 
tiflcate  shall  have  been  revoked,  shall  be  deemed  guilty  of  a  misde- 
meanor, and  upon  conviction  thereof,  shall  be  fined  in  a  sum  not 
exceeding  five  hundred  dollars  for  each  offense.     {Ibid,  §  25.) 

29.  Every  insurance  company  or  agent  thereof  doing  business 
in  this  State,  shall,  in  all  advertisements  of  such  company  or  agency, 
publish  the  location  of  the  company,  giving  the  name  of  the  city, 
town,  or  village  in  which  the  company  is  located,  and  the  State  or 
government  under  the  laws  of  which  it  is  organized,  and  in  all  ad- 
vertisements and  circulars  in  which  the  capital  of  the  company  so 
advertising,  is  stated,  the  amount  at  risk  on  the  preceding  31st  of 
December  shall  be  stated.     {Ibid,  §  26.) 

30.  It  is  unlawful  for  any  insurance  company  of  this  State  to 
purchase,  hold,  or  convey  real  estate  anywhere,  and  for  any  other 
insurance  company  to  purchase,  hold,  or  convey  real  estate  within 
this  State,  except  for  the  purposes  and  in  the  manner  and  time  fol- 
lowing : 


452  hine's  insurance  statutes. 

1.  Such  as  shall  be  requisite  for  its  accommodation  in  the 
transaction  of  its  business;  or, 

2.  Such  as  shall  have  been  mortgaged  to  it  in  good  faith,  by 
way  of  security  for  loans  previously  contracted  or  for  moneys 
due;  or, 

3.  Such  as  shall  have  been  conveyed  to  it  in  satisfaction  of 
debts  previously  contracted  in  the  course  of  its  dealings ;  or, 

4.  Such  as  shall  have  been  purchased  at  sales  upon  judg- 
ments, decrees,  or  mortgages  obtained  or  made  for  such  debts. 

Keal  estate  lawfully  acquired  as  aforesaid,  and  not  necessary  for 
the  accommodation  of  the  company  in  the  transaction  of  its  busi- 
ness, shall  be  sold  and  divsposed  of  within  five  years  after  its  acquir- 
ing title  to  the  same ;  unless  the  company  procures  a  certificate 
from  the  Insurance  Commissioner  that  the  interests  of  the  company 
will  siifter  materially  by  a  forced  sale  thereof,  and  extending  the 
time  for  the  sale  to  a  period  fixed  in  said  certificate.  Any  company 
of  a  State  in  which  the  provisions  of  law  contained  in  this  act  shall 
be  in  force,  may  purchase,  hold,  and  convey  real  estate  within  this 
State,  or  any  other  of  the  said  States,  for  the  purposes  and  in  the 
times  and  manner  above  provided  for.     {Ibid,  §  27.) 

31 .  Every  insurance  company  having  deposited  security  [ies] 
with  the  Insurance  Commissioner,  whether  under  this  act  or  any 
other,  must  by  its  president,  secretary,  or  attorney,  examine  the  se- 
curities and  compare  them  with  the  books  of  the  Commissioner, 
once  or  more  in  each  calendar  year,  at  such  times,  in  or  dimng  busi- 
ness hours,  as  the  company  may  direct,  and  if  found  correct,  give 
the  Commissioner  a  written  acknowledgment  that  the  same,  designa- 
ting the  kind,  and  amounts,  are  in  his  custody  at  the  date  of  the 
acknowledgment.     {Ibid,  §  28.) 

;{S.  If  any  insurance  company  doing  business  in  this  State, 
shall  violate  any  of  the  i)ro visions  of  this  act,  or  shall,  by  means  of 
any  advertisement,  circular,  notice,  or  statement,  printed  or  written, 
published,  j)osted,  or  circulated  through  and  by  the  agency  of  any 
officer,  agent,  or  other  person,  or  by  any  other  means,  falsely  repre- 
sent or  hold  out  to  the  public  that  the  capital  stock  of  such  company 
is  greater  than  its  actual  amount,  or  that  the  accumulation  of  such 
company  is  greater  than  its  actual  cash  or  market  value,  every  di- 
rector, officer,  or  agent  of  such  company  guilty  of  any  willful  par- 
ticipation therein,  shall  be  deemed  guilty  of  a  misdemeanor,  and  on 
conviction  thereof  shall  be  punished  by  a  fine  not  exceeding  one 
thousand  dollars,  or  by  imprisonment  in  the  county  jail  not  exceed- 
ing three  months,  or  by  both  such  fine  and  imprisonment,  in  the  dis- 
cretion of  the  court ;  and  if  any  such  c;)mpany,  after  any  such  false 
advertisement,  posted  or  circulated,  shall  receive  any  money,  note, 
or  obligation  for  the  payment  of  money  from  any  person,  as  a  con- 
sideration for  any  insurance  made,  or  policy  issued,  or  to  be  issued 
hj  such  company,  such  money,  note,  or  obligation  shall  be  deemed 
and  taken  to  have  been  received  without  consideration  and  the  di- 
rectors of  such  company,  and  any  officer  or  agent  receiving  the 
same,  shall  be  jointly  and  severally  liable  in  a  civil  action  for  the  re- 
payment thereof,  and  shall  also,  in  like  manner  be  liable  to  the  per- 
son  insured  for  the  amount  of  the  premium  paid.  {Ibid,  p.  487,  1 
§  29.)  i 

33.     Every  insurance  company  doing  business  in  this  State 
must  transmit  to  the  Insurance  Commissioner  a  statement  of  its  I 
condition  and  business  for  the  year  ending  on  the  preceding  31st  of 


MINNESOTA.  453 

December,  whicli  statement  sliall  be  rendered  within  sixty  days 
thereafter,  except  that  foreign  companies  shall  transmit  their  state- 
ment of  business,  other  than  that  done  in  the  United  States  ])rior  to 
the  following  first  day  of  July.  Such  statement  must  be  published 
at  least  tliree  times  in  some  newspaper  of  general  circulation,  j)rinted 
and  published  either  at  the  capital  of  the  State  or  in  the  county 
where  the  State  agency  of  such  insurance  company  is  located. 
Statements  for  i)ublication  shall  be  made  out  on  the  blanks  fur- 
nished by  the  Insurauoe  Commissioner  and  under  his  direction, 
and  the  Insurance  Commissioner's  certiflcats  of  authority  to 
do  business  in  the  State  shall  be  published  in  connection  with  the 
said  statement  of  such  [each]  company  doing  business  in  this  State; 
proof  of  publication,  to  wit:  the  printer's  affidavit  of  the  fact,  shall 
be  filed  with  the  Insurance  Commissioner  in  all  cases.  {Ibid,  §  30, 
as  amended  by  laics  q/'lSTI,  p.  139.) 

34.     The  annual  statements  required  by  the  last  section  must 
be  in  form,  and  state  the  particulars  as  follows  : 

First. — The  amount  of  the  capital  stock  of  the  company  actually 
paid  in. 

Second. — The  property  or  assets  held  by  the  company,  specify- 
ing: 

1.  The  value,  as  nearly  as  may  be,  of  the  real  estate  held  by 
said  company. 

2.  The  amount  of  cash  on  hand  and  deposited  in  banks  to  the 
credit  of  the  company,  specifying  in  what  banks  the  same  are 
deposited. 

3.  The  amount  of  cash  in  the  hands  of  agents,  and  in  course 
of  transmission. 

4.  The  amount  of  loans,  secured  by  mortgages  and  bonds, 
constituting  the  first  lien  on  real  estate,  on  which  there  shall 
be  less  than  one  year's  interest  due  or  owing. 

5.  The  amount  of  loans  on  which  interest  shall  not  have  been 
paid  within  one  year  i)revious  to  such  statement. 

6.  The  amount  due  the  company  on  which  judgments  have 
been  obtained. 

7.  The  amount  of  stocks  of  this  State,  of  the  United  States, 
of  any  incorporated  city  of  this  State,  and  of  any  other  bonds 
or  stocks  owned  by  the  company,  specifying  the  amount,  num- 
ber of  shares,  and  par  and  market  value  of  each  kind  of  stock 
on  the  day  of  making  statement. 

8.  The  amount  of  stocks  held  thereby  as  collateral  security 
for  loans,  with  the  amount  loaned  on  each  kind  of  stock,  its  iiar 
value  and  market  value  on  day  of  making  statement. 

9.  Amount  of  interest  due  and  accrued  not  paid. 
Third. — The  liabilities  of  such  company,  specifying : 

1.  The  amount  of  losses  due  and  yet  unpaid. 

2.  The  amount  of  claims  for  losses  resisted  by  the  company. 

3.  The  amount  of  losses  incurred  during  the  year,  including 
those  claimed  and  not  yet  due,  and  including  the  probable 
amount  of  those  reported  to  the  comi)any,  upon  which  no  ac- 
tion has  been  taken ;  Provided,  That  all  such  losses  incurred  in 
the  State  of  Minnesota  shall  be  reported  separately  and  apart 
from  those  incurred  in  any  other  State  or  country. 

4.  The  amount  of  dividends  declared  and  due,  and  remaining 
unpaid. 

5.  The  amount  of  dividends,  if  any,  declared  but  not  yet  due. 


454  niNE'S  INSUEANCE   STATUTES. 

6.  The  amount  of  money  borrowed,  and  security,  if  any,  given 
for  the  payment  thereof. 

7.  All  other  existing  claims  against  the  company. 

8.  The  gross  amoimt  of  risks  taken  during  the  past  year. 

9.  The  amount  of  risks  taken  in  the  State  of  Mnnesota  dur- 
ing the  past  year. 

10.  The  whole  amount  of  risks  outstanding. 

11.  The  amount  of  outstanding  risks  in  the  State  of  Minne- 
sota. 

12.  The  whole  amount  of  unearned  premiums  on  outstanding 
risks. 

13.  The  amount  of  unearned  premiums  on  outstanding  risks 
in  the  State  of  Minnesota. 

Fourth. — The  income  of  the  comi^any  during  the  preceding  year, 
specifying : 

1.  The  whole  amount  of  cash  premiums  received. 

2.  The  amount  of  i)remiums  received  on  policies  issued  in  the 
State  of  Minnesota. 

3.  The  whole  amount  of  interest  money  received. 

4.  The  amount  of  interest  money  received  on  loans  in  the 
State  of  Minnesota. 

5.  The  whole  amount  of  income  received  from  other  sources. 
Fifth. — The  expenditures  during  the  preceding  year,  specifying: 

1.  The  whole  amount  of  losses  paid  during  the  past  year, 
stating  how  much  of  the  same  accrued  prior,  and  how  much 
subsequent,  to  the  date  of  the  preceding  statement,  and  the 
amount  at  which  losses  were  estimated,  in  such  preceding  state- 
ment. 

2.  The  amount  of  losses  paid  upon  risks  taken  in  the  State 
of  Minnesota,  during  the  past  year,  stating  how  much  of  the 
same  accrued  prior,  and  how  much  subsequent,  to  the  date  of 
the  preceding  statement,  and  the  amount  at  which  losses  were 
estimated  in  such  preceding  statement. 

3.  The  amount  of  dividends  paid  during  the  past  year. 

4.  The  whole  amount  of  salaries  paid  officers  and  agents  of 
the  company. 

5.  The  amount  of  salaries  paid  officers  and  agents  employed 
in  the  State  of  Minnesota. 

6.  The  whole  amount  of  commissions  and  fees  paid  officers 
and  agents. 

7.  The  amount  of  commissions  and  fees  paid  officers  and 
agents  emi)loyed  in  the  State  of  Minnesota. 

8.  The  whole  amount  of  all  and  any  other  expenses  not  herein 
enumerated. 

9.  The  amount  of  taxes  paid,  specifying  separately  and  apart 
the  amount  paid  in  this  State. 

10.  The  amount  of  fees  of  all  and  every  kind  paid  the  Treas- 
urer of  the  State  of  Minnesota,  specifying  date,  for  what  pur- 
poses, and  amount. 

Sixth.— ThOi  number  of  agents  and  other  officers  employed  in  the 
State  of  Minnesota.     {Ibid,  §  31.) 

35,  The  Insurance  Commissioner  may  requiie,  at  any  time, 
statements  from  any  company  doing  business  within  this  State,  or 
any  of  its  officers  or  agents,  on  such  points  as  he  deems  necessary 
and  proper  to  elicit  a  full  exhibit  of  its  business  and  standing. 
{Ibid,  p.  489,  §  32.) 


MINNESOTA.  455 

36.  The  statement  required  under  this  act  must  be  verified  by 
the  signature  and  oath  of  tbe  president  or  vice-president,  with 
those  of  the  secretary  or  actuary ;  or  by  those  of  a  majority  of  the 
directors.     [Ibid,  §  33.) 

37.  No  company  having  neglected  to  file  a  statement  required 
from  it,  within  the  time  and  in  the  manner  prescribed,  shall  do  any 
new  business,  after  a  notification  by  the  Commissioner,  while  such 
neglect  continues.     (Ibid,  §  34.) 

38.  Any  company  willfully  neglecting  to  make  and  transmit 
any  statement  required  shall  forfeit  one  hundred  dollars  for  each 
day's  neglect.     {Ibid,  §  35.) 

39.  Any  company  or  person  willfully  making  a  false  statement 
in  any  report  to  the  Commissioner  is  liable  to  a  penalty  of  five  hun- 
dred dollars,  which  sum  must  be  paid  to  the  Commissioner,  in  de- 
fault of  which  the  certificate  of  authority  shall  be  revoked.  {Ibid, 
§36.) 

40.  The  Insurance  Commissioner  has  authority  to  prevent 
publication  of  any  part  of  the  statement,  made  under  this  article, 
until  his  annual  report  to  the  legislature  is  made.     {Ibid,  §  37.) 

41.  Every  receiver  or  other  judicially  appointed  trustee  of  an 
insurance  company  of  this  State,  must  make  the  statements  required 
under  this  article,  and  all  the  provisions  of  this  article  shall  apply 
to  such  receivers  or  trustees.     (Ibid,  §  38.) 

43.  No  American  company  not  of  this  State,  nor  its  agents, 
shall  do  business  in  this  State  until  it  has  filed  with  the  Insurance 
Commissioner  a  written  agreement,  under  the  seal  of  the  company, 
signed  by  the  president  and  secretary  thereof,  and  agreeing  upon 
the  part  of  the  company  that  service  of  process  in  any  civil  action 
against  the  company  may  be  made  upon  such  agent  or  agents  as 
it  shall  designate  in  said  agreement,  and  authorizing  such  agent  or 
agents,  for  and  in  behalf  of  such  company,  to  admit  such  service  of 
process  upon  him  or  them,  and  agreeing  that  the  service  of  process 
upon  such  agents  shall  be  valid  and  binding  upon  the  company  as 
if  made  upon  the  president  and  secretary  thereof.  No  foreign  insur- 
ance company,  nor  its  agents,  shall  do  business  in  this  State  until 
it  has  filed  with  the  Insurance  Commissioner  of  this  State  a  wiitten 
stipulation,  duly  authenticated  by  the  company,  agreeing  that  any 
legal  process  affecting  the  company,  served  on  the  Insurance  Com- 
missioner, shall  have  the  same  effect  as  if  served  personally  on  the 
company  within  this  State.  Any  such  foreign  company  may,  at  its 
option,  explicitly  designate  in  its  stipulation  its  principal  office  or 
agency  in  this  State,  and  in  such  case  the  stipulation  may  be  that 
any  legal  process  served  on  the  Insurance  Commissioner,  and  also 
on  the  person  in  charge  at  such  office  at  the  time  when  service  is 
made,  shall  have  the  same  effect  as  if  served  personally  on  the 
company,  and  that  if  there  be  no  person  in  charge,  or  if  he  keeps 
himself  concealed,  or  avoid  service,  such  process  may  be  served  on 
him,  or  at  such  office,  by  publication,  or  posting,  or  otherwise,  in 
the  manner  which  shall  then  be  prescribed  by  the  law  of  this  State 
for  substituted  service,  and  that  if  such  company  slioidd  cease  to 
maintain  such  office  in  this  State  so  designated,  such  process  may 
thereafter  be  served  on  the  Insurance  Commissioner  alone.  {Ibid, 
§  39.) 

43.  So  long  as  any  liability  of  the  stipulating  company  to  any 
resident  of  this  State  continues,  such  stipulation  cannot  be  revoked 
or  modified,  except  that  a  new  one  may  be  substituted  so  as  to  re- 


456  niNE'S  INSrKANCE  STATUTES. 

quire  or  dispense  "with  ser\aee  at  the  office,  or  to  change  the  designa- 
tion of  such  office.     {Ibid,  p.  490,  §  40.) 

44.  Service  of  process,  according  to  a  stipulation  under  section 
21  [42],  shall  be  sufficient  personal  service  on  the  company.  A  copy 
of  such  stipulation  certified  by  the  Commissioner  and  his  certificate 
of  revocation  or  modification  of  such  stipulation,  tliat  a  company 
has  no  office  within  the  State  duly  designated  by  such  stipulation, 
and  that  process  has  been  duly  served  on  him,  or  either  of  such 
facts,  shall  be  sufficient  evidence  thereof.     {Ibid,  §  41.) 

4»^,  When  process  against  or  affecting  an  insurance  company 
is  served  on  the  Insurance  Commissioner,  he  must  file  the  same, 
and  forthwith  mail  a  certified  copy  to  the  company  at  its  home  office, 
postage  prepaid.     {Ibid,  §  42.) 

46.  The  term  "process"  in  this  act  includes  any  writ,  sum- 
mons, or  order,  whereby  any  action,  suit,  or  proceeding  shall  be 
commenced,  or  which  shall  be  issued  in  or  upon  any  action,  suit,  or 
proceeding.     {Ibid,  §  43.) 

47.  Whenever  a  judgment  for  the  recovery  of  money  has  hereto- 
fore been  or  hereafter  may  be  recovered  in  any  of  the  courts  of  this 
State  or  in  any  of  the  courts  of  the  United  States  having  jurisdiction 
in  this  State,  against  any  insurance  company  or  against  any  associa- 
tion, partnershii),  firm,  or  individual  engaged  in  the  business  of  in- 
surance, and  holding  a  certificate  of  authority  therefor  from  the 
State  Treasurer,  under  the  laws  of  the  State,  or  from  the  Insurance 
Commissioner  under  this  act,  and  an  execution  thereon  is  issued 
and  duly  returned  unsatisfied  in  whole  or  in  part,  proof  is  made  by  any 
person,  by  filing  with  the  Insurance  Commissioner  a  certified  tran- 
script of  the  docket  of  such  judgment,  together  with  a  certificate  of 
the  clerk  of  the  court  in  the  county  where  the  judgment-roll  in  said 
action  is  filed  and  the  judgment  therein  is  docketed,  that  an  execu- 
tion has  been  issued  on  such  judgment  to  the  proper  officer  of  such 
county  and  returned  unsatisfied  in  whole  or  in  part,  and  with  the 
date  of  issuing  and  return,  the  Insurance  Commissioner  shall  forth- 
with revoke  all  authority  or  license  for  the  transaction  of  any  kind 
of  insurance  business  within  this  State  conferred  upon  such  insur- 
ance company,  association,  partnership,  firm,  or  individual,  by  any 
certificate  therefor,  granted  by  said  Commissioner  to  such  company, 
association,  partnership,  firm,  or  individual,  under  the  provisions  of 
this  act,  and  shall  withhold  therefrom  any  new  certificate  of  author- 
ity, such  as  is  contemplated  herein,  until  such  judgment  so  docketed 
against  such  company,  association,  partnership,  firm,  or  individual, 
is  wholly  paid  and  satisfied,. and  proof  thereof  filed  with  such  Com- 
missioner by  the  official  certificate  of  the  clerk  of  the  comt  in  the 
county  where  the  judgment-roll  is  filed  and  judgment  docketed, 
showing  that  the  same  is  satisfied  of  record,  and  until  the  expenses 
and  fees  incurred  in  the  case  under  the  pro\isions  of  this  title  are 
also  paid  by  such  company,  association,  partnership,  firm,  or  individ- 
ual; and  the  Insurance  Commissioner  shall  also  forthwith  cause 
notice  of  such  revocation  of  authority  to  be  published  in  some  daily 
newspaper,  i)rinted  and  published  at  the  capital  of  the  State  for  at 
least  one  week ;  and  during  the  time  such  authority  or  license  re- 
mains so  revoked  it  shall  be  unlawful  for  the  company,  association, 
partnership,  firm,  or  indi^idual  holding  such  revoked  certificate  of 
authority,  or  any  of  its  agents  or  officers,  to  issue  or  renew  any 
policies  of  insurance,  take  any  risks,  or  transact  any  business  relat- 


MINNESOTA.  457 

ing  to  insurance,  except  sucli  as  is  absolutely  necessary  in  closing 
up  its  affairs  in  this  State.     {Ibid,  §  44.) 

4H.  All  duties  heretofore  required  to  be  performed  by,  or  re- 
sponsibility imposed  upon,  the  State  Treasurer  of  this  State  under 
the  existing  laws  regulating  insurance  companies,  shall  hereafter 
be  ])erformed  by  the  Insurance  Commissioner,  so  far  as  such  duties 
and  responsibilities  are  not  changed,  modified  or  repealed  by  this 
act.     (IfcjV?,  p.  491,  §  45.) 

49.  All  insurance  companies  doing  business  in  this  State,  un- 
der the  provisions  of  this  act,  shall  annually,  at  the  time  the  certifi- 
cate of  authority  is  granted,  pay  the  Treasiu-er  of  State  two  per 
cent,  on  all  premiums  received  in  cash,  and  other  obligations,  ex- 
cept what  are  denominated  insurance  deposit  notes,  rei)resenting 
dividends  of  the  company,  by  their  agents  or  attorneys  in  this  State 
duiing  the  year  ending  on  the  preceding  thirty  first  day  of  Decem- 
ber, which  sum  shall  be  paid  into  the  general  revenue  fund,  and 
shall  be  in  lieu  of  all  other  taxes  or  licenses  to  be  collected  from 
said  companies  in  this  State.     {Ibid,  §  46.) 

50.  Agents  or  employees  of  any  insurance  company  doing 
business  in  this  State,  appointed  or  authorized  to  solicit  for  applica- 
tions for  insurance,  to  issue  policies,  to  collect  premiums  on  the 
same,  to  adjust  losses,  or  to  transact  any  other  duties  or  business 
for  such  companies,  shall  be  held  personally  responsible  to  such 
company  for  any  moneys  or  property  received  by  them  for  such 
company  ;  and  in  case  any  such  agent  or  emj^loyee  shall  embezzle 
or  fraudulently  convert  to  his  own  use,  or  shall  take  or  secrete,  with 
intent  to  embezzle  and  convert  to  his  own  use,  without  the  consent 
of  such  company,  any  money  or  other  property  belonging  to  such 
company,  which  he  shall  have  collected  or  which  shall  otherwise 
come  into  his  possession,  or  shall  be  under  his  care  or  control  by 
virtue  of  such  agency  or  employment,  or  shall  receive  any  consider- 
ation other  than  such  allowed  by  the  company  for  which  he  is  acting, 
in  the  settlement  or  adjustment  or  jjayment  of  a  loss,  Avith  intent  to 
defraud  either  said  company  or  any  insurer,  he  shall  be  deemed 
guilty  of  the  crime  of  larceny,  and  on  conviction  therefor  shall  be 
subject  to  the  fines  and  penalties  provided  by  statute  for  the  pun- 
ishment of  larceny.      {Ibid,  §  47.) 

51.  If  any  person  or  persons  insured  in  any  company  doing 
business  in  this  State  as  provided  in  this  act,  shall  willfully  make 
any  false  statement,  under  oath,  in  making  any  claim  or  proof  of 
loss,  as  required  by  said  company,  they  shall  be  deemed  guilty  of  a 
felony,  and  shall  suifer  the  pains  and  penalties  of  perjury  as  pro- 
vided by  the  laws  of  this  State.     {Ibid,  §  48.) 


FIRE  INSURANCE  COMPANIES. 

52.  No  joint  stock  fire  insui^ance  company  shall  be  organized 
in  this  State  unless  it  has  one  hundred  thousand  dollars  capital.  No 
joint-stock  fire,  inland,  or  marine  insurance  company  of  any  other 
State  or  nation  shall  do  business  in  this  State  unless  it  has  at  least 
two  hundred  thousand  dollars  capital.  {Ibid,  p.  492,  §  49,  amended 
by  laws  of  1814:,  p.  13S.) 

53.  No  mutual  fire  insurance  company  not  of  this  State  shall 
do  business  in  this  State.     {Ibid,  §  50.) 

54.  No  fire  or  inland  insurance  company  of  this  State,  or  doing 


458  hike's  insurance  statutes. 

business  in  this  State,  shall  expose  itself  to  any  loss  on  any  one  fire 
or  inland  navigation  risk  or  hazard,  either  by  one  or  more  policies, 
to  [an]  amount  exceeding  five  per  cent,  of  its  paid  up  capital  in  the 
case  of  a  fire,  or  ten  per  cent,  in  the  case  of  an  inland  insurance 
company,  whether  reinsured  or  not.     {Ibid,  §  51.) 

55.  No  fire  insurance  company  shall  make  any  dividend,  ex- 
cept from  the  surplus  profits  arising  from  its  business.  In  estima- 
ting such  profits,  there  shall  be  reserved  therefrom  : 

1.  A  sum  equal  to  the  whole  amount  of  premiums  on  unex- 
pired risks  and  policies,  which  are  hereby  declared  to  be  un- 
earned premiums ; 

2.  All  sums  due  the  company  on  bonds  and  mortgages,  bonds, 
stocks,  and  book  accounts,  of  which  no  part  of  the  principal, 
nor  the  interest  thereon,  has  been  paid  during  the  preceding 
year,  and  for  which  foreclosure  or  suit  has  not  been  commenced, 
or  which,  after  judgment  obtained  thereon,  shall  have  remained 
more  than  two  years  unsatisfied,  and  on  which  interest  shall 
not  have  been  i)aid ;  and, 

3.  All  interest  due  or  accrued  and  remaining  unpaid. 
Provided,  That  any  company  may  declare  dividends  not  exceed- 
ing fifteen  per  cent,  on  its  capital  stock,  in  any  one  year,  that  pos- 
sesses an  accumulated  fund  in  addition  to  the  amount  of  its  capital 
stock,  and  of  such  di\idend,  and  all  actual  outstanding  liabilities 
equal  to  one-half  the  amount  of  all  premiums  on  risks  not  termi- 
nated at  the  time  of  making  such  dividend.  Any  dividend  made 
contrary  to  this  section  shall  subject  the  company  making  the  same 
to  a  forfeiture  of  its  charter  and  each  stockholder  receiving  it  to  a 
liability  to  the  creditors  of  such  company,  to  the  extent  of  the 
dividend  received,  besides  the  other  penalties  and  punishments 
prescribed  by  law.  This  section  shall  not*ai)ply  to  the  declaration 
of  scrip  di^ddends  by  participating  companies ;  but  no  such  scrip 
dividends  shall  be  paid,  except  from  sm-plus  profits  after  reserving 
all  sums  as  above  provided,  including  the  whole  amount  of  pre- 
miums on  unexpired  risks.  The  word  "  year,"  wherever  used  in 
this  section,  shall  be  construed  to  mean  the  calendar  vear.  (7  bid, 
§  52.) 

50.  Any  joint  stock  fire  insurance  company  may  (upon  the 
written  consent  of  the  holders  of  three-fourths  in  amount  of  the 
stock)  permit  the  insured  to  participate  in  the  profits  of  its  business, 
and  provide  how  far  any  scrip,  issued  to  the  insured  for  such  profits, 
shall  be  liable  for  the  losses  to  be  sustained ;  and  any  company  so 
doing,  whenever  an  amount  not  less  than  one  hundred  thousand 
dollars  has  been  accumulated,  and  scrip  so  issued  therefor,  may, 
upon  the  written  consent  of  the  holders  of  three-fourths  in  amount 
of  the  stock,  pay  off  and  cancel  an  amount  of  the  original  cash  cap- 
ital equal  to  one-half  of  the  accumulated  profits,  and  so  may  con- 
tinue from  time  to  time  until  the  whole  amount  of  the  original  cash 
capital  is  paid  off;  provided,  that  before  any  portion  of  such  capital 
stock  shall  be  so  paid  off,  proof  shall  be  exhibited  to  the  Insurance 
Commissioner  that  an  amount  of  accumulated  profits  has  been  real- 
ized, scrip  issued  therefor,  and  investment  made  thereof,  pursuant 
to  the  provisions  of  section  4  of  title  III.  of  this  act  ['25],  at  least 
equal  to  double  the  amount  so  desired  to  be  paid  off  and  canceled, 
and  the  said  Commissioner  shall  also  first  certify  that  he  is  satisfied 
with  such  proof.     {Ibid,  §  53.) 

57.    ^o  fire  insurance  company  of  any  other  State  of  the 


MINNESOTA.  459 

United  States,  in  which  the  substantial  provisions  of  this  act  shall 
be  enacted,  shall  be  required  to  make  any  deposit  in  this  State. 
{Ibid,  p.  493,  §  54.) 

58.  ^o  foreign  fire  insurance  company  shall  do  business  in 
this  State,  unless  it  has  on  deposit  with  the  Commissioner  of  this 
State,  for  the  benefit  of  all  its  policy-holders  in  the  United  States, 
the  sum  of  two  hundred  thousand  dollars  invested  and  valued  as 
prescribed  in  section  4  of  title  III.  [^5],  or  unless  it  has  complied 
with  the  next  section.     {Ibid,  §  55.) 

59.  A  foreign  fire  insurance  company,  which  has  its  principal 
office  in  the  United  States  in  any  State  where  the  provisions  of  law 
contained  in  this  act  shall  be  in  force,  may  file  with  the  Insurance 
Commissioner  of  this  State  a  certificate  made  by  the  Insurance 
Commissioner  of  such  other  State,  that  he  holds  a  deposit  made  by 
such  company,  such  as  is  described  in  the  last  section.  No  deposit 
shall  be  required  in  this  State  from  such  company  while  the  deposit 
so  certified  remains  sufficient.     {Ibid,  §  56.) 

60.  No  foreign  insurance  company  shall  make  any  contract 
of  insurance  against  loss  or  damage  by  fire  or  inland  navigation 
risks,  nor  expose  itself  to  any  such  loss  by  any  one  risk,  for  any 
greater  amount  in  proportion  to  its  capital,  as  determined  by  the 
following  provisions,  than  companies  of  this  State  may.   {Ibid,  §  57.) 

61.  For  the  purj)oses  of  this  act  the  capital  of  any  foreign 
insurance  company,  doing  fire  insurance  business  in  this  State, 
shall  be  deemed  to  be  the  aggregate  value  of  its  deposits  with  the 
insurance  or  other  departments  of  this  State,  and  of  the  other 
States  of  the  United  States,  for  the  benefit  of  policy-holders  in  any 
such  State,  or  in  the  United  States,  and  its  assets  and  investments 
certified  according  to  the  provisions  of  this  act  in  the  United 
States,  after  making  the  same  deductions  therefrom  for  losses  and 
all  liabilities  within  the  United  States,  and  for  premiums  on  unex- 
pired risks  as  are  made  in  the  case  of  companies  of  this  State ;  pro- 
vided that  such  assets  and  investments  be  vested  in  and  held 
within  the  United  States  by  trustees,  citizens  of  the  United  States, 
appointed  by  the  Board  of  Directors  of  the  company,  and  approved 
by  the  Insurance  Commissioner  of  the  State  where  invested  for  the 
benefit  of  the  policy-holders  and  creditors  in  the  United  States. 
The  trustees  so  chosen  are  hereby  empowered  to  take,  hold  and 
convey  real  and  personal  property  for  the  purposes  of  the  trust, 
subject  to  the  same  restrictions  as  insurance  companies  of  this 
State.     {Ibid,  §  58.) 

62.  The  annual  certificate  of  the  Insurance  Commissioner, 
given  to  any  foreign  fire  insurance  company  [or]  its  agents,  within 
this  State,  under  section  8,  [59]  must  state  the  amount  of  capital 
of  the  company,  ascertained  by  him  as  defined  in  the  last  section. 
{Ibid,  §  59.) 

63.  All  the  provisions  contained  in  this  title  respecting  fire 
insurance  companies,  shall  apply  to  companies  doing  an  inland 
insurance  business,  so  far  as,  from  the  nature  of  the  business 
of  inland  insurance,  the  same  may  be  applicable.  {Ibid,  p.  494, 
§60.) 

64.  Any  fije  insurance  company  already  organized  under  the 
laws  of  this  State  and  doing  a  farm  business  only,  may  continue  to 
do  such  business  by  possessing  twenty-five  thousand  dollars  invest- 
ed by  deposits  in  national  banks  or  as  provided  in  section  4,  title  3 
of  this  act,  [S5]  and  comx>ly  with  the  other  provisions  of  this  act, 


460  HINE's  rNSURANCE   STATUTES. 

SO  far  as  applicable,  but  sliall  be  exempt  from   complying  with 
section  28,  title  3,  [-19]  and  section  3,  title  2,  [14].     {Ibid,  §  61.) 


LIFE  INSURANCE  COMPANIES. 

6^.  No  life  insurance  company  shall  be  organized  or  do  busi- 
ness in  this  State,  unless  it  has  at  least  one  hundred  thousand 
dollars,  capital  or  assets,  invested  as  provided  in  this  act.  {Ibid, 
§62.) 

©6.  No  life  insurance  company  of  this  State  shall  do  business 
in  this  State  or  elsewhere,  and  no  other  life  insurance  company, 
except  as  provided  in  section  13  of  this  title,  shall  do  business  in 
this  State,  unless  it  has  on  deposit  with  the  Insurance  Commis- 
sioner or  other  financial  officer  of  tbis  State,  as  security  for  all  its 
policy-holders,  stocks  or  bonds  of  this  State  or  of  the  United  States 
to  an  amount  the  actual  market  value  of  which,  exclusive  of 
interest,  shall  never  be  less  than  one  hundred  thousand  dollars, 
which  stock  or  bonds  shall  be  retained  by  the  Commissioner  or 
other  designated  officer  and  disposed  of  as  directed  by  law ;  Pro- 
vided, however,  That  personal  obligations,  secured  by  first  mortgages 
on  real  estate  within  this  State,  worth,  exclusive  of  all  buildings,  at 
least  double  the  amount  of  the  lien,  and  bearing  an  interest  of  not 
less  than  six  per  cent,  per  annum,  may  be  received  by  the  said 
financial  officer  of  this  State,  instead  of  bonds  or  stocks,  to  the 
amount  of  not  exceeding  fifty  thousand  dollars.     {Ibid,  §  63.) 

67.  As  long  as  any  jiolicies  of  the  depositing  company  remain 
in  force,  the  Insurance  Commissioner  shall  hold  the  deposit  men- 
tioned in  the  last  section  as  seeuritv  for  all  holders  of  its  policies. 
{Ibid,  §  64.) 

68.  Any  life  insurance  company  of  any  other  State  of  the 
United  States  in  which  the  provisions  of  law  contained  in  this  act 
shall  be  in  force,  may  file  Avith  the  Insurance  Commissioner  of  this 
State  a  certificate  of  the  Insurance  Commissioner  of  such  other 
State,  that,  as  such  officer,  he  holds  in  trust  and  on  deposit,  for  the 
benefit  of  all  the  policy-holders  of  such  company,  the  deposit  above 
described,  stating  the  items  of  the  securities  so  held ;  and  that  he 
is  satisfied  that  such  securities  are  worth  one  hundred  thousand 
dollars.  No  deposit  shall  be  required  in  this  State  while  the  said 
deposit  so  certified  remains.     {Ibid,  §  65.) 

69.  When  any  life  insurance  company,  doing  business  in  this 
State,  desires  to  relinquish  its  business,  the  Insurance  Commissioner 
shall,  on  its  application,  under  the  oath  of  the  president  or  vice- 
president,  and  secretary  or  actuary,  give  notice  of  such  intention  in 
a  public  newspaper,  published  at  the  State  capital,  at  least  twice  a 
week  for  six  months ;  and  after  such  i)ublication  he  shall  deliver  up 
to  such  company,  or  its  assigns,  any  securities  held  by  him  belong- 
ing to  it,  on  being  satisfied  by  the  exhibition  of  its  books  and  papers, 
and  on  examination,  by  himself  or  a  person  ai>pointed  by  him,  and 
upon  the  oath  of  the  president  or  vice-president,  and  the  secretary 
or  actuary  of  the  same,  that  all  liabilities  due  or  to  become  due,  on 
any  agreement  made  with  any  citizens  of  the  United  States,  are  paid 
and  extinguished.  And  the  Commissioner  may  also,  from  time  to 
time,  deliver  up  to  such  company,  or  its  assigns,  any  part  of  said  se- 
curities, on  being  satisfied  by  any  other  competent  proof  that  all 
liabilities  due,  or  to  become  due  by  any  agreement  made  by  it,  are 


MINNESOTA.  461 

less  tlian  one-half  the  amount  of  the  securities  he  still  retains.  Any 
foreign  life  insurance  company  having-  made  such  publi(;ation,  may, 
in  the  discretion  of  the  Insurance  Commissioner,  withdraw  one-half 
of  its  deposit  of  one  hundred  thousand  dollars,  on  registering, 
according  to  the  provisions  of  law  for  registered  policies,  all  its  out- 
standing policies  issued  to  citizens  or  residents  of  the  United  States, 
and  covenanting  to  maintain  unimpaired  the  reinsurance  deposit 
for  such  registered  policies  at  all  future  times,  and  specially  pledg- 
ing for  their  security  all  future  premiums  payable  on  American  poli- 
cies.    (Z&k/,  jx  495,  §  60.) 

70.  Any  life  insurance  company  of  this  State  may,  at  any 
time,  assigTi  to  the  Insurance  Commissioner  securities,  such  as  are 
described  in  section  two  [66],  to  the  amount  of  twenty-five  thou- 
sand dollars  or  more,  in  addition  to  the  deposits  required  by  that 
section,  to  be  held  by  him  in  trust  for  the  benefit  of  all  holders 
of  its  policies  and  bonds  registered  under  section  seventy  [71], 
and  not  to  be  transferred  by  him  without  the  written  ai)plication  of 
the  company,  or  its  receiver  duly  appointed,  and  for  the  purpose  of 
pajing  such  holders.     {Ibid,  §  67.) 

71.  Upon  being  furnished  by  the  depositing  company  with 
policies  and  annuity  bonds,  consecutively  numbered,  executed  by 
the  company  in  dui^licate,  each  bearing  the  words,  "  The  present 
net  value  of  this  ijolicy  is  secured  by  pledge  of  public  stocks  or 
bonds  and  mortgiiges,"  and  of  such  denominations  and  amounts  as 
the  company  may  require,  within  the  limits  prescribed  by  section 
six  [7®],  the  Commissioner  shall  register  the  same  in  books  pro- 
vided for  the  purpose,  and  countersign,  seal,  and  deliver  to  the  com- 
pany the  originals,  and  file  the  duplicates.  Mutilated  registered 
policies  and  annuity  bonds,  issued  to  a  comi)any,  shall  be  received 
back  by  the  Commissioner,  and  others  delivered  in  lieu  thereof,  of 
like  tenor  and  date  ;  and  in  case  of  lost  policies  or  bonds,  he  shall 
furnish  certified  copies  of  the  duplicates  on  file.     {Ibid,  §  68.) 

73.  Receipts  for  renewal  j)remiums  or  registered  policies  must 
be  coimtersigned  or  stamped  by  the  Insurance  Commissioner,  and 
no  policies  shall  be  marked  off  or  canceled  on  the  books  of  a  regis- 
tering company,  except  those  the  renewal  receipts  for  which  are  re- 
turned to  the  Commissioner,  or  other  proof  satisfactory  to  the  Com- 
missioner is  fiu-nished,  that  they  have  not  been  taken  or  have  ceased 
to  be  in  force.     {Ibid,  §  69.) 

751.  The  Commissioner  shall  value  the  policies  and  annuity 
bonds  chartered  under  the  last  section,  according  to  the  rules  pre- 
scribed by  section  3,  title  2  [14],  and  in  no  case  shall  the  aggregate 
amount  of  the  net  value  of  said  policies  and  bonds  issued  to  any 
company  exceed  the  value  of  the  securities  he  holds  by  its  transfer, 
as  provided  in  section  2,  title  5  [66j.  He  may,  ujjon  satisfactory 
proof  presented  in  writing  and  filed  with  him,  that  the  securities  so 
held  by  him  exceed  the  net  present  value  of  outstanding  registered 
policies  and  annuity  bonds  issued  to  the  depositing  comi)any,  allow 
it  to  withdraw  the  excess.     {Ibid,  p.  496,  §  70.) 

74.  Nothing  in  this  act  shall  be  construed  as  implying  any 
obligation  on  the  part  of  the  State  to  pay  policies  or  annuity  bonds 
of  companies,  except  as  to  the  net  value  thereof  by  a  proper  appli- 
cation of  the  securities  deposited  or  transferred  to  the  objects  de- 
clared by  the  act.     {Ibid,  §  71.) 

75.  So  long  as  any  deposit  required  by  this  article  is  kept 
good,  and  the  depositing  company  is  solvent,  the  Commissioner  may 


462  HINE'S  INSURANCE   STATUTES. 

permit  the  company  to  collect  the  interest  or  (li\i(lends  on  its  securi- 
ties so  deposited;  and  from  time  to  time  to  withdraw  any  such  se- 
curities, on  depositing  with  him  others  of  equal  value  and  like  char- 
acter.    {Ibid,  §  72.) 

76.  Any  life  iasurance  company,  organized  under  a  law  of 
Congress,  shall  elect  one  State,  in  which  its  policies  shall  be  valued, 
and  the  certificate  of  the  proper  ofiicer  of  such  State  that  such  has 
been  done,  shall  be  received  by  the  Commissioner  of  this  State,  as 
of  the  same  force  and  efiect  as  if  such  company  had  been  organized 
under  the  laws  of  such  State.  And  such  company  shall  comply  with 
the  law  of  the  State  so  selected  as  regards  the  deposit  required  to  be 
made  therein  for  the  protection  of  policy-holders ;  and  the  certificate 
of  the  Commissioner  of  such  State  that  said  deposit  has  been  duly 
made,  shall  be  received  by  the  Commissioner  of  this  State  as  of  the 
same  effect  as  if  said  company  had  been  organized  under  the  laws 
of  the  State  so  selected.     {Ibid,  §  73.) 

77.  Life  Insurance  companies  doing  business  exclusively  on 
the  mutual  plan,  are  hereby  exempted  from  the  provisions  of  sec- 
tions one  [6«SJ  and  two  [66]  of  this  title,  and  may  do  business  in  this 
State,  provided  they  have  on  hand,  exclusive  of  all  debts  and  lia- 
bilities, the  net  value  of  all  their  policies  in  force  calculated  as  pro- 
vided in  subdivision  four  of  section  three  of  title  II  of  this  act  [14], 
subject,  however,  to  all  other  regulations  and  provisions  of  this  act. 
(Ibid,  §  74.) 

MARIll^E  II^SURA:N^CE  COMPANIES. 

78.  ^o  joint-stock  marine  insurance  company  shall  hereafter 
be  organized  in  this  State,  unless  it  has  a  paid-up  capital  of  at  least 
five  hundred  thousand  dollars.     [Ibid,  §  7o.) 

79.  No  marine  insurance  company  of  any  of  the  States  in 
which  the  substantial  provisions  of  this  act  shall  be  enacted,  shall 
be  required  to  make  any  deposit  in  this  State.     {Ibid,  §  7(3.) 

80.  No  foreign  marine  iusurance  company  shall  do  business 
in  this  State,  unless  it  has  on  deposit  with  the  Commissioner  of  this 
State  the  sum  of  four  hundred  thousand  dollars  invested  and  valued 
as  prescribed  in  section  four  of  title  III.  [45],  or  unless  it  has  com- 
plied with  the  next  section.     {Ibid,  p.  497,  §  77.) 

81.  A  marine  insurance  company  of  a  foreign  nation  which 
has  its  principal  oflice  for  the  United  States  in  any  State  in  which 
the  substantial  provisions  of  this  act  shall  be  enacted,  may  file  with 
the  Insurance  Commissioner  of  this  State  a  certificate  made  by  the 
Insurance  Commissioner  of  such  other  State,  that  he  holds  a  deposit 
made  by  such  company,  such  as  is  described  in  the  last  section. 
No  deposit  shall  be  required  in  this  State  from  such  company  while 
the  deposit  so  certified  remains.     {I  bid,  §  78.) 

83.  All  acts  and  parts  of  acts  and  laws  of  this  State  now  in 
force,  inconsistent  or  in  conflict  with  the  several  provisions  of  this 
act  are  hereby  repealed ;  but  the  repeal  of  such  acts  and  laws  shall 
not  in  any  manner  afiect,  injure  or  invalidate  any  vested  rights  of 
any  insurance  company,  or  any  contracts,  suits,  rights,  claims  or 
demands  that  may  have  been  heretofore  duly  and  lawfully  issued, 
commenced,  made,  performed,  or  that  may  exist  in  favor  of  or  against 
any  insurance  company  or  other  corporation,  partnership,  firm  or 
person,  under  or  by  virtue  or  in  pursuance  of  the  said  laws  and  acts, 
or  any  of  them,  but  the  same  shall  exist,  be  in  force  and  carried  out 


MINNESOTA.  463 

as  fully  and  effectually,  to  all  intents  and  purposes,  as  if  this  act 
had  not  been  passed.     [Ibid,  §  79.) 


TOWN  INSURANCE  COMPANIES. 

8JI.  It  shall  be  lawful  for  any  number  of  persons,  not  less  than 
twenty-five,  residing  in  adjoining  towns  in  Goodhue,  Dakota,  Fill- 
more, Steele,  Le  Sueur,  Freeborn,  Wright,  Chisago,  Pine,  Kanabec, 
Meeker,  the  seventh  Senatorial  district  of  Winona  county,  and 
Dodge  county,  in  this  State,  who  collectively  shall  own  property  of 
not  less  than  twenty-five  thousand  dollars  in  value,  which  they  de- 
sire to  have  insured,  to  form  themselves  into  a  company  for  mutual 
insurance  against  loss  or  damage  by  fire  or  lightning ;  which  cor- 
poration may  sue  or  be  sued,  contract  or  be  contracted  with,  plead 
or  be  impleaded,  in  any  court  of  law  or  equity  within  the  State,  and 
shall  possess  the  usual  powers  and  be  subject  to  the  usual  duties  of 
corporations ;  and  the  corporate  name  thereof  shall  embrace  the 
name  of  the  town  in  which  the  business  ofi&ce  of  said  company  shall 
be  located.    (Laics  of  1875,  p.  106,  §  1.) 

84.  Every  company  so  formed  shall  choose  of  their  number 
not  less  than  five  nor  more  than  nine  directors  to  manage  the  affairs 
of  such  company,  who  shall  hold  their  office  for  one  year,  and  until 
others  are  elected;  and  such  directors  shall  choose  one  of  their 
number  president  and  one  secretary.     (Ibid,  p.  107.  §  2.) 

83.  The  directors  of  such  company  shall  file  their  articles  of  asso- 
ciation, together  mth  a  copy  of  their  by-laws  and  the  names  of  the 
officers  of  such  company,  in  the  clerk's  office  of  the  town  in  which 
the  office  of  such  company  is  located,  and  shall  keep  a  record  of  their 
proceedings  in  a  book  to  be  kept  for  that  purpose,  together  with  the 
names  of  all  persons  insured,  and  the  amount  each  person  is  insur- 
ed, which  record  shall  be  kept  open  for  the  inspection  of  all  the 
members  of  such  company,  from  the  hours  of  9  o'clock  A.  M.  to  4 
o'clock  P.M.  of  each  secular  day,  the  established  holidays  excepted. 
{Ibid,  §  3.) 

86.  The  directors  of  each  company  may  issue  such  policies, 
signed  by  the  president  and  secretary,  agreeing  in  the  name  of  the 
company  to  pay  all  losses  or  damages  which  may  be  sustained  by 
fire  or  Ughtning  for  a  term  not  exceeding  five  years,  by  the  holders 
of  such  policies,  and  not  exceeding  the  sum  named  in  such  policy. 
(Ibid,  §  4.) 

87.  Every  person  so  insured  shall  give  his  undertaking,  bear- 
ing even  date  with  the  policy  so  issued  to  him,  binding  himself,  his 
heirs  and  assigns,  to  pay  his  pro  rata  share  to  the  company  of  all 
losses  or  damages  by  fire  or  lightning,  which  may  be  sustained  by 
any  member  thereof,  and  every  such  undertaking  shall,  within  five 
days  after  the  execution  thereof,  be  filed  in  the  office  of  secretary  of 
such  company,  and  shall  remain  on  file  in  such  office  except  when 
required  to  be  produced  in  coiu't  as  evidence.  He  shall  also,  at  the 
time  of  effecting  such  insurance,  pay  such  percentage  in  cash,  and 
such  reasonable  sum  for  a  policy  as  may  be  required  by  the  rules  or 
by-laws  of  the  company.     {Ibid,  §  5.) 

88.  Every  member  of  such  company,  who  may  sustain  loss  or 
damage  by  fire  or  lightning,  shall  immediately  notify  the  president 
of  such  company,  or,  in  case  of  his  absence,  the  secretary  thereof, 
who  shall  forthwith  convene  the  directors  of  such  company,  whose 


464  niNE'S  INSURANCE   STATUTES. 

duty  it  shall  be,  when  so  convened,  to  ap[)oint  a  committee  of  not 
less  than  three  nor  more  than  five  members  of  such  company,  to  as- 
certain the  amount  of  such  loss  ;  and  in  case  of  tlie  inability  of  the 
parties  to  agree  upon  the  amount  of  such  damage,  the  claimant  may 
appeal  to  the  Judge  of  the  District  Court  of  such  county,  whose  duty 
it  shall  be  to  appoint  three  disinterested  persons  as  a  committee  of 
reference,  who  shall  have  full  authority  to  examine  witnesses  and  to 
determine  all  matters  of  dispute,  who  shall  make  their  award  in 
writing  to  the  president,  or,  in  his  absence,  to  the  secretary  of  such 
company,  which  award  thereon  shall  be  final.  The  said  committee 
of  reference  shall  each  be  allowed  the  sum  of  two  dollars  per  day  for 
each  day's  service  so  rendered,  and  the  sum  of  five  cents  per  mile 
for  every  mile  necessarily  traveled  in  the  discharge  of  such  duties, 
which  shall  be  paid  by  the  claimant,  unless  the  award  of  such  com- 
mittee shall  exceed  the  sum  offered  by  the  company  in  liquidation 
of  such  loss  or  damage,  in  which  case  said  expenses  shall  be  paid  by 
the  company.     {Ibid,  §  6.) 

89.  The  companies  formed  under  the  provisions  of  this  act  may 
classify  the  property  insured  at  the  time  of  issuing  policies  thereon, 
under  different  rates,  corresponding  as  nearly  as  may  be  to  the 
greater  or  less  risk  from  fire  and  loss  which  may  attach  to  each  sev- 
eral buildings  or  personal  property  insured.  Whenever  the  amount 
of  any  loss  shall  be  ascertained,  which  exceeds  in  amount  the  cash 
funds  of  the  company,  the  president  shall  convene  the  directors  of 
said  company,  who  shall  make  an  assessment  upon  all  property  in- 
sured to  the  amount  for  which  each  several  piece  of  property  intured 
in  such  company  shall  pay  to  cover  all  unpaid  losses,  taken  in  con- 
nection with  the  rate  of  i)remium  under  which  it  may  have  been 
classified.     {Ibid,  p.  108,  §  7.) 

i>0.  It  shall  be  the  duty  of  the  secretary,  whenever  such  assess- 
ment shall  have  been  completed,  to  immediately  notify  every  person 
composing  such  company,  by  letter  sent  to  his  usual  post-ofhce  ad- 
dress, of  the  amount  of  such  loss,  and  the  sum  due  from  him  as  his 
share  thereof,  and  of  the  time  when  and  to  whom  such  payment  is 
to  be  made,  but  such  time  shall  not  be  less  than  sixty  nor  more  than 
ninety  days  from  the  date  of  such  notice,  and  every  person  desig- 
nated to  receive  such  money  may  demand  and  receive  two  per  cent., 
in  addition  to  the  amount  due  on  such  assessment  as  aforesaid,  for 
his  fees  in  receiving  and  paying  over  the  same.    {Ibid,  §  8.) 

91.  Suits  at  law  may  be  brought  against  any  member  of  such 
company  who  shall  refuse  or  neglect  to  pay  any  assessment  made 
upon  them  by  the  provisions  of  this  act,  and  the  directors  of  any 
company  so  formed,  who  shall  willfully  neglect  or  refuse  to  perform 
the  duties  imposed  upon  them  by  the  foregoing  sections  of  this  act, 
shall  be  liable  in  their  individual  capacity  to  the  person  sustaining 
such  loss.     {Ibid,  §  9.) 

92.  No  company  formed  under  this  act  shall  insure  any  prop- 
erty out  of  the  limits  of  the  town  or  towns  in  which  the  said  com- 
pany is  located,  nor  shall  they  insure  any  i^roperty  other  than  de- 
tached dwellings  and  their  contents,  and  farm  buildings  and  their 
contents,  and  live  stock  while  on  the  premises  or  running  at  large, 
and  hay  and  grain  iti  the  bin  or  stack,  nor  shall  they  insure  any 
propeity  within  the  limits  of  any  incorporated  city  in  this  State. 
{Ibid,  §  10.) 

9;l.  The  directors  of  such  company  so  formed  shall  be  chosen 
by  ballot,  at  the  annual  meeting  thereof,  which  shall  be  held  on  the 


MINNESOTA.  465 

first  Tuesday  of  January  in  each  year,  unless  otherwise  determined 
by  a  majority  of  the  voters  in  such  company,  and  every  person  shall 
have  one  vote  for  each  two  hundred  dollars  for  which  he  or  she  may 
be  insured,  but  no  person  shall  be  allowed  to  vote  by  proxy  at  such 
election,  excepting  a  woman.     [Ibid,  §  11.) 

94.  It  shall  be  the  duty  of  the  secretary  of  every  comj^any  as 
aforesaid,  to  i)rei)are  a  statement  showing  the  condition  of  such 
company  on  the  day  preceding  their  annual  meeting,  which  state- 
ment shall  contain  the  amount  insured,  the  number  of  policies 
issued,  and  to  whom,  and  the  amount  insured  by  each  policy,  and 
all  other  matters  pertaining  to  the  interest  of  such  company,  which 
statement  shall  be  filed  in  the  oflice  of  the  Town  Clerk  in  which  said 
company  may  be  located,  on  or  before  the  fifteenth  day  of  January 
in  each  year,  and  which  statement  shall  also  be  read  to  the  mem- 
bers of  said  company  at  their  annual  meeting.     {Ibid,  p.  109,  §  12.) 

95.  Any  member  of  such  company  may  withdraw  therefrom 
at  any  time,  %  giving  notice  in  writing  to  the  president,  or,  in  hia 
absence,  to  the  secretary  thereof,  and  jiaying  his  share  of  all  claims 
then  existing  against  said  company  ;  and  the  directors,  or  a  major- 
ity thereof,  shall  have  power  to  annul  any  policy  by  giving  notice 
in  writing  to  that  effect  to  the  holder  thereof.  And  it  shall  also  be 
the  duty  of  the  secretary,  whenever  any  member  of  such  company 
shall  withdraw^  from  his  membership  therein,  to  notify  every  other 
member  thereof  of  such  withdrawal,  and  in  default  of  such  notice 
no  claim  by  the  company  upon  any  member  for  assessment  shall  be 
binding  upon  such  member.     {Ibid,  §  13.) 

96.  Non-residents  of  any  town  in  this  State,  owning  property 
therein,  may  become  members  of  any  company  founded  under  this 
act,  and  shall  be  entitled  to  all  rights  and  privileges  appertaining 
thereto,  except  that  it  shall  not  be  lawful  for  such  non-resident  to 
become  a  director  of  said  company,  unless  he  be  at  the  time  of  such 
membership  a  resident  of  a  town  adjoining  the  town  or  towns  in 
which  said  company  has  been  formed  under  the  provisions  of  this 
act.     {Ibid,  §  14.) 

97.  The  company  so  formed  may  adopt  such  by-laws  for  its 
regulations  as  are  not  inconsistent  with  the  provisions  of  this  act, 
and  may  therein  prescribe  the  compensation  of  its  officers.  {Ibid, 
§15.) 

98.  No  company  formed  under  this  act  shall  continue  for  a 
longer  term  than  thirty  years.     {Ibid,  §  16.) 

99.  Any  company  organizing  under  the  foregoing  provisions 
to  do  a  farm  business  only,  may  do  such  business  by  complying 
with  the  provisions  of  title  three  of  the  general  reciprocal  insur- 
ance laws  of  this  State,  so  far  as  the  same  are  applicable,  but  shall 
be  exempt  from  complying  with  section  twenty-eight,  title  three,  of 
the  same.     {Ibid,  §  17.) 

AESON  AND  INCENDIAEISM. 

100.  Whoever  Avillfully  and  maliciously  burns  in  the  night 
time  the  dwelling  house  of  another,  wiiereby  the  life  of  any  person 
is  destroyed,  or  in  the  night  time  vrillfully  sets  fire  to  any  other 
building  owned  by  himself  or  another,  by  the  burning  whereof 
such  dwelling  house  is  burned  in  the  night  time,  whereby  the  life 
of  any  person  is  destroyed,  shall  sufl'er  the  same  punishment  as  is 
provided  for  the  crime  of  murder  in  the  second  degree  f  but  if  the 

30 


406  hike's  insurance  statutes. 

life  of  no  person  was  destroyed,  he  shall  be  punished  by  imprison- 
ment in  the  State  prison  not  more  than  fourteen  years  nor  less  than 
seven  years;  and  if,  at  the  time  of  committing  the  offense,  there 
was  no  person  lawfully  in  the  dwelling  so  burnt,  he  shall  be  pun- 
ished by  imi)risonment  in  the  State 'prison,  not  more  than  ten  years 
nor  less  than  three  years.     {Statutes  at  Large,  1873,  p.  993,  §  70.) 

ll&l.  Whoever  willfully  and  maliciously  burns  in  the  day 
time  the  dwelling  house  of  another,  or  any  building  adjoining  such 
dwelling  house,  and  willfully  and  maliciously  sets  fire  to  any  build- 
ing owned  by  himself  or  another,  by  the  burning  whereof  such 
dwelling  house  is  burned  in  the  day  time,  or  in  the  day  time  will- 
fidly  and  maliciously  sets  fire  to  any  building  owned  by  himself  or 
another,  by  the  burning  whereof  such  dwelling  house  is  burned  in 
the  night  time,  shall  be  punished  by  imprisonment  in  the  State 
prison  not  more  than  fifteen  years,  nor  less  than  five  years.  {Ibid, 
p.  994,  §  71.) 

lO^.  Whoever  willfully  and  maliciously  burns  in  the  night 
time  any  meeting-house,  church,  court-house,  town-hoilse,  college, 
academy,  jaU,  or  other  building  erected  for  public  uses,  or  any  ship, 
steamboat,  or  other  vessel,  or  any  banking-house,  warehouse,  store, 
manufactory,  or  mill  of  another,  or  any  barn,  stable,  shop,  or  office 
of  another,  within  the  cuitilage  of  any  dwelling-house,  or  any  other 
building,  by  the  burning  whereof  any  building  mentioned  in  this 
section  is  burnt  in  the  night  time,  shall  be  punished  by  imprison- 
ment in  the  State  prison  not  more  than  fifteen  years  nor  less  than 
five  years.     {Ibid,  §  72.) 

103.  Whoever  willfully  and  maliciously  burns  in  the  day 
time  any  building  mentioned  in  the  preceding  section,  the  punish- 
ment for  which  if  burnt  in  the  night  time,  would  be  imprisonment 
in  the  State  prison  not  more  than  filteen  years  nor  less  than  five 
years,  shall  be  punished  by  imprisonment  in  the  State  prison  not 
more  than  eight  years  nor  less  than  four  years.     {I  bid,  §  73.) 

104.  Whoever  willfully  and  maliciously  burns  in  the  night 
time  or  day  time,  any  banking-house,  warehouse,  store,  manufac- 
tory, mill,  barn,  stable,  shop,  out-house,  or  other  building  whatever 
of  another,  other  than  is  mentioned  in  the  third  section  of  this 
chapter  (§  72),  or  any  bridge,  lock,  dam,  or  flume,  shall  be  pun- 
ished by  imprisonment  in  the  State  i)rison  not  more  than  eight 
years  nor  less  than  four  years ;  and  whoever  makes  an  unsuccess- 
ful attempt  to  commit  either  of  the  offenses  mentioned  in  this  or 
the  preceding  sections  of  this  chapter,  shall  be  punished  by  im- 
prisonment in  the  State  prison,  for  a  term  not  exceeding  five  years 
nor  less  than  one  year.     {Ibid,  §  74.) 

105.  Whoever  willfully  and  maliciously  burns  any  pile  or 
parcel  of  boards,  timber,  or  other  lumber,  or  any  stack  of  hay^ 
grain,  or  other  vegetable  product  severed  from  the  soil  but  not 
stacked,  or  any  standing  grain,  grass,  or  other  standing  product  of 
the  soil,  shall  be  punished  by  imprisonment  in  the  State  jn-ison  not 
more  than  two  years  nor  less  than  six  months.     {Ibid,  §  75.) 

106.  Whoever  willfully  barns  any  goods,  wares,  merchandise, 
or  other  chattels,  or  any  dwelling  house,  hotel,  store,  or  other  build- 
ing, which  is  at  the  time  insured  against  loss  or  damage  by  fire,  with 
intent  to  injure  the  insurer,  whether  such  person  is  the  owner  of  the 
property  burnt  or  not,  shall  be  punished  by  imprisonment  in  the 
State  prison  not  more  than  ten  years  nor  less  than  three  years. 
{Ibid,  p.  995,  §  77.) 


MINNESOTA.  4G7 


INQUESTS   m  CASES  OF  FIRE. 

107.  When  property  is  destroyed  by  fire,  and  a  coraplaiut 
within  thirty  days  thereafter  is  Subscribed  and  sworn  to  by  any  per- 
son before  any  justice,  police  court,  or  any  municipal  court,  or  any 
justice  of  the  peace,  alleging  that  reasonable  grounds  exist  for  believ- 
ing that  the  fire  was  caused  by  design,  and  the  mayor  and  chief 
engineer  of  fire  department,  or  a  majority  of  the  aldermen  or  select- 
men of  the  city  or  town,  respectively,  in  which  said  property  is 
situated,  certity  in  writing  that  in  their  opinion  the  same  is  a  projier 
case  for  investigation,  such  court  of  justice  shall  forthwith  issue  a 
warrant  to  the  constable  of  the  place  where  the  ]>roperty  was  de- 
stroyed, requiring  him  forthwith  to  summon  six  good  and  lawful 
men  of  the  county  to  appear  before  the  court  or  justice  at  a  time 
and  place  expressed  in  the  warrant,  to  inquire  when  and  by  what 
means  the  fire  originated,  which  warrant  shall  be  served  and  returned 
in  the  manner  prescribed  by  the  general  statutes  of  the  State  of 
Minnesota  for  the  service  and  return  of  other  warrants ;  and  the 
constable  and  jurors  shall  be  subject  to  the  penalties  therein  specified 
for  similar  neglect.  If  any  person  so  summoned  does  not  appear, 
the  constable  shall,  by  order  of  the  justice  or  court,  return  some  per- 
son from  the  bystanders  to  complete  the  number.  [Laws  of  1874,  p. 
186,  §  3.) 

108.  The  testimony  shall  be  reduced  to  writing  by  the  pre- 
siding justice,  or  some  person,  by  his  direction,  and  subscribed  by 
the  witnesses.     {Ibid,  p.  187,  §  4.) 

lOO.  The  jury,  after  hearing  the  testimony  and  making  all 
needful  inquiry-  shall  draw  up  and  deliver  to  the  justice  or  court  their 
inquisition  under  their  hands,  in  which  they  shall  find  and  certify 
when  and  by  what  means  the  fire  was  caused,  and  said  inquisition 
and  testimony  thus  subscribed  shall,  within  one  week  thereafter,  be 
filed  by  the  magistrate  with  the  Clerk  of  the  District  Court  for  the 
county.     [Ibid,  §  8.) 

110,  If  any  person  is  charged  by  the  inquest  with  having  will- 
fully and  maliciously  caused  said  fire,  and  such  person  is  not  in  cus- 
tody, the  justice  or  court  before  whom  such  inquisition  is  holden 
shall  issue  process  forthwith  for  his  apprehension,  and  such  warrant 
shall  be  made  returnable  before  any  justice  or  court  having  jurisdic- 
tion of  the  case,  who  shall  proceed  therein  in  the  same  manner  as 
required  by  justice  or  court  in  case  of  felony.     [Ibid,  §  9.) 

111.  For  General  Provisions  relating  to  Corporations  see 
Statutes  at  Large,  1873,  pp.  470-473,  909-912. 


INDEX  TO  MISSISSIPPI. 


PAGE 

Agent— 

Embezzlement  by  (3  1 ) 475 

Of  Foreign  Companies,  Condition  of  do- 
ing Business  (2) 469 

Of  Foreign  Cos.,  Deposit  by  (12-1 4)471,  472 
Of  Foreign  Companies  in  Case  of  Un- 
earned Premium  (111 473 

Of  Foreign    Companies    musi    Accept 

Service  (2) 469 

Of  Foreign   Companies  must  Furnish 

Statement  (2,  9-1 1 )  469,  471 

Arson,  Crime  and  Penalty  of  (24-30).  474,  475 
Attachment,  Proceedings  in  Case  of  (4-8)  470, 

471 
Auditor — 

Copies  of  Papers  with,  as  Evidence  (21)  474 

Fees  of  (2 3) 474 

Shall  Grant  Certificate,  when  (2) 469 

Corporations— 

General  Provisions  Concerning  (32)  -  -  475 
Taxation  of  ( 1 ) 469 

Deposit  of  Foreign  Companies(12-20)472,  473 

Embezzlement,  Crime  and  Penalty  of  (31)  475 
Evidence,  Copies  as  (21) 474 

Fees  of  Auditor  and  Chancery  Clerk  (23)..  474 
Foreign  Insurance  Companies — 

Annual  Statement  (11) 471 


PAOB 

Foreign  Insurance  Companies  (Continued) — 
Attachment  of  Funds  and  Proceedings 

(4-8) 470,471 

Agents  must  Furnish  Statement  and  Ob- 
tain Certificate  (2,  9-1 1 ) 469,  471 

Capital  and  Investments  (2,  9) 469,  471 

Deposits  (12-20) 472-473 

Interest  on  Warrants  Deposited  (19)..  473 

Service  of  Process  (2,  3) 469,  470 

Unearned  Premiums,   when    Company 

has  Ceased  Business  (17) 473 

When  Judgment  is  Unsatisfied  (16,17)  472, 

473 

When  Insolvent  (18) 473 

Penalties — 

For  Arson  (24-30) 474,475 

For  Embezzlement  (31) 475 

For  Violation  of  Act  (22) 474 

Premiums,  Unearned,  of  Foreign  Cos.  (17)  473 

State  Treasurer- 
Deposit  of  Foreign  Cos.  with  (12-19)  472, 

473 

In  Case  of  Unsatisfied  Judgment  (16, 
17) 472,  473 

Maybe  Garnished  (4-8) 470,  471 

Shall  Pay  Unearned  Premiums,  when 
(17) 473 

When  Foreign  Company  has  been  In- 
solvent (18) 473 

Taxation  of  Corporations  (1) 469 


INSURANCE  STATUTES  OF  MISSISSIPPI. 


CONSTITUTIOi^AL    PROVISIONS   CONCERNII^G   CORPOR- 
ATIONS. 

1.  The  property  of  all  corporations  for  pecuniary  profits,  shall 
be  subject  to  taxation,  the  same  as  that  of  individuals.  {Art.  12, 
§13.) 

FOREIGN  INSURANCE  COMPANIES. 

2,  It  shall  not  be  lawful  for  any  agent  of  any  insurance  com- 
pany, incorporated  by  any  other  State  than  the  State  of  Mississippi, 
directly  or  indirectly  to  take  risks  or  transact  any  business  of  in- 
surance, in  this  State,  without  first  procuring  a  certificate  of  author- 
ity from  the  Auditor  of  Public  Accounts  ;  and  before  obtaining  such 
certificate,  such  agent  shall  furnish  to  the  said  Auditor  a  statement, 
under  the  oath  of  the  president  or  secretary  of  the  company  for 
which  he  may  act,  which  statement  shall  show ; 

First. — The  name  and  locality  of  the  company. 

Second. — The  amount  of  its  capital  stock. 

Third. — The  amount  of  its  capital  stock  paid  in. 

Fourth. — The  assets  of  the  company,  including :  First,  the 
amount  of  cash  on  hand,  and  in  the  hands  of  agents  or  other  jjer- 
sons  j  second,  the  real  estate,  unincumbered ;  third,  bonds  owned 
by  the  company,  and  how  they  are  secured,  with  the  rate  of  interest 
thereon;  fourth,  debts  to  the  company,  secured  by  mortgage;  filth, 
debts  otherwise  secured;  sixth,  debts  for  lu-emiums;  seventh,  all 
other  securities. 

Fifth. — The  amount  of  liability,  due  or  not  due,  to  banks  or  other 
creditors,  by  the  company. 

Sixth. — Losses  adjusted  and  due. 

Seventli. — Losses  adjusted  and  not  due. 

Eighth. — Losses  unadjusted. 

Ninth. — Losses  in  suspense,  waiting  for  further  proof. 

Tenth. — All  other  claims  against  the  company. 

Eleventh. — The  greatest  amount  insured  in  any  one  risk. 

Twelfth. — The  greatest  amount  allowed,  by  the  rules  of  the  com- 
pany, to  be  insured  in  any  one  city,  town  or  village. 

Thirteenth. — The  greatest  amount  allowed  to  be  insured  in  any 
one  block. 

Fourteenth. — The  act  of  incorporation  of  each  company. 

Fifteenth. — The  certificate  of  dej^osit  of  the  State  Treasurer,  as 
hereinafter  provided. 

This  statement  shall  be  filed  in  the  ofiice  of  said  Auditor,  together 
with  a  written  instrument,  under  the  seal  of  the  company,  signed 
by  the  president  and  secretary,  authorizing  such  agent  to  acknowl- 
edge service  of  process,  for  and  on  behalf  of  such  company,  consent- 
ing that  service  of  process  upon  such  agent  sliall  be  taken  and  held 


470  hine's  insurance  statutes. 

to  be  as  valid  as  if  served  upon  tlie  company,  according  to  the  laws 
of  this  State,  and  waiving  all  claim  of  error,  by  reason  of  such  ser- 
vice ;  and  no  insurance  company,  or  agent  of  any  insurance  com- 
pany, incorporated  by  any  other  State,  shall  transact  any  business 
of  insnrance  in  this  State  unless  such  company  is  possessed  of  at 
least  one  hundred  and  fifty  thousand  dollars,  of  actual  capital,  in- 
vested in  stocks  of  at  least  par  value,  or  in  bonds,  or  mortgages  of 
real  estate,  worth  double  the  amount  for  which  the  same  is  mort- 
gaged ;  and  upon  filing  the  aforesaid  statement  and  instrument  with 
the  Auditor,  and  furnishing  him  with  satisfactory  evidence  of  such 
investment,  as  aforesaid,  it  shall  be  the  duty  of  said  Auditor  to  issue 
a  certificate  thereof,  with  authority  to  transact  basiness  of  insurance 
to  the  agent  applying  for  the  same.  {Revised  Code,  1871,  p.  538, 
§  2442.) 

3.  Section  2442,  of  the  Revised  Code  of  1871,  is  hereby  so 
amended,  that  in  case  the  agent  therein  provided  for  should  re- 
move from  the  State,  or  abscond  or  conceal  himself  so  that  he 
cannot  be  j)ersonally  served  with  process  for  such  company ;  or  if 
from  any  cause,  such  company  should  be  without  an  agent  in  this 
State,  authorized  to  acknowledge  service  of  process  for  such  com- 
pany, such  company  shall  be  liable  to  attachment  in  the  same 
manner,  in  all  respects,  as  other  foreign  corporations  are  by  the  laws 
of  this  State.     {Laws  of  1 874,  _p.  1 6,  §  1.)' 

4.  Writs  of  attachment,  as  provided  for  in  the  first  section  of 
this  act,  may  be  served  on  the  State  Treasurer  of  this  State  as  such, 
as  garnishee  of  such  company  ;  and  said  Treasurer  shall  answer  at 
the  return  term  of  such  writ,  as  garnishees  are  now  required  by  law 
to  answer,  as  to  the  amount  of  money  such  company  may  have  on 
deposit,  or  otherwise,  in  the  State  Treasury,  and  the  amount  and 
character  of  effects  such  company  may  so  have  on  deposit,  as  re- 
quired by  section  twenty-four  hundred  and  forty-six  of  the  Revised 
Code  of  1871.     {Ibid,  ^  2.) 

Si,  In  case  said  Treasurer,  in  his  answer,  as  provided  for  in  sec- 
tion two  of  this  act,  shall  state  that  such  comj^any  has  money  or 
other  effects  in  said  treasury,  judgment  may  be  rendered  against 
such  comi>any  for  the  amount  established  to  be  due,  in  case  such 
company  should  defend  the  suit,  or  for  the  sum  demanded  in  case 
such  company  should  make  default,  and  execution  may  issue  there- 
from, directed  to  the  Sheriff  or  other  proper  officer  of  Hinds  county, 
of  this  State,  who  shall  present  the  same  to  said  Treasurer,  who, 
upon  such  piesentation,  shall  i)ay  to  said  Sheriff"  or  other  officer,  in 
the  money  such  company  may  have  in  said  treasury,  in  case  there 
is  money  enough  for  that  purpose,  the  amount  of  such  execution, 
with  interest  and  all  costs ;  and  in  case  there  is  not  enough  money, 
or  in  case  there  be  no  money  of  such  compauy  in  said  treasury,  then 
said  Treasurer  shall  deliver  to  said  Sheriff  or  other  officer,  enough  of 
the  effects  of  such  company  as,  when  sold  under  said  execution,  will 
fully  pay  oft'  and  discharge  the  same.     {Ibid,  §  3.) 

6.  Said  Sheriff  or  other  officer,  upon  the  receii)t  of  such  effects 
as  aforesaid,  shall  sell  the  same  as  now  provided  by  law  for  the  sale 
of  personal  property  by  Sheriff  under  execution,  and  return  said 
execution,  with  his  proceedings  endorsed  thereon;  and  the  money  as 
now  required  by  law  in  returns  of  executions  and  the  receipts  of  said 
Sheriff'  or  other  officer,  shall  be  a  voucher  in  the  hands  of  said 
Treasurer,  against  such  company.     {Ibid,  p.  17,  §  4.) 

7,  Attachments  proWded  for  by  this  act,  may  be  issued  by  any 


jnssissippi.  471 

officer  now  authorized  by  law  to  issue  attachments,  and  may  be 
made  returnable  before  any  court  having  jurisdiction,  in  any  county 
in  this  State,  without  regard  to  the  situation  of  the  property  attached 
or  the  place  of  residence  of  the  garnishee.     {Ibid,  §  5.) 

8.  Said  Treasurer,  garnishee,  and  said  Sheriff  or  other  officer, 
shall  be  allowed  the  same  compensation  and  fees  as  now  allowed  by 
law  to  garnishees  and  Sheriffs  in  other  attachments  against  foreign 
corporations.     [Ibiil,  §  6.) 

9.  It  shall  be  unlawful  for  any  agent  of  any  company,  incor- 
porated by  any  foreign  government  other  than  a  State  of  this  Union, 
to  transact  any  business  of  insurance  in  this  State,  without  procur- 
ing a  certificate  of  authority  from  the  Auditor,  such  agent  having 
first  filed,  under  oath,  in  the  office  of  said  Auditor,  a  statemout,  set- 
ting forth  the  charter,  or  act  of  incorporation  of  the  company,  for 
which  he  or  they  may  act,  and  the  matters  required  to  be  specified 
by  the  last  preceding  section,  and  the  authority  therein  mentioned, 
and  furnishing  evidence,  to  the  satisfaction  of  the  Auditor,  that 
sueh  company  has  invested  in  the  stocks  of  some  one  or  more  of  the 
States  of  this  Union,  or  of  the  United  States,  the  amount  of  one 
hundred  and  fifty  thousand  dollars,  and  that  such  stocks  are  held 
by  citizens  of  the  United  States;  and  the  said  agent  of  such  com])any, 
filing  said  statement,  and  furnishing  evidence  of  investment,  as 
aforesaid,  shall  be  entitled  to  a  certificate  of  authority,  in  like  man- 
ner as  is  ])rovided  for  in  the  first  section  of  this  article.  [Revised 
Code,  1871,  iJ.  539,  §  2443.) 

10.  It  shall  be  the  duty  of  the  agent,  in  either  of  the  foregoing 
iSections  mentioned,  before  taking  any  risks,  or  transacting  any 
business  of  insurance,  in  this  State,  to  file  in  the  office  of  the  Chan- 
cery Court  in  the  county,  in  which  he  may  desire  to  establish  an 
agency  for  such  insurance  company,  a  copy  of  the  statement  required 
to  be  filed  with  the  Auditor,  as  aforesaid,  together  with  the  certifi- 
cate of  said  Auditor,  which  shall  be  carefully  preserved,  for  public 
inspection,  by  said  clerk,  and  also  to  causf^  said  statement  and  cer- 
tificate to  be  published  in  some  newspaper  of  general  circulation  in 
said  county,  for  three  successive  weeks;  Provide!,  That  said  state- 
ment and  certificate  had  not  been  previously  published  at  Jackson, 
in  this  State,  in  the  newspapers  of  general  circulation,  which  pub- 
lication shall  be  deemed  sufficient.  {Ibid,  p.  540,  §  2444,  asamstiied 
by  laics  o/1872.) 

11.  The  statement  and  evidence  of  investment,  required  by 
this  chapter,  shall  be  renewed  annually,  on  the  first  day  of  March 
in  each  year;  and  the  Auditor,  on  being  satisfied  that  the  capital, 
securities  and  investments  remain  secure  as  at  first,  shall  furnish  a 
renewal  of  the  certificate,  as  aforesaid ;  and  the  agent  obtaining 
such  certificate,  shall  file  the  same,  together  with  the  statement  on 
which  it  was  obtained  or  renewed,  in  the  office  of  the  Clerk  of  the 
Chancery  Court  of  the  county  in  which  such  agency  is  established, 
and  shall  cause  the  same  to  be  published,  in  at  least  one  newspaper 
of  said  county,  if  any  newspaper  shall  be  there  printed,  for  three 
weeks  ;  Provided,  That  said  statement  and  certificate  had  not  been 
previously  published  at  Jackson,  in  this  State,  in  the  newspapers  of 
general  circulation,  which  publication  shall  be  deemed  sulficient. 
{Ibid,  §  2445,  as  amended  by  laws  of  1872.) 

1^.  The  agent  of  any  insurance  company,  incorporated  by  any 
other  State  of  the  Union,  or  by  any  other  foreign  kingdom  or  coun- 
try whatever,  outside  the  limits  of  the  United  States,  in  addition  to 


472  niNE'S  INSURANCE  STATUTES. 

the  matters  and  things  hereinbefore  required,  proposing  to  do  busi- 
ness, or  actually  engaged  in  doing  business  in  this  State,  shall  de- 
posit with  the  State  Treasurer,  for  each  company  w  hose  capital  does 
not  exceed  two  hundred  and  fifty  thousand  dollars,  ten  thousand 
dollars  ;  for  each  company  whose  capital  exceeds  two  hundred  and 
fifty  thousand  dollars,  but  does  not  exceed  five  hundred  thousand 
dollars,  the  sum  of  fifteen  thousand  dollars ;  and  for  all  others,  the 
sum  of  twenty  thousand  dollars,  in  warrants  of  the  Auditor,  drawn 
upon  the  Treasurer,  or  in  certificates  of  indebtedness,  issued  under 
the  act  of  the  legislature  of  this  State,  approved  June  13,  1870,  or 
in  the  currency  of  the  United  States,  as  hereinafter  provided,  which 
shall  remain  on  deposit,  as  aforesaid,  so  long  as  said  company  shall 
continue  to  do  business  in  this  State,  and  which  shall  not  be  with- 
drawn, unless  all  losses  incurred  on  any  policy  of  life,  fire  or  marine 
risk,  shall  have  been  adjusted  and  paid,  or  adjudicated  by  a  court  of 
competent  jurisdiction,  in  favor  of  said  insurance  company,  and 
after  six  months'  notice  shall  have  been  given  to  the  Treasurer  of 
the  intention  of  such  withdrawal.     {Ibid,  §  2146.) 

1 3.  Upon  the  deposit  made  with  the  Treasui'er,  under  section 
two  thousand  four  hundred  and  forty-six,  of  this  article,  the  Treas- 
urer shall  issue  to  said  insurance  company,  or  its  agent,  a  certificate 
of  deposit  therefor,  which  certificate  shall  state  upon  its  face,  that 
the  credit  of  the  State  is  faithfully  pledged  for  the  redemption  of 
the  same  ;  when  the  requirements  of  this  act  are  complied  with,  and 
upon  such  deposit,  there  shall  be  allowed  and  paid  to  such  insurance 
company,  or  its  agent,  interest  at  the  rate  of  six  -per  cent,  per  an- 
num, payable  annually,  at  the  Treasurer's  office,  in  the  city  of  Jack- 
son ;  and  the  Treasurer  shall,  on  the  first  of  January  in  each  year, 
or  some  day  thereafter,  pay  to  such  insurance  company,  or  its  agent, 
all  interest  which  may  accrue,  and  write  across  the  face  of  such  cer- 
tificate of  deposit,  that  the  interest  has  been  paid  on  the  same,  spe- 
cifying the  date  up  to  which  such  payment  was  made,  and  shall  take 
and  file  in  his  office,  a  receipt  from  such  insurance  company,  or 
its  agent,  in  acknowledgment  of  the  payment  of  the  interest  due 
thereon.     {Ibid,  p.  511,  §  2447.) 

1 4.  The  Treasurer  shall  set  apart,  within  ninety  days  prior  to 
the  first  day  of  January  upon  which  such  interest  may  become  due, 
a  sufficient  sum,  in  current  funds,  to  meet  the  interest  that  will  be- 
come due  uj)on  the  succeeding  first  day  of  January,  and  pay  the 
same  over  to  the  party  authorized  to  receive  it,  at  the  time  and  in 
the  manner  provided  for  in  section  two  thousand  foiu'  hundred  and 
forty-seven  of  this  article.     {Ibid,  §  2448.) 

15,  The  Treasurer  shall  open  an  account  with  each  insurance 
company  availing  itself  of  the  provisions  of  this  article,  and  note 
the  character  of  funds  paid  in  bv  each  insurance  company.  {Ibid, 
§  2449.) 

16.  If  a  judgment  or  decree,  against  any  foreign  insurance 
companj^  recovered  on  any  policy  of  insurance,  shall  remain  un- 
satisfied, for  the  space  of  thirty  days  after  the  rendition  thereof,  the 
plaintiff  may  file  with  the  Treasurer  a  transcript  of  the  record  of 
such  recovery,  accompanied  with  the  certificate  of  the  Clerk  and 
Sheriff  of  the  county,  that  such  judgment  or  decree  is  unpaid,  and 
the  execution  has  not  been  suspended  by  writ  of  error  or  appeal. 
The  Treasurer  shall  thereupon  pay,  to  the  parties  holding  such 
judgment  or  decree,  the  full  amount,  with  costs  thereon,  and  credit 
it  to  the  amount  on  dex)osit,  such  credit  to  be  replaced  in  sixty  days, 


MISSISSIPPI.  473 

on  notice  to  the  agent ;  Provided^  The  judgment  or  decree  does  not 
exceed  the  deposits  of  said  company  then  in  his  hands ;  and  Pro- 
vided, further,  That  the  Treasurer  shall  not  be  required  to  pay  over 
any  of  said  funds,  until  a  final  decision,  in  case  of  an  injunction  or 
writ  of  error  or  appeal.     {Ibid,  §  2450.) 

1 7.  Whenever  a  policy  of  insurance  issued  by  any  insurance 
company,  which  has,  or  shall  have  made  the  deposit  in  the  treasury 
required  by  section  2446  of  the  Eevised  Code  [12],  and  which  has 
ceased  to  take  risks  in  this  State,  shall  have  been  canceled  or  sur- 
rendered to  an  agent  of  any  such  company  before  the  expiration  of 
the  term  for  which  the  same  was  issued,  and  the  party  insured  shall 
be  entitled  to  repayment  of  the  unearned  premium  thereon,  the 
Treasurer  shall,  upon  production  of  the  certificate  of  a  duly  author- 
ized agent  of  such  company,  showing  the  amount  of  unearned  pre- 
mium so  due,  pay  the  same  out  of  the  deposit  made  by  such  com- 
pany, subject  to  the  same  conditions  provided  for  in  section  2450 
[16],  in  case  of  judgment  rendered  against  such  insurance  company 
remaining  unsatisfied,  and  before  such  insurance  company  shall  re- 
commence business  shall  replace  the  amount  so  paid  out  of  such 
deposit,  as  required  in  said  section  2450.     {Laws  of  1873,  p.  65,  §  1.) 

18.  Whenever  it  shall  appear  to  the  treasurer  that  any  such 
insurance  company  has  become  insolvent,  he  shall  immediately  ad- 
vertise in  some  newspaper  of  general  circulation  in  this  State,  for 
sixty  days,  notifying  all  persons  holding  claims  against  such  com- 
pany for  losses  and  unearned  premiums,  to  present  the  same  to  the 
treasurer  duly  certified  as  provided  for  in  preceding  section  within 
thirty  days  from  the  first  publication  of  said  notice,  and  shall  then, 
if  the  claims  exceed  the  amount  on  deposit,  proceed  to  distribute 
the  funds  on  hand,  first  to  losses,  if  a  suflSciency  to  pay  in  full,  oth- 
erwise to  such  losses  pro  rata,  and  if  a  balance  then  remain,  he  shall 
proceed  to  pay  the  same  to  claims  for  unearned  premiums  pro  rata, 
if  not  a  sufflciency  to  pay  all  in  full ;  and  should  any  balance  remain 
in  the  treasury  after  paying  all  claims  for  losses  and  returned  pre- 
miums, such  balance  shall  be  paid  over  to  the  order  of  the  president 
of  such  insurance  company  under  the  seal  of  said  company.  Nothing 
in  this  act  shall  be  so  construed  as  to  jirevent  claimants  for  losses 
from  bringing  suits  as  now  provided  by  law,  where  any  such  insur- 
ance company  shall  have  failed  to  cause  any  such  loss  to  be  adjusted 
within  the  time  prescribed  by  said  section  to  which  this  is  an 
amendment.     {Ibid,  §  2.) 

19.  All  warrants  deposited  by  iusm^ance  companies,  and  with- 
drawn under  the  provisions  of  this  act  or  any  other,  shall  show  on 
their  face  the  date  to  which  interest  has  been  paid,  and  the  treas- 
urer is  hereby  required  to  make  such  indorsement  thereon,  and  if 
such  warrants  are  afterwards  funded,  the  coupons  of  the  bonds  in 
which  they  are  funded  shall  be  detached  for  the  time  that  interest 
has  been  paid.     (Ibid,  p.  66,  §  3.) 

20.  The  legislature  may,  at  any  time,  change  the  character  of 
the  deposit,  and  require  the  said  foreign  insurance  companies  to  de- 
posit, in  lieu  of  the  funds  mentioned  in  section  two  thousand  four 
hundred  and  forty-six  of  this  article,  stocks  of  the  United  States,  or 
other  securities  bearing  interest ;  in  which  event  the  State  will  pay 
no  interest  on  such  deposit,  and  allow  the  several  companies  the 
benefit  thereof;  such  stocks  to  be  converted  into  money  to  pay 
losses,  as  provided  in  the  last  preceding  section  of  this  article. 
{Eevised  Code,  1811,  p.  541,  §  2451.) 


474  hine's  insurance  statutes. 

21.  Copies  of  all  papers,  required  by  this  article  to  be  depos- 
ited in  the  office  of  the  Auditor,  certified  under  the  hand  and  seal 
of  such  Auditor,  to  be  true  and  correct  copies  of  such  papers,  shall 
be  received  as  evidence  in  all  courts  and  places,  in  the  same  man- 
ner, and  have  the  same  force  aud  effect,  as  the  originals  would  have, 
if  produced.     {Ibid,  p.  542,  §  2452.) 

32.  Any  person  violating  the  provisions  of  this  article  shall, 
upon  conviction  thereof,  in  any  court  of  competent  jurisdiction,  be 
fined  in  any  sum  not  exceeding  one  thousand  dollars,  or  imprisoned 
in  the  county  jail,  not  more  than  thirty  days,  or  by  both  such  fine 
aud  imprisonment.     {Ibid,  §  2453.) 

93.  The  Auditor,  for  receiving  such  statement,  and  issuing 
the  license,  shall  receive  the  sum  of  two  dollars  and  fifty  cents,  for 
each  license  so  granted ;  and  the  Clerk  of  the  Chancery  Court  of  each 
county  where  the  agency  may  be  located,  for  filing  each  statement, 
shall  be  entitled  to  one  dollar  and  fifty  cents.     {Ibid,  §  2454.) 


AKSON  AND  INCENDIARISM. 

94.  Every  person  who  shall  willfully  set  fire  to  or  burn,  in  the 
night-time,  any  house,  ship,  vessel  or  boat,  in  which  there  shall  be 
at  the  time,  some  human  being,  usually  staying,  lodging,  or  resid- 
ing at  night,  upon  conviction  thereof,  shall  suffer  death,  or  be  im- 
prisoned in  the  penitentiary  for  life.  (Revised  Code,  1871,  jp.  551, 
§  2490.) 

25.  Every  person  who  shall  willfully  set  fire  to  or  burn,  in  the 
day-time,  any  house,  ship,  vessel  or  boat,  in  which  some  human 
being  shall,  at  the  time,  usually  stay,  lodge  or  reside,  upon  convic- 
tion thereof,  shall  be  imprisoned  in  the  i)enitentiary,  for  a  term  not 
less  than  ten  years.     {Ibid,  §  2491.) 

26.  Every  person  who  shall  willfully  set  fire  to  or  burn,  in  the 
night-time,  any  shop,  warehouse,  out-house  or  other  building,  not 
mentioned  in  the  preceding  sections,  but  adjoining  to,  or  within  the 
curtilage  of  any  house,  in  which  some  human  being  shall  usually 
stay,  lodge  or  reside  at  night,  so  that  such  human  being,  or  the  house 
in  which  such  human  being  shall  so  usually  staj',  lodge  or  reside  at 
night,  shall  be  thereby  endangered,  such  person  so  offending,  shall 
be  adjudged  guilty  of  arson,  and  upon  conviction  thereof,  shall  be 
imprisoned  in  the  penitentiary,  not  less  than  ten  years.  {Ibid, 
§  2492.) 

27.  Every  person  committing  the  offense  mentioned  in  the 
last  preceding  section,  in  the  day-time,  instead  of  the  night,  shall,  in 
like  manner,  be  adjudged  guilty  of  arson,  and  be  imprisoned  in  the 
penitentiary,  not  more  than  ten  years,  nor  less  than  seven  years. 
Ibid,  p.  552,  §  2493.) 

28.  Every  person  who  shall  willfully  set  fire  to  or  burn,  either 
in  the  night-time  or  day-time,  any  house  of  public  worship,  or  any 
school-house  or  cotton-house,  gin-house,  barn,  stable,  miU-house,  of 
any  description,  or  any  house  or  building  erected  for  manufacturing 
purposes,  or  ship  or  vessel,  or  any  public  building  or  office  of  any 
kind,  or  any  other  house  or  building,  not  embraced  and  provided  for 
in  the  preceding  sections  of  this  chapter,  shall,  on  conviction  thereof 
be  imprisoned  in  the  penitentiary,  not  more  than  ten  years.  {Ibid, 
§  2494.) 

29.  Every  person  who  shall  willfully  set  fire  to  or  burn,  any 


MISSISSIPPI.  475 

buildiug  or  vessel,  or  any  goods,  wares  or  merchandise,  or  chattels 
of  any  kind,  which  shall  at  the  time  be  insured  against  damage  or 
loss  by  fire,  with  intent  to  prejudice  or  injure  the  insurer,  whether 
the  same  be  the  property  of  the  offender  or  of  any  other  person,  shall, 
upon  conviction  thereof,  be  imprisoned  in  the  penitentiary,  not 
less  than  seven,  nor  more  than  ten  years.     {Ibid,  §  2495.) 

30.  Every  person  who  shall,  either  in  the  day-time  or  in  the 
night-time,  willfully  set  fire  to,  or  burn  any  bridge,  railroad  or  plank 
road,  or  any  goods,  wares  or  merchandise,  or  any  chattels  of  any 
kind,  or  any  stack,  bale  or  heap  of  hay,  fodder,  grain  or  cotton,  or 
other  produce,  or  any  crop  of  cotton,  grain  or  produce,  growing  or 
standing  in  the  field ;  or  any  nursery,  orchard,  or  grove  of  trees  not 
his  own ;  or  any  fence  around  any  field,  farm,  or  enclosure  of  another  ; 
or  any  cordwood,  in  the  cord  or  in  ricks,  not  belonging  to  himself, 
shall,  on  conviction,  be  imprisoned  in  the  penitentiary,  not  more 
than  seven,  nor  less  than  two  years ;  or  fined  and  imprisoned  in  the 
county  jail,  at  the  discretion  of  the  court.     [Ibid,  §  2496.) 


EMBEZZLEMENT. 

31.  If  any  director,  agent,  clerk,  servant,  or  officer  of  any 
incorporated  company,  or  if  any  trustee  or  any  factor,  carrier,  or 
bailee  for  reward,  or  any  clerk,  agent  or  servant  of  any  private  per- 
son, shall  embezzle,  or  fraudulently  secrete,  conceal  or  convert  to 
his  own  use,  any  goods,  rights  in  action,  money,  or  other  valuable 
security,  effects,  or  property  of  any  kind  or  description,  which  shall 
have  come,  or  been  entrusted  to  his  care  or  possession,  by  virtue 
of  his  ofiice,  place  or  employment,  either  in  mass  or  otherwise,  he 
shall  be  deemed  guilty  of  embezzlement,  and  upon  conviction  thereof, 
shall  be  imprisoned  in  the  penitentiary  not  more  than  five  years,  or 
fined  not  more  than  one  thousand  dollars,  and  imprisoned  in  the 
county  jail,  not  more  than  one  year,  or  either,  at  the  discretion  of  the 
court.   '  {Revised  Code,  1871,  p.  562,  §  2547.) 

32.  For  General  Provisions  relating  to  Corporations,  see 
Kevised  Code,  1871,  pp.  529-532. 


INDEX  TO  MISSOURI. 


PAGE 

Accident  Insurance  Companies — 

May  be  Formed  (31) 484 

Organization  of  (33-37) 485,  486 

Agents — 

To  have  Certificate  of  Authority  (57, 

1 40) 495,  520 

Who  Deemed  (72) 500 

May  Employ  Solicitors  (72,  140)  500,  520 

Statements  by  (182-185) 533,  534 

Taxation  of  (182-191) 533-35 

Licenses  (185,  186) 534 

Embezzlement  by  (201) 536 

American  Experience  Table  (133) 516-18 

Annual  Statements  (53,  56,  58,  59,  77, 

131,136,141,142)493-95,501,515,519,  520 
Annual  Statements,  Blank  Forms  for  (63, 

146) 498,  525 

Annuity  Bonds,  Eegistration  of  1 60-1 75) 

526-32 
Arson,  Crime  and  Penalty  of(l  92-200)535, 536 
Assessments — 

Of  Mutual  Companies  (48) 491 

Of  County  Mutual  Fire  Insurance  Com- 
panies (91,  92,  100) 505,  507 

Attorney  of  Foreign  Ins.  Cos.(65, 135)494,  518 
Attorney-General — 

To  Examine  Charters  (35,  39,  42, 

44,110,114,119,121)486-89,509-12 
To  Sue  for  Penalties  (73,166).--  500,  525 

Capital  Stock- 
How  Invested  (36,  45,  123,  124, 

137) 486,  489,  513,  519 

Increase  of  (7) 479 

Preferred  (19) 481 

Capital— 

Required  (45,  54) 489,493 

Impairment  of  (62) 496-98 

Dividends  Upon  (159) 526 

Of  Life  Insurance   Companies  (110, 

111,  123,  134) 509,  513,  518 

Increase  of  (158,  159) 526 

Certificate  of  Authority — 

When  Issued  (37,  67,  112,   116, 
122,  140)....  486,  495,  509,  510,  512,  520 

When  Renewed  (60,  143) 496,521 

When  Revoked  («2,  145,  191)  496-98, 

521-23,  535 

Charters- 

Of  Joint  Stock  Companies  (34) 485 

Of  Mutual  Fire  and  MarineCos.  (38).  -  486 
Of  Reorganized  Cos.  (43,  44,   121)488, 

489,  512 

How  Amended  (42,  119) 488,511 

Forfeited  (4) 479 


PA6E 

Charters  (Continued)— 

Of  Life  Insurance  Companies   (108, 

1 09,  113) 508,  509 

Of  Foreign  Cos.,to  be  Filed(5  6, 1 3  6)  494,519 

Limited  (2) 479 

Corporations- 
Constitutional  Provisions   Concerning 

(1-10) 479,  480 

Limitations  Upon  (6,   31,   32,  66, 

68,  69,  150,  152) ...479,  484,  499,  524 
General  Provisions  Relating  to  (202).  536 

Dues  from  (8) 480 

Definition  of  Term  (10) 480 

Deposits — 

How  Kept  (30,  50,  127,  167)  484,  492, 

514,  528 
Of  Guaranty  Fund(46, 49, 54)490,  492,  493 

Under  Reciprocal  Laws  (71) 500 

Of  Life  Insurance  Companies   (112, 
116,  122,  124-126,  137-139)509, 
510,  512-14,  519 

Used  to  Satisfy  Judgments  (128) 515 

Withdrawal  of  (127,  147) 514,  523 

Special,  of  Life  Ins.  Cos.(l  60-1  70)526-29 

Directors,  Election  of  (6) 479 

Dividends  (15  9) 526 

Embezzlement,  Crime  and  Penalty  of  (20 1 )  536 

Fbes— 

Of  Superintendent  of  Insurance  Depart- 
ment (25,  61,  144,  168)  483,  496,  521, 

529 

How  Collected  (26) 483 

Under  Reciprocal  Laws  (71,155)  500,  525 

In  Lieu  of  Taxes  (74,144) 501,  521 

For  Valuation  of  Life  Policies  (133)  516-18 

Under  Registration  Law  (168) 529 

For  Licenses  (185,  186) 534 

Fidelity  Ins.  Cos.  may  be  Formed  (31) 484 

Fire  Ins.  Cos.,  County  Mutual  (79-1 04). 501-7 
Fire,  Marine,  and  Inland  Insurance  Com- 

panies-(3 1-78) 484-501 

Joint  Stock  (34-37,  42-45,  50-78)485, 

486,  488.  489,  492-501 

Mutual  (38-44,  46-58,  60-78)  486-89, 

490-95,  496-501 
(See  Ins.  Cos.,  and  Mutual  Ins.  Cos.).. . 
Foreign  Insurance  Companies — 

Capital  Required  (54,  134) 493,  518 

To  File  Power  of  Attorney  (65) 494 

To  File  Charter  (56,  136) 494,  519 

Annual  Statements  of  (53,  56,  58, 

69,  136,  141,  14 2). -.493-96,  519,  520 
Certificate  of  Authority  (57,  60,  62, 
140,  143,  14  6) 495- r8,  520-23 


lx>i£>EX  TO  5USS0UBI. 


477 


FAGK 

Foreign  Insurance  Companies  (Continued)— 
Limitations    Upon   Business   of   (66, 

150; 494,  524 

Taxation  of  (182-191) 533-35 

GUABAKTY    Fund   of  Mutual     Insurance 

Companies  (46,  -49,  54) 489-93 

Health    lusuranoe   Companies,    may   be 

Formed  (31) 484 

IMPAIBJIENT  of  Capital  (62) 496-98 

Incendiarism,  Crime  and  Penalty  of  (192- 

200) 535,  536 

Insurance  Companies- 
Limitations  upon  (31,  32,  66,  68, 

69,  150,  152) 4a4,  485,  499,  524 

Names  of  (,32,  107) 485,508 

May  Amend  Charters  (42,  11 9).. 488,  511 
Keorganization  of  (43,  44,  120)  488,  489, 

512 

Seal  and  By-Laws  (51,  129) 492,515 

Officers  of  (52,  130) 492,515 

Examination  of  (21,  62,  115,  145)482, 

496,  498,  510,  521-23 

Insolvency  of  (62, 145,1 70, 175;496-98, 

521-23,  529,  532 
Eeinsui'ance   of  Kisks   by    (64,  72, 

148) 498,  500,  523 

Suits  at  Law  by  and  Against    (67, 

151) 499,  524 

Eeal  Estate  held  by  (69,  153)  ...499,  524 
"What,   Subject  to  Provisions   of  Act 

(70,164) 499,525 

Foreign  Life  (134-143) 518-21 

Insurance  Department — 

Creation  of  (11) 480 

Appointment  of  Superintendent  ot  (12)  480 
Powers  and  Duties  of  Superintendent 

of  (13-30) - 480-84 

Expenses  of  U  8,  27) 481-84 

Kecordsof  (22,  28) 482,  484 

Joint  Stock  Companies — 

Charter  of  (.34) 485 

Limitation  on  Business  of  (31,  32, 
66,68,  150,  152).-.484,  485,499,  524 

Organization  of  (34-3  7) 485,  486 

Capital  of  (.36,  45) 486,489 

Joint    Stock   Lite    Insurance   Companies 

(106,  109) 508 

Laws,  Kepealed(76,  157) 501,  525 

Licenses — 

Under  Reciprocal  Laws  (71,  165)500,  523 

Mnaicipal  (74) 501 

Of  Agents  (185,  186) 534 

Life  Insurance  Companies- 
Examination  of  (21,  116,  14 5). 482,  510, 

521-23 
Limitations  upon  (66,  150,  152)499,524 
Organization  of  (105,  108-1 18).. 508-11 
Joint  Stock  and  Mutual  (106) 508 


faob 
Life  Insurance  Companies  (Continued) — 

Names  of(107) 503 

To  File  Charter  (108,  136) 508,  519 

Charter  of  Joint  Stock  (109) 508 

Subscription  to  Capital  (110) 509 

Capital  of(l  11,  123,  134,  137)509,513, 

518 
Certificate  of  Authority  of(112,116, 

122,  140) 509,  510,  512,  520 

Charter  of  Mutual  (113) 509 

Subscriptions  to  Mutual  (114) 510 

Deposits  of  (112,  116,  122,  124- 
128,137-139)509,510,512,513,515,519 

Stock  and  Mutual  (117) 511 

Amending  Charter  ol  (1 19) 511 

Keorganization  of  (120) 512 

Seal  and  By-Laws  of  (129; 515 

Officers  of  (1 30) 515 

Annual   Statements    of   (131,    136, 

141,  142) 515,519,520 

Dividends  of  (132) 516 

Valuation  of  Policies  of  (133) 516-18 

Service  of  Process  on  (135) 518 

Insolvency  of  (145, 1  70,  1 7 1)521-23,  529, 

530 

Closing  Business  of  (1 4  7) 523 

Suits  by  and  Against  (151) 524 

Keal  Estate  ol  (153) 525 

Increase  of  Capital  of  (158,  159) 526 

Eegistration  of  Policies  of  (1 60-1 75) 

526-32 

Special  Deposits  by  (160-1 70) 526-29 

Duties  and  Fees  of  Keceiver  of  (1 70- 

175) 529-33 

Life  Policies — 

Eegistration  of  (1 60-1 75) 526-33 

Misrepresentation  in  Obtaining  (176, 

177) 532 

For  Married  and  Unmarried  Women 

and  Children  (178-181) 532,  533 

Live  Stock  Insurance  Companies  may  be 

Formed  (31) 484 

Local  Mutual  Fire  Insurance  Companies 

(79-1 04) 501-507 

Losses,  Adjustment  and  Payment  of  Mutual 

Fire  (90,  94) 504,506 

Marine  and  Inland  Insurance  Companies 

(31-78) 484-501 

Mutual  Companies  not  to  do  Business  on 

Stock  Plan  (32) 485 

Mutual  Fire — 

Marine  and  Inland  Companies  (33,38- 

41,46) 485,486-88,490 

Assets  of  (40) *^^ 

Deposits  by  (4 1 ,  4 6) 488,  490 

Premiimis  and  Members  Keq^uired  (46)  490 

Guaranty  Fund  of  (46,  49) 490,492 

Premium  Notes  of  (46,  47) 490,  491 

Assessments  by  (4  8) ^^^ 

Annual  Statements  of  (5 3) 493 

Mutual  Fire  Insurance  Companies,  County 

(79-104) 501-507 


478 


INDEX  TO  MISSOURI. 


PAGE 

Mutnal  Life  Insurance  Cos.  (105,  108)..  5C8 
OWNKB  may  Insure,  where  (72) 500 

PfiSALTIES— 

For  False  Statements  (23,  188).  .48-3,  534 

For  not  Paying  Fees  (26) 48.T 

For  Violating  Laws  (73,  156)...  500,  525 
For  Neglect  of  Duty  by  Superintendent 

(127)  514 

Under  Reciprocal  Law?  (71,  155)  fOO,  525 
For  not  Taking  out    License    (187, 

188) 534 

For  Arson   and   Incendiarism   (192- 

200) 535,  536 

For  Embezzlement  (201) 536 

Policies — 

"When  maybe  Issued  (37) 486 

Of  County  Mutual  Fire  Ins.  Cos.  (93).  506 

Transfer  of  Mutual  Fire  (9  5 )  506 

Valuation  of  Life  (133i 516-18 

Misrepresentation   in    Obtaining    Life 

(176,  177) 532 

Registration  of  Life  (160-1  75).. -.526-32 
Life,  for  Married  and  Unmarried  Wo- 
men and  Children  (178-181)  ..  532,  53-3 

Power  of  Attorney  (55,  135) 494,  518 

Premium  Notes— (46,  47,  88). ---  489-91,  504 
Premium  Notes,  Assessment  upon  (48,91, 

1 00) 4^1.  505,  507 

Premiums,  Taxation  of  ( 1 8  2- 1  8  6) . . .  533,  534 

Heal  Estate  of  Insurance  Cos.  (69,  153)499, 

524 
Eeceiver  of  Life  Insurance  Companies,  un- 
der Registration  Law  (1 70-1 7  5)  529-532 

Eeciprocal  Laws  (71,  155) 500,  525 

Registration  of  Life  Policiesd 60-1  75)526-32 
Reinsurance  of  Risks  (.64,  72,  US)  498,  500, 

523 
Repeal  of  Laws  (76,  78,  157) 501,525 

Safe  Deposit  Companies  may  be  Formed 

(31) 4^'' 

Service  of  Process  (55,  135) 494,  518 

Superintendent  of  Insurance  Department- 
Appointment  of  (12>  - ■^80 

Bondof(13) ■ISO 

Deputy  (14)  *^^ 

Salary  (15) ^^° 

Seal  of  Office  (16) 481 

Location  of  Office  (17) 481 

Powers  and  Duties  of  (17,  19-30)...  481 

To  Issue  Certificates  (19) 481 

To  Furnish  Blanks  (20,  146) 481 

Report  of  (21) 482 


PAGE 

Superintendent  ot  Insurance  Department 
(Continued)  — 
To    Examine    Companies    (21,    62, 


115,  145) 


.482,  496-98.  510,  521-23 


To  Furnish  Copies  of  Papers  (22) 482 

To  Investigate  Ins.  Business  (23) 482 

Deliver  Possession  to  Successor  (24)..  483 
Fees  to  be  Paid  to   (25,  61,    14  4, 

168) 483,  496,  5-n,  529 

To  Collect  and  Account  for  Fees  (26).  483 
To  Collect  Excess  of  Expenses   OTcr 

Fees  (2  7) 484 

To  Keep  Records  (28) 484 

To  Safely  Keep  Deposits  (30,127)'484,  514 
Duties  in  Organizing  Joint  Stock  Com- 

pranies  (35-37) 486 

Duties  in  Organizing  Mutual  Compa- 
nies (38-41) 436-88 

Duties  when   Charters   are   Amended 

(42,  119) 488,511 

Duties  when  Companies  are  Reorganiz. 

ed(44,  121) 489,512 

To  Examine  Guaranty  Fund  (46)..  469-91 
To  Appoint  Attorney  ^5  5,  135).  494,  518 
Duties   in   Cases  of  Insolvency    (62, 

145) 496-98,  521-23 

To  i'urnish  Blank  Forms  (63,146)  498,  523 
Duties  under  Reciprocal    Laws   (71, 

155) 530,  525 

Duties  in  Organization  of  Life  Insur- 
ance Companies  (110,   111,  114- 

116,  119) 509,510,511 

Duties  in  Reorganization  of  Life  Insur- 
ance Companies  ^121,  122' 512 

Penalty  for  Neglect  of  Duty  (127)....  514 
To  Use  Deposits  to  Satisfy  Judgments 

(128) 515 

To  Value  Life  Policies  (133) 516-18 

To  Return  Deposits  (147) 523 

Duties  under  Registration  Law  (,160- 

172) 526-30 

To  Ascertain  Amount  of  Delinquent 
Taxes  (190) 535 

Taxes  (74) 501 

Taxation — 

Under  Reciprocal  Laws  (71,  155)  5C«,  525 

Municipal  (.74) 501 

Of  Agents  and  Companies  (182-191) 

53a-35 

Valuation  of  Life  Policies  (133) 516-18 

Voting  by  Proxy  (65,1 49) 498,  524 

WrvEs' Policy  (178,  179,  181)  ....  532,533 


INSURANCE  STATUTES  OF  MISSOURI. 


Revised  by  Hon.  Celsus  Price.,  Superintendent  of  Insurance. 


CONSTITUTIONAL  PROVISIONS  CONCERNING  CORPORA- 
TIONS. 

1.  The  General  Assembly  shall  not  pass  any  local  or  special 
la\r :  Creating  corporations,  or  amending,  rene^viug,  extending  or 
explaining  the  charter  thereof:  Granting  to  any  corporation,  asso- 
ciation or  individual  any  special  or  exclusive  right,  privQege  or  im- 
munity.    {Art.  4,  §  53.) 

2.  All  existing  charters,  or  grants  of  special  or  exclusive  pri- 
vileges, under  which  a  bona  fide  organization  shall  not  have  taken 
place,  and  business  been  commenced  in  good  faith,  at  the  adoption 
of  this  Constitution,  shall  thereafter  have  no  validity.     {Art.  12,  §  1.) 

3.  No  corporation,  after  the  adoption  of  this  Constitution,  shall 
be  created  by  special  laws ;  nor  shall  any  existing  charter  be  ex- 
tended, changed  or  amended  by  special  laws,  except  those  for  chari- 
table, penal  or  reformatory  purposes,  which  are  under  the  patronage 
and  control  of  the  State.     {Ibid.,  §  2.) 

4.  The  General  Assembly  shall  not  remit  the  forfeiture  of  the 
charter  of  any  corporation  now  existing,  or  alter  or  amend  such  for- 
feited charter,  or  pass  any  other  general  or  special  laws  for  the  bene- 
fit of  such  corporations.     {Ibid,  §  3,) 

5.  In  all  elections  for  directors  or  managers  of  any  incroporated 
company,  each  shareholder  shall  have  the  right  to  cast  as  many 
votes  in  the  aggregate  as  shall  equal  the  number  of  shares  so  held 
by  him  or  her  in  said  company,  multiplied  by  the  number  of  directors 
or  managers  to  be  elected  at  such  election ;  and  each  shareholder 
may  cast  the  whole  number  of  votes,  either  in  person  or  by  proxy, 
for  one  candidate,  or  distribute  such  votes  among  two  or  more  candi- 
dates ;  and  such  directors  or  managers  shall  not  be  elected  in  any 
other  manner.     {Ibid,  §  6.) 

6.  No  corporation  shall  engage  in  business,  other  than  that 
expressly  authorized  in  its  charter,  or  the  law  under  which  it  may 
have  been  or  hereafter  may  be  organized,  nor  shall  it  hold  any  real 
estate  for  any  period  longer  than  six  years,  except  such  as  may  be 
necessarv  and  proper  for  carrying  on  its  legitimate  business.     {Ibidj 

§  7.) 

7.  No  corporation  shall  issue  stock  or  bonds,  except  for  money 
paid,  labor  done  or  property  actually  received,  and  all  fictitious  in- 
crease of  stock  or  indebtedness  shall  be  void.  The  stock  and  bonded 
indebtedness  of  corporations  shall  not  be  increased,  except  in  pursu- 
ance of  general  law,  nor  without  the  consent  of  the  persons  holding 
the  larger  amount  in  value  of  the  stock  first  obtained  at  a  meeting 
called  for  the  purpose,  first  giving  sixty  days'  public  notice,  as  may 
be  provided  by  law.     {Ibid,  §  8.) 


480  hine's  insurance  statutes. 

8.  Dues  from  private  corporations  shall  be  secured  by  such 
means  as  may  be  prescribed  by  law,  but  in  no  case  shall  any  stock- 
holder be  individually  liable  in  any  amount  over  or  above  the 
amount  of  stock  owned  by  him  or  her.     {Ibid,  §  9.) 

9.  No  corporation  shall  issue  preferred  stock  without  the  con- 
sent of  all  the  stockholders.     {Ibid,  §  10.) 

10.  The  term  <'  cori>oration,"  as  used  in  this  Article,  shall  be 
construed  to  include  all  joint  stock  companies  or  associatious  having 
any  powers  or  privileges  not  possessed  by  individuals  or  partner- 
ships.    {Ibid,  §  11.) 

INSUEANCE  DEPAETMENT. 

11..  There  is  hereby  created  an  insurance  department,  which 
shall  be  charged  with  the  execution  of  all  laws  now  in  force  or  which 
may  hereafter  be  enacted  in  relation  to  insurance,  and  insurance 
companies  doing  business  in  this  State.  ( Wagner^s  Statutes,  1870,  p. 
732,  §  1.) 

1*2.  The  chief  officer  of  said  department  shall  be  designated  as 
the  Superintendent  of  the  Insurance  Department.  He  shall  be  a 
citizen  of  this  State  and  experienced  in  the  matters  of  insurance,  and 
be  appointed  by  the  Governor  by  and  with  the  advice  and  consent  of 
the  Senate,  and  shall  hold  his  office  for  a  term  of  four  years  from  the 
first  day  of  March,  A.  D.  eighteen  hundred  and  sixty-nine  ;  but  the 
Governor  shall  have  power  to  suspend  him  from  office  whenever  in  his 
opinion  the  public  interest  may  require  it,  or  with  the  advice  and 
consent  of  the  Senate  to  remove  him  from  office ;  and  if  a  vacancy 
shall  at  any  time  occur,  the  same  shall  be  filled  by  the  Governor  by 
aj)pointment  for  the  unexpu-ed  term,  subject  to  the  confirmation  of 
the  Senate  at  its  next  session.  It  shall  not  be  lawful  for  the  Super- 
intendent or  his  deputy  to  hold  any  position  as  officer,  agent  or 
emi^loyee  of  any  insurance  or  assurance  company.     {Ibid,  §  2.) 

IJI.  Within  twenty  days  after  receiving  his  commission,  and 
before  entering  upon  the  duties  of  his  office,  he  shall  take  the  oath 
of  office  i)rescribed  by  the  constitution  of  this  State,  and  shall  give 
a  bond  to  the  State  of  Missouri  in  the  sum  of  one  hundred  thousand 
dollars,  with  five  or  more  good  and  sufficient  securities,  to  be 
approved  by  the  Attorney-General  and  State  Auditor,  conditioned 
for  the  faithful  discharge  of  his  duty,  which  oath  and  bond  shall  be 
filed  in  the  office  of  the  Secretary  of  State.     {Ibid,  p.  733,  §  3.) 

14.  Said  Superintendent  may  appoint  a  deputy  who  shall  be 
subject  to  removal  at  pleasure  by  the  Superintendent,  and  who  shall 
possess  all  the  powers  and  perform  all  the  duties  attached  by  law  to 
the  office  of  Superintendent  during  a  vacancy  in  such  office,  and 
during  the  absence,  inability  or  suspension  of  his  principal.  Said 
Superintendent  shall  be  responsible  for  the  acts  of  his  deputy,  who 
shall  before  entering  upon  the  duties  of  his  office,  take  the  oath  as 
required  of  the  Superintendent  in  the  third  section  of  this  act. 
{Ibid,  §  4.) 

15.  Said  Superintendent  shall  receive  an  annual  salary  of 
(4,000)  four  thousand  dollars,  and  his  deputy  an  annual  salary  of 
two  thousand  dollars,  which  salaries  shall  be  paid  quarterly,  in  the 
manner  provided  by  the  third  section  of  the  thirty -first  chapter  of 
the  General  Statutes  in  regard  to  the  salaries  of  State  officers. 
{Ibid,  §  5.) 

1 0.     The  said  Superintendent  shall,  with  the  approval  of  the 


MISSOURF.  481 

Governor,  devise  a  seal  with  suitable  inscriptions  for  his  office,  a 
description  of  which,  with  a  certificate  of  approval  by  the  Governor, 
shall  be  filed  in  the  office  of  the  Secretary  of  State  with  an  impres- 
sion thereof;  which  seal  shall  thereupon  be,  and  become  the  seal  of 
the  office  of  the  Superintendent  of  the  Insurance  Department,  and 
the  same  may  be  renewed  whenever  necessary.  Every  certificate 
or  other  i)aper  executed  by  said  Superintendent  in  pursuance  of  any 
authority  conferred  on  him  by  law,  and  sealed  with  his  seal  of 
office,  and  all  copies  of  papers  in  the  office  of  said  Superintendent, 
certified  by  him  and  authenticated  by  said  seal,  shall,  in  all  cases, 
be  evidence  equally  and  in  like  manner  as  the  originals,  and  shall 
have  the  same  force  and  effect  as  the  originals  thereof  would,  in 
any  suit  or  proceeding  in  any  coui"t  of  this  State.     {Ibid,  §  6.) 

17.  The  said  Superintendent  shall  have  his  office  in  the  city  of 
St.  Louis,  and  shall  keep  the  same  open  for  business  at  all  proper 
hours.  He  shall  procure  rooms  necessary  for  his  office,  and  provide 
a  suitable  safe  and  furnitm-e  therefor.  He  may  also  provide  sta- 
tionery, fuel,  printing,  and  such  other  things  as  may  be  necessary 
for  the  transaction  of  the  business  of  his  office,  including  sufficient 
clerical  and  actuarial  force  therefor,  and  may  employ  persons 
to  make  personal  examinations  of  the  conditions  and  affairs  of 
insurance  companies,  when  necessary,  as  required  by  law,  and  also 
competent  legal  counsel  in  respect  to  such  questions  and  proceed- 
ings as  may  arise  or  be  required  in  the  proper  discharge  of  his 
duties  ;  Provided,  however,  That  he  shall  not  employ  in  any  capacity 
whatever,  to  perform  any  service,  any  person  who  is  an  officer, 
agent,  or  employee  of  any  insurance  company  or  association.  He 
shall,  out  of  the  fees  and  assessments  which  he  is  by  law  authorized 
to  collect,  pay  all  expenses  incurred  under  the  foregoing  provisions, 
taking  i)roper  vouchers  therefor ;  and  before  said  vouchers  shall  be 
paid,  the  said  vouchers  shall  first  be  approved  by  at  least  three 
presidents  of  insurance  companies  in  St.  Louis.  {Ibid,  §  7,  as 
amended  by  laws  o/1870,  p.  50,  §  1.) 

1  8,  All  the  expenses  of  the  department  hereby  created  shall 
be  paid  out  of  the  fees  and  allowances  named  in  this  act,  and  the 
State  shall  not  become  in  any  manner  responsible  for  any  expenses 
growing  out  of  the  creation  of  this  department,  or  any  charges  ( o  i- 
nected  therewith.     {1  bid,  p.  734,  §  8.) 

19.  It  shall  be  the  duty  of  the  Superintendent  of  the  Insurance 
Department  to  file  in  his  office,  and  safely  keep  all  books  and  papers 
required  by  law  to  be  filed  therein,  to  issue  certificates  of  authority 
to  transact  insurance  business  in  this  State  to  any  companies  who 
have  fully  complied  with  the  laws  of  this  State,  and  to  issue  such 
other  certificates  as  are  required  by  the  laws  of  this  State  in  the 
organization  of  insurance  companies,  and  the  transaction  of  the 
business  of  insurance;  and  generally  to  do  and  perform  with  justice 
and  impartiality  all  such  duties  as  are  or  may  be  imposed  upon 
him  by  the  laws  regulating  the  business  of  insurance  in  this  State. 
{Ibid,  §  y.) 

20.  It  shall  be  the  duty  of  said  Superintendent  to  prepare  and 
furnish  on  demand,  to  all  insurance  companies  and  agents  doing 
business  in  this  State,  blank  forms  for  such  statements  or  reports  as 
may  by  law  be  required  of  them.     {Ibid,  §  10.) 

21.  He  shall  also  make,  on  or  before  the  second  Monday  in 
February,  in  each  year,  or  as  soon  thereafter  as  may  be  practicable, 
to  the  Legislature,  if  the  same  be  in  session,  otherwise  to  the  Gov- 

31 


482  hike's  insurance  statutes. 

emor,  to  be  forwarded  by  bim  to  the  Legislature  within  ten  days 
after  the  next  meeting  thereof,  a  report  of  the  affairs  of  the  Insurance 
Department;  which  report  shall  contain  a  tabular  statement  and 
synopsis  of  the  annual  statements  of  all  the  insurance  companies 
doing  business  in  this  State,  and  such  other  matters  as  in  his  opin- 
ion may  be  for  the  benefit  of  the  public,  and  shall  make  such  recom- 
mendations as  he  shall  deem  proper  in  regard  to  the  insurance  laws 
of  this  State.  Prior  to  the  first  day  of  January,  1871,  the  Superin- 
tendent shall  make,  or  cause  to  be  made,  in  the  manner  provided  by 
sections  twenty -nine  and  forty-one  of  an  act  entitled  "An  act  for 
the  incorporation  and  regulation  of  life  insurance  companies,"  ap- 
proved March  10,  1869,  an  examination  and  valuation  of  the  assets 
and  liabilities  of  every  life  assurance  company  doing  business  in 
this  State,  which  has  not  been  heretofore  examined  by  him  or  under 
his  direction ;  and  if  the  said  Superintendent  shall  be  satisfied,  after 
such  examination  and  valuation  is  made,  that  any  comjiany  is  in  an 
unsound  condition,  or  that  its  actual  assets  are  less  than  all  its  lia- 
bilities, he  shall  j^roceed  against  it  as  i)rovided  by  law  in  the  case  of 
unsound  life  insurance  companies.  The  cost  of  making  the  examina- 
tion and  valuation  herein  designated,  shall,  in  each  case,  be  assessed 
upon  and  paid  by  the  company  examined.  Complete  copies  of  the 
annual  statements  of  all  insurance  companies  doing  business  in 
the  State,  shall  be  published  in  an  ajipendix  to  the  annual  report 
herein  provided  for.  Two  thousand  copies  of  such  report  shall  be 
published  by  the  State,  subject  to  the  order  of  the  Superintendent 
of  the  Insurance  Department,  and  at  the  expense  of  the  Depart- 
ment.    {Ibid,  §  11,  as  amended  by  laics  o/lS10,p.  51,  §  2.) 

913.  The  records  of  said  department  shall  at  all  times  be  open 
to  the  inspection  of  the  public,  subject  to  such  rules  as  may  be  made 
by  the  Superintendent  for  their  safe  keeping,  free  from  any  charge 
whatever ;  and  he  shall,  on  demand,  furnish  certified  copies  of  any 
paper,  report,  or  document  on  file  in  his  office,  to  any  person  request- 
ing the  same,  upon  payment  of  the  fees  allowed  by  the  fifteenth  sec- 
tion of  this  act.     (Ibid,  §  12.) 

23.  Said  Superintendent  shall  have  power  to  investigate  and 
inquire  into  the  business  of  insurance  transacted  in  this  State,  and 
to  administer  oaths ;  and  any  person  who  shall  refuse,  after  demand 
or  notice,  to  give  said  Superintendent  full  and  truthful  information, 
and  answer  in  writing  to  any  inquiry  or  question  made  in  writing  by 
him  in  regard  to  the  business  of  insurance  carried  on  by  such  per- 
son, or  to  appear  and  testify,  under  oath,  before  said  Superintendent, 
in  regard  to  the  same  subject,  shall  be  deemed  guilty  of  a  misde- 
meanor, and  shall,  on  conviction  thereof,  be  punished  by  a  fine  not 
exceeding  one  thousand  dollars,  or  by  imprisonment  not  exceeding 
three  months ;  and  any  person  who  shall  willfully  and  corruptly 
make  or  sign  any  false  statement,  ui)on  oath,  in  answer  to  any  ques- 
tion in  writing  or  otherwise,  which  may,  in  the  course  of  any  exam- 
ination or  inquiry  authorized  by  law,  be  put  to  him  by  said  Superin- 
tendent, or  by  any  person  appointed  by  said  Superintendent  to  make 
such  examination  or  inquiry  in  regard  to  the  business  of  insurance 
carried  on  by  such  person,  or  by  any  company  whereof  such  person 
is  or  has  been  an  officer,  agent,  employee,  or  member,  or  who  shall 
willfully  and  corruptly  file,  or  cause  or  present  to  be  filed  in  the 
office  of  said  Superintendent,  any  statement  or  other  paper  required 
by  law  to  be  made  under  oath,  such  statement  or  paper  being  signed 
and  sworn  to  by  such  person,  and  containing  any  false  affirmation 


MISSOURI.  483 

in  respect  to  any  material  matter,  shall,  on  conviction  thereof,  be 
adjudged  giiilty  of  a  misdemeanor,  and  shall  be  punished  as  by  law 
in  such  case  provided.  {Ibid,  §  13,  as  amended  by  laics  o/1870, 
p.  51,  §  3.) 

24.  Said  Superintendent  shall  immediately  upon  obtaining  a 
suitable  office,  apply  to  and  receive  from  the  Secretary  of  State  or 
any  other  officer,  or  clerk  of  any  court,  all  books,  papers,  docu- 
ments and  records  pertaining  to  the  subject  of  insurance  now  on  file 
and  kept  in  his  office,  and  shall  deposit  and  safely  keep  the  same  in 
his  office.  In  case  any  of  the  said  records  are  contained  in  books 
devoted  to  other  purposes,  the  officer  having  charg'e  thereof  shall 
deliver  a  certified  copy  of  the  same  ;  and  every  Superintendent  shall, 
upon  retiring  from  office,  deliver  to  his  qualified  successor  the  pos- 
session of  his  office,  and  all  furniture,  papers  and  property  belong- 
ing to  the  same.     {Ibid,})-  ^^'^5,  §  14  ) 

35.  There  shall  be  paid  to  the  Superintendent  by  every  com- 
pany to  whom  this  act  shall  apply,  the  following  fees :  For  filing  the 
declaration  required  by  this  act  on  the  organization  of  each  com- 
pany, fifty  dolhirs  ($50 j.  For  filing  statement  and  certified  copy  of 
charter,  required  of  companies  not  organized  under  the  laws  of  this 
State,  fifty  dollars  ($50).  For  filing  annual  statement  of  any  com- 
pany doing  business  in  this  State,  fifty  dollars  ($50).  For  filing 
supplementary  annual  statement  of  any  company  doing  business  in 
this  State,  twenty-five  dollars  ($25).  For  filing  any  other  papers  re- 
quired to  be  filed  in  his  office,  ten  dollars  ($10).  For  furnishing 
copies  of  papers,  records  and  documents  filed  in  his  office,  per  folio, 
twentv  cents  (20  cts).  For  affixing  seal  of  office,  one  dollar  ($1.00). 
(i6irf,^§  15.) 

26.  The  Superintendent  shall  collect  such  fees  and  the  assess- 
ments mentioned  in  the  seventeenth  section  of  this  act,  and  shall  pay 
monthly  into  the  State  treasury  whatever  sums  may  be  thus  col- 
lected and  received  by  him,  except  that  he  shall  therefrom  reserve 
sufficient  to  pay  and  provide  for  the  expenses  authorized  by  the 
seventh  section  of  this  act  for  the  current  fiscal  year ;  and  he  is  au- 
thorized to  apply  so  much  as  may  be  necessary,  out  of  the  fees  which 
he  may  hereafter  receive,  to  pay  expenses  such  as  mentioned  in  said 
seventh  section  heretofore  incurred  and  not  already  provided  for. 
For  all  payments  by  him  he  shall  take  proper  vouchers,  and  shall 
take  receipts  from  the  State  Treasurer  for  all  moneys  paid  by  him  to 
said  Treasurer  as  above  i)rovided.  The  accounts  of  said  Superin- 
tendent, for  all  receipts  and  disbursements  by  him,  shall  be  audited, 
adjusted  and  settled  at  the  close  of  each  fiscal  year  of  the  State  by 
the  Auditor  of  Public  Accounts.  The  Superintendent  shall  in  the 
annual  report  required  by  the  eleventh  section  of  this  act,  set  forth, 
in  a  statement,  verified  by  oath,  the  various  sums  received  and  dis- 
bursed by  him,  and  from,  and  to  whom,  and  for  what  purpose. 
Suits  may  be  brought  by  said  Superintendent,  as  such,  to  recover, 
any  fees  or  other  sums,  which  he  may  be  by  law  authorized  to  demand 
or  collect,  and  any  company  or  person  liable  for  any  fees  or  assess- 
ments, who  shall  neglect  or  refuse  to  pay  the  same  within  ten  daj'S 
after  demand  thereof  in  writing  by  said  Superintendent,  shall  be 
hable  to  pay  double  the  amount  of  such  fees  or  assessments,  and 
any  judgment  recovered  in  such  case  shall  be  for  double  such 
amount  and  costs.  (Ibid,^  16,  a«  amended  bylaws  of  1S70,  p.  52y. 
§4.) 

27.  In  case  the  expenses  of  this  department,  including  the' 


484:  hike's  insurance  statutes. 

salaries  paid  to  the  Superintendent  and  Assistant  Superintendent, 
shall  exceed  the  amount  collected  under  the  fifteenth  section  of  this 
act,  the  Superintendent  shall,  annually,  assess  upon  all  insurance 
companies  doing  business  in  this  State,  a  sum  equal  to  such  excess, 
which  he  shall  collect  and  apply  in  like  manner  as  by  this  act  au- 
thorized and  required  in  respect  to  the  fees  payable  by  such  com- 
panies. Such  assessments  shall  be  made  in  proportion  to  the  rela- 
tive amounts  of  the  assets  of  each  company.  {Hid,  p.  736,  §  17,  a« 
amended  by  laws  oflS10,p.  52,  §  5.) 

Q8.  Said  Superintendent  shall  keep  and  preserve  in  a  perma- 
nent form  a  full  record  of  his  proceedings,  including  a  concise  state- 
ment of  the  condition  of  every  company  whose  aiiairs  he  shall  have 
examined.     {Ibid,  §  18.) 

29.  Provided,  That  nothing  in  this  act  contained  shall  be  so 
construed  as  to  prevent  the  repeal  or  amendment  of  the  same,  or 
any  section  thereof,  by  the  present  or  any  futme  General  Assembly 
of  this  State.     {Ibid,  §  19.) 

30.  It  shall  be  the  duty  of  the  Superintendent  of  the  Insur- 
ance Department,  upon  receipt  of  securities  from  any  insurance 
company,  to  forthwith  deposit  the  same,  in  the  presence  of  the  pres- 
ident, vice-president,  or  authorized  agent  of  the  company,  in  a  strong 
iron  box  which  shall  require  two  distinct  and  different  keys  to  un- 
lock the  same ;  one  key  to  be  kept  by  the  Sui)erintendent  and  the 
other  by  the  comjiany ;  and  the  box  shall  not  be  opened  except  in 
the  presence  of  the  Superintendent  and  said  president,  vice-presi- 
dent, or  authorized  agent  of  the  company.  The  boxes  shall  be  kept 
in  the  vault  of  the  "  Safe  Deposit  Company  of  Saint  Louis,"  and  the 
insurance  companies  shall  pay  the  several  fees  for  the  safe  keeping 
of  their  respective  boxes.    {Laws  ofl8T2,p.  43,  §  1.) 


INSURANCE   COMPANIES   OTHER  THAN   LIFE. 

31 .  Any  number  of  persons,  not  less  than  thirteen  in  number, 
a  majority  of  whom  shall  be  citizens  of  this  State,  may  associate 
and  form  an  incori)oration,  association,  or  company  for  the  follow- 
ing purj)oses,  to  wit :  First,  To  make  insurance  on  houses,  buildings, 
merchandise,  furniture,  and  all  other  kinds  of  property,  against  loss 
or  damage  by  fire  ;  to  make  all  kinds  of  insurance  on  ships,  steam- 
boats and  other  vessels  and  their  freight  and  cai-goes,  and  also  on 
goods,  merchandise,  produce,  and  all  other  kinds  of  proi)erty  in  the 
course  of  transportation,  whether  by  land  or  Mater,  and  to  lend 
money  on  bottomry  and  respondentia:  Second,  To  insure  horses, 
cattle  and  other  live  stock  against  loss  or  damage  by  accident, 
theft,  disease  or  death,  or  any  other  unknown  contingent  event 
whatever,  which  may  legally  be  the  subject  of  insurance :  Third,  To 
make  insurance  ufjon  the  health  of  individuals,  and  against  personal 
injury,  disablement  or  death  resulting  from  traveling  or  general  ac- 
cidents, by  land  or  water ;  to  insure  the  fidelity  of  persons  holding 
places  of  public  and  private  trust ;  and  also  to  receive  on  deposit 
and  insure  the  safe-keeping  of  books,  papers,  moneys,  stocks,  bonds 
and  all  other  kinds  of  personal  property ;  and  to  do  any  and  all 
other  kinds  of  legitimate  insurance  business,  excepting  that  of  life 
assurance  and  dealing  in  annuities,  and  excepting  also  the  kinds  of 
insurance  included  in  the  first  and  second  divisions  or  classes  named 
in  this  section.    No  company  shall  engage  in  more  than  one  of  the 


MISSOURI.  485 

kinds  or  classes  of  iusiiranee  above  meutioned,  and  no  company 
that  has  been  organized  to  do  the  business  mentioned  in  one  of  the 
three  classes  aforesaid  shall  issue  policies  or  do  business  connected 
with  the  kind  of  insurance  mentioned  in  either  of  the  other  classes. 
{Wag)ier's  Statutes,  1870, _p.  759,  §  1.) 

33.  Corporations  may  be  formed  for  the  purpose  of  doing  the 
business  mentioned  in  the  first  of  the  three  classes  or  divisions 
named  in  the  first  section  of  this  act,  either  on  the  stock  or  mutual 
plan ;  and  for  the  purpose  of  doing  the  business  mentioned  in  the 
second  and  third  classes  or  divisions  on  the  stock  plan ;  and  every 
corporation  so  formed  upon  the  mutual  plan  shall  have  the  word 
"mutual"  affixed  to  the  name  Trhich  it  assumes;  and  it  shall  not  be 
lawful  for  any  cori)oration  so  formed  to  do  business  on  any  other 
plan  than  that  upon  which  it  is  organized ;  or  for  a  corporation 
formed  upon  the  mutual  plan,  in  any  manner,  to  use  its  name,  or  to 
make  publication  thereof,  unless  the  word  herein  pro\ided  be  affixed 
thereto  in  plain  letters,  of  the  size  of  the  letters  in  which  the  balance 
of  the  name  is  printed ;  and  no  such  corporation  shall  adopt  the 
name  of  any  existing  company  or  association  transacting  the  same 
kind  of  business,  or  a  name  so  similar  as  to  be  calculated  to  mislead 
the  public;  and  mutual  companies  shall  not  issue  policies  known  as 
stock  policies,  or  do  business  as  joint  stock  companies,  or  upon  the 
joint  stock  plan  {Ibid,  p.  760,  §  2,  as  amended  by  la^vs  of  1874, 
P'  73,  §  1.) 

3JI.  The  persons  mentioned  in  the  first  section  of  this  act  shall 
be  designated  as  corporators ;  and  any  such  corporators  desiring  to 
form  a  company  for  the  i)urpose  of  transacting  the  business  men- 
tioned in  the  first  section  of  this  act,  upon  either  of  the  plans  named 
in  the  second  section,  shall  tile  in  the  office  of  the  Superintendent 
of  the  Insurance  Department,  a  declaration,  signed  by  each  of  said 
corporators,  setting  forth  their  intention  to  form  a  corporation  for 
the  purpose  of  transacting  the  business  aforesaid,  which  declaration 
shall  comprise  a  copy  of  the  charter  proposed  to  be  adoi)ted  by 
them ;  and  they  shall  publish  a  notice  of  such  intention  once  in  each 
week,  or  ofteuer,  for  at  least  four  weeks,  in  a  newspaper  of  general 
circulation,  published  in  the  county  where  such  corporation  is  pro- 
posed to  be  located.     {Ibid,  ^3.) 

34.  \Mien  such  corporators  i^ropose  to  form  a  corporation  for 
the  purposes  designated  in  the  first  section  of  this  act,  on  the  joint 
stock  plan,  the  charter  comprised  in  the  declaration  mentioned  in 
the  third  section  shall  set  forth.  First,  The  name  assumed  by  such 
corporation,  and  by  which  it  shall  be  known ;  Second,  The  place 
where  the  i^rincipal  office  for  the  transaction  of  its  business  shall  be 
located ;  Third,  The  specific  kind  or  kinds  of  business  which  it  pro- 
poses to  transact ;  Fourth,  The  amount  of  its  capital  stock  and  the 
number  of  shares  into  which  it  shall  be  divided,  and  the  manner  in 
which  it  shall  be  paid  up  or  secured ;  Fifth,  The  manner  in  which 
the  corporate  ])owers  granted  by  this  act  shall  be  exercised,  showing 
the  number  of  directors,  which  shall  not  be  less  than  nine  nor  more 
than  thirteen ;  the  manner  of  electing  them ;  the  mode  of  filling  va- 
cancies, and  such  other  particulars  as  may  be  necessary  to  make 
manifest  the  objects  and  purposes  of  the  corporation,  and  the  man- 
ner in  which  it  is  to  be  conducted.     {Ibid,  p.  7(51,  §  4.) 

35.  Whenever  the  corporators  shall  have  filed  the  declaration 
required  by  the  third  section  aforesaid,  and  also  proof  of  the  publicar 
tion  therein  required  by  the  affidavits  of  the  publishers  of  the 


486  niNE'S  INSURANCE  STATUTES. 

newspaper  in  which  the  publication  was  made,  his  foreman  or  clerk, 
with  the  Superintendent  of  the  Insurance  Department,  it  shall  be 
the  duty  of  said  Superintendent  to  submit  such  declaration  to  the 
Attorney-General  of  this  State  for,  examination ;  and  if  it  shall  be 
found  by  him  to  be  in  accordance  with  the  provisions  of  this  act 
and  not  inconsistent  with  the  constitution  and  laws  of  this  State 
and  the  United  States,  he  shall  so  certify  and  deliver  it  back  to  the 
Superintendent,  who  shall  cause  the  said  declaration  and  affidavit, 
with  the  certificate  of  the  Attorney-General,  to  be  recorded  in  a 
book  kept  tor  that  purpose,  and  shall  furnish  a  certified  cop3'  of  the 
same  to  the  corporators  ;  upon  the  receipt  of  which  they  shall  be  a 
body  politic  and  corporate,  and  may  proceed  to  organize  in  the 
manner  set  forth  in  their  charter,  and  to  open  books  for  subscrip- 
tion to  the  capital  stock  of  the  company,  and  keep  the  same  open 
until  the  whole  amount  specified  in  the  charter  is  subscribed;  but 
it  shall  not  be  lawful  for  such  company  to  issue  policies  or  transact 
any  business  of  any  kind  or  nature  whatever,  except  as  aforesaid, 
until  they  have  fully  complied  with  the  requirements  of  the  sixth 
and  seventh  sections  of  this  act.     {Ibid,  §  5.) 

3<5.  Upon  notification  that  the  capital  stock  named  in  the 
charter  has  been  subscribed,  and  the  amounts  required  by  the  fif- 
teenth section  of  this  act  to  be  paid  in  have  been  paid  in  as  therein 
required,  the  Superintendent  shall  make  an  examination,  or  cause 
one  to  be  made  by  some  disinterested  person,  especially  appointed 
by  him  for  that  purpose,  and  if  it  shall  be  found  by  himself,  or  if 
the  person  so  appointed  shall  certify  under  oath  that  said  capital 
stock,  to  the  amount  therein  named,  has  been  paid  in  and  is  pos- 
sessed by  the  company  in  money,  or  in  such  stocks,  bonds,  and 
mortgages,  and  deeds  of  trust,  as  are  required  by  the  fifteenth  sec- 
tion of  this  act,  then  he  shall  so  certify,  and  the  corporators  or  officers 
of  such  company  shall  be  required  to  certify  under  oath  that  the 
money  or  stocks,  or  bonds  and  mortgages,  or  deeds  of  trust  exhib- 
ited to  the  i)ersons  making  the  examination  are  the  bona  fide  prop- 
erty of  said  company.     {Ibid,  §  C.) 

37.  When  the  corporators  have  fully  complied  with  the  re- 
quirements of  the  preceding  section,  it  shall  be  the  duty  of  the 
Superintendent  to  furnish  the  company  a  certified  copy  of  the  Treas- 
urer's certificate  of  deposit  and  his  certificate  of  authority  for  them 
to  commence  the  business  pro]JOsed  in  the  charter,  and  a  certified 
copy  of  the  aforesaid  declaration  and  certificates,  which,  on  being 
filed  and  recorded  in  the  office  of  the  Recorder  of  the  county  in 
which  the  company  is  located,  shall  be  its  authority  to  commence 
business  and  issue  policies ;  and  such  certified  copy  of  tlie  declara- 
tion and  certificates  may  be  used  in  evidence  for  or  against  such 
company  with  the  same  effect  as  the  originals.     {Ibid,  p.  7G'J,  §  7.) 

38.  When  such  corporators  propose  to  form  a  corporation  for 
the  pur])ose  of  doing  the  fire  and  marine  business  designated  in  the 
first  of  the  three  classes  of  insurance  named  in  the  first  section  of 
this  act,  on  the  mutual  plan,  the  charter  comprised  in  the  declara- 
tion mentioned  in  the  third  section  shall  set  forth  :  First,  The  name 
assumed  by  such  corporation,  and  by  which  it  shall  be  known; 
Second,  The  place  where  the  principal  office  for  the  transaction  of 
its  business  shall  be  located ;  Third,  The  specific  kind  or  kinds  of 
business  which  it  proposes  to  transact ;  Foui'th,  The  number  of  per- 
sons from  whom  proposals  for  insurance  shall  be  received,  the 
amount  of  premiums  to  be  received  on  deposit,  and  the  amount  of 


MISSOURI.  487 

cash  to  be  paid  on  the  same  before  the  company  shall  begin  to  do 
business  and  issue  policies ;  Fifth,  The  manner  in  which  the  corpo- 
rate powers  granted  by  this  act  are  to  be  exercised,  showing  the 
number  of  directors  and  trustees,  which  shall  not  be  less  than  thir- 
teen nor  more  than  the  number  stated  in  its  charter,  and  their  re- 
spective powers  and  duties,  and  the  manner  of  their  election,  and 
the  mode  of  filling  vacancies,  and  such  other  particulars  as  may  be 
necessary  to  make  manifest  the  object  and  purposes  of  the  associa- 
tion, and  the  manner  in  which  it  is  to  be  conducted.     {Ibid,  §  8.) 

39.  Whenever  the  corporators  shall  have  filed  the  declaration 
required  by  the  third  section  of  this  act,  and  also  proof  of  the  pub- 
lication therein  required,  by  the  affidavit  of  the  publisher  of  the 
newspaper  in  which  the  publication  was  made,  his  foreman  or  clerk, 
with  the  Superintendent  of  the  Insurance  Department,  it  shall  be 
the  duty  of  said  Superintendent  to  submit  such  declaration  to  the 
Attorney-General  of  this  State  for  examination ;  and  if  it  shall  be 
found  by  him  to  be  in  accordance  with  the  provisions  of  this  act, 
and  not  inconsistent  with  the  constitution  and  laws  of  this  State  and 
of  the  United  States,  he  shall  so  certify  and  deliver  it  back  to  the 
Superintendent,  who  shall  cause  the  said  declaration  and  affidavit, 
with  the  certificate  of  the  Attorney-Greneral,  to  be  recorded  in  a 
book  kept  for  that  purpose,  and  shall  furnish  a  certified  copy  of  the 
same  to  the  corporators,  upon  the  receipt  of  which  they  shall  be  a 
body  politic  and  corporate,  and  may  proceed  to  organize  in  the 
manner  set  forth  in  their  charter,  and  to  open  books  and  receive 
proposals  and  agi'eements  for  insurance  and  premiums  for  the  same, 
and  subscriptions  for  the  guaranty  fund  mentioned  in  the  sixteenth 
section  of  this  act,  if  the  company  i)roposes  to  organize  with  such 
fund  on  deposit,  and  issue  receipts  therefor,  and  to  keep  such  books 
open  until  the  whole  amount  specified  in  its  charter  is  received ; 
but  it  shall  not  be  lawful  for  such  company  to  issue  policies  or 
transact  any  business  of  any  kind  except  as  aforesaid,  until  it  has 
fully  complied  with  the  requirements  ot  the  tenth  and  eleventh  sec- 
tions of  this  act.     {Ibid,  §  9.) 

40.  Upon  notification  that  the  proposals  and  agreements  for 
insurance  and  subscriptions  to  the  guaranty  fund  mentioned  in  the 
ninth  section  have  been  made,  and  the  amount  of  premiums  and 
subscriptions  therein  mentioned  have  been  received,  the  Superin- 
tendent shall  make  an  examination,  or  cause  one  to  be  made  by 
some  disinterested  person  specially  appointed  by  him  for  that  pur- 
pose ;  and  if  it  shall  be  found  by  himself,  or  if  the  person  so  ap- 
pointed shall  certify  under  oath  that  proposals  and  agreements  have 
been  entered  into  with  said  company  and  premiums  and  securities 
for  the  guaranty  fund  have  been  received,  in  the  manner  and  to 
the  amount  required  by  the  sixteenth  section  of  this  act,  and  that 
the  premium  notes  received  by  the  company  have  been  recorded  as 
required  by  said  section,  and  that  the  amount  required  to  be  paid 
to  said  eomi>any  in  cash,  is  held  by  it  in  money  or  in  stocks,  and 
bonds  and  mortgages,  or  deeds  of  trust,  then  he  shall  so  certify,  and 
the  corporators  or  officers  of  such  comjjany  shall  be  required  to  cer- 
tify under  oath,  that  the  money  or  stocks,  and  bonds  and  mort- 
gages, or  deeds  of  trust  and  notes  and  other  obligations  exhibited 
to  the  i^erson  making  the  examination,  have  been  received  on  de- 
posit for  subscriptions  to  said  fund  and  for  ])remiums  on  bona  fi:ie 
proposals  and  agreements  for  insurance.     {Ibid,  p.  763,  §  10.) 

41.  When  the  corporators  have  fully  complied  with  the  re- 


488  hine's  insueance  statutes. 

qiiiremeuts  of  the  preceding  sections,  and  said  corporation  has  de- 
posited with  the  Treasurer  of  the  State,  the  amount  of  stocks  or 
bonds  and  mortgages,  or  deeds  of  trust  required  by  the  sixteenth 
section  of  this  act,  if  the  company  has  organized  with  a  guaranty 
fund,  it  shall  be  the  duty  of  the  Superintendent  to  furnish  the  asso- 
ciation a  certified  copy  or  the  certificate  of  such  deposit,  if  a  deposit 
is  required,  and  his  certificate  of  authority  for  them  to  commence 
the  business  proposed  in  the  charter,  and  a  certified  copy  of  the 
aforesaid  declaration  and  certificates,  which,  on  being  filed  and  re- 
corded in  the  office  of  the  Eecorder  of  the  county  in  which  the  associa- 
tion is  to  be  located,  shall  be  its  authority  to  commence  business, 
and  issue  policies ;  and  such  certified  copies  of  the  declaration,  cer- 
tificate, and  certificate  of  deposit  may  be  used  in  evidence  for  or 
against  said  company,  with  the  same  effect  as  the  originals.     {Ibid, 

§  11.) 

42.    Any  company  incorporated  by,  or  organized  under  the 

provisions  of  this  act  may  amend  its  charter  in  any  manner  which 
shall  not  conflict  with  the  provisions  of  this  act.  Any  such  com- 
pany desiring  to  amend  its  charter,  shall  call  a  meeting  of  all  per- 
sons entitled  to  vote  at  the  election  of  its  directors,  by  a  notice, 
which  shall  state  the  object  of  such  meeting,  and  shall  be  published 
once  a  week  or  oftener,  for  at  least  four  weeks  in  a  newspaper  of 
general  circulation,  published  in  the  county  where  said  company 
shall  have  its  principal  office.  If  a  two-thirds  majority  of  all  the 
votes  cast  at  such  meeting  shall  be  in  favor  of  such  amendment, 
such  comi)any  shall  file  with  the  Superintendent  of  the  I  nsm-ance 
Department  proof  of  said  publication,  by  the  affidavit  of  the  pub- 
lisher of  the  newspaper  in  which  such  publication  was  made,  his 
foreman  or  clerk,  and  also  a  copy  of  the  proposed  amended  charter, 
which  the  said  Superintendent  shall  submit  to  the  Attorney-General 
for  examination,  and  if  found  by  him  to  be  in  accordance  with  the 
provisions  of  this  act,  and  not  inconsistent  with  the  constitution  and 
laws  of  this  State,  he  shall  so  certify,  and  shall  deliver  it  back  to 
the  Superintendent,  who  shall  cause  the  same,  together  with  the 
affidavits  of  the  publisher,  and  the  certificate  of  the  Attorney-Gen- 
eral, to  be  placed  on  record  in  his  office,  and  shall  furnish  a  certi- 
fied copy  of  such  record,  and  also  his  certificate  of  authority  to 
transact  business  under  said  amended  charter,  to  said  company,  and 
ui)on  filing  of  the  same  in  the  office  of  the  Eecorder  of  the  county 
where  it  shall  have  its  principal  office,  such  amended  charter  shall 
be  the  charter  of  said  company.     {Ibid,  p.  764,  §  12.) 

4IS.  Any  company  incorporated  by,  or  organized  under  the 
laws  of  this  State,  and  doing  either  of  the  kinds  of  business  men- 
tioned in  the  first  section  of  this  act,  or  any  part  of  the  same,  iliay 
surrender  its  charter  or  license,  and  reorganize  under  the  provisions 
of  this  act.  Any  company  or  association  desiring  so  to  reorganize, 
shall  call  a  meeting  of  all  persons,  whether  stockholders  or  policy- 
holders, entitled  to  vote  at  the  election  of  its  directors,  by  a  notice 
which  shall  state  the  object  of  said  meeting.  Said  notice  shall  be 
published  once  in  each  week  or  oftener,  for  at  least  fom-  weeks,  in  a 
newspaper  of  general  circulation  published  in  the  county  where 
such  company  Shall  have  its  principal  office.  At  such  meeting  a 
declaration  shall  be  submitted,  in  writing,  setting  forth  the  inten- 
tion of  said  company  or  association  to  surrender  its  present  charter 
and  license,  and  reorganize  as  aforesaid,  and  such  declaration  shall 
comprise  a  copy  of  the  charter  proposed  to  be  adopted  by  said  com- 


ivnssouiii.  489 

pany,  which  charter  shall  set  forth  the  particulars  required  by  the 
fourth  and  eighth  sections  of  this  act,  according  to  the  plan  upon 
which  said  com])any  shall  propose  to  reorganize.     (Ibid,  §  13.) 

44.  The  declaration  mentioned  in  the  preceding  section  shall 
be  signed  by  a  majority  of  the  directors  of  such  company  or  associ- 
ation ;  and  the  president  and  vice-president,  or  secretary  of  such 
company  or  association  shall  make  affidavit  that  such  declaration 
was  voted  upon  and  adopted  at  a  meeting  of  the  legal  voters  of 
such  company  or  association,  and  that  such  meeting  was  called  in 
the  manner  prescribed  by  the  thirteenth  section  of  this  act.  When- 
ever the  company  shall  have  filed  such  affidavit  and  declaration 
with  said  Superintendent,  it  shall  be  his  duty  to  submit  the  same 
to  the  Attorney-General  for  his  examination,  and  if  it  shall  be  found 
by  him  to  be  in  accordance  with  the  provisions  of  this  act,  and  not 
contrary  to  the  constitution  and  laws  of  this  State  and  of  the  United 
States,  he  shall  so  certify,  and  return  the  same  to  the  Superin- 
tendent, who  shall  thereupon  make,  or  cause,  an  examination  of 
the  stock,  and  assets,  and  proposals,  and  agreements  in  the  posses- 
sion of  the  company,  and  the  investments  of  the  same  to  be  made, 
and  certified  to  in  the  manner  provided  for  like  examinations  in  the 
sixth  and  tenth  sections  of  this  act,  and  shall  also  require  the  act- 
ing president  and  secretary  of  said  company  to  certify,  under  oath, 
that  the  property  exhibited  to  the  persons  making  the  examination 
is  a  bona  fide  property  of  said  company.  When  the  company  has 
fully  complied  with  the  preceding  requirements  of  this  section,  and 
has  deposited  with  the  State  Treasurer  the  securities  required  by 
the  sixteenth  section  of  this  act,  if  the  company  proposes  to  reor- 
ganize with  a  guaranty  fund,  it  shall  be  his  duty  to  furnish  the 
company  a  certified  copy  of  the  Treasurer's  certificate  of  such  de- 
posit and  his  certificate  of  authority  for  it  to  do  business  under  its 
new  organization  and  charter,  and  also  a  certified  copy  of  the 
aforesaid  declaration  and  certificates,  which,  on  being  filed  and  re- 
corded in  the  office  of  the  Recorder  of  the  county  in  which  the  com- 
pany is  located,  shall  complete  its  new  organization,  and  be  its  au- 
thority for  doing  business  under  its  new  organization  and  charter. 
Such  certified  copies  of  the  declaration  and  certificates  may  be  used 
in  evidence  for  or  against  said  company,  with  the  same  effect  as  the 
originals;  Provided,  that  no  existing  mutual  company  shall  have 
power  to  reorganize  as  a  stock  company.     (Ibid,  p.  765,  §  14.) 

45.  No  company  formed  on  the  joint-stock  plan,  for  the  pur- 
pose of  doing  either  of  the  kinds  or  classes  of  business  mentioned 
in  the  first  section  of  this  act,  shall  commence  to  do  business  with  a 
capital  less  than  one  hundred  thousand  dollars;  and  before  such  a 
company  shall  proceed  to  do  business,  the  capital  of  such  company 
shall  be  wholly  paid  in,  and  be  held  in  cash  or  invested  in  treasury 
notes  and  stocks  of  the  TJuited  States,  or  in  stocks  and  bonds  of  the 
State  of  Missouri,  or  in  bonds  and  mortgages  or  deeds  on  trust  on 
improved  unincumbered  real  estate,  worth  at  least  double  the 
amount  loaned  thereon ;  the  valuation  of  the  real  estate  so  mort- 
gaged, to  be  made  by  the  duly  authorized  assessors  of  the  county  in 
which  the  real  estate  is  located.  (Ibid,  §  15,  as  amended  by  laws  of 
1874,  p.  73,  §  2.) 

46.  No  company  formed  upon  the  mutual  plan  for  the  purpose 
of  doing  the  fire  and  marine  business,  designated  in  the  first  of  the 
three  classes  of  insurance,  named  in  the  first  section  of  this  act,  shall 
commence  to  do  business  until  agreements  have  been  entered  into 


490  hine's  insurance  statutes. 

for  insurance,  with  at  least  two  hundred  applicants,  the  premiums 
on  which  shall  amount  to  not  less  than  fifty  thousand  dollars,  of 
which  forty  per  cent,  at  least,  unless  the  company  is  to  be  organized 
with  a  guaranty  fund  upon  each  and  every  premium,  shall  have 
been  paid  in  cash,  and  until  notes  of  solvent  parties  founded  on 
actual  and  bona  fide  applications  for  insurance  shall  have  been  re- 
ceived for  the  remainder.  No  one  of  the  notes  received  as  aforesaid 
shall  amount  to  more  than  five  hundred  dollars,  and  no  two  shall  be 
given  for  the  same  risk,  or  be  made  by  the  same  person  or  firm,  ex- 
cept where  the  whole  amount  of  such  notes  shall  not  exceed  five 
hundred  dollars ;  nor  shall  any  note  be  regarded  or  represented  as 
forming  part  of  the  premiums  reqnired,  unless  a  policy  be  issued 
upon  the  same  within  thirty  days  after  said  comjDany  shall  have  re- 
ceived its  certificate  of  authority  from  the  Superintendent,  to  do 
business  and  issue  policies  upon  a  risk  which  shall  not  be  for  a 
shorter  period  than  six  years.  Each  of  said  notes  shall  be  payable, 
in  part  or  in  whole,  at  any  time  when  the  directors  of  said  com- 
pany shall  deem  the  same  requisite  for  the  payment  of  losses,  and 
such  incidental  expenses  as  may  be  necessary  for  transacting  the 
business  of  said  company.  No  note  shall  be  accepted  as  a  i)art  of 
such  capital  stock,  unless  the  same  shall  be  endorsed  by  two  solvent 
secuiities,  residents  of  this  State,  and  shall  be  accompanied  by  cer- 
tificate of  a  justice  of  the  peace  of  the  town  or  city  where  the  person 
making  such  note  shall  reside,  that  the  person  making  said  note  is, 
in  his  opinion,  pecuniarily  good  and  responsible  for  the  same  ;  and  by 
a  certificate  of  a  justice  of  the  peace  as  aforesaid,  that  said  endorsers 
are  pecnniarily  good  and  responsible ;  and  unless  such  note  shall 
state  upon  its  face,  that  it  is  a  lien  upon  the  property  insured.  Said 
note  shall,  before  such  company  proceeds  to  do  business,  be  filed 
and  recorded  in  the  Eecorder's  office  of  the  county  where  such  prop- 
erty is  situated,  and  shall  thereupon  be  and  become  a  lien  on  such 
property ;  and  such  note  shall  not  be  surrendered,  or  any  part  of 
the  cash  paid  upon  the  premium  returned,  while  the  policy  for 
which  it  was  given  continues  in  force.  Every  mutual  company  shall 
have  power  to  organize  with  a  guaranty  fund,  which  shall  not  be 
less  than  fifty  thousand  dollars,  and  which  shall,  before  the  company 
begins  to  do  business,  be  deposited  with  the  Treasurer  of  this  State, 
in  securities  of  the  kinds  mentioned  in  the  fifteenth  section  of  this 
act,  which  shall  be  held  as  security  for  the  payment  of  all  losses 
and  other  liabilities  of  such  companies.  The  applicants  for  insurance 
in  such  comjjany  organized  with  a  guaranty  fund,  shall  pay  in  ten 
per  cent,  in  cash,  upon  the  premiums  agreed  for  at  the  time  of  the 
organization  of  such  company.  Such  fund  shall  be  contributed  by 
not  less  than  ten  persons,  who  have  entered  into  agreements  as 
above  for  insurance  ;  and  no  one  person  shall  contribute,  or  hold  or 
receive  dividends,  interest  or  commissions,  upon  more  than  twenty 
per  cent,  of  said  fund.  The  above  fund  shall,  before  the  company 
proceeds  to  do  business,  be  deposited  with  the  State  Treasurer. 
The  company  shall  have  power  to  allow  to  each  of  the  contributors 
to  such  fund,  all  the  interest  and  dividends  accruing  from  the 
amount  contributed  or  held  by  him,  and  also  a  commission  not  to 
exceed  five  per  cent,  per  annum  upon  the  same.  Said  guaranty 
fund,  or  any  part  of  the  same,  shall  not  be  withdrawn  from  the  com- 
pany until  the  premium  notes  held  by  such  company  shall  have 
amounted  to  two  hundred  and  fifty  thousand  dollars.  Whenever 
the  premium  notes  held  by  such  company  shall  have  reached  the 


MISSOURI.  491 

above  amount,  the  president  and  secretary,  or  directors  of  the  com- 
pany, may  file  a  certificate,  under  oath,  with  the  Superintendent  of 
the  Insurance  Department,  stating  that  the  company  holds  premium 
notes  to  the  amount  aforesaid,  and  pubhsh  a  copy  of  the  same,  once 
a  week  or  oftener,  for  at  least  four  weeks,  in  some  newspaper  having 
general  circidation,  and  pubhshed  in  the  county  where  such  company 
has  its  principal  otiice.  When  the  company  shall  have  filed  such 
certificate,  and  also  proof  of  such  publication,  by  affidavit  of  the 
publishers  of  the  newspapers  in  -which  such  j)ublication  shall  have 
been  made,  his  foreman  or  clerk,  with  the  Superintendent,  he  shall 
make,  or  cause  an  examination  to  be  made,  and  if  he  shall  find  that 
the  company  has  the  above  amount  of  premium  notes,  and  is  in  a 
soiuid  and  solvent  condition,  he  shall  give  such  company  a  certifi- 
cate discharging  said  fund  from  all  its  obligations  and  liabilities ; 
upon  which,  said  fund  shall  be  surrendered  to  the  parties  depositing 
or  entitled  to  receive  the  same.     {Ibid,  p.  76<],  §  16.) 

47.  Every  person  who  shall  insure  in  such  mutual  company, 
shall,  before  he  receives  his  policy,  deposit  with  the  company  a  note 
for  such  sum  or  sums  of  money  as  may  be  agreed  upon  for  the 
premium ;  a  part,  not  less  than  ten  per  cent,  of  which  shall  be 
immediately  jjaid  in  cash,  before  the  company  shall  be  liable  for  any 
loss,  and  the  remainder  of  said  note  shall  be  made  payable  at  any 
time,  and  in  part  or  the  whole,  as  the  directors  of  said  company  may 
demand,  upon  an  assessment  to  be  made  by  them  whenever  they 
shall  deem  the  same  necessary,  for  the  payment  of  losses,  expenses, 
and  other  liabilities  of  said  compauy  ;  said  note,  or  such  part  thereof 
as  shall  remain  unpaid  at  the  expiration  or  termination  of  the  policy, 
shall  be  given  up  to  the  maker  of  the  same,  provided  all  assess- 
ments upon  such  note,  and  all  liabilities  of  said  maker  to  the  com- 
pany, shall  have  been  paid.  All  buildings  and  other  i)roperty,  real 
and  personal,  insured  by  and  with  such  company,  together  with  all 
right,  title  and  interest  of  the  insured  to  the  lands  on  which  such 
buildings  are  situated,  shall  be  pledged  to  such  company,  and  the 
company  shall  have  a  lien  thereon  until  the  aforesaid  note  is  fully 
paid ;  Provided^  That  the  maker  of  said  note  shall  assent  to  such 
lien  in  writing  upon  the  face  of  the  same,  and  the  note  shall  be  re- 
corded in  the  office  of  the  Recorder  of  the  county  where  such  prop- 
erty is  situated.     {Ibid,  p.  767,  §  17.) 

48.  The  board  of  directors  of  every  mutual  insurance  com- 
pany organized  under  the  pro\isions  of  this  act,  shall  have  the 
power,  as  often  as  they  shall  deem  it  necessary  in  order  to  settle  the 
losses  insured  against,  and  the  expenses  and  other  liabilities  of  the 
company,  to  make  an  assessment  upon  the  premium  notes  given  by 
persons  effecting  insurance  in  the  company.  Such  assessment  shall 
be  made  upon  each  and  every  note  held  by  the  company  at  the  time 
of  the  assessment,  and  which  has  been  in  existence  for  one  year 
prior  to  the  date  of  the  assessment,  and  shall  be  for  a  sum  upon 
each  note  which  bears  the  same  ratio  to  the  whole  amount  to  be 
raised  by  the  assessment,  that  the  fidl  sum  for  which  such  note  was 
given,  bears  to  the  fidl  amount  for  which  all  the  notes  assessed  were 
given.  The  amount  so  assessed  upon  each  note  shall  be  due  and 
payable  within  thirty  days  after  the  publication  of  a  notice  of  such 
assessment,  and  after  written  notice  of  the  same  to  the  maker  of  such 
note  has  been  deposited  in  the  post-office,  or  delivered  to  him  in 
person.  The  publication  of  the  above  notice  shall  be  made  in  some 
newspaper  of  general  circulation,  published  in  the  county  where 


492  niNE'S  INSURANCE  STATUTES. 

said  company  shall  have  its  principal  office,  and  shall  set  forth  the 
full  amount  for  which  all  the  premium  notes  held  by  the  com- 
pany were  given,  the  amount  of  losses  adjusted  and  unpaid,  the 
amount  of  losses  claimed  but  unadjusted,  giving  the  names  of 
claimants,  the  amount  of  expenses  accrued  and  unpaid,  and  the 
amount  of  cash  on  hand.  If  any  person  shall  neglect  or  refuse  to 
pay  the  sum  so  assessed  upon  him.  for  thirty  days  after  the  publica- 
tion and  deposit  or  delivery  of  said  notices,  the  directors  of  said 
company  may  sue  for  and  recover  the  whole  amount  of  his  premium 
note  held  by  the  company,  with  costs  of  suit.  No  person  shall,  in 
any  case,  be  liable  upon  any  premium  note  on  account  of  any  and 
all  claims  and  assessments  ujjon  the  same  for  an  amount  greater 
than  the  face  of  such  note.     {Ibid,  p.  768,  §  18.) 

49.  No  mutual  association,  organized  under  this  act  with  ai 
guaranty  fund,  shall  commence  business  until  such  association  has 
deposited  with  the  Treasurer  of  this  State,  the  sum  of  fifty  thousand 
dollars,  in  notes  or  stocks,  or  bonds  and  mortgages,  or  deeds  of 
trust,  of  the  description  mentioned  in  the  fifteenth  section  of  this 
act;  such  stocks,  in  all  cases,  to  be,  or  to  be  made  to  be,  equal  to 
stock  producing  six  per  cent,  per  annum,  and  not  to  be  received  at 
a  rate  above  their  par  value,  or  above  their  correct  market  value, 
{Ihidy  §  19.) 

50.  The  Treasurer  of  this  State  shall  receive  the  deposits  and 
securities  required  by  the  i)rovisions  of  this  act  to  be  deposited  with 
him,  and  shall  give  vouchers  for  the  same  to  the  parties  so  deposit- 
ing, and  shall  furnish  a  certificate  of  such  deposits  to  the  Superin- 
tendent of  the  Insurance  Department.  Said  Treasurer  shall  be 
responsible  upon  his  official  bond  for  all  stocks,  bonds,  notes,  and 
other  securities  deposited  with  him.  He  shall  deposit  such  securi- 
ties in  the  bauk  or  banks  where  the  State  funds  are  deposited,  and 
shall  hold  them  as  securities  for  policy-holders  in  the  companies  to 
which  they  respectively  belong ;  but  as  long  as  any  comj^any  so 
depositing  shall  continue  solvent,  he  shall  permit  such  comi)auy  to 
collect  the  interest  or  dividends  on  its  securities,  so  dej)osited,  and 
from  time  to  time  to  withdraw  any  such  securities  on  depositing 
other  securities  in  the  stead  of  those  to  be  withdrawn,  such  securi- 
ties to  be  of  the  same  value  and  of  the  kinds  mentioned  in  the 
fifteenth  section  of  this  act ;  but  such  securities,  or  any  part  of  the 
same,  shall  not  be  withdrawn  from  the  custody  of  said  Treasurer 
unless  upon  the  written  order  of  the  acting  president  and  secretary, 
or  of  the  directors,  of  the  company  making  the  deposit,  which  order 
shall  be  endorsed  by  the  Superintendent  of  the  Insurance  Depart- 
ment, or  upon  the  order,  or  by  the  authority  of  some  court  of  com- 
petent jurisdiction.     {Ibid,  p.  TGd,  ^  20.) 

5 1 .  The  corporators  or  directors  of  any  company  organized 
under  this  act  shall  have  power  to  adopt  a  seal,  and  to  make  such 
by  laws  not  inconsistent  with  this  act  or  the  constitution  and  laws 
of  the  State,  as  they  may  deem  necessary  for  the  regulation  and 
management  of  its  affairs.     {Ibid,  §  21.) 

52.  Every  company  and  association  organized  under  this  act, 
shall  have  two  chief  officers,  one  of  whom  shall  be  known  as  the 
president,  and  the  other  as  the  secretary,  and  all  contracts  made  by 
the  company  shall  be  signed  by  both  of  said  officers.  Every  such 
company  may  also  have  one  or  more  \ice-presidents,  and  an  assist- 
ant secretary,  who  in  the  absence  of  the  president  or  secretary,  as 


MISSOURI.  4:93 

the  case  may  be,  shall  have  all  the  powers  and  perform  all  the  duties 
of  the  president  and  secretary.     {Ibid,  §  22.) 

53.  It  sliall  be  the  duty  of  the  president  or  vice-president  and 
secretary,  or  a  majority  of  the  directors,  of  every  insurance  company 
organized  under  this  act  or  the  laws  of  this  State,  annually,  on  the 
first  day  of  January,  or  within  thirty  days  thereafter,  to  prepare 
under  oath,  and  deposit  in  the  office  of  the  Superintendent  of  the 
Insurance  Department,  a  statement  made  u^)  for  the  last  fiscal  year 
of  said  company,  showing :  First,  The  amount  of  capital  stock  of  the 
comi^any,  if  it  be  a  joint  stock  company,  or  if  it  be  a  mutual  com- 
pany, the  amount  of  the  face  of  the  premium  notes  held  by  it,  and 
the  amount  thereof  remaining  unpaid,  specifying  the  amount  re- 
corded as  liens  on  property,  and  the  amount  of  guaranty  fund,  if 
the  company  have  such  fund :  Second,  The  property  or  assets  held 
by  the  company  specifying,  1st,  the  value,  as  near  as  may  be,  of  the 
real  estate  held  by  such  company ;  2d,  the  amount  of  cash  on  hand 
or  deposited  in  banks  to  the  credit  of  the  company,  specifying  in 
what  banks  the  same  are  deposited  ;  3d,  the  amount  of  cash  in  the 
hands  of  agents,  and  in  the  coui>e  of  transmission  ;  4th,  the  amount 
of  loans  secured  by  bonds  and  mortgages,  or  by  deeds  of  trust ;  5th, 
the  amount  of  notes  and  bills  receivable,  matured  and  remaining 
unpaid;  (ith,  the  amount  of  notes  and  bills  receivable  maturing; 
7th,  the  amount  of  other  securities  held  by  the  company,  specifying 
what  they  are  and  as  nearly  as  may  be,  their  cash  value ;  8th,  the 
amount  of  debts  considered  bad  or  doubtful :  Third,  The  liabilities  of 
the  comijany ,  as  follows :  1st,  the  amount  due,  or  to  become  due  to 
banks  or  other  creditors;  2d,  losses  adjusted  and  due;  3d,  losses 
adjusted  and  not  due ;  4th,  losses  unadjusted  and  in  suspense,  and 
awaiting  fuither  proofs ;  5th,  premium  reserved  or  amount  required 
to  safely  reinsure  all  outstanding  risks,  to  be  estimated  by  taking 
fifty  per  cent,  of  the  gToss  premiums  on  all  unexpired  fire  risks  that 
have  less  than  one  year  to  run,  and  a  pro  rata  of  all  gi'oss  premiums 
on  risks  that  have  more  than  one  year  to  run,  with  fifty  per  cent,  of 
the  gross  premiums  on  all  unexpired  inland  navigation  risks,  and 
the  whole  amount  of  the  gross  premiums  on  all  unexpired  marine 
risks;  6th,  all  other  claims  against  the  comi^any  :  Fourth,  The 
greatest  amount  insured  in  any  one  risk :  Filth,  The  number  of 
agents  employed  in  this  State  or  other  States  :  Sixth,  The  amount  of 
outstanding  risks  and  gross  premiums  received  and  receivable  there- 
on at  the  date  of  each  statement :  Seventh,  The  amount  of  receipts 
from  all  sources,  and  amount  of  expenditures  for  all  purposes,  in- 
cluding dividends,  for  the  last  fiscal  year  preceding  the  date  of  the 
statement.     {Ibid,  §  23,  as  amended  by  laws  of  1874,  p.  73,  §  3.) 

54.  It  shall  not  be  lawful  for  any  person  to  act,  within  this 
State,  as  agent  or  otherwise,  in  receiving  or  procuring  applications 
for  insurance,  or  in  auy  manner  to  aid  in  transacting  the  business 
referred  to  in  the  first  section  of  this  act,  for  any  company  or  asso- 
ciation incorporated  by  or  organized  uuder  the  laws  of  the  United 
States,  or  any  other  State  of  the  United  States,  or  any  foreign  gov- 
ernment, unless  such  company  is  possessed  of  the  amount  of  cap- 
ital and  of  actual  paid-up  capital,  or  of  premium  notes,  cash  pre- 
miums and  guaranty  fund,  of  the  kind,  character  and  amounts  re- 
quired of  companies  organized  under  the  provisions  of  this  act. 
Such  guaranty  fund  shall  be  deposited  with  the  financial  officer  of 
the  State  or  county  under  the  laws  of  which  the  company  is  organ- 
ized, or  with  the  Treasurer  of  this  State,  in  the  manner  provided  by 


494  hine's  insueance  statutes. 

the  sixteenth  section  of  this  act,  in  regard  to  the  making  of  such 
deposit  by  companies  organized  under  this  act.    {Ibid,  p.  770,  §  24.) 

53.  Any  such  company  mentioned  in  the  preceding  section 
desiring  to  transact  any  such  business  as  aforesaid  by  any  agent  or 
agents  in  this  State,  shall  file  with  the  Superintendent  of  the  In- 
surance Department  a  written  instrument  or  i^ower  of  attorney  duly 
signed  and  sealed,  authorizing  some  person  who  shall  be  a  citizen 
of  this  State,  to  acknowledge  or  receive  service  of  process  for  and 
in  behalf  of  such  company  in  this  State,  and  consenting  that  ser- 
vice of  process  upon  such  agent  or  attorney  shall  be  taken  and  held 
to  be  as  valid  as  if  served  upon  the  company,  according  to  the  laws 
of  this  or  any  other  State,  whether  such  process  is  issued  by  any  of 
the  courts  of  this  State,  or  any  of  the  courts  of  the  United  States, 
having  jurisdiction  within  this  State ;  and  such  instrument  shall 
furthermore  pro^ide  that  such  attorney's  authority  shall  continue 
until  revocation  of  his  a])pointment  is  made  by  such  company,  by 
filing  a  similar  instrument  with  said  Superintendent,  whereby  an- 
other person  shall  be  appointed  as  such  attorney.  Such  company 
shall  have  the  right  from  time  to  time  to  change  every  appointment 
thus  made  by  it;  but  untU  a  new  instrument  is  filed  with  said  Su- 
perintendent by  such  company,  making  suCh  change,  the  attorney 
last  appointed  shall  continue  in  authority,  and  remain  the  desig- 
nated attorney  of  such  company  for  the  purpose  of  this  act.  If  any 
attorney  so  appointed,  shall  have  become  disqualified  from  any 
cause  whatever,  or  shall  die,  the  company  shall  immediately  fill  the 
vacancy  in  the  manner  requu'ed  for  an  original  appointment  of  such 
attorney.  Every  such  company  doing  business  in  this  State,  shall 
maintain  such  attorney  within  the  State,  in  the  manner  herein  de- 
scribed, after  it  shall  have  ceased  to  do  any  new  business,  so  long  as 
it  shall  have  any  policies  or  liabilities  outstanding  in  the  State  ;  and 
it  any  such  company  shall  have  forfeited  its  right  to  do  business  in 
this  State,  or  shall  have  voluntarily  withdrawn  therefrom,  and  the 
attorney  last  appointed  shall  die,  or  become  disqualified;  and  the 
company  shall  fail  within  a  reasonable  time  to  fill  the  vacancy,  then 
the  said  Superintendent  shall  have  authority,  and  it  is  hereby  made 
his  duty,  to  make  such  appointment  for  such  companj^,  of  which  no- 
tice in  wi'iting  shall  immediately  be  given  by  him  to  the  appointee, 
and  also  to  the  company,  and  such  notice  to  the  appointee  shall 
be  evidence  of  such  appointment.  Every  such  instrument  of  ap- 
IJointment  executed  by  such  company,  shall  recite  the  whole  of  this 
section,  and  shall  be  accompanied  by  a  copy  of  a  resolution  of  the 
board  of  directors  or  trustees  of  such  company,  showing  that  the 
president  and  secretary,  or  other  chief  officers  of  such  company,  are 
authorized  to  execute  such  instrument  in  behalf  of  the  company; 
and  if  any  such  company  shall  fail  to  appoint  and  maintain,  within 
the  State,  an  attorney  or  agent,  in  the  manner  hereinbefore  described, 
it  shall  forfeit  the  right  to  do  or  continue  business  in  this  State. 
[Ibid,  §  lio,  as  amended  by  laws  q/1874,  p.  74,  §  4.) 

50.  Any  such  company  mentioned  in  the  twenty-fourth  sec- 
tion of  this  act,  desii'ing  to  transact  any  such  business  as  aforesaid, 
by  any  agent  or  agents  in  this  State,  shall  file  in  the  office  of  the 
Superintendent  of  the  Insurance  Department,  a  certified  copy  of  its 
charter  or  act  of  incorporation,  together  with  a  statement,  under 
the  oath  of  the  president  and  secretary  of  such  company,  showing 
the  condition  of  the  affairs  of  said  company  on  the  first  day  of  Jan- 
uary next  preceding  the  date  of  such  oath.    The  statement  shall  be 


MISSOURI.  495 

in  the  same  form,  aud  sball  set  forth  the  same  particulars,  as  the 
anmial  statements  required  of  companies  organized  under  this  act, 
or  under  the  laws  of  this  State,  by  the  twenty -third  section  of  this 
act.  Such  company  shall  also  file  a  copy  of  its  last  annual  report, 
made  in  compliance  with  any  law  of  the  State  or  county  by  which 
said  company  was  incorporated,  if  any  such  report  shall  have  been 
made.     {Ibid, p.  771,  ^  26.) 

57.  Any  such  company  mentioned  in  the  twenty-fourth  section 
of  this  act  shall  procure  from  the  Sui)eriutendent  a  certificate  stat- 
ing that  the  foregoing  requirements  have  been  complied  with,  and 
authorizing  it  to  do  business,  a  copj^  of  which,  certified  by  the  Su- 
perintendent, and  issued  only  upon  the  request  of  the  president  or 
secretary,  or  other  chief  officer  of  the  company,  or  of  a  general 
agent  of  such  company  for  this  State,  notice  of  whose  appointment 
has  been  filed  in  the  Insurance  Department,  shall  be  held  by  every 
agent  or  solicitor  for  said  company  within  this  State,  and  such  copy 
shall,  in  some  convenient  and  distinct  manner,  set  forth  the  name  of 
the  person,  agent,  or  solicitor  for  whose  use  it  is  issued.  Every  such 
company  shall  be  required  to  procure  annually,  for  the  use  of  its 
agents  and  solicitors,  certified  copies  of  the  renewed  certificate  of 
authority  hereafter  provided  for,  to  wit:  in  section  thirty  of  this 
act.     {Ibid,  §  27,  as  amended  by  laws  of  1874, p.  75,  §  5.) 

58.  Any  such  company  incorporated  by,  or  organized  under 
the  laws  of  the  United  States  or  any  other  State  of  the  United" 
States,  and  doing  business  in  this  State,  shall  annually,  on  the  first 
day  of  January,  or  within  thirty  days  thereafter,  file  with  the  Su- 
perintendent of  the  Insurance  Department  of  this  State,  a  statement 
of  its  affairs,  in  the  same  manner  and  form  as  pro\ided  in  the  twen- 
ty-third section  of  this  act  for  similar  companies  organized  under 
the  laws  of  the  State.     {Ibid,  §  28.) 

59.  Any  such  company  incorporated  by,  or  organized  under, 
the  laws  of  any  foreign  government,  and  doing  business  in  this 
State,  shall  annually  on  the  first  day  of  June,  or  within 
thirty  days  thereafter,  file  wdth  the  Superintendent  of  the  Insurance 
Department,  a  statement  of  its  affairs  in  the  same  manner 
and  form  as  provided  in  the  twenty-third  section  of  this  act, 
for  the  annual  statement  of  similar  companies  organized  in 
this  State.  Said  statement  shall  be  made  up  for  the  year  ending 
on  the  preceding  thirty-first  day  of  December.  If  any  such  company 
shall  transact,  either  in  the  country  where  it  is  located,  or  in  any 
other  country,  any  other  business  than  that  of  fire  insurance,  the 
said  statement  shall  exhibit  what  amount  is  to  be  deducted  from  its 
gi'oss  assets  as  a  reserve  for  its  life  risks,  in  the  same  manner  as  is 
required  by  section  twenty-eight  of  an  act  for  the  incorporation  and 
regulation  of  life  assurance  companies,  approved  Marcii  4th,  1809 ; 
and  also  such  statement  shall  exhibit  what  amount  is  reqiured  to 
reinsure  its  marine,  cargo,  or  inland  risks,  if  such  business  is  trans- 
acted by  it,  and  truthfully  exhibit  what  amount  is  set  aside,  held 
and  invested  in  the  United  States,  applicable  to  the  payment  of  fire 
losses  therein.  Any  such  company  mentioned  above,  and  doing 
business  in  this  State,  shall,  in  addition  to  the  above-mentioned 
statement,  annually,  on  the  first  day  of  January,  or  within  thirty 
days  thereafter,  file  with  the  Superintendent  of  the  Insurance  De- 
partment, a  supplementary  statement,  duly  certified  under  oath, 
giving:  First,  A  detailed  description  of  the  investments  of  such  com- 
pany in  the  United  States j  Second,  The  amount  of  premiums  re- 


496  hine's  insurance  statutes. 

ceived,  and  claims  and  taxes  paid  in  this  State  and  in  the  United 
States,  for  the  year  ending  on  the  thirty-first  (31)  day  of  the  i)reced- 
ing  December,  and  snch  other  information  as  may  be  required 
by  said  Superintendent.  All  statements  requii-ed  by  this  section 
to  be  made  to  the  Superintendent  of  the  Insurance  Department 
by  companies  of  foreign  countries  or  governments,  shall  be  made 
in  the  figures  of  the  currency  of  the  United  States.  {Ibid,  §  29,  as 
amended  by  laivs  of  1874,  p.  75,  §  6.) 

ttO.  If  the  annual  statements  mentioned  in  the  twenty-third 
(23),  the  twenty-eighth  (28),  and  twenty-nintli  (29)  sections  of  this 
act  shall  be  satisfactory  evidence  to  the  Superintendent  of  the  solv- 
ency of  such  company  filing  the  same,  and  of  its  ability  to  meet  all 
its  engagements  at  maturity,  and  that  the  capital  stock  and  pre- 
mium notes  of  the  company  making  the  same  remains  unimpaired 
to  an  extent  not  exceeding  twenty  per  cent,  thereof,  he  shall  issue 
a  renewed  certificate  of  authority  to  such  company  to  continue  bus- 
iness, a  certified  copy  of  which,  shall  be  its  authority  to  continue 
business,  and  to  issue  policies  in  this  State  for  the  ensuiug  year. 
{Ibid,  p.  772,  §  30,  as  amended  by  laws  of  1874,  j?.  76,  §  7.) 

61.     Every  company  doing  the  business  mentioned  in  the  first 
section  of  this  act,  or  any  part  thereof,  in  this  State,  shall  pay  to 
the  Superintendent  of  the  Insurance  Department  the  following  fees, 
which  shall  go  to  the  support  of  said  department : 
For  tiling  the  declaration  required  by  this  act,  on  the  organ- 
ization of  companies  or  associatious $50  00 

For  filing  statement  and  certified  copy  of  charter,  required 
of  companies  not  organized  under  the  laws  of  this 

State 50  00 

For  filing  annual  statement 50  00 

For  filing  supplementary  annual  statement 25  00 

For  tiling  any  other  paper  required  by  law  to  be  filed  in  the 

oftice  of  said  Superintendent 10  00 

For  fui'uishing  copies  of  records  and  other  documents,  per 

folio 20 

For  aflixing  seal  of  office 1  00 

{Ibid,  §  31.) 

Oi5.  It  shall  be  the  duty  of  the  Superintendent  of  the  Insur- 
ance Department,  whenever  he  shall  have  good  l-eason  to  suspect 
that  the  aifairs  of  any  insurance  company  incorporated  under  the 
laws  of  this  State,  or  domg  in  this  State  the  business  mentioned  in 
the  tirst  section  of  this  act,  are  in  an  unsound  condition,  to  require 
of  said  cojipany  a  special  statement  of  its  affairs;  and  if  said 
Superintendent  shall  not  be  satisfied  that  the  affairs  of  said  com- 
pany are  in  a  safe  condition,  or  if  any  three  stockholders  or 
policy-holders  of  such  company  shall  make  aflfldavit  that  they 
believe  such  special  statement,  or  any  annual  statement,  to  be  incor- 
rect or  untrue,  setting  forth  in  what  respects,  and  on  what  grounds 
they  believe  the  same  to  be  untrue,  then  the  said  Superintendent 
shall  have  power  to  make  a  personal  examination  of  the  affairs  of 
said  company,  or  cause  one  to  be  made  by  some  disinterested  per- 
son or  persons  specially  appointed  by  him  for  that  purpose ;  and 
the  said  Superintendent,  or  person  or  persons  so  appointed  by  him, 
shall  have  power  to  examine,  under  oath,  the  officers  or  agents  of 
any  company,  in  relation  to  the  business  of  said  company,  and 
it  shall  be  the  duty  of  the  officers  and  agents  of  any  insurance  com- 
pany doing  business  in  this  State,  to  cause  their  books  to  be  opened 


MISSOURI.  497 

for  tlie  inspection  of  said  Superintendent,  or  of  any  person  or  per- 
sons appointed  by  bim  to  make  sucb  examination,  and  otberwise  to 
facilitate  sucb  examination  as  far  as  it  may  be  in  tbeir  po\Aer  so  to 
do,  and  wbenever  said  Superintendent  sball  deem  it  for  tbe  benefit 
of  tbe  public,  be  sball  publisb  tbe  result  of  said  investigation 
in  some  newspaper  publisbed  in  tbe  city  of  St.  Louis ;  and  wbenever 
it  sball  appear  to  said  Suiierintendeut,  from  an  examiuation  made  by 
bimself,  or  from  tbe  rei)ort  of  tbe  person  or  persons  so  appointed  by 
bim,  tbat  tbe  affairs  of  any  sucb  company,  not  incorporated  by  tbe 
laws  of  tbis  State,  and  doing  in  tbis  State  any  business  mentioned 
in  tbe  first  section  of  tbis  act,  are  in  an  unsound  condition,  be  sball 
revoke  tbe  certificate  of  autbority  granted  to  sucb  company,  and 
sball  cause  a  notice  of  sucb  revocation  to  be  publisbed  once  a  week, 
or  oitener,  for  at  least  four  weeks,  in  some  newspaper,  in  tbe  city  of 
St.  Louis ;  and  tbe  agent  or  agents  of  sucb  company  are,  after  sucb 
revocation  and  notice,  required  to  discontinue  tbe  issuing  of  new 
policies  or  tbe  collection  of  any  premiums ;  and  if  upon  any  sucb 
examination  it  sball  appear  to  said  Superintendent  tbat  tbe  capital 
stock  of  any  company,  created  by  or  organized  under  any  law  of 
tbis  State,  and  doing  any  business  mentioned  in  tbe  first  section  of 
tbis  act,  is  impaired  more  tban  twenty  per  cent.,  or  if  it  be  a  mutual 
company,  tbat  its  guaranty  fund  is  impaired,  or  tbat  its  premium 
notes  are  below  tbe  amount  required,  or  of  a  ditt'erent  kind  and 
character,  be  sball  give  notice  to  sucb  company,  in  writing,  to  make 
up  the  same  witbin  sixty  days ;  and  if,  upon  sucb  notice,  sucb  com- 
pany sball  neglect  or  refuse  to  make  ux)  said  stock  and  notes  as  re- 
quired, or  if,  upon  sucb  examination,  it  sball  appear  to  said  Super- 
intendent tbat  any  sucb  company  is  insolvent,  or  tbat  its  condition 
is  sucb  as  to  render  its  furtber  proceedings  hazardous  to  tbe  public, 
or  to  those  holding  its  policies,  be  sball  file  in  the  Clerk's  office  of 
the  Circuit  Court  of  the  county  in  which  said  company  was  organized, 
or  in  which  it  has  its  principal  oflQce  or  place  of  business,  a  petition, 
setting  forth  the  condition  of  said  company  as  aforesaid,  and  pray- 
ing for  a  writ  of  injunction  to  restrain  said  company,  in  whole  or  in 
part,  from  further  proceeding  with  its  business.  Such  writ  shall 
thereupon  issue,  together  with  a  summons,  against  said  comi)any, 
returnable  in  three  days  thereafter,  whicb  shall  be  served  as  pro- 
vided by  law  for  service  of  process  upon  corporations.  If  such  pro- 
cess be  not  served,  then  further  like  process  shall  issue,  returnable 
as  the  court,  or  a  judge  thereof,  in  vacation,  may  direct ;  and  the 
court,  or  judge,  whenever  satisfied  that  process  cannot  be  served, 
may  order  said  company  to  be  notified  by  publication,  as  in  case  of 
non-resident  defendants.  Upon  the  return  of  such  process,  duly 
served,  or  proof  of  sucb  publication,  made  by  the  affidavit  of  the 
publisher  of  tbe  newspaper  making  such  publication,  his  foreman 
or  clerk,  the  petition  sball  be  heard  summarily  before  said  court,  or 
the  judge  thereof,  who  may,  at  such  hearing,  or  at  any  time  there- 
after, for  cause  shown,  dissolve,  modify  or  continue  the  injunction, 
and  he  shall  set  a  day  for  the  bearing  of  such  cause  without  unneces- 
sary delay.  Said  company  shall,  unless  longer  time  be  granted, 
answer  the  allegations  of  said  petition,  on  or  before  the  tbird  day 
after  the  time  when  it  is  bound  to  appear,  failing  in  which,  judg- 
ment may  be  entered  against  it  by  default.  All  proceedings  had 
and  orders  or  decrees  made,  under  the  provisions  of  this  section, 
before  or  by  a  judge  in  vacation,  shall  be  entered  of  record,  as  of  a 
special  term  of  the  court  of  whicb  be  is  judge.  One  or  more 
32 


■^Ot 


498  hine's  insurance  statutes. 

referees,  versed  Id  the  business  of  insurance  mentioned  in  the  first 
section  of  this  act,  may  be  appointed  by  the  court  or  judge,  to  re- 
port upon  the  condition  of  said  company,  or  upon  any  question  of 
fact  arising  in  the  cause.  The  coui"t,  or  judge,  may,  at  any  time 
after  the  filing  (of  the  petition)  appoint  agents  or  receivers,  to  take 
l)ossession  of  the  property  of  said  company,  and  may,  upon  the  final 
hearing,  make  such  orders  and  decrees  as  may  be  needful  to 
suspend,  restrain  or  prohibit  the  further  continuance  of  the  busi- 
ness of  said  company,  or  any  part  thereof,  or  for  the  dissolution  of 
the  said  company  and  the  winding  up  of  its  afiairs.  From  a  final 
judgment  or  decree  in  any  such  case,  an  appeal  or  writ  of  error  may 
be  taken,  as  provided  by  law  in  respect  to  final  judgments  of  the 
court  rendering  the  same;  or,  if  in  the  county  of  St.  Louis,  as  from 
a  final  judgment  or  decree  of  the  circuit  court  at  a  special  term. 
The  court,  or  judge,  may  appoint  an  attorney  to  assist  said  Superin- 
tendent in  any  such  proceeding.  The  costs  and  reasonable  ex- 
penses of  any  examination  or  proceeding  authorized  by  this  section, 
including  reasonable  attorney's  fees,  to  be  allowed  and  taxed  as 
costs  by  the  coiu't  or  judge  appointing  such  attorney  as  aforesaid, 
shall  be  paid  by  the  company  so  examined  or  proceeded  against, 
and  such  expenses,  other .  than  taxed  costs,  may  be  recovered 
by  said  Superintendent,  in  an  action  therefor,  against  such  com- 
pany ;  FrovUkd,  That  if  any  injunction  issued  thereunder  be  dis- 
solved, and  the  court  or  judge  dissolving  the  same  shall  not  state  in 
the  order  or  decree  of  dissolution  that  there  was  reasonable  grounds 
for  procuring  such  injunction,  the  costs  of  such  proceeding  shall  be 
taxed  to,  and  paid  by,  the  Superintendent  of  the  Insurance  Depart- 
ment, and  shall  be  allowed  him  in  his  accounts,  upon  proper 
vouchers  therefor,  as  expenses  of  said  Department.     {Ihid,  §  3li.) 

CJJ.  The  Superintendent  of  the  Insurance  Department  shall 
cause  to  be  prepared,  and  furnish  to  every  company  to  which  this 
act  shall  apply,  such  printed  forms  of  the  statements  herein  re- 
quired, as  shall  seem  to  him  best  adapted  to  elicit  from  said  com- 
panies a  true  exhibit  of  their  condition  in  respect  to  the  several 
points  hereinbefore  enumerated.     {Ibid, p.  775,  §  33.) 

64,  Any  company  or  association  organized  under  the  pro- 
visions of  this  act,  may  cause  itself  to  be  wholly  or  partially  rein- 
sured against  any  loss  arising  from  any  risk  which  it  may  have  un- 
dertaken, and  in  like  manner  may  reinsure  or  guarantee  any  other 
corporation  doing  the  same  kind  of  business  as  itself,  against  loss 
arising  from  any  risks  that  shall  have  been  or  may  be  undertaken 
by  such  corporation,  or  may  join  with  any  such  corporation  in  any 
such  risk,  and  may  make  and  enter  into  all  manner  of  contracts  re- 
lating to  such  reinsurances  and  joint  insurance,  and  the  terms  upon 
which  the  same  shall  be  conducted.     (Ibid,  §  34.) 

G!%.  Any  person  legally  entitled  to  vote  at  any  election,  on  any 
question  relating  to  the  management  or  business  of  any  company 
organized  under  this  act,  may  cast  such  vote  by  proxy ;  but  said 
proxy  shall  be  a  legal  voter  of  such  company ;  and  the  authority  to 
cast  such  vote  shall  be  in  writing  and  not  in  printing,  and  shall 
state  the  name  of  the  person  authorized  to  cast  such  vote,  and  the 
date  of  the  meeting  at  which  such  vote  shall  be  given,  and  the 
object  for  which,  and  the  manner,  whether  for  or  against  the  object 
stated,  and  if  for  directors,  the  names  of  the  persons  for  whom  the 
vote  shall  be  cast;  and  no  such  authority  given  to  any  proxy  shall 
be  valid  unless  the  same  shall  have  been  given  within  thirty  days 


MISSOURI.  499 

prior  to  the  meeting  at  which  the  vote  is  to  be  cast.    No  proxy  shall 
cast  more  than  one  hundred  votes.     {Ibid,  §  35.) 

66.  No  company  organized  under  the  provisions  of  this  act, 
shall  undertake  any  business  or  risks  excej)t  as  herein  provided ; 
and  no  company  organized  or  incorporated  by  or  under  the  laws  of 
this  State,  or  any  otlier  State  of  the  United  States,  or  of  any  foreign 
government,  transacting  the  business  of  life  assurance  in  this  State, 
shall  be  ijermitted  or  allowed  to  take  any  risk  connected  with  the 
business  of  insurance  mentioned  in  the  first  section  of  this  act ;  nor 
shall  any  such  corai^any,  doing  the  business  mentioned  in  one  of  the 
three  classes  or  divisions  named  in  the  first  section,  issue  policies, 
or  do  any  business  connected  with  the  kind  of  insurance  men- 
tioned in  either  of  the  otlier  classes ;  Provided,  That  no  company 
now  doing  business  in  this  State,  and  complying  with  the  provisions 
of  this  act,  shall  be  prevented  from  continuing  the  same.  {Ibid, 
§36.) 

67.  Suits  at  law  may  be  maintained  by  any  corporation  formed 
imder  this  act  against  any  of  its  members  or  stockholders,  for  any 
cause  relating  to  the  business  of  such  company.  Suits  at  law  may 
also  be  prosecuted  and  maintained  by  any  member  or  stockholder  of 
such  corporation,  against  the  corporation,  for  losses  which  have  ac- 
crued on  any  risks,  if  payment  is  withheld  for  more  than  two 
months  after  such  loss  shall  have  become  due.     {Ibid,  §  37.) 

68.  No  company  formed  under  this  act,  shall  directly  or  in- 
directly deal  or  trade  in  any  goods,  wares,  merchandise,  or  other 
commodities  whatever,  excejit  as  provided  in  the  first  section  of  this 
act.     {Ibid,p.n(i,y68.) 

69.  No  company  formed  under  this  act,  shall  be  permitted  to 
purchase,  hold  or  convey  real  estate,  excepting  for  the  purposes  and 
in  the  manner  herein  set  forth,  to  wit :  First,  Such  as  shall  be  re- 
quisite for  its  accommodation  in  the  transaction  of  its  business ;  or 
Second,  Such  as  shall  have  been  mortgaged  in  good  faith  by  way  of 
security,  for  loans  previously  contracted,  or  for  moneys  due  5  or 
Third,  Such  as  shall  have  been  conveyed  to  it,  in  satisfaction  of 
debts,  previously  contracted  in  the  course  of  its  dealings ;  or  Fourth, 
Such  as  shall  have  been  purchased  at  sales  upon  the  judgments, 
decrees,  or  mortgages,  obtained  or  made  for  such  debts,  and  it  shall 
not  be  lawful  for  any  company  incorporated  as  aforesaid  to  pur- 
chase, hold  or  convey  real  estate,  in  any  other  case  or  for  any  other 
purpose :  and  all  such  real  estate  as  may  be  acquired  as  aforesaid, 
and  which  shall  not  be  necessary  for  the  accommodation  of  such 
company  in  the  convenient  transaction  of  its  business,  shall  be  sold 
and  disi)osed  of  within  five  years  after  such  company  shall  have 
a<;quired  title  to  the  same,  and  it  shall  not  be  lawful  for  such  com- 
pany to  hold  such  real  estate  for  a  longer  period  than  that  above 
mentioned,  unless  the  said  company  shall  procure  a  certificate  from 
the  Superintendent  of  the  Insurance  Department,  that  the  interests 
of  the  company  will  suffer  materially  by  a  forced  sale  of  such  real 
estate,  in  which  event,  the  time  for  the  sale  may  be  extended  to 
such  time  as  the  Superintendent  of  the  Insurance  Department  shall 
direct  in  said  certificate.     {Ibid,  §  39.) 

70.  Every  existing  company  incorporated  under  the  laws  of 
this  State,  for  the  purpose  of  transacting  the  business  mentioned  in 
the  first  section  of  this  act,  or  any  part  of  the  same,  shall  be  subject 
to  all  the  provisions  and  requirements  of  this  act,  provided  that 


500  hike's  insurance  statutes. 

nothing  herein  shall  be  construed  to  affect  vested  rights,  held  under 
any  special  charter.     {Ibid,  §  40.) 

7 1 .  Whenever  the  laws  ot  any  other  State  of  the  United  States 
or  of  any  foreign  country,  shall  require  of,  or  impose  upon  companies 
not  organized  under  the  laws  of  such  State  or  country,  any  further 
or  greater  licenses,  fees,  taxes,  deposits  of  securities,  statements,  or 
certificates  of  authority,  or  require  auy  other  duties  or  acts,  or  inflict 
any  greater  fines  or  ijenalties,  than  are  by  the  laws  of  Missouri 
imposed  or  inflicted  upon  or  required  of  companies  not  organized 
under  the  laws  of  this  State,  then  it  shall  be  the  duty  of  the  Super- 
intendent of  the  Insurance  Department  of  this  State,  to  require  from 
every  company  of  such  State  transacting  or  seeking  to  transact  the 
business  mentioned  in  this  act  in  this  State,  the  payment  of  all  li- 
censes, fees,  taxes,  fines,  or  penalties,  and  the  making  of  all  deposits 
of  securities  and  statements,  and  the  doing  of  all  acts,  which  by  the 
laws  of  the  State  or  country  in  which  such  company  was  organized, 
are  in  excess  of  the  licenses,  fees,  taxes,  dei)osits,  statements,  fines, 
penalties,  acts,  or  duties,  required  by  the  laws  of  this  State  of  com- 
panies of  other  States.  {Ibid,  §  41,  as  amended  by  laws  of  1874, 
p.  7G,  §  8.) 

7'-^,  Every  person  or  persons  in  this  State,  who  shall  receipt 
for  any  money  on  account  of  or  for,  any  contract  of  insurance,  made 
by  him  or  them,  for  any  insurance  company  or  association,  not 
authorized  to  do  business  in  this  State,  or  who  shall  receive  or  re- 
ceipt for  any  money  from  other  persons  to  be  transmitted  to  any 
such  insurance  company  or  association,  either  in  or  out  of  this  State, 
for  a  policy  or  policies  of  insurance  issued  by  such  comjjany  or  asso- 
ciation, or  for  any  renewal  thereof,  although  the  same  may  not  be 
required  by  him  or  them  as  agents,  or  who  shall  make,  or  cause  to 
be  made,  directly  or  indirectly,  any  contract  of  insurance  for  such 
company  or  association,  shall  be  deemed  to  all  intents  and  pur- 
poses, an  agent  or  agents  of  such  company  or  association,  and  shall 
be  subject  to  all  the  provisions  and  regulations,  and  liable  to  all  the 
penalties  provided  and  fixed  by  this  act;  Providerl,  however,  That 
nothing  in  this  section  shall  be  so  construed  as  to  prevent  any 
authorized  agent  of  such  company  or  association,  which  agent  or 
company  or  association  has  complied  with  the  requirements  of  this 
act,  from  employing  insurance  solicitors,  and  the  requisite  aid  to 
conduct  the  business  of  his  agency ;  and  Provided  also,  That  this 
section  shall  not  be  construed  so  as  to  prevent  any  person  from  i)ro- 
curing  insurance  on  his  own  property,  nor  any  insurance  company 
or  agency  doing  business  in  this  State  from  procuring  a  leinsurance 
when  deemed  necessarv  by  them  outside  of  this  tetate.  {Ibid, 
p.  777,  §  42.) 

7il.  Every  violation  of  this  act  shall  subject  the  partj'  violating 
to  a  penalty  of  five  hundred  dollars  for  each  violation,  which  shall 
be  sued  tor  and  recovered  in  the  name  of  the  State  of  Missouri  by 
the  Attorney-General  of  the  State,  or  Circuit  Attorney  of  the  circuit 
in  which  the  company  or  agent  or  agents  so  violating  shall  be  situ- 
ated ;  and  one-half  of  such  penalty  when  recovered,  shall  be  paid 
into  the  treasury  of  the  State,  and  the  other  half  to  the  informer  of 
such  violation ;  and  in  case  of  non-payment  of  such  penalty,  the 
party  so  offending  shall  be  liable  to  imprisonment  for  a  period  not 
exceeding  six  months,  in  the  discretion  of  any  court  having  cogni- 
zance thereof.     {Ibid,  §  43.) 

74.    All  companies  doing  business  in  this  State  under  either  of 


MISSOURI.  501 

the  classes  or  divisions  of  insurance  business  named  in  the  first  sec- 
tion of  this  act,  or  any  part  thereof,  shall  pay  into  the  Insurance 
Department  of  this  State,  all  the  fees  and  dues  as  required  by  the 
provisions  of  this  act,  which  shall  be  in  lieu  of  all  fees,  dues  or  taxes 
to  be  collected  for  the  benefit  of  the  State  under  existing  laws, 
but  such  companies  shall,  in  all  other  respects,  be  subject  to  all 
existing  laws  relating  to  fees,  licenses  and  taxation  for  county  or 
municipal  inirposes.     {Ibid,  §  44.) 

75.  Any  agent  or  agents  of  any  insm-ance  company  who  shall 
neglect  or  refuse  to  comply  with  the  requirements  of  the  last  pre- 
ceding section,  shall  forfeit  and  pay  the  sum  or  two  hundred  dollars, 
which  may  be  sued  for  and  recovered  in  the  name  of  the  State,  to 
the  use  of  the  county  school  fund,  by  suit  instituted  by  the  Circuit 
Attorney  of  the  circuit  in  which  such  county  is  situated,  or  by  indict- 
ment in  any  court  having  competent  jurisdiction.    (Ibid,  p.  778,  §  45.) 

76.  AH  such  provisions  of  chapters  sixty-seven  (67)  and  ninety 
(90)  of  the  General  Statutes  of  the  State  of  Missouri,  as  relate  to  the 
business  mentioned  in  the  first  section  of  this  act,  and  to  companies 
transacting  such  business,  and  all  other  acts  and  parts  of  acts  incon- 
sistent with  the  provisions  of  this  act,  are  hereby  repealed ;  Pro- 
vide!, That  nothing  in  this  act  contained  shall  be  construed  to  affect 
the  corporate  existence,  or  the  rights  as  such,  of  any  corporation 
now  existing,  heretofore  organized  under  any  general  law  of  this 
State.    {Ibid,  §  48.) 

77.  Every  company  organized  by,  or  incorporated  under,  the 
laws  of  this  State,  shall,  within  ninety  days  after  the  passage  of  this 
act,  file  with  the  Superintendent  of  the  Insurance  Department  of 
this  State,  a  statement  made  up  for  its  last  fiscal  year,  or  for  one 
year  prior  to  any  subsequent  date ;  such  statement  shall  be  made  in 
the  same  m?^nner  and  form,  and  shall  set  forth  the  same  facts  as 
is  required  by  the  twenty-third  section  of  this  act,  of  companies 
making  their  annual  statements.     {Ibid,  §  47.) 

78.  Nothing  in  this  act  contained  shall  be  so  construed  as  to 
prevent  the  repeal  or  amendment  of  the  same  or  any  section  thereof, 
by  the  present  or  any  future  General  Assembly  of  tliis  State.  {Ibid, 
§  48.) 


COUNTY  MUTUAL    FIRE    INSURANCE    COMPANIES. 

79.  Any  association  of  fifty  or  more  persons,  citizens  of  any 
county,  desirous  of  becoming  incorporated  under  the  provisions  of 
this  act,  shall  present  to  the  circuit  court  of  their  county,  a  copy  of 
their  constitution  or  articles  of  association  and  a  list  of  all  their 
members,  together  with  a  j^etition  to  such  court,  for  a  certificate  of 
incorporation  under  this  act,  and  specifying  the  name  they  desire 
for  their  association.     {Laws  of  1874,  p.  90,  §  1.) 

80.  If  the  circuit  court  shall  be  of  the  opinion  that  said  articles 
of  association  be  not  inconsistent  with  the  constitution  or  laws  of 
the  United  States  or  of  this  State,  then  the  same  shall  be  filed  with 
the  clerk  of  said  court,  and  the  said  court  shall  grant  to  said  associ- 
ation a  certificate  in  the  following  form,  to  wit:  "  Whereas,  A.,  B., 
C,  D.,  E.,  F.,  and  others,  have  filed  in  the  offit^e  of  the  Clerk  of  the 
Circuit  Court,  their  articles  of  association,  in  compliance  with  the 
provisions  of  '  An  Act  Prov^iding  for  the  Incorporation  and  Manage- 
ment of  Local  Insurance  Companies,'  with  their  petition  for  incorpor- 


502  niNE'S  INSURANCE  STATUTES. 

ation,  under  tlie  name  and  style  of ;   They  are,  therefore, 

hereby  declared  a  body  politic  and  corporate,  by  the  name  and  style 
aforesaid,  with  all  the  jjowers,  privileges  and  immunities  granted  in 
the  act  above  named. 
By  order  of  the  circuit  court,  (or  judge  thereof.) 
[Seal.]  G-.  H., 

Attest:  ClerJc  of  the  Circuit  Court  of County."" 

{Ibid,  §  2.) 

81.  All  associations  incorporated  under  the  provisions  of  this 
act,  shall  file  a  copy  of  all  amendments  to  their  articles  of  associa- 
tion certified  as  such,  under  their  seal,  with  the  Clerk  of  the  Circuit 
Court,  within  sixty  days  after  their  passage.     {Ibid,  §  3.) 

82.  The  petitioners  for  such  incorporation  and  all  other  per- 
sons residing  in  the  county,  or  owning  property  therein,  who  may 
thereafter  become  members  of  said  company  in  the  manner  herein 
prescribed,  shall  have  the  power  of  insuring  their  respective  dwelling 
houses,  stores,  shops,  and  their  buildings,  household  furniture  and 
merchandise,  situated  and  being  in  said  county,  against  loss  or  dam- 
age, whether  the  same  shall  happen  by  accident,  lightning,  or  any 
other  means  excepting  that  of  design  in  the  assured,  or  by  the  invasion 
of  an  enemy,  or  insurrection  of  the  citizens  of  this  or  any  of  the 
United  States ;  and  by  the  name  of  their  corporation  may  sue  and 
be  sued,  plead  and  be  impleaded,  appear,  prosecute  and  defend,  in 
any  court  of  record  or  other  place  whatsoever;  may  have  and  use  a 
common  seal ;  may  purchase  and  hold  such  real  and  personal  estate 
as  may  be  necessary  to  effect  the  object  of  their  association,  and  the 
same  may  sell  and  convey  at  pleasiu^e  ;  Provided,  Such  real  etate  shall 
not  exceed  one  hundred  and  sixty  acres  ;  may  make  establish  and 
put  into  execution  such  by-laws,  ordinances  and  resolutions,  not 
being  contrary  to  the  laws  of  this  State  or  of  the  United  States,  as 
may  seem  necessary  or  convenient  for  their  regulation  and  govern- 
ment, and  for  the  arrangement  of  their  affairs  ;  and  do  and  execute 
all  such  acts  and  things  as  may  be  necessary  to  carry  into  full  effect 
the  purposes  intended  by  this  act  of  incorporation.     {Ibid,  §  4.) 

^3.  That  all  and  every  j)erson  residing  in  said  coimty,  or 
owning  property  therein,  who  shall  at  any  time  become  interested 
in  said  company  by  insuring  therein,  and  also  their  respective  heirs, 
executors,  administrators  and  assigns,  continuing  to  be  insurea 
therein,  as  hereafter  provided,  shall  be  deemed  and  taken  as  mem- 
bers thereof,  for  and  during  the  term  specified  in  their  respective 
policies,  and  no  longer ;  and  shall  at  all  times  be  concluded  and 
bound  by  the  provisions  of  this  act.     {Ibid,  p.  91,  §  5.) 

84.  There  shall  be  a  meeting  of  said  comf>any  in  the  county  on 
the  first  Wednesday  of  April,  annually,  or  on  such  other  day  as  the 
said  company  may  by  their  constitution  or  articles  of  association 
determine;  at  which  first  annual  meeting  shall  be  chosen,  by  a 
majority  of  the  votes  of  the  members  present  and  by  proxy,  a  board 
of  directors  consisting  of  not  more  than  fifteen  nor  less  than  nine 
members,  who  shall  continue  in  office  until  others  have  been 
chosen  and  accepted  the  trust  in  their  stead.  In  all  vacancies  hap- 
pening in  said  board,  whether  by  removing  from  the  county,  dying 
or  refusing  or  neglecting  to  act,  for  and  during  the  space  of  three 
months  successively,  then  and  in  every  such  case  another  director 
shall  be  chosen  in  the  place  of  each  director  so  removing,  dying  or 
refusing  or  neglecting  to  act[as  aforesaid,  by  a  majority  of  the  direct- 
ors present  at  any  monthly  meeting;    which  directors  so  chosen, 


MISSOURI.  503 

shall  remain  in  office  until  the  next  general  election  of  directors; 
and  a  majority  of  the  whole  board  shall  constitute  a  quorum  for  the 
transaction  of  business.  At  their  first  regular  meeting  the  board  of 
directors  shall  class  themselves  by  lots,  into  three  classes  of  an  equal 
number  each,  the  terms  of  whose  services  shall  respectively  expire 
as  follows:  The  first  class  in  one  year,  the  second  class  in  two 
years,  and  the  third  class  in  three  years.  Special  meetings  of  the 
company  may  be  called  by  order  of  the  directors,  or  whenever  the 
owners  of  one  part  of  the  property  insured  in  such  company  shall 
apply  to  the  directors,  setting  forth  in  writing  the  purposes  for 
which  a  meeting  is  called.     {Ibid,  §  6.) 

85.  The  board  of  directors  shall  superintend  the  concerns  of 
said  company,  and  shall  have  the  management  of  the  funds  and 
property  thereof,  and  of  all  matters  and  things  thereto  relating,  not 
otherwise  provided  for  by  said  company.  They  shall  have  power 
from  time  to  time  to  appoint  a  secretary,  treasurer,  and  such  other 
officers,  agents,  and  assistants  as  to  them  may  seem  necessary,  and 
prescribe  their  duties,  fix  their  compensation,  and  take  such  security 
from  them  as  they  may  deem  necessary  for  the  faithful  performance 
of  their  respective  duties.  They  shall  determine  the  rate  of  insur- 
ance, the  sum  to  be  insured  on  any  building,  not  to  exceed  two- 
thirds  of  its  value,  nor  one-half  of  the  value  of  j^ersonal  property, 
and  the  sum  to  be  deposited  for  the  insurance  thereof.  They  shall 
order  and  direct  the  making  and  issuing  of  all  policies  of  insurance, 
the  providing  of  books,  stationery,  and  other  things  needful  for  the 
office  of  said  company,  and  for  carrying  on  the  affairs  of  said  com- 
pany, and  may  draw  upon  the  treasurer  for  the  payment  of  all  losses 
which  may  have  happened,  and  for  expenses  incurred  in  transacting 
the  concerns  of  said  company.  They  shall  elect  one  of  their  own 
number  to  act  as  president,  and  may  hold  their  meetings  monthly, 
and  oftener  if  necessary,  for  transacting  the  business  of  said  com- 
pany, and  shall  keep  a  record  of  their  i^roceedings ;  and  any  mem- 
ber disagreeing  with  a  majority  of  the  board  at  any  meeting,  may 
enter  his  dissent  with  his  reasons  therefor,  on  record.     {Ibid,  §  7.) 

86.  The  directors  may  extend  the  insurance  of  said  company 
to  every  part  of  the  county,  on  all  the  real  or  personal  property 
within  the  same,  with  the  exceptions  and  provisions  hereinafter  en- 
acted, not  exceeding  the  sum  of  ten  thousand  dollars  on  any  one 
risk,  at  such  rite  or  rates  as  said  directors  may,  in  view  of  the 
equity  of  the  case,  and  in  the  interest  of  the  company,  determine.  In- 
surance shall  be  made  upon  the  representation  of  the  assured,  con- 
tained in  his  application  therefor  and  signed  by  him  or  his  attorney, 
which  representation  shall  in  fairness  and  good  faith,  state  all  the 
material  circumstances  within  his  knowledge  which  may  affect  the 
risk ;  Provided,  That  in  case  of  any  loss  or  damage  by  tire,  the  val- 
uation of  the  property  at  the  time  of  such  loss  or  damage,  shall  be 
determined  by  the  award  of  impartial  men  as  hereafter  provided. 
{Ibid,  p.  92,  §8.) 

S7,  Books  of  accounts,  written  security  or  evidence  of  debt, 
title  deeds,  manuscrii)ts  or  writings  of  any  description,  money  or 
bullion,  shall  not  be  deemed,  nor  taken  to  be,  objects  of  insura;ice 
in  said  company ;  curiosities,  jewels,  medals,  musical  instruments, 
plate,  i)aintings,  sculpture,  statuary,  watches,  gold  or  silver  ware  of 
any  kind,  shall  not  be  deemed  to  be  included  in  any  policy  of  insur- 
ance, unless  those  articles  or  any  of  them  form  part  of  the  usual  and 
regular  stock  in  trade  of  the  assured,  or  are  particularly  specified 


504  hide's  insurance  statutes. 

in  the  policy.  Breweries,  chemical  establishmeDta,  bleacliinjf  houses, 
or  mills,  or  the  contents  of  either  of  them,  alcohol,  aquafortis,  gun- 
powder, spirituous  liquors,  tar,  turpentine,  varnish,  or  any  other 
trades,  wares  or  merchandise  which  may  hereafter  be  excluded  by 
said  company  at  any  annual  meeting,  shall  never  be  deemed  insura- 
ble by  the  directors  of  said  comj)any,  nor  any  policy  issued  thereon. 
{Ibid,  §  9.) 

88.  No  policy  of  insurance  shall  be  issued  to  any  person  unless 
a  majority  of  the  board  of  directors  concur  in  the  issuance  of  the 
same  ;  and  every  person  who  shall  become  a  member  of  the  com- 
pany by  effecting  insurance  therein,  shall,  before  he  receives  his 
policy,  pay  to  the  company  a  fee  for  membership  not  to  exceed  five 
dollars,  and  also  deposit  with  the  company  such  a  per  cent,  upon 
the  risk  taken  for  him  as  shall  have  been  determined  by  the  direc- 
tors ;  or,  if  the  company  prefer  to  do  business  upon  a  premium  note 
basis  and  so  express  it  in  their  constitution  or  articles  of  association, 
in  lieu  of  the  above  they  may  require  each  member  before  he  receives 
his  policy,  to  deposit  his  promissory  note  for  such  sum  or  sums  of 
money  as  shall  be  determined  by  the  directors,  a  part,  not  exceeding 
ten  per  cent,  of  which  note,  shall  be  immediately  paid,  for  the  pur- 
pose of  discharging  the  incidental  expenses  of  the  company,  and  the 
remainder  of  said  deposit  note  shall  be  made  payable  in  whole  or  in 
part,  at  any  time  when  the  directors  shall  deem  the  same  requisite 
for  the  payment  of  losses  or  other  expenses  ;  and  at  the  expiration 
of  the  term  of  insurance  the  said  cash  deposit  or  the  said  note,  or 
such  part  of  the  same  as  shall  remain  unconsumed  or  unpaid,  after 
deducting  all  losses  and  expenses  accruing  during  said  time,  shall 
be  relinquished  and  given  up  to  the  depositor  of  the  cash,  or  to  the 
signer  of  the  note,  as  the  case  may  be.     {Ibid,  §  10.) 

89.  Every  member  of  said  company  shall  be,  and  hereby  is, 
bound  to  pay  his  proportion  of  all  losses  and  expenses  happening  or 
accruing  in  and  to  said  company;  and  all  buildings  insured  by  and 
with  said  company,  together  with  the  right,  title  and  interest  of  the 
assured  to  the  lands  on  which  they  stand,  shall  be  ])ledged  to  said 
company,  and  the  said  company  shall  have  a  lien  thereon  against 
the  assured,  during  the  continuance  of  his,  her,  or  their  policies. 
{Ibid,p.93,^  11.) 

S^O.  In  case  of  any  loss  or  damage  by  fire  happening  to  any 
member  of  said  company,  ui)on  property  insured  in  and  with  said 
company,  the  said  member  shall  give  notice  thereof  in  writing  to  the 
directors  or  some  one  of  them,  or  to  the  secretary  of  said  conqjany, 
within  thirty  days  from  the  time  such  loss  or  damage  may  have 
happened ;  and  the  directors  upon  a  view  of  the  same,  or  in  such 
other  way  as  they  may  deem  proper,  shall  ascertain  and  determine 
the  amount  of  loss  or  damage ;  and  if  the  party  suffering  is  not  sat- 
isfied with  the  determination  of  the  directors,  the  question  may  be 
submitted  to  referees,  or  the  said  party  may  bring  an  action  against 
said  company  for  the  said  loss  or  damage,  at  the  next  circuit  court 
to  be  holden  in  the  county ;  and  not  afterwards,  unless  said  court 
shall  be  holden  within  sixty  days  after  said  determination,  but  if 
holden  within  that  time,  then  at  the  next  court  holden  in  said  county 
thereafter ;  and  if  upon  trial  of  said  action  a  greater  sum  shaU  be 
recovered  than  the  amount  determined  by  the  directors,  the  parties 
suffering  shall  have  judgment  therefor  against  said  company,  with 
interest  thereon  from  the  time  said  loss  or  damage  hapi)en6d,  and 
costs  of  suit ;  but  if  no  more  shall  be  recovered  than  the  amount 


MISSOUKI.  505 

aforesaid,  the  said  party  shall  become  non-suit,  and  the  said  com- 
pany shall  recover  their  costs;  Provided,  hoivever,  That  the  judgment 
last^  mentioned  shall  in  no  wise  affect  the  claim  of  said  suftering 
party  to  the  amount  of  loss  or  damage  as  determined  by  the  direc- 
tors aforesaid ;  and  Provided  also,  That  execution  shall  not  issue  on 
any  judgment  against  said  company  until  three  months  after  the 
rendition  thereof.     {Ibid,  §  12.) 

91.  The  directors,  after  receiving  notice  of  any  loss  or  damage 
by  fire,  or  accident  sustained  by  any  member  and  ascertaining  the 
same,  or  after  the  rendition  of  any  judgment  as  aforesaid  against 
said  company  for  loss  or  damage,  shall  settle  and  determine  the  sum 
to  be  paid  by  the  several  members  thereof  as  their  respective  ])ro- 
portion  of  said  loss,  and  notify  them  thereof  in  such  manner  as  they 
shall  see  tit,  or  as  the  by-laws  may  have  prescribed,  and  the  sum  to 
be  paid  by  each  member  shall  always  be  in  proportion  to  the  amount 
of  risk  such  member  has  in  the  association  ;  and  if  any  member  shall 
for  the  space  of  thirty  days  after  such  notice,  neglect  or  refuse 
to  pay  the  sum  assessed  upon  him,  her  or  them,  as  his,  her  or  their 
proportion  of  the  sum  aforesaid,  in  such  case  it  shall  be  taken  as  a 
voluntary  surrender  of  his,  her  or  their  policy  by  such  member  or 
members,  in  proportion  to  the  amount  that  his,  he  or  their  deposit 
has  been  reduced  ;  and  in  case  of  such  member  or  members  suffer- 
ing loss  thereafter,  he,  she  or  they  shall  only  be  entitled  to  recover 
of  the  company  on  his,  her  or  their  policy,  in  proportion  to  the 
amount  of  his,  her  or  their  deposit,  not  consumed  in  the  payment  of 
losses  and  expenses  paid  prior  to  his,  her  or  their  loss  ;  Provided, 
That  in  companies  adopting  the  premium  note  basis,  the  sum  to  be 
paid  by  each  member  as  his  or  her  share  of  any  loss,  shall  always 
be  in  proportion  to  the  original  amount  of  his  or  her  premium  note 
or  notes,  and  shall  be  paid  to  the  treasurer  within  thirty  days  next 
after  the  reception  of  said  notice  ;  and  if  any  member  shall  for  the 
space  of  thirty  days  after  such  notice  neglect  or  refuse  to  pay  the 
sum  assessed  upon  him,  her  or  them,  as  his,  her  or  their  proportion 
of  any  sum  as  aforesaid,  in  such  case  the  directors  may  sue  and  re- 
cover the  whole  amount  of  his,  her  or  their  deposit  note  or  notefi, 
with  costs  of  suit,  and  the  money  thus  collected  shall  remain  in  the 
treasury  of  said  company,  subject  to  the  payment  of  such  losses  and 
expenses  as  have  or  may  thereafter  accrue,  and  the  balance,  if  any 
remain,  shall  be  returned  to  the  party  from  whom  it  was  collected, 
on  demand,  after  thirty  days  from  the  term  for  which  insurance  was 
effected.     (Ibid,  §  13.) 

92.  And  if  it  shall  ever  so  happen  that  the  whole  amount  of 
deposit  notes  or  cash  shall  not  be  sufficient  to  pay  the  loss  oc- 
casioned by  any  one  fire,  in  such  case  the  sufferers  insured  by  said 
company  shall  receive  towards  making  good  their  respective  losses, 
a  proportionate  dividend  of  the  whole  amount  of  said  notes  or  cash, 
according  to  the  sums  by  them  respectively  insured,  and  in  addition 
thereto  a  sum  to  be  assessed  on  all  the  members  of  said  company, 
not  exceeding  forty  cents  on  every  one  hundred  dollars  by  them 
respectively  insured,  and  the  said  members  shall  never  be  required 
to  pay  for  any  loss  occasioned  by  fire,  more  than  fifty  cents  on  each 
one  hundred  dollars  insured  in  said  company,  in  addition  to  the 
amount  of  the  deposit  note  or  cash,  nor  more  than  that  amount  for 
any  such  loss  after  his  said  note  or  cash  shall  have  been  paid  in  and 
expended,  or  after  his  original  cash-deposit  shall  have  been  ex- 
pended; but  any  member  upon  the  payment  of  the  whole  amount  of 


506  hine's  insurance  statutes. 

his  deposit  note  or  cash  and  surrendering  his  policy  before  any  sub- 
sequent loss  or  expense  has  occurred,  may  be  discharged  from  said 
comi>any.     {I hid.,  p.  94,  §  14.) 

9ti,  Said  company  may  make  insurance  for  any  term  not  less 
than  one  month,  nor  more  than  ten  years,  and  for  the  con^'enience 
of  shippers  may  issue  open  policies,  as  is  usual  in  other  insurance 
companies ;  and  any  policy  of  insurance  issued  by  said  comi^aiiy, 
signed  by  the  president  and  countersigned  by  the  secretary,  shall 
be  deemed  valid  and  binding  on  said  company  in  all  cases  wherein 
the  assured  has  a  title  in  fee  simple  unencumbered  to  the  building 
or  buildings  insured,  and  to  the  land  covered  by  the  same,  but  if 
the  assured  have  a  lease  estate  thereon,  or  if  the  i^remises  be  en- 
cumbered, the  policy  shall  be  void,  unless  the  true  title  of  the  as- 
sured and  the  encumbrances  be  expressed  thereon.     {Ibid,  §  15.) 

94.  The  directors  shall  settle  and  pay  all  losses  within  three 
months  after  they  shall  have  been  notified  as  aforesaid,  unless  they 
shall  judge  it  proper  within  that  time  to  rebuild  the  house  or  houses 
destroyed,  or  repair  the  damages  sustained,  which  they  are  empow- 
ered to  do  in  convenient  time ;  Provided,  They  do  not  lay  out  and 
expend  in  such  buildings  or  repairs  more  than  the  sum  insured  on 
the  premises,  but  no  allowance  is  to  be  made  in  estimating  damages 
in  any  case  for  gilding,  historical  or  landscape  paintings,  stucco  or 
carved  work,  nor  are  the  same  to  be  replaced  if  destroyed  by  fire. 
(Ibid,  §  16.) 

95.  When  any  house  or  other  buildings  shall  be  alienated  by 
sale  or  otherwise,  the  policy  thereon  shall  be  void  and  be  surren- 
dered to  the  directors  of  said  company  to  be  canceled,  and  upon 
such  surrender,  the  assured  shall  be  entitled  to  receive  his,  her  or 
their  deposit  note  upon  the  payment  of  his,  her  or  their  proportion 
of  all  losses  and  expenses  that  have  occurred  prior  to  such  surren- 
der; Provided,  however,  That  the  grantee  or  alienee  having  the  policy 
assigned  to  him,  may  liave  the  same  ratified  and  confirmed  to  him, 
her  or  them,  for  his,  her  or  their  proper  use  and  benefit,  upon  appli- 
cation to  the  directors,  and  with  their  consent,  within  thirty  days 
next  after  such  alienation,  on  giving  proper  security  to  the  satisfac- 
tion of  the  said  directors  for  such  proportion  of  the  deposits  or  pre- 
mium note  as  shall  remain  unpaid,  or  by  depositing  the  proper  sum 
in  cash,  and  by  such  ratification  or  confirmation,  the  party  causing 
the  same  shall  be  entitled  to  all  the  rights  and  privileges,  and  sub- 
ject to  all  the  liabilities  to  which  the  original  insiued  was  entitled 
and  subjected  under  this  act.     {Ibid,  §  17.) 

96.  If  any  alteration  shall  be  made  in  any  house  or  building 
by  the  proprietor  thereof,  after  insurance  has  been  made  thereon 
with  said  company,  whereby  it  may  be  exposed  to  greater  risk  or 
hazard  from  fire  than  it  was  at  the  time  it  was  insured,  then  and  in 
every  such  case  the  insurance  made  upon  such  house  or  building 
shall  be  void,  unless  an  additional  premium  and  deposit  after  such 
alteration  be  settled  with  and  paid  to  the  directors ;  but  no  alter- 
ation or  repairs  in  buildings  not  increasing  such  risk  or  hazard 
shall  in  anywise  affect  the  insurance  previously  made  thereon. 
{Ibid,p.{ib,k  18.) 

97.  In  case  any  building  or  buildings  situated  on  leased  lands, 
and  insured  by  said  company,  be  destroyed  by  fire,  and  the  owner 
or  owners  thereof  shall  prefer  to  receive  the  amount  of  said  loss  in 
money,  in  such  case  the  directors  may  retain  the  amount  of  the 
premium  note  given  or  cash  deposited  for  the  insurance  thereof, 


MISSOURI.  507 

until  the  time  for  which  insurance  was  made  shall  have  expired  ;  at 
the  expiration  thereof  the  assured  shall  have  a  right  to  demand 
and  receive  such  part  of  such  retained  sum  or  sums  as  has  not  been 
expended  in  losses  and  assessments.     {Ibid,  §  19.) 

98.  If  insurance  on  any  house  or  building  shall  be  and  subsist 
in  said  company,  and  in  any  other  office  or  from  and  by  any  other 
person  or  persons  at  the  same  time,  the  insurance  made  in  and  by 
said  company  shall  be  deemed  and  become  void,  unless  such  double 
insurance  subsist  by  and  with  the  consent  of  the  directors,  signified 
by  endorsement  on  the  back  of  the  policy,  signed  by  the  president 
and  secretary.     {Ibid,  §  20.) 

99.  The  company  hereby  created  shall  not  be  concerned  in  trade 
or  other  business,  except  the  insurance  of  property  against  loss  or 
damages  by  fire,  or  otherwise  as  specified,  nor  shall  said  company 
by  any  possible  construction  of  the  powers  granted  in  this  act,  exer- 
cise any  banking  pri\'ileges  whatever ;  but  this  act  shall  be  liberally 
construed  to  effect  the  ends  and  purposes  hereby  intended  and  con- 
templated.    {Ibid,  §  21.) 

100.  The  directors  of  any  company  organized  under  the  pro- 
visions of  this  act,  and  doing  business  on  the  premium  note  basis, 
shall  not  make  more  than  one  assessment  for  losses  in  any  one 
year;  and  in  order  that  such  assessment  may  be  made  payable  at 
the  annual  meeting  of  the  company,  the  directors  are  authorized,  in 
case  of  any  loss  or  damages  by  fire,  to  borrow  such  sum  or  sums  of 
money  as  may  be  required  to  pay  such  loss  or  damage ;  and  in 
making  the  annual  assessments,  the  interest  accruing  on  money 
borrowed,  and  also  all  necessary  incidental  expenses,  shall  be  in- 
cluded in  such  assessment.     {Ibid,  §  22.) 

101 .  Each  and  every  member  of  said  company  shall  be  entitled 
to  and  allowed  an  examination  of  the  books,  papers,  and  general 
transactions  of  said  companj',  upon  application  therefor  to  the  sec- 
retary.    {Ibid,  §  23.) 

103.  It  shall  be  the  duty  of  the  directors  to  make  an  annual 
report  of  the  condition,  i^rogress  and  affairs  of  said  company,  a  copy 
of  which  report  shall  be  published  in  some  newspaper  printed  in 
said  county.     {Ibid,  p.  96,  §  24.) 

lOS.  The  indiWduals  named  in  the  constitution  or  articles  of 
association  as  the  directors  of  the  company  shall  constitute  the 
board  of  directors  for  said  company,  to  serve  as  such  until  the  first 
annual  election  of  directors  therein  provided.  Seven  members  shall 
constitute  a  quorum  for  the  transaction  of  business.  They  may  call 
the  first  meeting  of  the  members  of  said  company  at  any  suitable 
time  and  place  in  the  county,  by  advertising  in  at  least  one  news- 
paper printed  in  said  county,  giving  at  least  ten  days'  notice  of  the 
place,  time  and  design  of  said  meeting.  They  may  make  and  estab- 
lish by-laws  for  the  government  of  said  company,  until  the  first  an- 
nual meeting  thereof,  and  may  transact  any  business  necessary  and 
proper  to  carry  into  effect  the  provisions  and  intentions  of  this  act. 
{Ibid,  ^'25.) 

104.  All  companies  incorporated  under  the  pro\asions  of  this 
act  are  hereby  exempted  from  the  operation  of  all  other  general 
statutes  of  this  State  in  regard  to  insuran(;e,  but  such  companies 
shall  be  subject,  as  far  as  applicable,  to  the  provisions  of  chapter 
sixty-two  of  the  general  statutes  of  the  State.     {Ibid,  §  26.) 


508  hike's  insurance  statutes. 


LIFE  INSURANCE  COMPANIES. 

105.  Any  number  of  persons,  not  less  than  thirteen,  may  as- 
sociate and  form  a  company  for  the  ])urpose  of  making  assurance 
upon  the  lives  of  individuals,  and  every  assurance  pertaining  there- 
to or  connected  therewith,  and  to  grant,  purchase  and  dispose  of 
annuities  and  endowments  of  every  kind  and  description  whatso- 
ever.    {Wagner's  Statutes,  1870,^.  738,  §  1.) 

106.  For  the  purposes  of  this  act,  corporations  doing  the 
business  mentioned  in  the  preceding  section,  which  are  owned  and 
controlled  entirely  by  the  stockholders,  and  in  neither  the  manage- 
ment nor  the  profits  of  which  the  policy-holders  participate,  shall 
be  considered  joint  stock  companies;  such  corporations  having  no 
capital  stock,  and  in  the  management  and  profits  of  which  the 
policy-holders  alone  participate,  shall  be  considered  mutual  com- 
panies ;  and  such  corporations  having  a  capital  stock,  but  in  the 
management  or  in  the  i^rofits  of  which,  or  in  both,  the  policy-holders, 
or  any  class  or  classes  of  policy-holders,  are  or  may  become  entitled 
to  particii^ate,  shall  be  considered  stock  and  mutual  companies. 
{Ihid,  §  2.) 

107.  No  corporation  formed  under  any  general  law  of  this 
State  concerning  life  assurance  shall  adopt  the  name  of  any  existing 
company  or  association  transacting  the  business  mentioned  in  the 
first  section  of  this  act  nor  any  name  so  similar  thereto,  as  to  be 
calculated  to  mislead  the  public.     {Ibid,  §  3.) 

108.  The  persons  mentioned  in  the  first  section  of  this  act 
shall  be  designated  as  corporators,  and  such  corporators,  desiring 
to  form  a  company  for  the  purpose  of  transacting  the  business 
mentioned  in  the  first  section  of  this  act,  or  any  part  of  the  same, 
shall  file  in  the  office  of  the  Superintendent  of  the  Insurance  De- 
partment a  declaration  signed  by  each  of  said  corporators,  setting 
forth  th  ;  place  of  residence  of  each  of  them  and  their  intention  to 
form  a  corporation  for  the  purpose  of  transacting  the  business  afore- 
said, which  declaration  shall  comprise  a  copy  of  the  charter  pro- 
posed to  be  adopted  by  them,  and  they  shall  publish  once  in  each 
week,  or  oftener,  for  at  least  four  weeks,  in  a  newspaper  of  general 
circulation,  published  in  the  county  where  such  corporation  is  pro- 
posed to  be  located,  a  notice  of  the  filing  of  such  declaration,  to- 
gether with  a  copy  of  the  same.     {Ibid,  §  4.) 

109.  When  such  corporators  propose  to  form  a  joint  stock 
company  for  the  purposes  designated  in  the  first  section  of  this  act, 
the  charter  comprised  in  the  declaration  mentioned  in  the  fourth 
section  shall  set  forth  :  First,  The  name  assumed  by  such  corpora- 
tion and  by  which  it  shall  be  known ;  Second,  The  place  where  the 
principal  office  for  the  transaction  of  its  business  shall  be  located  ; 
Third,  The  specific  kind  or  kinds  of  business  which  it  proposes  to 
transact ;  Fourth,  The  amount  of  its  capital  stock,  and  the  number 
of  shares  into  which  it  shall  be  di\ided,  and  the  manner  in  which 
it  shall  be  paid  up  or  secured ;  Fifth,  The  manner  in  which  the  cor- 
porate powers  granted  by  this  act  shall  be  exercised,  showing  the 
number  of  directors,  which  shall  not  be  less  than  nine  nor  more 
than  thirteen,  their  powers  and  duties,  the  manner  of  electing  them, 
the  mode  of  filling  vacancies,  and  such  other  particulars  as  may  be 
necessary  to  make  manifest  the  objects  and  purposes  of  the  corpora- 
tion, and  the  manner  in  which  it  is  to  be  conducted.     {Ibid,  §  5.) 


MISSOURI.  509 

110.  Whenever  the  corporators  shall  have  filed  the  declara- 
tion required  by  the  foiu'th  section  aforesaid,  and  also  proof  of  the 
publication  therein  required,  by  the  affidavit  of  the  jmblisher  of  the 
newspaper  in  \\hich  the  publication  was  made, his  foreman  or  clerk, 
with  the  Superintendent  of  the  Insurance  Department,  it  shall  be 
the  duty  of  said  Superintendent  to  submit  such  declaration  to  the 
Attorney -General  of  this  State  for  examination,  and  if  it  shall  be 
found  by  him  to  be  in  accordance  with  the  provisions  of  this  act, 
and  not  inconsistent  with  the  constitution  and  laws  of  this  State 
and  the  United  States,  he  shall  so  certify,  and  deliver  it  back  to  the 
Superintendent,  who  shall  cause  the  said  declaration  and  affidavit, 
with  the  certificate  of  the  Attorney-General,  to  be  recorded  in  a 
book  kept  for  that  purpose,  and  shall  furnish  a  certified  copy  of  the 
same  to  the  corporators,  upon  the  receipt  of  which  they  shall  be  a 
body  politic  and  corporate,  and  may  proceed  to  organize  in  the 
manner  set  forth  in  their  charter,  and  to  open  books  for  subscrip- 
tion to  the  capital  stock  of  the  company,  and  keep  the  same  open 
till  the  whole  amount  specified  in  the  charter  is  subscribed,  but  it 
shall  not  be  lawful  for  such  company  to  issue  i^olicies,  or  transact 
any  business  of  any  kind  or  nature  whatsoever,  except  as  aforesaid, 
until  they  have  fully  complied  with  the  requirements  of  the  seventh, 
eighth  and  twenty -first  sections  of  this  act.     {Ibid,  p.  739,  §  6.) 

111,  Upon  being  notified  that  the  capital  stock  named  in  the 
charter  has  been  subscribed,  and  one  hundred  thousand  dollars 
thereof  i)aid  in,  the  Superintendent  shall  make  an  examination,  or 
cause  one  to  be  made  by  some  disinterested  person  specially  ap- 
pointed by  him  for  that  purpose;  and  if  it  shall  be  found  by  him- 
self, or  if  the  person  so  appointed  shall  certify  under  oath  that 
the  provisions  of  the  nineteenth  section  of  this  act  have  been  com- 
plied with  by  said  company,  so  far  as  applicable  thereto,  which  cer- 
tificate, when  made,  shall  set  forth  the  paiticulars  of  such  compli- 
ance, then  the  Superintendent  shall  so  certify,  and  the  corporators 
or  oliicers  of  such  company  shall  be  required  to  certify,  under  oath, 
to  the  person  making  such  examination,  that  the  money,  notes, 
stocks,  bonds,  mortgages,  and  deeds  of  trust  exhibited  to  him  are 
bona  fide  property  of  said  company.     [Ibid,  §  7.) 

lis.  When  the  corporators  have  fully  complied  with  the  re- 
quirements of  the  lu'eceding  sections,  and  said  corporation  has  de- 
posited with  the  Su})erinteudent  of  the  Insurance  Department  the 
amount  of  capital  required  to  be  deposited  by  the  twenty-first  sec- 
tion of  this  act,  it  shall  be  his  duty  to  furnish  the  company  a  certifi- 
cate of  such  deposit,  and  his  certificate  of  authority  for  it  to  com- 
mence the  business  proposed  in  its  charter,  which,  with  the  certified 
copies  of  the  aforesaid  declaration  and  certificates,  on  being  filed 
and  recorded  in  the  office  of  the  Kecorder  of  the  county  in  which  the 
company  is  to  be  located,  shall  be  its  authority  to  commence  busi- 
ness and  issue  policies  ;  and  such  certified  copies  of  the  declaration, 
certificates  and  certificate  of  deposit  may  be  used  in  evidence  for 
or  against  said  company,  with  the  same  effect  as  the  originals. 
{Ibid,  §  8.) 

11«J.  When  such  corporators  propose  to  form  a  mutual  com- 
pany for  the  pui'pose  designated  in  the  first  section  of  this  act,  the 
charter  comprised  in  the  declaration  mentioned  in  the  fourth  section 
shall  set  forth  :  First,  The  name  assumed  by  such  corporation,  and 
by  which  it  shall  be  known.  Second,  The  place  where  the  principal 
office  for  the  transaction  of  its  business  shall  be  located.    Third, 


510  HINE'S  INSUEANCB  STATUTES. 

The  specific  kind  or  kinds  of  business  which  it  proposes  to  transact. 
Fourth,  The  number  of  persons  from  whom  proposals  for  assurance 
shall  be  received,  the  amount  of  premiums  to  be  received  on  de- 
posit, and  the  amount  of  cash  to  be  paid  on  the  same,  before  the 
company  shall  begin  to  do  business  and  issue  policies.  Fifth,  The 
manner  in  which  the  corporate  powers  granted  by  this  act  are  to  be 
exercised,  showing  the  number  of  directors,  which  shall  not  be  less 
than  thirteen  nor  more  than  the  number  stated  in  its  charter,  their 
powers  and  duties,  the  manner  of  their  election,  the  mode  of  filling 
vacancies,  and  such  other  particulars  as  may  be  necessary  to  make 
manifest  the  objects  and  purposes  of  the  association,  and  the  manner 
in  which  it  is  to  be  conducted.     {Ibid, p.  740,  §  9.) 

114.  Whenever  the  corporators  shall  have  filed  the  declaration 
required  by  the  fourth  section  of  this  act,  and  also  proof  of  the  pub- 
lication therein  required  by  the  affidavit  of  the  publisher  of  the 
newspaper  in  which  the  publication  was  made,  his  foreman  or  clerk, 
with  the  Superintendent  of  the  Insurance  Department,  it  shall  be 
the  duty  of  said  Superintendent  to  submit  such  declaration  to  the 
Attorney-General  of  this  State  for  examination,  and  if  it  shall  be 
fountl  by  him  to  be  in  accordance  with  the  provisions  of  this  act, 
and  not  inconsistent  with  the  constitution  and  laws  of  this  State, 
and  of  the  United  States,  he  shall  so  certify  and  deliver  it  back  to 
the  Superintendent,  who  shall  cause  the  said  declaration  and  affida- 
vit, Avith  the  certificate  of  the  Attorney-General,  to  be  recorded  in  a 
book  kept  for  that  purpose,  and  shall  lurnish  a  certified  copy  of  the 
same  to  the  corporators,  upon  the  receipt  of  which  they  shall  be  a 
body  politic  aud  corporate,  and  may  proceed  to  organize  in  the  man- 
ner set  forth  in  their  charter,  and  to  open  books  and  receive  propo- 
sals and  agreements  for  assurance,  and  premiums  for  the  same  on 
deposit,  aud  issue  receipts  therefor,  and  keep  such  books  open  until 
the  whole  amount  specified  in  its  charter  is  received ;  but  it  shall 
not  be  lawful  for  such  company  to  issue  policies  or  transact  any 
business  of  any  kind,  except  as  aforesaid,  uutil  it  has  fully  complied 
with  the  requirements  of  the  eleventh,  twelfth,  and  twenty-first  sec- 
tions of  this  act.     {Ibid,  §  10.) 

115.  Upon  being  notified  that  the  proposals  and  agreements 
for  assurance  named  in  the  charter  have  been  made,  aud  the 
amount  of  premiums  as  therein  mentioned  have  been  received,  the 
Superintendent  shall  make  an  examination,  or  cause  one  to  be  made, 
by  some  disinterested  person  specially  appointed  by  him  for  that 
purpose ;  and  if  it  shall  be  found  by  himself,  or  if  the  person  so  ap- 
pointed shall  certify,  under  oath,  that  agreements  have  been  entered 
into  with  said  company,  and  premiums  received  in  the  manner  and 
to  the  amount  required  by  the  nineteenth  section  of  this  act,  and 
that  the  amount  required  to  be  paid  to  said  company  is  held  by  it 
in  money  or  in  stocks,  notes  or  bonds,  then  he  shall  so  certify;  and 
the  corporators  or  officers  of  such  company  shall  be  required  to  cer- 
tify, under  oath,  to  the  person  making  such  examination,  that  the 
money  or  stocks,  notes  or  bonds,  or  other  obligations  exhibited  to 
him,  have  been  received  on  dejjosit  for  premiums  on  bona  fide  pro- 
posals and  agreements  for  insurance.     {Ibid,  p.  7-11,  §  11.) 

116.  When  the  corporators  have  fully  complied  with  the  re- 
quirements of  the  preceding  sections,  and  said  corporation  has  de- 
posited with  the  Superintendent  of  the  Insurance  Department  the 
amount  of  stocks,  notes,  bonds  and  mortgages,  or  deeds  of  trust,  re- 
quired by  the  twenty-first  section  of  this  act,  it  shall  be  his  duty  to 


:missouri.  511 

furnish  the  company  a  certificate  of  such  deposit,  and  his  certificate 
of  authority  for  it  to  commence  the  business  proposed  in  its  charter, 
which,  with  the  certified  copies  of  the  aforesaid  declaration  and  cer- 
tificates, on  being  filed  and  recorded  in  the  office  of  the  Recorder  of 
the  county  in  which  the  company  is  to  be  located,  shall  be  its  author- 
ity to  commence  business  and  issue  policies ;  and  such  certified 
copies  of  the  declaration,  certiticates  and  certificate  of  deposit  may 
be  used  in  evidence  for  or  against  said  company,  with  the  same  effect 
as  the  originals.     {Ibid,  §  12.) 

117.  When  such  corporators  propose  to  form  a  stock  and 
mutual  company  for  the  purposes  desigTiated  in  the  first  section  of 
this  act,  the  charter,  comprised  in  the  declaration  named  in  the 
fourth  section,  shall  set  forth  all  the  i)articulars,  mentioned  in  the 
fifth  section  in  regard  to  the  formation  of  corporations  on  the  joint 
stock  plan ;  and  in  addition  thereto  it  shall  state :  First,  The  ex- 
tent, if  any,  to  which  the  policy-holders  shall  participate  in  the 
election  of  directors  and  in  the  management  of  the  company,  and 
the  manner  in  which  they  shall  do  so.  Second,  The  time  for  which 
it  is  proposed  to  remain  a  stock  and  mutual  company,  provided  it 
be  intended  to  limit  the  same,  and  the  manner  of  changing  into  a 
mutual  or  stock  company,  if  such  change  is  proposed  ;  but  no  such 
change  shall  be  made  unless  by  a  two-thirds  majority  of  all  the 
votes  cast  at  a  meeting  held  for  that  purpose,  such  meeting  to  be 
called  by  a  special  notice,  stating  its  object,  which  notice  shall  be 
l)ublished  for  at  least  once  a  week  for  four  weeks  in  a  newspaper  of 
general  circulation,  and  published  in  the  county  where  such  com- 
pany is  located.     {Ibid,  §  33.) 

lis.  The  provisions  of  the  sixth,  seventh  and  eighth  sections 
of  this  act,  relating  to  the  formation  of  joint  stock  companies,  shall 
apply  in  all  respects,  to  the  formation  of  stock  and  mutual  com- 
panies.    {Ibid,  p.  742,  §  14.) 

119.  Any  company  incorporated  by  or  organized  under  the 
provisions  of  this  act,  or  any  existing  company  organized  under  any 
general  law  of  this  State,  and  doing  any  business  mentioned  in  the 
first  section  of  this  act,  may  amend  its  charter  in  any  manner  which 
shall  not  conflict  with  the  pro\isions  of  this  act.  Any  such  com- 
pany desiring  to  amend  its  charter,  shall  call  a  meeting  of  all  per- 
sons entitled  to  vote  at  the  election  of  its  directors  by  a  notice, 
which  shall  state  the  object  of  such  meeting,  and  shall  be  x)ublished 
once  a  week,  or  oftener,  for  at  least  four  weeks,  in  a  newspaper  of 
general  circulation,  published  in  the  county  where  such  company 
shall  have  its  principal  office.  If  a  two-thirds  majority  of  all  the 
votes  cast  at  such  meeting  shall  be  in  favor  of  such  amendment, 
such  company  shall  file  with  the  Superintendent  of  the  Insurance 
Department  proof  of  said  publication,  by  the  affidavit  of  the  i)ub- 
lisher  of  the  newspaper  m  which  such  publication  was  made,  his 
foreman  or  clerk,  and  also  a  copy  of  the  proposed  amended  charter, 
which  the  said  Superintendent  shall  submit  to  the  Attorney-General 
for  examination,  and  if  it  be  found  by  him  to  be  in  accordance  with 
the  i^rovisions  of  this  act,  and  not  inconsistent  with  the  constitu- 
tion and  laws  of  this  State,  he  shall  so  certify,  and  shall  deliver  it 
back  to  the  Superintendent,  who  shall  cause  the  same,  together  with 
the  affidavit  of  the  publisher  and  the  certificate  of  the  Attorney- 
General,  to  be  placed  on  record  in  his  office,  and  shall  furnish  a  cer- 
tified copy  of  such  record,  and  also  his  certificate  of  authority  to 
transact  business  under  said  amended  charter  to  said  company  j 


512  niNE'S  INSURANCE   STATUTES. 

and  upon  the  filing  of  the  same  in  the  office  of  the  Recorder  of  the 
county  where  it  shall  have  its  principal  oftice,  such  amended  charter 
shall  be  the  charter  of  said  company.     {Ibid,  §  15.) 

12^.  Any  existing  organization  or  association,  organized  un- 
der any  general  or  special  law  of  this  State,  transacting  any  busi- 
ness mentioned  in  the  first  section  of  this  act,  desiring  to  surrender 
its  ijresent  charter  or  license,  and  reorganize  under  this  act,  shall 
hold  a  meeting  of  the  persons  legally  entitled  to  vote  lor  directors 
or  trustees  of  such  company  or  association,  at  which  meeting  there 
shall  be  submitted  a  declaration  in  writing,  setting  forth  the  inten- 
tion of  said  comj)any  or  association  to  surrender  its  present  charter 
and  license,  and  reorganize  as  aforesaid ;  and  such  declaration  shall 
comprise  a  copy  of  the  charter  proposed  to  be  adopted  by  said  com- 
pany, which  charter  shall  set  forth,  if  it  be  intended  to  reorganize 
as  a  joint  stock  company,  all  the  particulars  required  to  be  stated 
in  the  charters  of  joint  stock  companies  formed  under  this  act ;  if 
as  a  stock  and  mutual  company,  all  the  particulars  required  to  be 
stated  in  the  charters  of  stock  and  mutual  companies  formed  under 
this  act ;  or  if  as  a  mutual  company  all  the  particulars  required  to 
be  stated  in  the  charters  of  mutual  companies  formed  under  this  act 
by  sub-sections  one,  two,  three  and  five  of  the  ninth  section  of  this 
act.  If  a  two-thirds  majority  of  the  votes  cast  at  such  meeting  shall 
be  in  favor  of  adopting  such  declaration  and  charter,  then  the  di- 
rectors of  such  company  may  i)roceed  to  reorganize  under  this  act. 
The  meeting  of  legal  voters,  mentioned  in  this  section,  shall  be 
called  by  a  notice  imblished  once  in  each  week,  or  oftener,  for  at 
least  four  weeks,  in  a  newsi)aper  of  general  circulation,  and  pub- 
lished in  the  county  where  su(;h  company  is  located,  which  notice 
shall  state  that  such  meeting  is  called  for  the  purpose  of  adopting  a 
charter  in  accordance  with  the  i)rovisions  of  this  act.     {Ibid,  §  16.) 

1^1.  The  declaration  mentioned  in  the  preceding  section  shall 
be  signed  by  a  majority  of  the  directors  of  such  company  or  associa- 
tion, and  the  president,  or  vice-president  and  secretary  of  such  com- 
pany or  association,  shall  make  affidavit  that  such  declaration  was 
voted  upon  and  adopted  at  a  meeting  of  the  legal  voters  of  such 
company  or  association  and  that  su(;h  meeting  was  called  in  the 
manner  prescribed  by  the  preceding  section.  The  declaration  here- 
in mentioned  and  the  affidavit  of  the  president  and  secretary,  as 
aforesaid,  shall  be  filed  in  the  office  of  the  Superintendent  of  the 
Insurance  Department ;  and  it  shall  be  the  duty  of  such  Superin- 
tendent to  submit  the  same  to  the  Attorney-General  of  this  Statp 
for  examination,  and  if  such  declaration  shall  be  found  by  him  to  be 
in  accordance  with  the  provisions  of  this  act,  and  not  contrary  to 
the  constitution  or  laws  of  this  State  or  of  the  United  States,  he 
shall  so  certify  and  deliver  it  back  to  the  Superintendent,  who  shall 
cause  the  said  declaration  and  atlidavit,  with  the  certificate  of  the 
Attorney-General,  to  be  recorded  in  a  book  kept  for  that  purpose, 
and  shall  furnish  a  certified  copy  of  the  same  to  the  president  of 
such  company  or  association,  upon  receipt  of  which  it  shall  be  a 
body  politic  and  corporate  under  the  provisions  of  this  act.  {Ibid, 
p.  743,  §  17.) 

lii^.  Whenever  such  company  shall  have  complied  with  the 
requirements  of  the  two  preceding  sections,  and  shall  ha\  e  depos- 
ited with  the  Suiierintendent  of  the  Insurance  Department  secur- 
ities to  the  amount,  and  of  the  value  and  description  required  by 
the  twenty-first  section  of  this  act,  to  be  deposited  with  him,  it  shall 


MISSOURI.  .  513 

be  the  duty  of  such  Superintendent  to  furnish  such  company  or 
association  a  certificate  of  such  deposit,  and  his  certificate  of  author- 
ity for  it  to  transact  the  business  proposed  in  its  charter,  which, 
with  the  certified  copies  of  the  aforesaid  dechiration  and  certificates, 
on  being  filed  and  recorded  in  the  olfice  of  the  county  where  such 
company  is  located,  shall  be  its  authority  to  transact  business  and 
issue  policies  ;  and  such  certified  copies  of  the  declaration,  and  cer- 
tificate of  ileposit  may  be  used  in  evidence  for  or  against  such  com- 
pany, with  the  same  eft'ect  as  the  originals.     {Ibidj  §  18.) 

l!23.  No  joint  stock  or  stock  and  mutual  company  formed 
under  the  provisions  of  this  act,  or  of  any  general  or  special  law  of 
this  State,  for  any  purpose  mentioned  in  the  first  section  of  this  act, 
shall  commence  or  hereafter  continue  to  do  business  or  issue  poli- 
cies unless  upon  an  actual  capital  of  at  least  one  hundred  thousand 
dollars ;  nor  shall  any  such  company  commence  or  hereafter  con- 
tinue to  do  any  business  unless  the  full  amount  of  capital  stock 
named  in  its  charter  or  articles  of  association,  shall  have  been  in 
good  faith  subscribed,  nor  until  such  company  shall  have  at  least 
one  hundred  thousand  dollars  of  its  capital  paid  in  and  invested  in 
stocks  or  bonds  of  the  State  of  Missouri,  or  in  treasury  notes  or 
stocks  of  the  United  States,  or  in  notes  or  bonds  secured  by  mort- 
gages or  deeds  of  trust  on  unencumbered  real  estate,  worth  at  least 
double  the  amount  loaned  thereon;  nor  until  it  holds  for  the  bal- 
ance unpaid  on  all  its  capital  stock  subscribed  for,  the  notes  of  the 
respective  subscribers  with  good  and  sufficient  security  therefor, 
other  than  the  stock  of  said  company ;  provided,  that  existing  ' 
compauies  shall  be  allowed  six  months  from  the  passage  of  this  act 
within  which  to  receive  subscriptions  for  any  of  its  capital  stock 
which  shall  not  have  been  subscribed,  and  for  receiving  the  notes 
therefor  as  provided  above,  and  within  which  to  make  the  invest- 
ments above  required.  No  mutual  company  formed  under  the  pro- 
visions of  this  act,  or  of  any  general  or  special  law  of  this  State, 
shall  commence  or  continue  to  do  any  business  mentioned  in  the 
first  section  hereof,  until  agreements  in  writing  with  such  company 
shall  have  been  entered  into  by  not  less  than  one  hundred  persons 
for  assurance  upon  their  ovm  lives  or  the  lives  of  other  persons, 
for  their  benefit,  nor  until  it  shall  have  received  premiums  on  the 
same  in  cash,  and  partly  in  cash  or  partly  (in)  bona  fide  obligations, 
to  an  aggregate  amount  of  not  less  than  one  hundred  thousand  dol- 
lars.    {Ibid,  p.  744,  §  19.) 

1  iS4.  Any  company  organized  under  the  laws  of  this  State,  or 
doini^  in  this  State  any  business  mentioned  in  the  first  section  of 
this  act,  may  at  any  time  change  the  securities,  in  which  its  capital 
or  any  part  thereof  is  invested,  whether  the  same  is  deposited  with 
the  Superintendent  of  the  Insurance  Department,  or  elsewhere,  for 
any  other  securities ;  Frovidecl,  That  the  amount  or  value  of  the 
securities  required  by  this  act  4:o  be  deposited  with  said  Superin- 
tendent shall,  in  no  case,  be  diminished  or  imi)aired.     {Ibid,  §  20.) 

1^5.  No  company  organized  under  this  act,  or  reorganized 
under  the  sixteenth  section  thereof,  shall  commence  or  carry  on  busi- 
ness until  such  company  has  deposited  with  the  Superintendent  of 
the  Insurance  Department,  for  the  security  of  its  policy-holders,  the 
sum  of  one  hundred  thousand  dollars  in  stocks,  or  in  notes  or  bonds 
secured  by  mortgages  or  deeds  of  trust  of  the  description  men- 
tioned in  the  nineteenth  section  of  this  act ;  such  stocks  to  consist 
only  of  bonds  or  treasury  notes  of  the  United  States,  or  bonds  of 
33 


514  hike's  insurance  statutes. 

the  State  of  Missouri,  and  in  all  cases  to  be,  or  to  be  made  equal  to 
stock  producing  six  per  cent,  per  annum,  and  not  to  be  received  at  a 
rate  above  their  par  value,  nor  above  their  current  market  value. 
{Ibid,  p.  745,  §  21.) 

1*26.  No  existing  corporation  organized  under  any  general  or 
special  law  of  this  State,  and  transacting  business  of  the  character 
designated  in  the  first  section  of  this  act,  shall  continue  to  transact 
such  business  unless  it  shall,  within  six  months  after  the  passage  of 
this  act,  deposit  with  the  Superintendent  of  the  Insurance  Depart- 
ment, for  the  security  of  its  policy-holders,  securities  to  the  same 
amount  and  of  the  same  value  and  description  required  by  the  pre- 
ceding section  to  be  deposited  by  similar  corporations  formed  under 
this  act.     {Ibid,  §  22.) 

127.  The  Superintendent  of  the  Insurance  Department  shall 
receive  the  deposits  and  securities  required  by  the  provisions  of  this 
act  to  be  deposited  with  him,  and  shall  give  vouchers  for  the  same 
to  the  parties  so  depositing.  He  shall  at  all  times  require  each  com- 
l)any  to  keep  up  its  deposits  aforesaid,  to  the  full  actual  value  men- 
tioned in  the  twenty-first  section  of  this  act.  Such  Superintendent 
shall  be  responsible,  upon  his  official  bond,  for  all  securities  so  de- 
posited with  him,  and  suit  may  be  brought  upon  said  bond  by  any 
person  injured.  He  shall  upon  receii^t  of  said  securities,  forthwith 
make  a  special  deposit  of  the  same,  in  packages  marked  with  the 
name  of  the  company  from  whom  received,  in  the  bank  or  banks 
where  the  State  funds  are  deposited,  where  they  shall  remain  as 
security  for  policy-holders  in  the  companies  to  which  they  re- 
spectively belong ;  but  so  long  as  any  company  so  depositing  shall 
continue  solvent,  he  shall  permit  such  company  to  collect  the  inter- 
est or  dividends  on  its  securities,  so  deposited,  and  from  time  to  time 
to  withdraw  any  such  securities  on  depositing  other  securities  in  the 
stead  of  those  to  be  withdrawn ;  such  new  securities  to  be  of  the 
same  value,  and  of  the  kinds  mentioned  in  the  twenty -first  section 
of  this  act ;  but  such  securities,  or  any  part  of  the  same,  shall  not 
be  withdrawn  from  the  bank  where  deposited,  unless  upon  the  writ- 
ten order  of  the  acting  president  and  secretary,  or  of  the  directors 
of  the  company  making  the  deposit,  which  order  shall  be  endorsed 
by  the  Superintendent  of  the  Insurance  Department ;  or  upon  the 
order,  or  by  the  authority  of  some  court  of  competent  jurisdiction ; 
and  if  said  Suj)erintendent  or  his  deputy  shall  willfully  fail,  refuse  or 
neglect  to  faithfully  keep,  deposit,  account  for  or  surrender,  in  the 
manner  by  this  act  authorized  or  required,  any  such  securities,  as 
aforesaid,  received  by  him  or  into  his  custody,  under  the  provisions 
of  this  act,  such  Superintendent  or  deputy  so  offending  shall,  upon 
conviction  thereof,  be  adjudged  guilty  of  a  felony,  and  punished  by 
a  fine  not  exceeding  ten  thousand  dollars,  and  by  imprisonment  in 
the  State  penitentiary  for  not  less  than  two,  nor  more  than  ten 
years;  and  for  any  other  willful  violation  of,  or  failure  or  neglect  to 
perform  any  duty  prescribed  by  this  act  or  pertaining  to  his  office, 
said  Superintendent  or  his  deputy,  upon  conviction  thereof,  shall  be 
dsemed  guilty  of  a  misdemeanor,  and  punished  by  a  fine  not  exceed- 
ing one  thousand  dollars,  or  by  imprisonment  in  the  county  jail  not 
exceeding  twelve  mouths,  or  by  both  such  fine  and  imprisonment. 
{Ibid,  §  23.) 

1 28.  Any  court  of  competent  jurisdiction,  wherein  a  judgment 
shall  have  been  recovered  against  any  company  by  which  any  such 
83curities  have  been  deposited,  as  hereinbefore  required,  upon  a 


MISSOURI.  515 

policy  issued  by  such  company,  and  execution,  issued  upon  such 
judg-ment,  shall  have  been  returned  i)artly  or  wholly  unsatisfied, 
shall  upon  motion  made  by  the  plaintiif  in  such  execution,  upon 
three  days'  notice  to  said  Superintendent,  order  said  Superintendent 
to  deliver  into  com-t  out  of  the  securities  so  deposited  by  said  com- 
pany, an  amount  sufficient  to  satisfy  said  judgment  in  full  or  so  ttir 
as  such  certificates  shall  suffice  therefor;  which  order  being  obeyed, 
shall  release  said  Superintendent  and  the  bank  surrendering  said 
securities  from  further  liability  in  respect  to  the  same;  and  the 
secimties  so  delivered  into  court  shall  be  collected  or  disposed  of  for 
the  benefit  of  said  plaintiff  as  provided  by  law,  in  respect  to  notes 
or  securities  delivered  into  court  by  a  garnishee ;  and  whenever  any 
securities,  such  as  aforesaid,  shall  be  delivered  into  any  court  under 
the  foregoing  provisions,  said  Superintendent,  unless  the  company 
against  whom  such  execution  issued  shall,  within  three  days  there- 
after, deposit  with  him  other  securities  of  like  description  and  value, 
and  for  the  like  purposes  as  the  securities  so  withdrawn,  shall  pro- 
ceed in  respect  to  such  company,  in  the  manner  authorized  by  the 
forty-first  section  of  this  act  in  respect  to  companies  believed  by 
him  to  be  insolvent  or  in  an  unsound  condition.  (Ibid,  p.  746, 
§24.) 

1  ^£9,  The  corporators  or  directors  of  any  company  organized 
under  this  act  shall  have  power  to  adopt  a  seal,  and  to  make  such 
by-laws,  not  inconsistent  with  this  act,  or  the  constitution  and  laws 
of  this  State,  as  they  may  deem  necessary,  for  the  regulation  and 
management  of  its  affairs.      {Ibid,  §  25.) 

1 30.  Every  company  organized  under  this  act  or  under  any 
general  law  of  this  State,  shall  have  two  chief  officers,  one  of  whom 
shall  be  known  as  the  president,  and  the  other  as  the  secretary,  and 
all  contracts  made  by  the  company  shall  be  signed  by  both  of  said 
officers.  Every  such  company  shall  also  have  one  or  more  vice- 
presidents,  and  an  assistant  secretary,  who,  in  the  absence  of  the 
president  or  secretary,  as  the  case  may  be,  shall  have  all  the  powers 
and  perform  all  the  duties  of  the  president  and  secretary.  Every 
such  company  may  in  its  charter  specify  what  number  of  its  direc- 
tors, not  being  less  than  five,  shall  constitute  a  quorum.  (Ibid, 
§26.) 

131.  It  shall  be  the  duty  of  the  president  or  vice-president, 
and  secretary  or  actuary,  or  a  majority  of  the  directors  of  every  life 
assurance  company  organized  under  this  act  or  the  laws  of  this 
State,  annually,  on  the  first  day  of  January,  or  within  thirty  days 
thereafter,  to  prepare,  under  oath,  and  deposit  in  the  offic©  of  the 
Superintendent  of  the  Insurance  Department,  a  statement  showing : 
First,  The  number  of  policies  issued  during  the  year.  Second,  The 
amount  of  assurance  effected  thereby.  Third,  The  amount  of  pre- 
miums received  during  the  year.  Fourth,  The  amount  received  for 
interest  and  all  other  receipts  during  the  year,  classifying  the  items. 
Fifth,  The  amount  of  losses  paid  during  the  year.  Sixth,  The- 
amount  of  losses  unpaid,  giving  the  reasons  for  such  uon-jjayment^ 
Seventh.  The  amount  of  expenses,  classifying  the  items.  Eighth, 
The  whole  number  of  policies  in  force,  specifying  the  description. 
Ninth,  The  amount  of  liabilities  or  risks  thereon,  and  of  all  other 
liabilities.  Tenth,  The  amount  of  capital  stock,  and  how  invested. 
Eleventh,  The  amount  of  assets  other  than  capital,  specifying  the 
particular  sources  from  whence  they  have  been  derived,  and  the 
manner  in  which  they  are  invested ;  what  amount  ,is  invested  in 


516  hike's  IKSUKANCE  STATL'TES. 

real  estate,  in  stocks,  promissory  notes,  and  otner  securities,  and 
what  amount  is  loaned  on  bonds  and  mortgages,  or  deeds  of  trust, 
stocks,  policies  of  the  company,  and  other  securities,  specifying  the 
kinds  and  amounts.  Twelfth,  The  amount  of  dividend  declared  to 
stockholders  and  policy-holders,  respectively,  and  how  much  remains 
unpaid.  Thirteenth,  A  tabular  statement  of  the  policies  in  force  for 
the  whole  term  of  lite,  showing  what  number  for  each  age  of  life, 
and  for  what  amount  of  risk,  were  issued  and  continued  in  force  the 
first  year  of  the  existence  of  the  company,  during  the  second  year, 
and  so  on  up  to  the  time  of  making  such  statement.  Fourteenth, 
A  tabular  statement  of  the  policies  in  force  for  a  shorter  period  than 
the  whole  term  ot  life,  showing  what  number  for  each  age  of  life  and 
for  what  amount  of  risk  were  issued  or  continued  in  force  during  the 
first  year  of  the  company's  existence,  during  the  second  year,  and 
so  on  up  to  the  time  of  making  such  statement.  It  shall  be  the 
duty  of  the  Superintendent  of  the  Insurance  Department  to  arrange 
the  information  contained  in  the  above  statements,  in  a  tabular 
form,  or  in  abstracts,  and  the  same  shall  be  published  in  his  annual 
report.     {Ibid,  p.  747,  §  27.) 

1 32.  All  life  assurance  companies,  organized  under  any  gen- 
eral law  of  this  State,  may  make  distribution  among  such  policy- 
holders thereof,  who  may  be  entitled  to  share  in  the  profits  of  such 
companies,  of  such  siu'i)lus  as  such  companies  may  accumulate,  or 
any  part  thereof,  which  distribution  shall  be  made  out  of  actual  sur- 
plus profits  only,  and  may  be  declared  annually,  or  once  in  two, 
three,  four,  or  five  years,  as  the  board  of  directors  or  other  officers 
charged  with  the  management  of  the  company's  affairs  may  from 
time  to  time  determine.  Each  company  in  determining  the  amount 
of  surplus  profits  shall  reserve  out  of  its  assets,  including  capital 
stock,  if  any,  first,  an  amount  sufficient  to  provide  for  all  losses,  ex- 
penses, and  liabilities  of  such  company  ;  second,  an  amount  not  less 
than  the  aggregate  net  value  of  all  its  outstanding  policies ;  said 
A'alue  to  be  computed  as  directed  for  the  valuation  of  policies  by  the 
twenty-ninth  section  of  this  act.  Such  companies,  in  making  any 
such  distribution  of  profits  among  their  policy-holders,  may  apportion 
the  amount  so  set  apart  for  distribution  in  proportion  to  the  sums 
of  money  which  each  policy-holder  has  contributed  to  the  assets  of 
the  company,  making  a  just  and  equitable  allowance  for  interest 
thereon.  Policies  which  have  become  payable  before  the  time  when 
such  distribution  is  made,  and  after  the  date  of  the  last  previous 
distribution  of  surplus,  may  share  in  the  same  equitably  and  i^ro- 
portionally.     {Ihicl,  §  28.) 

1!{>S.     It  shall  be  the  duty  of  the  Superintendent  to  make,  or 
cause  to  be  made,  a  vahiation  of  the  policies,  additions  thereto,  an- 
nuities, and  all  other  obligations  of  assurance  outstanding  on  the 
31st  day  of  December,  A.  D.,  1873,  of  every  life  insurance  company 
doing  business  in  this  State,  and  shall  cause  such  valuation  to  be 
made  once  in  each  year  hereafter  of  all  such  obligations  in  force  on 
the  31st  day  of  December  next  preceding  ;  Provided,  hotcevcr,  That  ; 
any  company  not  of  this  State,  may,  instead  of  a  list  of  policies  and  i 
other  obligations  to  be  valued  as  hereinbefore  described,  fui'nish  an-  > 
nually,  within  three  months  after  the  first  day  of  January,  a  certifi-  I 
cate  that  such  a  valuation  has  been  made  by  an  organized  insurance 
department  in  the  State  under  the  laws  of  which  such  company  was 
organized,  which  certificate  shall  set  forth  the  reinsurance  reserve 
upon  its  policy,  obligations  in  force  on  the  preceding  31st  day  of 


MISSOURI.  517 

December,  and  also  the  rates  of  mortality,  and  interest,  used  iu 
such  computations;  and  Provided,  further,  That  such  a  certificate 
of  valuation  shall  not  be  received  by  the  Superintendent  of  the  In- 
surance Department  of  this  State,  if  the  Sui)erintendent  or  officer  in 
charge  of  such  other  Insurance  Department,  shall  refuse  to  receive 
and  give  full  credit  to  the  certificates  of  the  Insurance  Su])erin- 
tendent  of  this  State,  concerning  valuations  made  under  his  direc- 
tion, of  the  ])olicies  and  obligations  of  companies  organized  under 
the  laws  of  this  State.  For  the  purpose  of  making  such  valuations, 
and  for  making  special  examinations  under  the  forty-first  section  of 
this  act,  the  rate  of  interest  assumed  shall  be  six  per  cent,  per  an- 
num, and  the  rate  of  mortality  shall  be  that  established  by  the 
American  Experience  Table,  in  which  table  the  numbers  living  and 
dying  at  each  age,  and  the  expectation  of  life  from  ages  ten  to 
ninety-five  (10  to  95),  out  of  one  hundred  thousand  (100,000)  li^^ng 
at  age  ten  (10)  are  as  stated  in  the  following  schedule,  viz. : 

[The  "  schedule  "  is  simply  the  Amcricaa  Experieare  Table  of  Mo  tality,  with 
which  the  companies  are  familiar,  and  wliich  is  easily  accessible  elsewhere. 
We,  therefore,  omit  its  republication  in  this  place. — Editor.] 

The  Suiierintendent  is  hereby  authorized  to  make,  or  cause  to 
be  made,  valuations  of  assurance  obligations  upon  other  bases  of 
mortality  and  interest  than  that  hereinbefore  set  forth,  and  to  cer- 
tify thereto  when  requested  by  the  oflScers  of  life  insurance  com- 
panies of  this  State,  doing  business  in  other  States,  in  which  othd 
tables  of  mortality  and  interest  are  the  standards  of  valuation,  and 
if  his  certificates  of  such  valuations  are  not  accepted  by  the  insur- 
ance officer  of  such  other  States,  in  lieu  of  policy  lists  for  valuation 
in  such  States,  he  shall  then  require  of  the  companies  of  such  States, 
doing  business  in  this  State,  full  lists  of  their  assurance  oliligations 
for  valuation  in  his  department.  The  Superintendent  may,  in  his 
(liscretion,  value  policies  seriatim,  or  in  groups,  and  use  approximate 
averages  for  fractions  of  years,  and  otherwise,  but  he  shall,  in  all 
cases  for  State  purposes,  calculate  values  by  the  net  premiums.  If 
upon  a  valuation  at  any  time  by  the  Insurance  Department  of  the 
policy  ol)ligations  of  any  company  organized  under  the  laws  of  this 
State,  upon  the  American  Table  of  Mortality,  with  six  (C)  per 
centum  interest,  it  shall  appear  that  the  assets  of  the  company  do 
not  exceed  its  liabilities,  exclusive  of  paid  capital,  it  shall  be  con- 
sidered that  its  further  proceedings  are  hazardous  to  the  public, 
aad  the  Superintendent  shall  take  against  such  company  the  action 
prescribed  in  section  forty-one  (41)  of  this  act;  and  it  is  further 
Provided,  hoicever,  That  no  company  organized  under  the  laws  of  this 
State  shall  make  any  bonus,  di\idend  or  distribution  of  surplus  to 
policy-holders,  or  of  any  profit  to  stockholders,  except  lawful  interest 
upon  the  amount  of  capital  stock  actually  jjaid  in,  unless  such  com- 
pany shall  be  possessed  of  assets  equal  in  amount  to  its  liabilities, 
except  capital,  including  a  reinsurance  reserve,  on  all  of  its  policy 
obligations  computed  upon  the  American  Table  of  Mortality  with 
four  and  one-half  (4|)  per  cent,  interest,  and  no  company  organized 
vmder  the  laws  of  any  other  State  or  country  shall  be  permitted  to 
do  business  in  this  State,  if  such  company  shall  make  such  dividends 
or  distributions  out  of  the  surplus  determined  by  any  lower  stand- 
ard of  reserve  than  the  American  Table  of  Mortality,  and  four  and 
one-half  (4|)  per  cent,  interest.  The  fees  for  making  valuations 
shall  not  exceed  ten  (iO)  dollars  for  each  million  of  dollars  of  insur- 


518  niNE'S  INSURANCE  STATUTES. 

ance  or  fractional  part  thereof  for  all  ordinary  forms  of  policies,  and 
for  forms  of  policies  requiring  special  construction  of  tables  for  val- 
uation, the  cost  of  computing  such  table  shall  be  added  ;  the  cost  of 
each  valuation  shall  be  paid  to  the  Siiperintendeut  of  the  Depart- 
ment by  the  company  for  whose  benefit  the  same  has  been  made. 
{Ibid,  J).  748,  §  29;  as  amended  by  laws  o/1874,  j;.  78,  §  1.) 

1S4.  It  shall  not  be  lawful  for  any  person  to  act  within  this 
State,  as  agent  or  otherwise,  in  receiving  or  procuring  applications 
for  assurance,  or  in  any  manner  to  aid  in  transacting  the  business 
referred  to  in  the  first  section  of  this  act,  for  any  life  assurance  com- 
pany or  association  incorporated  by  or  organized  under  the  laws  of 
the  United  States,  or  any  other  State  of  the  United  States,  or  any 
foreign  government,  unless  such  company  is  possessed  of  the  amount 
of  capital,  and  of  actual  ])aid  up  capital  required  of  companies 
formed  under  the  provisions  of  this  act.     (Ibid,  p.  749,  §  30.) 

135.  No  company  mentioned  in  the  preceding  section  shall 
transact  any  such  business  as  aforesaid,  by  any  agent  or  agents  in 
this  State,  unless  it  shall  first  tile  with  the  Superintendent  of  the 
Insurance  Department,  a  written  instrument  duly  signed  and  sealed, 
authorizing  some  person  who  shall  be  a  citizen  of  this  State,  to 
acknowledge  or  receive  service  of  process  for,  and  in  behalf  of  such 
company  in  this  State,  and  consenting  that  service  of  process  upon 
such  agent  or  attorney  shall  be  taken,  and  held  to  be  as  valid  as  if 
served  upon  the  company,  according  to  the  laws  of  this  or  any  other 
State,  whether  such  process  is  issued  by  any  of  the  courts  of  this 
State,  or  by  any  of  the  courts  of  the  United  States  having  jurisdic- 
tion within  this  State,  and  such  instrument  shall  furthermore  pro- 
vide that  such  attorney's  authority  shall  continue  until  revocation 
of  his  ai)pointment  is  made  by  such  company,  by  filing  a  similar  in- 
strument whereby  another  person  shall  ho.  appointed  as  such  attor- 
ney. Such  company  shall  have  the  right  from  time  to  time  to  change 
every  appointment  thus  made  by  it,  but  until  a  new  instrument  is 
filed  with  the  said  Superintendent  by  such  company  making  such 
change,  the  attorney  last  appointed  shall  continue  in  authority  and 
remain  the  designated  attorney  of  such  company  for  the  purposes  of 
this  act.  If  any  attorney  so  appointed  shall  become  disqualified, 
from  any  cause  whatever,  or  shall  die,  the  company  shall  imme- 
diately fill  the  vacancy  in  the  manner  required  for  an  original  ap- 
pointment. Every  such  company  doing  business  in  this  State  shall 
maintain  such  attorney  within  the  State,  in  the  manner  herein 
described,  after  it  shall  have  ceased  to  do  any  new  business,  so  long 
as  it  shall  have  any  policies  or  liabilities  outstanding  in  this  State; 
and  if  such  company  shall  have  forfeited  its  right  to  <lo  business  in 
this  State,  or  shall  have  voluntarily  withdrawn  therefrom,  and  the 
attorney  last  appointed  shall  die,  or  become  disqualified,  and  the 
com[)any  shall  fail  within  a  reasonable  time  to  appoint  a  person  to 
fill  such  vacancy,  the  said  Superintendent  shall  have  authority,  and 
it  is  hereby  made  his  duty,  to  make  such  appointment  for  such  com- 
pany, of  which  notice  shall  immediately  be  given  by  him  to  the 
appointee,  and  also  to  the  company,  and  such  notice  to  the  appointee 
shall  be  evidence  of  such  appointment.  Every  such  appointment 
executed  by  such  company  shall  recite  the  whole  of  this  section, 
and  shall  be  accompanied  by  a  cojiy  of  the  resolution  of  the  board 
of  directors  or  trustees  of  such  company,  showing  that  the  president 
and  secretary,  or  other  chief  officers  of  such  company,  are  authorized 
to  execute  such  instrument  on  behalf  of  the  company,  and  if  such 


I 


MISSOURI.  519 

company  shall  fail  to  appoint  and  maintain  within  the  State  an 
attorney  or  agent  in  the  manner  hereinbefore  described,  it  shall  for- 
feit the  right  to  do  or  continue  business  in  this  State.  {Ibid,  p.  750, 
§  30,  as  amended  by  Jaws  o/1874,  ;;.  80,  §  2.) 

I*t6.  No  such  company,  mentioned  in  the  thirtieth  section  of 
this  act,  shall  transact  any  such  business  aforesaid,  by  any  agent 
or  agents  in  this  State,  unless  it  shall  tirst  file  in  the  office  of  the 
Superintendent  of  the  Insurance  Department  a  certified  copy  of  its 
charter  or  act  of  incorporation,  together  with  a  statement,  under 
the  oath  of  the  ])resident  and  secretary  of  such  company,  showing 
the  condition  of  the  affairs  of  said  company  on  the  first  day  of  Janu- 
ary next  preceding  the  date  of  such  oath.  Tne  statement  shall  be  in 
the  same  form,  anil  shall  set  forth  the  same  particulars  as  the  an- 
nual statement  required  of  companies  organized  under  the  laws  of 
this  State,  by  the  twenty-seventh  section  of  this  act.  Such  com- 
pany shall  also  file  a  copy  of  its  last  annual  report,  made  in  compli- 
ance with  any  law  of  the  State  or  country  by  which  said  company 
was  incorporated,  if  any  such  report  shall  Lave  been  made.  {Ibid, 
§32.) 

137.  It  shall  not  be  la wf id  for  any  such  company,  organized 
or  incorporated  under  the  laws  of  the  United  States,  or  of  any  other 
State  of  the  United  States,  to  transact  in  this  State,  any  business 
mentioned  in  the  first  section  of  this  act,  unless  one  hundred  thous- 
and dollars  of  the  capital  or  assets  of  such  company  be  invested  in 
treasury  notes  or  stocks  of  the  United  States,  or  in  bonds  of  the 
State  of  Missouri,  or  of  the  State  under  the  laws  of  which  such  com- 
pany is  incor])orated,  or  loaned  on  notes,  or  bonds  secured  by  mort- 
gages or  deeds  of  trust  on  unincumbered  real  estate,  worth  at  least 
double  the  amount  loaned  thereon,  nor  unless  securities  of  the  kind 
or  kinds  aforesaid  to  the  actual  value  of  one  hundred  thousand  dol- 
lars shall  have  been  deposited  for  the  security  of  its  policy-holders 
with  the  Superintendent  or  Commissioner  of  Insurance  or  chief  fi- 
nancial officer  of  the  State,  and  under  and  by  the  laws  of  the  State, 
in  which  such  company  is  incorporated,  or  if  such  company  is  in- 
corjiorated  under  the  laws  of  the  United  States,  with  some  financial 
officer  of  the  United  States;  Provided^  That  any  such  company  not 
having  such  deposit  made  in  the  State  in  which  it  is  organized,  or 
with  some  officer  of  the  United  States,  may  make  such  deposit  in 
this  State  in  the  manner  and  subject  to  the  provisions  set  forth  in 
the  twentv-fijst,  twentv-third,  and  twenty-fourth  sections  of  this 
act.    (Ibid,  §  33.) 

138.  It  shall  not  be  lawful  for  any  such  company  mentioned 
in  the  preceding  section,  unless  such  company  have  made  a  deposit 
in  this  State,  as  in  said  flection  provided,  to  transact  in  this  State 
any  business  mentioned  in  the  first  section  of  this  act,  until  it  shall 
have  filed  with  the  Superintendent  of  the  Insurance  Department  of 
this  State,  the  certificate  of  the  Commissioner  or  Superintendent, 
or  chief  financial  officer  aforesaid,  under  his  hand  and  official  seal, 
certifying  that  he  holds,  in  trust  and  on  deposit,  for  the  benefit  of 
all  policy-holders  of  such  company,  the  notes,  stocks  and  securities 
before  mentioned,  and  stating  the  kind  of  such  notes,  stocks  and  se- 
curities, and  the  amount  of  each,  and  that  he  is  satisfied  they  are 
worth  one  hundred  thousand  dollars.     {Ibid,  p.  751,  §  34.) 

1 39.  Xo  such  company  incorporated  by  or  organized  under 
the  laws  of  any  foreign  government,  shall  transact  business  in  this 
State  unless  it  shall  first  deposit  with  the  Superintendent  of  the 


520  hike's  insueance  statutes. 

Insurance  Department  of  this  State,  for  the  benefit  of  the  i)olicy- 
holders  of  said  company,  citizens  or  residents  of  the  United  States, 
bonds,  or  securities  to  the  amount  of  one  hundred  thousand  dollars, 
of  the  kind  required  of  similar  companies  organized  under  this  act 
in  this  State,  subject  to  the  provisions  of  the  twenty-third  and 
twenty -fourth  sections  of  this  act;  Provided,  That  if  such  deposit 
has  been  made  in  an^^  other  State  of  the  United  States,  under  the 
laws  thereof,  in  such  a  manner  as  to  secure,  equally,  all  the  policy- 
holders of  such  company,  citizens  and  residents  of  the  United 
States,  no  deposit  shall  be  required  in  this  State,  but  a  certificate  of 
such  deposit  shall  be  filed  with  the  Superintendent  of  the  Insurance 
Department,  as  required  in  the  thirty-fourth  section  of  this  act,  in 
regard  to  companies  organized  under  the  laws  of  the  United  States, 
and  of  other  States  of  the  United  States.     {Ibid,  §  35.) 

140.  IsTo  company  shall  transact  in  this  State  any  business 
mentioned  in  the  first  section  of  this  act,  unless  it  shall  first  procure 
from  said  Superintendent  a  certificate  stating  that  the  foregoing  re- 
quirements have  been  complied  with,  and  authorizing  it  to  do  busi- 
ness ;  a  copy  of  which  certificate  certified  by  the  Superintendent,  and 
issued  only  upon  the  request  of  the  president  or  secretary,  or  other 
chief  officer  of  the  company,  or  of  a  general  agent  of  the  company 
for  this  State,  notice  of  whose  appointment  has  been  filed  in  the 
Deijartment,  shall  be  held  by  every  agent  or  solicitor  for  such  com- 
])any  doing  bvisiness  for  such  company  within  this  State,  and  such 
copy  shall  in  some  convenient  and  distinct  manner  set  forth  the 
name  of  the  person,  agent  or  solicitor  for  whose  use  it  is  issued. 
Every  such  company  shall  be  required  to  procure  annually,  for  the 
use  of  its  agents  and  solicitors,  copies  of  the  renewed  certificate  of 
authority  hereinafter  provided  for,  to  wit :  in  section  thirty-nine 
(39)  of  this  act.  {Ibid,  §  36,  as  amended  by  laivs  of  1874,  p.  81, 
§3.) 

141.  Every  such  company  incorporated  by,  or  organized  un- 
der the  laws  of  the  United  States,  or  any  other  State  of  the  United 
States,  and  doing  business  in  this  State,  shall,  annually,  on  the  first 
day  of  January,  or  within  thirty  days  thereafter,  file  with  the  Super- 
intendent of  the  Insurance  Department  of  this  State,  a  statement 
of  its  affairs,  in  the  same  manner  and  lorm  as  provided  in  the 
twenty-seventh  section  of  this  act,  for  similar  companies  organized 
under^the  laws  of  this  State.     {Ibid,  p.  752,  §  37.) 

14?$.  Every  such  company  iucori^oratecl  by,  or  organized  under 
the  laws  of  any  foreign  government,  and  doing  business  in  this 
State,  shall,  annually,  on  the  first  day  of  January,  or  within  thirty 
days  thereafter,  tile  with  the  Superintendent  of  the  Insurance  De- 
partment, a  statement  of  its  aflairs,  in  the  same  manner  and  form  as 
provided  in  the  twenty  seventh  section  of  this  act  for  the  annual 
statements  of  similar  comj)anies  organized  in  this  State.  Said  state- 
ments shall  be  made  uj)  for  the  year  ending  on  the  preceding 
thirtieth  day  of  June,  and  shall  be  accompanied  by  a  supplementary 
annual  statement,  certified  to  under  oath,  by  some  officer  or  agent 
of  the  company,  giving  :  First,  A  detailed  descriptiim  of  the  policies 
issued,  and  of  those  which  have  ceased  to  be  in  force  during  the 
year,  throughout  the  United  States ;  Second,  The  amount  of  ])re- 
miums  received,  and  claims  and  taxes  paid  in  this  State  and  in  the 
United  States  for  the  year  ending  on  the  thirty-first  day  of  the  pre- 
ceding December.  Such  sup]>lementary  statement  shall  also  con- 
tain a  description  of  the  investments  of  such  company  in  the  United 


MISSOURI.  521 

states,  and  such  other  information  as  may  be  required  by  said 
Superinteudent.     {Ibid,  §  38.) 

141$.  If  the  said  annual  statements  mentioned  in  the  twenty- 
seventh  (27),  the  tliirty- seventh  (37),  and  the  thirty-eighth  (38)  sec- 
tions of  this  act  shall  be  satisfactory  evidence  to  the  Superintendent 
of  the  solvency  of  the  company  filing  the  same,  and  its  ability  to 
meet  all  its  engagements  at  maturity,  he  shall  issue  a  renewed  cer- 
tificate of  authority  to  such  company  to  continue  business,  and  no 
company  not  incornorated  under  the  laws  of  this  State  shall  there- 
after contiuue  to  do  business  until  such  renewed  certificate  is  issued 
as  aforesaid.     {Ibid,  §  39,  as  amended  by  laws  of  1874,  p.  81,  §  4.) 

144.  Every  company  doing  the  business  mentioned  in  the  first 
section  of  this  act,  or  any  part  thereof,  in  this  State,  shall  pay  to 
the  Superintendent  of  the  Insurance  Department  the  following  fees, 
which  shall  go  to  the  support  of  said  Department,  and  shall  be  in 
lieu  of  all  taxes,  fees,  and  licenses  whatsoever,  collected  for  the 
benefit  of  the  State:  For  filing  the  declaration  required  by  this  act, 
on  the  organization  of  companies,  $50 ;  for  filing  statement  and  cer- 
tified copy  of  charter,  required  of  companies  not  organized  under 
the  laws  of  this  State,  $50 ;  for  filing  annual  statements,  $50  ;  for 
filing  supplementary  annual  statements,  $25 ;  for  filing  any  other 
])aper  required  by  law  to  be  filed  in  the  ofiice  of  said  Superintendent, 
$10;  for  furnishing  copies  of  records,  papers,  and  other  documents, 
per  folio,  20  cents;  for  affixing  seal  of  office,  $1 ;  but  all  com[)anies 
organized  under  the  laws  of  the  United  States,  or  any  other  State, 
doing  in  this  State  the  business  mentioned  in  the  first  section  of 
this  act,  shall  be  subject  to  existing  laws  relating  to  fees  and  licenses 
for  county  and  nuinicipal  purposes.  All  companies  organized  under 
the  laws  of  this  State,  and  doing  the  business  mentioned  in  the  first 
section  of  this  act,  shall  pay  all  fees  as  required  by  this  section ; 
which  shall  be  in  lieu  of  all  fees  or  taxes  whatever,  except  that  they 
may  be  taxed  upon  their  paid-up  capital  stock,  the  same  as  other 
property  in  the  county,  for  county  and  municipal  purposes.  {Ibid, 
§40.) 

145.  It  shall  be  the  duty  of  the  Superintendent  of  the  Insur- 
ance Department,  whenever  he  shall  have  good  reason  to  suspect 
that  the  affairs  of  any  life  assurance  company  incorporated  under 
the  laws  of  this  State,  or  doing  business  in  this  State,  are  in  an  un- 
sound condition,  to  require  of  said  company  a  special  statement  of 
its  afikirs ;  and  if  said  Superintendent  shall  not  be  satisfied  that  the 
affairs  of  said  company  are  in  a  safe  condition,  or  if  any  three  stock- 
holders or  policy-holders  of  such  company  shall  make  affidavit  that 
they  believe  such  special  statement,  or  any  annual  statement,  to  be  , 
incorrect  or  untrue,  setting  forth  in  what  respect  and  on  what 
grounds  they  believe  the  same  untrue,  then  the  said  Superin- 
tendent shall  have  ])ower  to  make  a  personal  examination  of  the 
affairs  of  said  company,  or  cause  one  to  be  made  by  some  disinter- 
ested person  or  persons,  specially  appointed  by  him  for  that  i)ur- 
pose,  and  the  said  Superintendent,  or  j)erson  or  persons  so  appointed 
by  him,  shall  have  power  to  examine,  under  oath,  the  officers  or 
agents  of  any  comj^any  in  relation  to  the  business  of  said  company, 
and  it  shall  be  the  duty  of  the  officers  and  agents  of  any  assurance 
company  doing  business  in  this  State,  to  cause  their  books  to  be 
opened  for  the  inspection  of  said  Sui)erintendent,  or  any  person  or 
persons  appointed  by  him  to  make  such  examination,  and  otherwise 
to  facilitate  such  examination,  as  far  as  it  may  be  in  their  power  so 


522  hine's  insurance  statutes. 

to  do;  and  said  Superintendent  sliall  certify,  in  writing,  to  the 
president  of  said  company  the  result  of  such  examination  j  and  when- 
ever it  shall  appear  to  the  said  Superintendent,  fi'om  an  examina- 
tion made  by  himself,  or  from  the  report  of  the  person  or  persons 
appointed  by  him,  that  the  affairs  of  any  company  not  incorporated 
by  the  laws  of  this  State,  and  doing  in  this  State  any  business  men- 
tioned in  the  first  section  of  this  act,  are  in  an  unsound  condition, 
he  shall  revoke  the  certificate  of  authority  granted  to  such  com- 
pany, and  shall  cause  a  notice  of  such  revocation  to  be  published 
once  a  week,  or  oftener,  for  at  least  four  weeks,  in  some  newspaper 
published  in  the  city  of  St.  Louis ;  and  the  agent  or  agents  of  such 
company  are,  after  such  revocation  and  notice,  required  to  discon- 
tinue the  issuing  of  any  new  policies  or  the  collection  of  any  premi- 
imis;  and  if  upon  any  such  examination  it  shall  api)ear  to  said  Super- 
intendent that  any  company  created  by  or  organized  under  any  law 
of  this  State,  and  doing  any  business  mentioned  in  the  first  section 
of  this  act,  is  insolvent,  or  that  its  condition  is  such  as  to  render  its 
further  proceedings  hazardous  to  the  public,  or  to  those  holding  its 
IJolicies,  he  shall  file  in  the  clerk's  office  of  the  circuit  court  of  the 
county  in  which  such  company  was  organized,  or  in  which  it  has  its 
principal  office  or  place  of  business,  a  petition  setting  forth  the 
condition  of  said  company  as  aforesaid,  and  praying  for  a  writ  of 
injunction  to  restrain  said  company,  in  whole  or  in  part,  from  further 
proceeding  with  its  business.  Such  writ  shall  thereupon  issue,  to- 
gether with  the  summons  against  said  company,  returnable  in  three 
days  thereafter,  which  shall  be  served  as  provided  by  law  for  service 
of  process  upon  corporations.  If  such  process  be  not  served,  then 
further  like  process  shall  issue,  returnable  as  the  court  or  a  judge 
thereof  in  vacation  may  direct,  and  the  coiu't  or  judge,  whenever 
satisfied  that  process  cannot  be  served,  may  order  said  company  to 
be  notified  by  publication,  as  in  case  of  non-resident  defendants. 
Upon  the  return  of  such  process  duly  served,  or  proof  of  such  pub- 
lication made,  the  petition  shall  be  heard  summarily  before  said 
court,  or  a  judge  thereof,  who  may  at  such  hearing,  or  at  any  time 
thereafter  for  cause  shown,  dissolve,  modify,  or  continue  the  injunc- 
tion, and  shall  set  a  day  for  the  final  hearing  of  said  cause  without 
unnecessary  delay;  said  company  shall,  unless  longer  time  be  granted, 
answer  the  allegations  of  said  petition  on  or  before  the  third  day 
after  the  time  when  it  is  bound  to  appear ;  failing  in  which,  judg- 
ment may  be  entered  against  it  by  default.  All  proceedings  had, 
and  orders  or  decrees  made,  under  the  provisions  of  this  section, 
before  or  by  a  judge  in  vacation,  shall  be  entered  (of)  record  as  of 
a  special  term  of  the  court  of  Avhich  he  is  judge.  One  or  more  ref- 
erees versed  in  questions  of  life  insurance  may  be  appointed  by  the 
court  or  judge,  to  report  upon  the  condition  of  said  company,  or 
upon  any  question  of  fact  arising  in  the  cause.  The  court  or  judge 
may  at  any  time  after  the  filing  of  the  petition  appoint  agents  or 
receivers  to  take  possession  of  the  property  of  said  company,  and 
may,  upon  the  final  hearing,  make  such  orders  and  decrees  as  may 
be  needful  to  suspend,  restrain,  or  prohibit  the  further  continuance 
of  the  business  of  said  company,  or  any  part  thereof,  or  for  the  dis- 
solution of  said  company  and  the  winding  up  of  its  affairs.  From 
a  final  judgment  or  decree  in  any  such  cause,  an  appeal  or  writ  of 
error  may  be  taken  as  provided  by  law  in  respect  to  final  judgment 
of  the  court  rendering  the  same ;  or,  if  in  the  county  of  St.  Louis,  as 
from  a  final  judgment  or  decree  of  the  circuit  court  at  special  term. 


MISSOURI.  523 

Tbe  court  or  judge  may  appoint  an  attorney  to  assist  said  Superin- 
tendent in  any  such  proceeding.  The  costs  and  reasonable  expenses 
of  any  examination  or  proceeding  authorized  by  this  section,  inchid- 
ing  reasonable  attorney's  fees,  to  be  allowed  and  taxed  as  costs  by 
the  court  or  judge  appointing  such  attorney,  as  aforesaid,  shall  be 
paid  by  the  company  so  examined  or  proceeded  against,  and  such 
expenses,  other  than  taxed  costs,  may  be  recovered  by  said  Super- 
intendent in  an  action  therefor,  against  such  company ;  Provided, 
That  if  any  injunction  issued  hereunder  be  dissolved,  and  the  court 
or  judge  dissolving  the  same  not  state  in  the  order  or  decree  of  dis 
solution  that  there  was  reasonable  ground  for  procuring  such  in- 
junction, the  costs  of  such  proceeding  shall  be  taxed  to  and  paid  by 
the  Superintendent  of  the  Insurance  Department,  and  shall  be  al- 
lowed him  in  his  accounts  upou  j)roper  vouchers  therefor,  as  ex- 
penses of  said  Department.     {Ibid,  p.  753,  §  41.) 

146.  The  Superintendent  of  the  Insurance  Department  shall 
cause  to  be  prepared,  and  furnish  to  every  company  to  which  this 
act  shall  apply,  printed  forms  of  the  statements  herein  required ; 
and  he  may  make  such  changes  from  time  to  time  in  the  same,  and 
in  the  statements  required,  as  shall  seem  to  him  best  adapted  to 
elicit  from  said  companies  a  true  exhibit  of  their  ccmdition  in  re- 
spect to  the  several  points  hereinbefore  enumerated.  {Ibid,  p.  755, 
§42.) 

147.  When  any  company  which  has  made  the  deposit  of  se- 
curities named  in  this  act  with  the  Superintendent  of  the  Insurance 
Department,  shall  desii'e  to  relinquish  its  business,  said  Superin- 
tendent shall,  upon  application  of  such  company,  under  the  oath  of 
the  president,  or  vice-president  and  secretary  or  assistant  secretary, 
give  notice  of  sich  intention  in  any  newspaper  of  general  circula- 
tion published  in  the  county  in  which  said  company  is  located,  at 
least  twice  a  week  for  six  months.  After  such  publication  he  shall 
endorse  an  order  signed  by  the  acting  president  and  secretary,  or 
by  the  directors  of  such  company,  upon  the  bank  or  banks  in  which 
the  same  are  deposited,  directing  them  to  deliver  up  and  pay  over 
to  said  company  the  securities  held  by  such  banks  and  belonging  to 
the  company  ;  but  before  endorsing  such  order,  the  Superintendent 
shall  be  satisfied  by  an  examination  of  the  books  and  papers  of  such 
company,  to  be  made  by  himself  or  some  competent  person,  not  an 
officer  of  any  life  insurance  company  in  this  State,  to  be  appointed 
by  him,  and  by  the  oath  of  the  acting  president  and  secretary  or  as- 
sistant secretary  of  said  company,  that  all  debts  and  liabilities  of 
every  kind  that  are  due,  or  may  become  due,  upon  any  contract  or 
agreement  made  with  any  policy-holder  in  said  company  are  paid 
and  extinguished  ;  and  the  said  Superintendent  may,  from  time  to 
time,  authorize  the  delivery  in  the  manner  aforesaid,  to  such  com- 
pany or  its  assigns,  of  any  portion  of  such  securities,  on  being  sat- 
isfied in  the  manner  and  form  aforesaid,  that  all  the  debts  and  lia- 
bilities of  every  kind  that  are  due,  or  may  become  due,  upon  any 
contract  or  agreement  made  with  any  such  x^olicy -holder  by  said 
company  are  less  than  one-half  the  amount  of  the  portion  of  the 
said  securities  which  are  retained.     {Ibid,  §  43.) 

148.  Every  company  organized  under  any  general  law  of  this 
State  for  the  purposes  mentioned  in  the  first  section  of  this  act, 
may  make  and  enter  into  all  manner  of  contracts  pertaining  to  the 
business  of  such  company,  or  connected  with  the  management  of 
the  same ;  and  any  such  company  or  association  may  cause  itself  to 


524  HINE'S  I>fSUEANCE   STATUTES. 

be  -wholly  or  partially  reinsured  against  loss  arising  from  any  risk 
which  it  may  have  undertaken,  and  in  like  manner  may  reinsure  or 
guarantee  any  other  corporation  against  loss  arising  from  any  risk 
of  the  character  mentioned  in  the  first  section  of  this  act,  and  that 
shall  have  been,  or  may  be,  undertaken  by  such  corporatiou ;  or 
may  join  with  any  such  corporation  in  any  such  risk,  and  make  and 
enter  into  all  manner  of  contracts  relating  to  such  reinsurance  and 
joint  insurance,  and  the  terms  upon  which  the  same  shall  be  con- 
ducted.    {Ibid,  p.  756,  §  44.) 

149.  Every  person  legally  entitled  to  vote  at  auj  election,  or 
on  any  question  relating  to  the  management  or  business  of  any  com- 
pany organized  under  this  act,  may  cast  such  vote  by  proxy,  but 
said  proxy  shall  be  a  legal  voter  of  such  company,  and  the  authority 
to  cast  such  vote  shall  be  in  writing  and  not  in  printing,  and  shall 
state  the  name  of  the  person  authorized  to  cast  such  vote,  and  the 
date  of  the  meeting  at  which  such  vote  shall  be  cast ;  and  no  such 
authority  given  to  any  proxy  shall  be  vabd  unless  the  same  shall 
have  been  given  within  thirty  days  prior  to  the  meeting  at  which 
such  vote  is  to  be  cast.  No  j)roxy  shall  cast  more  than  one  hundred 
votes.     {Ibid,  §  45.) 

150.  That  no  individual  or  association  of  individuals,  under 
any  style  or  name,  shall  be  permitted  to  do  the  business  mentioned  in 
the  first  section  of  this  act  within  the  State  of  Missouri,  unless  he  or 
they  shall  first  fullj*  comply"  with  all  the  provisions  of  the  laws  of  this 
State  governing  the  business  of  life  assurance.  Xo  company  organ- 
ized under  the  provisions  of  this  act  shall  undertake  any  business 
or  risks,  except  as  herein  provided  ;  and  no  company  organized  or 
incorporated  by  or  under  the  laws  of  this  or  any  other  State  of  the 
United  States,  or  any  foreign  government,  transacting  the  business 
of  life  insurance  in  this  State,  shall  be  permitted  or  allowed  to  take 
any  other  kind  of  risks  except  those  connected  with  or  appertaining 
to  making  assurance  on  life,  and  the  gTanting,  purchasing  and  dis- 
posing of  annuities  and  endowments  ;  nor  sliall  the  business  of  life 
assurance  in  this  State  be  in  anywise  conducted  or  transacted  by 
any  company  which  in  this  or  any  other  State  or  country,  makes  in- 
sui'ance  on  marine,  inland  fire  or  any  other  risks  ;  Provided,  That  no 
company  doing  business  in  this  State  on  the  I7th  day  of  March,  A.  D. 
186y,  and  complying  with  the  provisions  of  this  act,  shall  be  prevented 
from  continuing  the  same.  {Ibid,  §  46,  as  amended  by  kites  o/1874, 
p.  81,  §  5.) 

151.  Civil  actions  may  be  maintained  by  any  corporation  formed 
under  this  act  against  any  of  its  members  or  stockholders,  for  any 
cause  relating  to  the  business  of  such  company.  Civil  actions  may 
also  be  prosecuted  and  maintained  by  anymember  or  stockholder  of 
such  corporation  against  the  corporation,  for  losses  which  have  ac- 
crued on  any  risks,  if  payment  is  witheld  for  more  than  two  months 
after  such  losses  shall  have  become  due.     (Ibid,  §  47.) 

1  i5'2.  Xo  company  formed  under  this  act  shall,  directly  or  in- 
directly, deal  or  trade  in  any  goods,  wares,  merchandise,  or  other 
commodities  whatsoever,  except  as  provided  in  the  first  section  of 
this  act.     {Ibid,^4S.) 

153.  No  company  formed  under  this  act  shall  be  permitted  to 
purchase,  hold  or  convey  real  estate,  excepting  for  the  purpose  and 
in  the  manner  herein  set  forth,  to  wit :  First,  Such  as  shall  be  re- 
quisite or  convenient  for  its  accommodation  in  the  transaction  of  its 
business ;  or,  Second,  Such  as  shall  have  been  mortgaged  in  good 


MISSOURI.  525 

faith  by  way  of  security  for  loans  previously  contracted  for  moneys 
due ;  or,  Third,  Such  as  shall  have  been  conveyed  to  it  in  satisfac- 
tion of  debts  previously  contracted  in  the  course  of  its  dealings  ;  or, 
Fourth,  Such  as  shall  have  been  purchased  at  sales  upon  the  judg- 
ments, decrees  or  mortgages  obtained  or  made  for  such  debts.  And 
it  shall  not  be  lawful  for  any  company  incorporated  as  aforesaid  to 
purchase,  hold  or  convey  real  estate  in  any  other  case  or  for  any 
purpose ;  and  all  such  real  estate  as  may  be  acquired  as  aforesaid, 
and  which  shall  not  be  requisite  or  convenient  for  the  accommoda- 
tion of  such  company  in  the  convenient  transaction  of  its  business, 
shall  be  sold  and  disposed  of  within  five  years  after  such  comi)any 
shall  have  acquired  absolute  title  to  the  same ;  and  it  shall  not  be 
lawful  for  such  company  to  hold  such  real  estate  for  a  longer  period 
than  that  above  mentioned,  unless  the  said  company  shall  j)rocure  a 
certificate  from  the  Superintendent  of  the  Insurance  Department 
that  the  interests  of  the  company  will  saft'er  materially  by  a  forced 
sale  of  such  real  estate,  in  which  event  the  time  for  the  sale  may 
be  extended  to  such  time  as  the  Superintendent  of  the  Insurance 
J)epartment  shall  direct  in  such  certittcate.     {Ibid,  p.  757,  §  49.) 

1S4.  Every  existing  company  incorporated  under  the  laws  of 
this  State  for  the  purpose  of  transacting  the  business  mentioned  in 
the  first  section  of  this  act,  or  any  part  of  the  same,  shall  be  subject 
to  all  the  requirements  and  provisions  of  this  act.     {Ibid,  §  50. ) 

15^,  Whenever  the  laws  of  any  other  State  of  the  United 
States,  or  of  any  foreign  country,  shall  require  of,  or  impose  upon, 
companies  not  organized  under  the  law^  of  such  State  or  country, 
any  further  or  greater  licenses,  fees,  taxes,  deposits  of  securities, 
statements  or  certificates  of  authority,  or  require  any  other  duties 
or  acts,  or  inflict  any  greater  fines  or  penalties  than  are  by  the  laws 
of  Missouri  imposed  or  inflicted  upon,  or  required  of  companies  not 
organized  under  the  laws  of  this  State,  then  it  shall  be  the  duty  of 
the  Superintendent  of  the  Insurance  Department  of  this  State,  to 
require  from  every  company  of  such  other  State,  or  country  trans- 
acting or  set^king  to  transact  the  business  of  life  assurance  in  this 
State,  the  payment  of  all  licenses,  fees,  taxes,  fines,  or  j)eiuxlties, 
and  the  making  of  all  deposits  of  securities  and  statements,  and  the 
doing  of  ail  acts  which,  by  the  laws  of  the  State  or  countrj^  in  which 
said  company  was  organized,  are  in  excess  of  the  licenses,  fees, 
taxes,  deposits,  statements,  fines,  penalties,  acts  or  duties  required 
by  the  laws  of  this  State  of  companies  of  other  States.  {Ibid,  §  51, 
as  amended  by  laws  o/1874,  i).  82,  §  G.) 

lo6.  Every  violation  of  this  act  shall  subject  the  party  violat- 
ing to  a  penalty  of  five  hundred  dollars  for  each  violation,  whi(;h 
shall  be  sued  for  and  recovered  in  the  name  of  the  State  of  Missouri, 
by  the  Attorney-General  of  the  State,  or  Circuit  Attorney  of  the  cir- 
cuit in  which  the  company  or  agent  or  agents  so  violating  shall  be 
situated,  and  one-half  of  such  penalty,  when  recovered,  shall  be  paid 
into  the  treasury  of  the  State,  and  the  other  half  to  the  informer  of 
such  violation ;  and  in  case  of  non-payment  of  such  penalty,  the 
party  so  offending  shall  be  liable  to  imprisonment  for  a  period  not 
exceeding  six  months,  in  the  discretion  of  any  court  having  cog- 
nizance thereof     {Ibid,  p.  758,  §  52.) 

15T.  All  such  provisions  of  chapter  sixty-seven  (67),  and 
ninety  (90),  of  the  General  Statutes  of  the  State  of  Missouri,  as  re- 
late to  the  business  mentioned  in  the  first  section  of  this  a(;t,  ami  to 
companies  transacting  such  business,  and  all  other  acts  and  parts 


526  HINE'S  mSURANCE  STATUTES. 

of  acts  inconsivstent  with  the  provisions  of  this  act,  are  hereby  re- 
pealed; Provided,  That  nothing  in  this  act  contained  shall  be  con- 
strued to  affect  the  corporate  existence  or  the  rights  as  such  of  any 
corporation  now  existing,  heretofore  organized  under  any  general 
law  of  this  State  ;  Provided,  That  nothing  in  this  act  contained  shall 
be  so  construed  as  to  prevent  the  repeal  or  amendment  of  the  same, 
or  any  section  thereof,  by  the  present  or  any  future  General  Assem- 
bly of  this  State.     {Ibid,  §  53.) 

158.  Any  company  organized  under  the  laws  of  this  State  as 
a  joint  stock,  or  stock  and  mutual  company,  doing  business  as  a  life 
insurance  company,  may  at  any  time  increase  its  capital  stock  to 
any  amount,  not  exceeding  one  million  dollars,  with  the  consent  of 
majority  in  interest  of  the  stockholders;  such  consent  shall  be  cer- 
tified to  by  the  secretary  of  the  company,  under  oatb,  and  shall 
state  the  names  of  the  stockholders,  and  the  number  of  shares  voted 
by  each  stockholder,  and  file  the  same  in  the  office  of  the  Superin- 
tendent of  the  Insurance  Department.     {Laics  o/1872,  j9.  42,  §  1.) 

1«S9.  Any  company  that  shall  increase  its  capital  stock,  under 
the  provisions  of  the  first  section  of  this  act,  shall  in  all  things  com- 
ply with  the  provisions  of  an  act  entitled  "An  Act  for  the  Incorpo- 
ration and  Regulation  of  Life  Assurance  Companies,"  approved 
March  10,  1809,  its  stock  subscribed  and  secured  as  provided  in 
sections  nineteen,  twenty  and  twenty-one,  of  said  act,  and  nothing 
in  this  act  shall  be  so  construed  as  to  affect  the  duties  of  the  Superin- 
tendent of  the  Insurance  Department,  as  provided  in  section  forty- 
one  of  said  act,  and  no  company  increasing  its  capital  stock  under 
the  provisions  of  this  act,  shall  declare  and  divide,  or  pay  a  greater 
amount  as  a  dividend  or  profit,  than  ten  per  centum  per  annum  on 
the  amount  of  capital  actually  paid  in,  to  its  stockholders.    ( Ibid,  §  2. ) 


REGISTRATION  OF  LIFE  INSURANCE  POLICIES  AND 
ANNUITY  BONDS,  AND  DEPOSIT  OF  SECURITIES 
WITH  THE   INSURANCE  DEPARTMENT. 

1 60.  Any  life  insurance  company  now  or  hereafter  organized, 
under  any  general  or  special  law  of  this  State,  or  any  life  insurance 
company  doing  bnsiness  within  this  State,  may  deposit  with  the 
Superintendent  of  the  Insurance  Department,  in  addition  to  the 
amount  now  required  by  law  to  be  deposited  by  life  insurance  com- 
panies in  that  department,  bonds  of  the  United  States  or  of  the 
State  of  Missouri,  or  bonds  or  notes  secured  by  deeds  of  trust  on 
unincumbered  real  estate  situated  in  the  State  of  Missouri,  and 
worth  with  the  improvements  thereon  at  least  double  the  sum  for 
which  it  is  so  pledged,  to  any  amount  not  less  than  ten  thousand 
dollars  ;  and  any  company  so  depositing  shall  make  further  deposits 
from  time  to  time  as  hereinafter  provided.   {Laws  0/187-4,  p.  83,  §  1.) 

161.  After  making  the  deposits  mentioned  in  section  one  of 
this  act,  no  company  shall  issue  a  policy  of  insurance  or  endow- 
ment or  an  annuity  bond,  unless  it  shall  have  upon  its  face  a  certifi- 
cate in  the  following  words:  "  This  policy  or  annuity  bond,"  as  the 
case  may  be,  "  is  registered  and  secured  by  pledge  of  imblic  stocks 
or  bonds  or  deed  of  trust  on  real  estate  deposited  with  this  depart- 
ment; "  which  certificate  shall  be  signed  by  the  Superintendent  or 
his  authorized  deputy,  and  sealed  with  the  seal  of  his  office.  These 
policies  and  bonds  shall  be  known  as  registered  policies  and  an- 


MISSOURI.  627 

nuity  bonds,  and  a  duplicate  or  copy  of  each  shall  be  kept  m  the 
office  of  the  Superintendent  of  the  Insurance  Department ;  and  said 
Superintendent  shall  ijrepare  and  keep  such  registers  thereof  as 
will  enable  him  to  compute  their  value  at  any  time ;  and  upon  writ- 
ten proof  attested  by  the  president  or  vice-president  and  secretary 
of  the  company  which  shall  have  issued  such  policies  or  annuity 
bonds  that  any  of  them  have  been  commuted  or  terminated,  the 
Superintendent  shall  commute  or  cancel  them  upon  such  register; 
the  actual  value  of  every  registered  ])olicy  or  annuity  bond — when 
the  first  premium  shall  have  been  paid  thereon — less  the  amount  of 
such  liens  —not  exceeding  such  value  as  the  company  may  have 
against  it,  shall  be  entered  opposite  the  record  of  said  policy  or  an- 
nuity bond  in  the  register  aforesaid  at  the  time  such  record  is  made, 
and  on  the  last  day  of  each  mouth  the  Superintendent  shall  furnish  ' 
a  certificate  of  the  aggregate  of  such  value  to  the  company ;  on  the 
first  days  of  January  and  July  of  each  year,  or  within  sixty  days 
thereafter,  the  Superintendent  shall  cause  the  registered  policies  and 
annuity  bonds  of  each  company  to  be  carefully  revalued,  and  the 
actual  value  thereof  at  the  time  fixed  for  such  valuation — less  such 
hens — ^not  exceeding  such  value  as  the  company  may  have  against 
it,  vShall  be  entered  upon  the  register  opposite  the  record  of  such 
policy  or  bond.  It  shall  be  the  duty  of  said  Superintendent  to  re- 
ceive mutilated  policies  and  annuity  bonds  issued  to  said  companies, 
and  deliver  in  lieu  thereof  other  policies  or  bonds  of  like  tenor  and 
date,  and  in  case  of  lost  policies  or  bonds,  to  farnish  certified  copies 
of  the  duplicates  on  file  in  his  office.     {Ibid,  §  2.) 

1 62.  Each  comj^any  which  shall  have  made  the  deposit  men- 
tioned in  section  one  of  this  act  shall  make  additional  deposits  from 
time  to  time  so  that  the  market  value  of  the  securities  deposited 
shall  always  be  equal  to  the  actual  value  of  the  registered  policies 
and  annuity  bonds  issued  by  said  company — less  such  liens — not 
exceeding  such  value  as  the  company  may  have  against  it ;  and  all 
such  additional  deposits  shall  be  of  the  securities  mentioned  in  sec- 
tion one  of  this  act,  and  all  valuations  of  policies  and  annuity  bonds 
made  under  the  ijrovisions  of  this  act  shall  be  computed  according 
to  the  standard  of  valuation  designated  in  section  twenty-nine  of 
an  act  entitled,  "  An  Act  for  the  Incorporation  and  Eegulation  of  Life 
Insurance  Companies,"  approved  March  10th,  1869.  And  so  long 
as  the  deposits  are  kept  up  as  provided  in  this  act  it  shall  be  the 
duty  of  the  Superintendent  to  sign  and  affix  his  seal  to  the  certifi- 
cates mentioned  in  section  two,  on  every  policy  and  annuity  bond 
presented  to  him  for  that  purpose  by  any  company  [having]  made 
such  deposits.     {Ibid,  p.  84,  §  3.) 

16*$.  The  Superintendent  shall  keep  a  careful  record  of  the 
securities  deposited  by  each  company,  and  when  furnishing  the 
monthly  certificates  of  value  mentioned  in  section  two,  he  shall 
enter  thereon  the  amount  of  notes  and  bonds  secured  by  deeds  of 
trust,  together  with  the  market  value  of  the  public  stock  or  bonds 
deposited  by  such  company,  under  this  act,  and  if,  at  any  time  it 
shall  appear  from  such  certificate  that  the  value  of  the  securities  held 
on  deposit  is  less  than  the  actual  value  of  the  registered  policies 
and  annuity  bonds  issued  by  such  company,  it  shall  not  be  lawful 
for  the  Superintendent  to  execute  the  certificate  on  any  additional 
policies  or  annuity  bonds  of  such  company  until  it  shall  have  made 
good  the  deficit.  If  any  such  company  fail  or  neglect  to  make  good 
such  deposit  for  ninety  days  it  shall  be  deemed  to  be  insolvent,  and 


628  hike's  insurance  statutes. 

shall  be  proceeded  against  in  the  manner  provided  by  law  in  such 
cases.     {Ibid^  §  4.) 

164.  Every  existing  company  which  shall  have  made  the 
deposit  designated  in  section  one  of  this  act,  shall,  within  twelve 
months  from  the  date  upon  which  said  deposit  bas  been  made, 
deposit  with  the  Superintendent,  securities  of  the  description  men- 
tioned in  section  one  of  this  act  and  in  accordance  with  the  pro- 
visions hereof,  an  amount  inclusive  of  the  amount  deposited  under 
heretofore  existing  laws,  equal  to  the  actual  value  of  all  the  non- 
registered  policies  and  annuity  bonds  which  it  shall  have  in  force 
at  that  time — less  such  liens — not  exceeding  such  actual  value  as 
the  comijany  may  have  against  them  ;  and  the  Superintendent  shall 
furnish  said  company  with  a  certificate  of  the  description  men- 
tioned in  section  two  of  this  act,  to  be  attached  to  each  of  said  poli- 
cies and  annuity  bonds.  The  Superintendent  shall  enter  upon 
each  of  such  certificates  the  number  of  the  i)olicy  or  annuity 
bond  to  which  it  belongs ;  Provided,  hoicever,  that  if  the  annual 
I)remiums  due  on  any  of  the  said  policies  prior  to  the  time  desig- 
nated shall  not  have  been  paid  in  lull,  said  policies  shall  not  be  in- 
cluded among  those  required  to  be  registered  and  secured  by  this  sec- 
tion until  the  unpaid  premiums,  or  parts  of  premiums,  or  deferred 
portions  of  annual  premiums — as  the  case  may  be — shall  have  been  duly 
received  by  the  company  ;  but  if  any  of  said  policies  should  become 
paid  up  and  commuted  by  virtue  of  a  failure  to  pay  the  premiums 
thereon,  such  paid  up  or  commuted  policies  shall  be  registered  as 
herein  provided.     {Ibid,  §  5.) 

1 6eS.  Should  any  company  depositing  under  this  act,  become 
the  owner  of  real  estate  for  its  own  use  and  accommodations,  or 
become  temporarily  seized  and  possessed  of  real  estate  in  satisfac- 
tion of  debt,  for  which  such  real  estate  was  pledged  as  security, 
such  company  may  execute  its  own  notes  for  one  half  of  the  value  of 
such  real  estate,  payable  to  the  Suiierintendent  as  trustee,  and  secure 
the  said  notes  or  bonds  by  duly  recorded  deeds  of  trust  of  said  real 
estate ;  which  notes  or  bonds  thus  secured  may  be  deposited  with 
said  Superintendent  as  proper  securities  under  and  according  to  the 
pro%isious  of  this  act.     {Ibid,  p.  85,  §  6.) 

lOill.  Any  company  depositing  under  this  act,  may  increase 
its  deposits  at  any  time  in  the  description  of  securities  mentioned 
in  section  one;  provided  that  no  deposit  shall  be  for  less  than  ten 
thousand  dollars.  Any  such  company,  whose  deposits  exceed  the 
actual  value  of  all  registered  policies  and  annuity  bonds  it  has  in 
force — less  such  liens — not  exceeding  such  value  as  the  company 
may  hold  against  them,  may  withdraw  such  excess,  or  it  may  with- 
draw any  of  said  securities  at  any  time  by  depositing  others 
of  equal  value,  and  of  the  description  mentioned  in  section  one,  in 
their  stead  ;  and  so  long  as  such  company  shall  remain  solvent  and 
keep  up  its  deposits,  as  required  by  this  act,  it  may  collect  the 
interest  and  coupons  on  the  securities  deposited  as  the  same  accrues. 
{Ibid,  §  7.) 

I(4l7.  Each  company  depositing  under  this  act  shall  provide 
an  iron  box  with  two  good  locks  of  different  patterns.  The  securi- 
ties deposited  by  such  company  shall  be  placed  in  said  box  by  the 
Superintendent,  or  his  legally  authorized  deputy  in  the  presence  of 
the  president,  vice-president  or  secretary  of  the  company,  and  the 
box  shall  be  closed  and  locked  by  locking  both  locks.  The  key  of 
one  lock  shall  remain  with  the  Superintendent,  and  that  of  the 


MISSOURI.  529 

other  with  the  company,  and  the  box  shall  not  be  opened  at  any 
time,  except  in  the  presence  of  the  Superintendent  or  his  deputy, 
and  said  president,  vice-president  or  secretary ;  said  box  shall  be 
kept  in  the  vault  of  the  State  Treasurer,  or  the  National  Bank  of 
the  State  of  Missouri,  in  St.  Louis,  or  other  authorized  depository 
of  the  funds,  securities  and  other  property  of  tlie  State.     {Ibid,  §  8.) 

168.  The  Superintendent  shall  be  entitled  to  collect  the 
following  fees,  including  seal,  under  this  act:  For  issuing  certifi- 
cates of  deposits,  for  which  he  is  hereby  required  to  do,  one  dollar ; 
for  every  other  certificate,  including  certificates  on  registered  poli- 
cies and  annuity  bonds,  fifty  cents,  except  those  mentioned  in  sec- 
tion five,  for  which,  including  seal,  the  fee  shall  be  twenty-five 
cents;  and  for  computing  the  net  value  of  policies  and  annuity 
bonds,  as  required  by  this  act,  one  per  cent,  per  annum  for  each 
one  thousand  dollars  of  insurance  or  annuity  so  valued.  {Ibid, 
§9.) 

1 69.  The  securities  deposited  under  the  provisions  of  this  act, 
shall  be  legally  transferred  to  the  Superintendent  of  the  Insurance 
Department,  and  so  large  an  amount  thereof  as  may  be  necessary 
to  equal  at  all  times  the  net  value  of  all  the  outstanding  policies 
and  annuity  bonds -less  such  liens — not  exceeding  such  value  as 
the  company  may  hold  against  them,  shall  be  held  by  him  in  trust 
for  the  purposes  of  this  act  until  the  obligations  of  said  companies 
under  said  registered  policies  and  annuity  bonds  shall,  to  the  satis- 
faction of  said  Superintendent  be  fully  liquidated,  canceled  or 
annulled ;  but  nothing  in  this  act  shall  be  construed  as  implying 
any  obligation  on  the  part  of  the  State  to  pay  the  policies  and 
annuity  bonds  issued  under  the  provisions  of  this  act,  beyond  a 
proper  application  of  the  securities  so  deposited  towards  their 
liquidation.     {Ibid,  §  10.) 

170.  If  at  any  time  the  aftairs  of  any  life  insurance  company 
which  has  deposited  securities  under  this  act,  shall  in  the  opinion 
of  the  Superintendent,  appear  in  such  a  condition  as  to  render  the 
issuing  of  additional  policies  and  annuity  bonds  by  such  company, 
injurious  to  the  public  interest,  the  said  Superintendent  shall  report 
that  fact  to  the  Attorney-General,  whose  duty  it  shall  be  to  apply 
to  the  Supreme  Court  for  an  order,  requiring  said  company  to  show 
caase  why  its  business  should  not  be  closed.  Tlie  court  shall  there- 
upon proceed  to  hear  the  allegations  and  proofs  of  the  respective 
parties ;  and  in  case  it  shall  appear  to  the  satisfaction  of  said  court 
that  the  assets  and  funds  of  said  company  are  not  sufficient  to 
justify  the  further  continuance  of  the  business  of  insuring  lives, 
granting  annuities  and  incurring  new  obligations  as  authorized  by 
its  charter,  then  the  said  court  shall  issue  an  order  enjoining  and 
restraining  said  comi)any  from  the  further  prosecution  of  its  busi- 
ness, and  shall  appoint  a  receiver  of  all  the  assets  and  credits  of 
said  company.  The  said  receiver,  ui)on  filing  his  bond  to  the  State 
of  Missouri  in  the  amount  and  with  sureties  approved  by  said 
court,  conditioned  for  the  faithful  performance  of  his  duties,  shall 
take  possession  of  all  the  assets  and  credits  of  said  company,  except 
the  securities  deposited  in  the  Insurance  Department  under  the  pro- 
visions of  this  act,  which  securities  shall  remain  in  said  department 
to  be  disposed  of  as  hereinafter  provided.     {I  bid,  p.  86,  §  11.) 

171.  The  receiver  shall,  immediately  on  entering  upon  the 
duties  of  his  office,  appoint  a  competent  actuary  to  be  approved  by 
the  Superintendent  of  the  Insurance  Department,  who  shall  make  a 

34 


530  hine's  insurance  statutes. 

careful  investigation,  according  to  the  standard  fixed  by  the  laws 
of  this  State,  into  the  condition  of  said  company,  and  report  thereon 
in  writing  under  oath  to  said  court  and  receiver;  and  if  it  shall  by 
said  report  be  found  that  the  securities  deposited  by  said  company 
in  the  Insurance  Department,  and  the  assets  and  credits  including 
the  future  premiums  that  will  mature  on  the  outstanding  policies 
and  other  obligations  of  said  company,  are  sufiicient  under  the  laws 
of  this  State  to  pay  all  the  policies,  annuities  and  other  obligations 
of  said  company,  as  they  may  mature  by  the  terms  thereof,  and  the 
legal  costs  and  expenses  incident  to  the  bu.siness,  and  if  said  actu- 
ary's report  shall  be  confirmed  by  the  court,  the  said  receiver  shall 
notify  all  of  the  holders  of  said  policies  and  annuities  and  other  ob- 
ligations, requiring  them  to  pay  to  him,  as  such  receiver,  all  pre- 
miums and  other  payments  due,  or  to  become  due  to  said  company 
from  time  to  time  on  their  respective  policies  and  other  obligations. 
Such  notice  shall  be  given  by  depositing  the  same  in  the  post-ofUce 
at  the  place  where  said  company  has  its  principal  business  office, 
addressed  to  said  parties  respectively  at  their  several  residences,  so 
lar  as  the  same  can  be  ascertained  by  said  receiver;  or,  on  the  con- 
firmation of  the  report  of  the  said  actuary,  the  couit  may  in  its  dis- 
cretion direct  the  receiver  to  reinsure  all  of  said  registered  policies 
and  annuities  in  some  solvent  company,  on  the  execution  by  said  re- 
ceiver of  an  assignment  to  said  reinsuring  company  of  all  securities 
on  deposit  intrust  for  the  holders  of  said  i)olicies  and  annuity  bonds. 
And  in  case  the  report  of  said  actuary  shall  show  that  the  said 
securities,  assets,  credits  and  future  premiums  are  not  sufficient 
under  the  laws  of  this  State  to  pay  all  the  policies,  annuities,  and 
other  obligations  of  said  companj",  as  they  may  mature  by  the  terms 
thereof,  and  the  legal  costs  and  expenses  of  said  receivership,  the 
said  receiver  shall  notify  the  said  ^Superintendent  thereof,  and  the 
Superintendent  shall,  with  the  consent  and  advice  of  the  Treasurer 
of  the  State,  and  in  such  manner  as  the  said  receiver.  Superintend- 
ent and  Treasurer,  or  a  majority  of  them  shall  determine  to,  sell  and 
convert  said  securities  and  assets  into  money,  and  the  proceeds  of 
such  sale  or  sales  shall  be  paid  to  said  receiver,  on  his  giving  his 
receipt  therefor  to  said  Superintendent,  and  he  shall  apply  the  same 
as  follows  :  To  the  pay  of  holders  of  the  registered  policies  of  said 
company  in  proportion  to  the  net  value  of  their  policies  resfjectively, 
and  to  the  registered  annuitants  of  said  company  in  proportion  to 
the  then  present  value  of  their  respective  annuities  as  estimated  by 
the  legal  standard  for  valuing  life  insurance  and  annuity  obligations 
within  this  State.  The  surplus  derived  from  such  sale  or  sales,  if 
any  there  be  after  the  payment  last  above  mentioned,  with  all  other 
assets  of  said  company,  shall  then  be  applied  to  the  payment  of  all 
the  just  debts  of  said  company  incurred  in  the  conducting  and  carry- 
ing on  of  its  lawful  business.     {Ibid,  §  12.) 

172.  Whenever  the  business  of  any  company  shall  be  con- 
tinued under  the  provisions  of  the  next  preceding  section,  in  case 
the  receipt  for  premiums  and  from  all  other  sources  shall  at  any 
time  be  in  excess  of  the  suras  required  to  meet  the  policy  and  other 
obligations  of  said  company,  said  receiver,  whenever  such  excess 
shall  amount  to  ten  thousand  dollars,  shall  invest  such  excess  in 
such  securities  as  are  authorized  to  be  deposited  in  the  Insurance 
Department,  and  shall  deposit  said  securities  with  the  Superintend- 
ent in  the  manner  herein  provided.  If  at  any  time  the  funds  in  the 
hands  of  said  receiver  are  not  sufficient  to  meet  such  obligations  as 


MISSOURI.  53i 

they  mature,  he  shall  notify  said  Siiperiutendent  of  the  ainouut  re- 
quired to  meet  the  deficiency  in  respect  thereto,  and  it  shall  become 
the  duty  of  the  Sui)erintendetit  to  sell,  with  the  cousent  and  advice 
of  the  Treasurer  of  the  State,  in  such  manner  as  the  receiver.  Super- 
intendent, and  Treasurer,  or  a  majority  of  them  shall  determine, 
such  portion  of  said  securities  as  may  be  required  to  meet  said 
matiu-ed  obligations,  and  tbe  proceeds  of  such  sale  or  sales  shall  be 
j)aid  to  said  receiver  on  his  giving  his  receipt  therefor  to  said 
Superintendent,  to  be  used  as  required  for  said  matured  obligations. 
(Ibid,  p.  87,  §  13.) 

173.  On  the  first  day  of  January  in  every  year,  or  within 
sixty  days  thereafter,  an  examination  shall  be  made  by  a  com})etent 
actuary,  approved  by  the  Superintendent,  into  the  affairs  of  said 
company,  and  if  upon  such  examination  it  shall  be  found  that  a 
surplus  of  its  assets,  not  less  in  amount  than  ten  thousand  dollars, 
exists  after  making  adequate  provision  for  meeting  at  maturity  all 
of  the  obligations  of  said  comijany,  and  all  the  legal  expenses  of 
said  receivership,  and,  in  case  of  a  joint  stock  company,  over  and 
above  the  amount  of  its  capital,  such  portion  of  said  surplus  as  may 
by  and  under  the  charter  of  said  company  belong  to  its  stockliolders, 
shall  be  set  aside  and  invested  by  said  receiver  in  such  securities  as 
are  authorized  to  be  dei^osited  by  life  insurance  companies  in  the 
Insurance  Department,  as  a  contingent  fund,  and  scrip  therefor  shall 
be  issued  by  said  receiver  to  said  stockholders  respectively  in  pro- 
portion to  their  respective  shares,  bearing  six  per  cent,  interest,  and 
payable  on  the  final  settlement  of  the  affairs  of  said  company  as 
herein  pro\*ided.  The  remainder  of  such  surplus,  if  the  company 
be  a  stock  company,  and  the  whole  of  said  surplus  if  it  be  a  mutual 
company,  shall  be  disposed  of  as  follows :  one-quarter  of  such  re- 
mainder shall  be  reserved  by  said  receiver  and  invested  by  him  in 
such  securities  as  are  authorized  to  be  deposited  by  life  insurance 
companies  in  the  Insurance  Department,  as  a  contingent  fund,  for 
which,  scrij)  shall  be  issued  by  said  receiver  to  all  policy-holders  en- 
titled under  their  jjolicies  to  share  in  the  surplus  of  said  company ; 
and  such  scrip  shall  bear  interest  at  the  rate  of  six  per  cent,  per 
annum,  payable  annually,  and  shall  be  redeemable  on  the  maturity 
of  the  respective  policies  to  which  said  scrip  may  be  related.  The 
remaining  three-quarters  of  said  surplus  shall  be  paid  by  said  re- 
ceiver within  one  year  from  said  first  of  January  to  said  policy- 
holders respectively,  in  lawful  money  of  the  United  States.  But  no 
scrip  shall  be  issued  for  any  fractional  part  of  a  dollar;  and  any  scrip 
so  issued  may  at  any  time  be  called  in  and  canceled  by  said  receiver, 
without  payment,  if  necessary  to  better  secure  the  remaining  ob- 
ligations of  said  company;  and  all  scrij)  so  issued  shall  have  printed 
thereon  a  clause  to  this  effect :  If  on  the  final  accounting  of  said 
receiver,  after  the  liquidation  of  all  the  obligations  of  said  (jompany 
as  herein  i)rovided,  and  in  case  of  a  Joint  stock  company,  the  return 
to  the  respective  stockholders  of  tlie  respective  amounts  of  stock 
and  the  scrii3  issued  to  them  under  this  act,  there  shall  remain  a  sur- 
plus in  the  hands  of  said  receiver,  it  shall  be  divided  by  him  among 
the  said  stockholders  proportionately  to  their  respective  shares,  as 
provided  by  the  charter  of  said  company,  and  the  balance  of  said 
surplus,  if  any,  among  the  last  ten  policy-holders  of  said  company, 
or  their  legal  representatives,  in  proportion  to  the  amounts  of  their 
respective  policies ;  and  if  not  a  stock  company,  such  surplus  shall 
be  divided  among  the  holders  of  the  last  ten  policies  issued  by  said 


532  hike's  INSrEANCE  STATUTES. 

company,  or  their  legal  representatives,  in  proportion  to  the  amount 
of  their  respective  policies.     {Ibid,  §  14.) 

1 74.  The  receiver  of  any  company  under  this  act  shall  have 
all  the  powers  incident  to  the  successful  management  of  its  afl'airs  ; 
and  to  that  end,  authority  to  purchase  policies  issued  by  said  com- 
pany, to  make  any  other  compromise  in  the  settlement  of  its  out- 
standing obligations,  to  collect  the  interest  and  coupons  on  all  se- 
curities held  by  the  Superintendent  of  Insurance,  as  well  as  those 
heldby  said  receiver,  and  to  use  the  corporate  seal  of  said  com- 

•  pany,  whenever  necessary  in  the  transaction  of  the  business  of  his 
receivership.     {Ibid,  p.  88,  §  15.) 

1 75.  The  compensation  of  the  receiver  under  this  act  shall 
be  fixed  by  the  Superintendent  of  the  Insurance  Department,  and 
shall  not  exceed  the  sum  of  five  per  cent,  on  the  amount  of  all  as- 
sets of  such  company  as  shall  come  into  his  possession.  The  re- 
ceiver may  employ  such  clerks  and  actuaries  as  may  be  deemed 
necessary  for  the  proper  conducting  of  his  business  as  such  re- 
ceiver, and  the  said  clerks  and  actuaries  shall  be  paid  such  reason- 
able compensation  as  he  may  determine,  subject,  however,  to  the 
approval  of  the  Superintendent  of  the  Insurance  Department ;  all 
of  which  compensation,  to  receiver,  clerks  and  actuaries,  shall  be  a 
charge  on  the  funds  of  such  company,  and  paid  out  of  said  funds. 
{Ibid,  §  16.) 

MISREPRESENTATION  IN  OBTAINING  LIFE  POLICIES. 

176.  No  misrepresentation  made  in  obtaining  or  securing  a 
policy  of  insurance  on  the  life  or  lives  of  any  person  or  persons 
shall  be  deemed  material,  or  render  the  policy  void,  unless  the  mat- 
ter misrepresented  shall  have  actually  contributed  to  the  contin- 
gency or  event  on  which  the  policy  is  to  become  due  and  payable, 
and  whether  it  so  contributed  in  any  case,  shall  be  a  question  for 
the  jury.     {Laics  of  1874,  p.  89,  §  1.) 

177.  ill  suits  brought  upon  life  policies,  heretofore  or  hereaf- 
ter issued,  no  defense  based  upon  misrepresentation  in  obtaining  or 
securing  the  same  shall  be  valid,  unless  the  defendant  shall  at  or 
before  the  trial,  deposit  in  court  for  the  benefit  of  the  plaintiffs,  the 
premiums  hereafter  received  on  such  policies  with  six  per  cent,  in- 
terest per  annum  from  the  date  of  receipt.     {Ibid,  §  2.) 


LIFE  INSURANCE  FOR  THE  BENEFIT  OF  MARRIED  AND 
UNMARRIED  WOMEN  AND  CHILDREN. 

178.  It  shall  be  lawful  for  any  married  woman,  by  herself, 
and  in  her  name,  or  in  the  name  of  any  third  person,  with  his  as- 
sent as  her  trustee,  to  cause  to  be  insured,  for  her  sole  use,  the  life  of 
her  husband,  for  any  definite  period,  or  for  the  term  of  his  natural 
life;  and  in  case  of  her  surviving  her  husband,  the  sum  or  net 
amount  of  the  insurance  becoming  due  and  payable  by  the  terms  of 
the  insurance,  shall  be  payable  to  her,  and  for  her  own  use,  free 
from  the  claims  of  the  representatives  of  her  husband,  or  of  any  of 
his  creditors ;  but  such  exemptions  shall  not  apply  when  the 
amount  of  premium  annually  paid  shall  exceed  three  hundred  dol- 
lars.    { Wagner^s  Statutes,  1870,  p.  936,  §  15.) 


MISSOUKT.  533 

1 79.  In  case  of  the  death  of  the  wife  before  the  decease  of 
her  husband,  the  amount  of  the  insurance  may  be  made  payable, 
after  her  death,  to  her  children,  for  their  use,  and  to  their  g^uardian, 
if  under  age.     {Ibid,  ^16.) 

180.  It  shall  be  lawful  for  any  unmarried  woman,  by  herself 
and  in  her  own  name,  or  in  the  name  of  any  third  person  as  her  trus- 
tee, to  cause  to  be  insured,  for  her  sole  use,  the  life  of  her  father  or 
brother,  for  any  definite  period,  or  during  his  natural  life ;  and,  in 
case  of  her  surviving  such  person,  she  shall  be  entitled  to  receive 
the  amount  of  the  net  insurance,  in  the  same  manner  as  in  cases  of - 
married  women.     {Ibid,  §  17.) 

181.  Any  policy  of  insurance  heretoforia  or  hereafter  made  by 
any  insurance  company  on  the  life  of  any  person  expressed  to  be  for 
the  benefit  of  any  married  woman,  whether  the  same  be  effected  by 
herself  or  by  her  husband,  or  by  any  third  person  in  her  behalf, 
shall  inure  to  her  separate  use  and  benefit,  and  that  of  her  children, 
if  any,  independently  of  her  husband,  and  of  his  creditors  and  rep- 
resentatives, and  also  independently  of  such  third  person  effecting 
the  same  in  her  behalf,  his  creditors  and  representatives ;  and  a 
trustee  may  be  appointed  by  the  Circuit  Court  for  the  county  in  which 
such  married  woman  resides,  to  hold  and  manage  the  interest  of  any 
married  woman  in  anv  such  policy,  or  the  proceeds  thereof  {Ibid, 
§18.) 

TAXATION   OF   INSURANCE    COMPANIES. 

183.  All  agencies  of  foreign  insurance  companies  doing  fire, 
river  or  marine  insurance,  or  any  kind  of  insurance  other  than  life 
insurance  within  this  State,  shall  on  or  before  the  first  day  of  Feb- 
ruary of  each  and  every  year,  deposit  with  the  Assessor  of  the  coun- 
ty, and  also  of  the  city  in  which  the  office  or  agency  of  such  company- 
is  located,  a  statement  verified  by  the  oath  of  the  agent  of  the 
foreign  company,  specifying  the  gross  amount  (after  deducting  all 
return  premiums  and  the  amount  of  cash  actually  paid  by  said  com- 
pany for  losses  incurred  in  such  county  or  city  under  its  policies)  of 
premiums  received  for  insurance  by  such  company  or  agent  during  the 
preceding  year  up  to  the  first  day  of  January  immediately  preced- 
ing such  deposit  of  such  statement,  or  for  such  fractional  part  of  the 
year  that  such  company  or  agency  may  have  been  doing  business  in 
this  State.  ( Wagner^s  Statutes,  1870,  p.  779,  §  1,  a«  amended  by  laws 
0/1874,  i^.  77,  §1.) 

183.  If  any  agent  of  any  foreign  insurance  company  shall 
neglect  or  refuse  to  deposit  with  the  assessor  aforesaid,  on  or  before 
the  first  dijy  of  February,  in  each  and  every  year,  the  verified  state- 
ment required  by  the  preceding  section,  it  shall  be  the  duty  of  the 
assessors,  respectively,  to  assess  on  said  company  or  agency,  such  a 
sum  of  gToss  premiums,  as  after  diligent  inquiry,  he  may  ascertain 
to  be  the  amount  received.     {Ibid,  §  2.) 

184.  Such  gross  amount  of  premiums,  so  receiv'ed  as  afore- 
said, shall  be  subject  in  the  county  and  city  ii^which  the  office  of 
such  agency  is  located,  to  the  levy  and  payment  of  such  taxes,  of 
every  kind,  as  other  property  is  subject  to  for  State,  county,  and 
municipal  purposes,  which  taxes  shall  be  paid  by  such  agent  to  the 
respective  collectors,  within  the  time  required  by  law  for  the  pay- 
ment of  the  general  taxes ;  Provided,  That  the  tax  so  assessed  on 
the  gross  amount  of  the  premiums  shall  be  in  lieu  of  all  taxes 


534  HINE'S  IKSURANCE  STATUTES. 

formerly  levied  on  the  capital  stock  of  any  foreign  insurance  com- 
pany, for  State,  county  and  municipal  purposes,  and  that  no  other 
taxes  of  any  kind  than  as  is  in  this  chapter  specified  shall  be  levied 
on  such  agencies  for  any  purpose  whatever.     {Ibid,  §  8.) 

185.  UpoD  the  agent  or  agents  of  any  foreign  insurance  com- 
pany depositing  with  the  assessor  the  veritied  statement  required  by 
this  chapter,  and  complying  with  the  other  provisions  thereof,  the 
Clerk  of  the  County  Court  of  the  county  in  which  such  agency  is  lo- 
cated, shall  issue  to  him  or  them  a  license,  in  the  name  of  the  State, 
for  carrying  on  the  business  of  his  or  their  agency  for  the  space  of 
one  year,  which  license  shall  be  renewed  from  year  to  year,  by  such 
clerk,  if  demanded ;  and  for  every  such  license  such  clerk  shall  be 
paid  a  fee  of  seventy -five  cents.     {Ibidj  p.  780,  §  4.) 

186.  The  agent  or  agents  of  any  foreign  insurance  company, 
doing  fire,  river,  or  marine  insurance  business  in  the  city  of  St. 
Louis,  in  addition  to  the  tax  on  gTOSS  premiums,  as  above  provided 
for,  against  su(;h  companies,  shall  also  pay  to  the  collector  of  the 
ward  in  said  city  in  which  the  office  of  said  agent  is  located,  on  or 
before  the  first  day  of  February  of  each  and  every  year,  the  sum  of 
one  hundred  dollars  for  the  use  of  said  city,  which  sum  shall  be 
considered  in  full  for,  and  in  room  of,  all  taxes  and  licenses  which 
said  city  may  possess  the  power  to  impose  on  such  agencies ;  and 
such  collector  shall,  uj)on  such  payment  being  made,  issue  to  such 
agent  or  agents  a  license,  in  the  name  of  the  city  of  St.  Louis,  for 
the  carrying  on  the  business  of  such  agency  for  one  year,  which 
license  shall  be  renewed  fi-om  year  to  year  if  demanded,  and  shall 
not  be  subject  to  any  other  taxation  of  any  kind  whatever  by  said 
city.     {Ibul,  §  6.) 

187.  Any  agent  or  agents  of  any  such  insurance  comi^any, 
who  shall  neglect  or  refuse  to  comply  with  the  requirements  of  the 
last  preceding  section,  shall  forfeit  and  pay  the  sum  of  two  hundred 
dollars,  which  may  be  sued  for  and  recovered,  in  the  name  of  the 
city  of  St.  Louis,  to  the  use  of  the  same,  by  suit  instituted  by  the 
city  attorney,  or  by  indictment,  in  any  court  having  competent  ju- 
risdiction.    (Ibid,  p.  781,  §  7.) 

188.  Any  person  or  persons  who  shall,  as  agent  of  any  insur- 
ance company  not  incorporated  by  the  legislature  of  this  State,  or 
as  the  agent  of  any  insurance  agency  doing  business  in  this  State, 
neglect  to  take  out  a  license  as  aforesaid,  or  neglect  or  refuse  to 
comply  with  any  of  the  foregoing  provisions  obligatory  upon  such 
person  or  i)arty,  or  who  shall  willfully  make  a  false  or  fraudulent 
statement  of  the  business  or  condition  of  his  or  their  company,  shall 
forfeit  and  pay  the  sum  of  five  hundred  dollars  for  each  ofteuse,  and 
shall  not  do,  directly  or  indirectly,  and  kind  of  insurance  business 
until  the  requisitions  of  this  chapter  are  faithfully  complied  with  ; 
and  it  shall  be  the  duty  of  the  Collector  of  the  county  in  which  the 
office  of  such  agency  is  located,  to  prosecute  for  the  recovery  of  any 
forfeitures  incurred  under  this  chapter ;  and  any  and  all  fines  and 
forfeitures  thus  incurred  may  be  recovered  in  the  name  of  the  State, 
to  the  use  of  the  county  and  State,  in  equal  proportions,  by  indict- 
ment, complaint,  bill  or  information,  in  any  court  of  competent  ju- 
risdiction.    {Ibid,  §  8.) 

1  89.  No  insiu'ance  company  organized  under  the  laws  of  this 
State,  or  any  other  State  or  Territory  of  the  United  States,  or  of  any 
foreign  country,  doing  the  business  of  insurance  within  this  State, 
which  shall  hereafter  fail,  neglect  or  refuse  to  pay  the  license,  or 


MISSOURI.  535. 

State,  county,  city,  town  or  school  taxes,  now  required  by  the  laws 
of  this  State,  shall  be  permitted  to  transact  the  business  of  insurance 
within  this  State.     {Laws  of  1873,  p.  22,  §  1.) 

190.  The  Superintendent  of  the  Insurance  Department  of  this 
State  shall  ascertain  from  the  collectors  of  the  revenue  in  the  sev- 
eral counties  and  cities  of  this  State,  the  names  of  all  the  insurance 
companies  doing  the  business  of  insurance  within  this  State,  which 
have  failed,  neglected  or  refused  to  pay  the  licenses  or  taxes  set  forth  in 
the  next  preceding  section ;  and  it  shall  be  the  duty  of  said  collect- 
ors to  furnish  the  Superintendent  of  the  Insurance  Department  of 
this  State,  a  certified  list  of  names  of  all  insurance  companies,  doing 
the  business  of  insurance  in  their  respective  counties  and  cities,  to- 
gether with  the  amount  of  delinquent  taxes  due  by  each  company, 
on  or  before  the  first  day  of  June,  1873,  and  thereafter,  on  or  before 
the  fifteenth  day  of  January  in  each  year.     {Ibid,  §  2.) 

191.  Upon  the  receipt  of  the  certified  list  of  names  as  in  the 
foregoing  section  set  forth,  the  Superintendent  of  the  Insurance  De- 
partment is  hereby  required  to  revoke  and  withhold  the  certificate 
of  said  companies,  or  any  of  them,  to  transact  business  within  this 
State,  until  said  company  or  companies  shall  have  presented  to  him 
the  collector's  receipts  for  all  delinquent  taxes  or  licenses,  or  dupli- 
cates thereof,  stating  that  all  of  said  delinquent  taxes  have  been 
paid.     {Ibidj  §  3.) 


ARSON  AND  INCENDIARISM. 

102.  Every  person  who  shall  willfully  set  fire  to  or  burn  any 
dwelling-house,  in  which  there  shall  be  at  the  time  some  human 
being,  or  who  shall  willfully  set  fire  to  or  burn  any  boat  or  vessel, 
in  which  there  shall  be  at  the  time  some  human  being,  or  who  shall 
willfully  set  fire  to  or  burn  any  bridge  or  causeway  upon  anj"  rail- 
road, shall,  upon  conviction,  be  adjudged  guilty  of  arson  in  the 
first  degree.     ( Wagners  Statutes,  1870, p.  453,  §  1.) 

193.  Every  house,  prison,  jail,  or  other  edifice,  which  shall 
have  been  usually  occupied  by  persons  lodging  therein,  shall  be 
deemed  a  dwelling-house  of  any  person  having  charge  thereof,  or 
so  lodging  therein ;  but  no  warehouse,  barn,  shed,  or  other  out- 
house, shall  be  deemed  a  dwelling-house,  or  part  of  a  dwelling-house, 
within  the  meaning  of  this  or  the  last  section,  unless  the  same  be 
joined  to  or  immediately  connected  with  and  is  part  of  a  dwelling- 
house.     {Ibid,  §  2.) 

194.  Every  person  who  shall  willfully  set  fire  to  or  burn  any 
shop,  warehouse,  office,  storehouse,  or  other  building  not  being  the 
subject  of  arson  in  the  first  degree,  but  adjoining  to  or  within  the 
curtilage  of  any  inhabited  dwelling-house,  so  that  such  dwelling- 
house  shall  be  endangered  by  such  firing,  shall,  upon  conviction,  be 
adjudged  guilty  of  arson  in  the  second  degree.     {Ibid,  §  3.) 

195.  Every  i^erson  who  shall  willfully  set  fire  to  or  burn  any 
building  in  which  shall  be  kept  or  deposited  at  the  time  any  public 
records,  or  the  papers  of  any  public  officer,  shall,  on  conviction,  be 
adjudged  guilty  of  arson  in  the  second  degree.     {Ibid,  §  4.) 

196.  Every  person  who  shall  willfully  set  tire  to  or  burn  any 
house,  building,  barn,  stable,  boat  or  vessel  of  another,  or  any  office 
or  depot  of  any  railroad  company,  or  any  house  of  public  worship, 
college,  academy,  or  school-house,  or  building  used  as  such,  or  any 


536  HINE'S   INSUBANCIE   STATUTES. 

public  buikliiift-  belonging  to  the  United  States  or  this  State,  or  to 
any  comity,  city,  town,  or  village,  not  the  subject  of  arson  in  the 
first  or  second  degree,  shall,  on  conviction,  be  adjudged  guilty  of 
arson  in  the  third  degree.     {Ibid,  p.  454,  §  5.) 

197.  Every  person  who  shall  willfully  set  fire  to  or  burn  any 
brewery,  distillery,  gi*ist-mill,  paper-mill,  fulling-mill,  saw-mill,  card- 
ing machine,  or  other  machinery  for  manufacturing  purposes,  or  any 
building  containing  the  same,  or  erected  or  used  as  a  manufactory, 
shall,  on  conviction,  be  adjudged  guilty  of  arson  in  the  third  degree, 
(ik-rf,  §6.) 

198.  Every  person  who  shall  willfully  set  fire  to  or  burn  any 
building,  boat  or  vessel,  or  any  goods,  wares,  or  merchandise,  or 
other  chattels,  which  shall  at  the  time  be  insured  against  loss  or 
damage  by  fire,  with  intent  to  defraud  or  prejudice  the  insurer, 
whether  the  same  be  the  property  of  such  person  or  any  other,  shall 
be,  upon  conviction,  adjudged  guilty  of  arson  in  the  third  degree. 
{IbuJ,  §  7.) 

199.  Every  person  who  shall  willfully  set  fire  to  or  burn  any 
goods,wares,  merchandise,  or  other  chattels  of  another,  not  the  subject 
of  arson  in  the  third  degree,  or  any  stack  of  grain  of  any  kind  belong- 
ing to  another,  or  any  grain,  grass,  or  herbage  growing  or  standing 
in  the  field,  or  any  nursery  or  orchard  of  fruit  trees,  or  any  fence  or 
hedge  belonging  to  another,  or  any  bridge  or  causeway,  not  the 
subject  of  arson  in  the  first  degree,  shall,  on  conviction,  be  adjudged 
guilty  of  arson  in  the  fourth  degree.     {Ibid,  §  8.) 

SOO.  Every  ])erson  who  shall  be  convicted  of  any  degree  of 
arson  shall  be  punished,  by  imprisonment,  as  follows  :  First,  In  the 
first  degree,  in  the  penitentiary,  not  less  than  ten  years;  Second, 
In  the  second  degree,  in  the  i>enitentiary  not  less  than  seven  years ; 
Third,  In  the  third  degree,  in  the  penitentiary  not  less  than  five 
years ;  Fourth,  In  the  fourth  degree,  in  the  penitentiary  not  more 
than  five  years,  or  by  imprisonment  in  the  county  jail  not  less  than 
six  months.     {Ibid,  §  9.) 


EMBEZZLEMENT. 

SOI.  If  any  agent,  clerk,  apprentice,  servant,  or  collector  of 
any  private  person,  or  of  any  copartnership  (except  persons  so  em- 
ployed under  the  age  of  sixteen  years),  or  if  any  officer,  agent,  clerk, 
servant,  or  collector  of  any  incorporated  company,  or  any  ])erson 
employed  in  any  such  capacity,  shall  embezzle  or  convert  to  his  own 
use,  or  shall  take,  make  way  with,  or  secrete  with  intent  to  embez- 
zle or  convert  to  his  own  use,  without  the  assent  of  his  master  or 
employer,  any  money,  goods,  rights  in  action,  or  valuable  security 
or  effects  whatsoever,  belonging  to  any  other  person,  which  shall 
have  come  into  his  possession  or  under  his  care  by  virtue  of  such 
employment  or  office,  he  shall,  upon  conviction,  be  punished  in  the 
manner  prescribed  by  law  for  stealing  i)roperty  of  the  kind  or  value 
of  the  articles  so  embezzled,  taken  or  secreted.  {Wagner^s  Statutes, 
1870,  p.  458,  §  35.) 

*2ii*Z,     For  General  Provisions  relating  to   Corporations  see 
Wagner's  Statutes,  1870,  pp.  289-295;  Laws  of  1872,  pp.  17,  18. 


INDEX   TO   NEBRASKA. 


PAGE 

Accident   Insurance  Companies   may  be 

Formed  (14) 542 

Advertising  Annual  Statements  (62) 557 

Agents — 

Who  are  (33,  56) 548,555 

To  Advertise,  what  (33,  62) 548,  557 

Liability  for  Taxes  (44,  48) 551,  552 

To  File  Certificates  (55) 555 

To  File  Statement  (62) 557 

Municipal  Taxation  of  (63) 558 

Embezzlement  by  (73) 560 

Annual  Statements— (26,  29,  31,   50, 

55,  59) 545-48,  353,555,556 

Blanks  for  (42) 551 

Arson.  Crime  and  Penalty  of  (67-72). 558,  559 
Assessments  of  Mutual  Companies  (24).  - .  545 

Attorney,  to  be  Appointed  (29) 547 

Attorney-Greneral  to  Examine  Charters   (7)  540 
Auditor — 

Of  State  to  Approve  Charters  (8) 540 

To  Examine  Companies  (13,  20,  27, 

34,  41) 542,  544,547,  549,  551 

To  Issue  Certificate  of  Authority  (13, 

30,  31) 542,548 

May  Extend   Time    of  Holding   Keal 

Estate  (22) 544 

To   Revoke   Certificate    of    Authority 

(37) 550 

Fees  Paid  to  (38) 550 

To  Enforce  Reciprocal  Laws  (39) 550 

To  Furnish  Blanks  (42) 551 

Report  of  (43) 551 

Papers    Certified    by  to    be   Evidence 
(57) 556 

Capital— 

Of  State  Fire  Insurance  Companies  (9)  540 

Subscription  to  (10) 541 

Investment  of  (12) 541 

Ratio  of  Risk  to  (14) 543 

Increase  of  (20) 544 

Of  Foreign  Fire  Insurance  Cos    (29) .  547 
Impairment  of  (29,  34,  41).  547,  549,  551 

Making  up  Impairment  of  (35) 549 

Of  Foreign  Life  Insurance  Cos.  (54).  555 

Certificate  of  Authority — 

When  Issued  (13,  30,  55).. -542,  448,  .555 

When  Renewed  (31,  55) 548,  555 

When  Revoked  (37) 550 

To  be  Published  (40) 551 


PAOB 

Charter— 

Not  to  be  Created  by  Special  Laws  (2).  539 

Forteiture  of  (6,  21) 539,  544 

Of  State  Fire  Insurance  Cos.  (7) 540 

To  be  Approved  (7,  8) 540 

Amendment  of  (32) 548 

Co-operative  Insurance  Companies  (46)...  552 

Corporations — 

Constitutional   Provisions    Concerning 

(1-6) 539 

Suits  by  and  against  (3) 539 

Liability  of  Stockholders  of  (4) 539 

Directors  of  (5) 539 

General  Provisions  Relating  to  (74). . .  560 

Deposits— 

Of  Insurance  Companies  (29,  60). 547,  556 
Under  Reciprocal  Laws  (39) 550 

Directors— 

Election  of  (5,  11,  15) 539,  541,  543 

Powers  and  Duties  of  (16,  17) 54^ 

To  make  up  Impairment  (35) .549 

DiTidends— (21) 

Embezzlement,  Crime  and  Penalty  of  (73)  560 

Fees— 

Paid  to  Auditor  (38) 550 

Under  Reciprocal  Laws  (39) 550 

Fidelity  Insurance  Companies- 
May  be  Formed  (14) 542 

Ratio  of  Risk  to  Capital  ol  ( 1 4) 542 

Fire  Insurance  Companies — 

State  Organization  of  (7-1 1) 540,  541 

Charter  of  ( 7  • 540 

Capital  of  Joint  Stock  (9) 540 

Assets  of  Mutual  (9) 540 

Subscription  to  Capital  of  ( 1 0) 541 

Directors  of  (11,  15-17) 541,  543 

Investment  of  Capital  and  Assets  of 

(12) 541 

Certificate  of  Authority  of  (1 3) 542 

May  Insure,  what  (14) 542 

Annual  Meeting  of  ( 1 5) 543 

Election  of  Officers  of  (16) 543 

Policies  of  (18) 543 

Transfer  of  Stock  of  ( 1 9) 543 

Increase  of  Capital  of  (20) 544 

Dividends  of  (21) 544 

Unearned  Premiums  of  (2 1 ) 544 


538 


NEBRASKA. 


PAGE 

Fire  Insurance  Companies  (Continued)— 

Real  Estate  of  (22) 544 

Annual  Statements  of  (2  6) 545-547 

Impairment  of  Capital  of  (34,  41)  549,  551 

Fees  Paid  by  (38) 550 

Taxation  of  (44,  48,  63).-..  551.  552,  558 

Foreign  Fire  Insurance  Companies — 

Capital  of  (29) 547 

Attorney  of  (29) 547 

Service  of  Process  on  (29,  65) 547,  558 

Deposits  of  (29) 547 

Annual  Statements  of  (29,  31)..  547,  548 
Certificate  of  Authority  of  f  30,37)548,  5.50 

Under  Reciprocal  Laws  (39) 550 

Taxation  of  (44,  48,  63). . .  .551,  552,  558 

Foreign  Life  Insurance  Companies — 

Statements  of  (63-65,  59) 554-56 

Capital  and  Assets  of  (54) 555 

Deposits  of  (60) 556 

Mutual  (61) 557 

Service  of  Process  on  (53,  65) 554,  558 

Fraud  and  False  Swearing  (66) 558 

Health  Ins.  Cos.  may  be  Formed  (14) 542 

IMPAIUMENT  of  Capital  (29,  34,  35,  41)  547, 

549,  551 
Incendiarism— Crime  and  Penalty  of  (67- 

72) 558,  559 

Insurance  upon  Goods  in  Transit  (33) 548 

Insurance  Companies- 
Other  than  Life  (7-48) 540-52 

Organization  of  (7-1 1) 540,  541 

Restrictions  upon  Business  of  (14,  45)  542, 

552 

May  Insure,  what  (14) 542 

Ratio  of  Risk  to  Capital  (14) 542 

Election  of  Directors  and  Officers   of 

(5,  11,  15,  16) 539,541,  543 

Policies  of  (1 8) 543 

Transfer  of  Stock  of  (1 9) 543 

DiTidendsof  (20) 544 

Unearned  Premiums  of  (21) 544 

Real  Estate  of  (22) 544 

Joint  Stock  and  Mutual  to  b«  so  Desig- 
nated (25) 545 

Annual  Statements  of  (26,29,31)  545-47, 

548 

To  Conform  to  Laws  (32) 548 

Examination    of   (13,   20,  27,  34, 

41) 542,  544,  547,  549,  551 

Dissolution  of  (34,  41) 549,  551 

Impairment  of   Capital  of   (29,   34, 

35,  41) 547,549,551 

To   Publish   Certificate   of   Authority 

(40) 551 

To  Pay  Expenses  of  Examination  (41)  551 

Taxation  of  (44,  48,  63) 551,  552,  558 

Suits  Against  (64,  65) 558 

Joint  Stock  Insurance  Companies — 

To  be  so  Designated  (25) 545 

Not  to  do  Business  on  Mutual   Plan 

(45) 552 

Laws  Repealed  (47) 552 

Licenses  under  Reciprocal  Laws  (39) 550 


PAGE 

Life  Insurance  Companies — 

Co-operative  (46) 552 

Semi- Annual  Statements  of  State  (49, 

50) 553 

Penalty   for   not    Making    Statements 

(61) 554 

Real  Estate  of  (62) 554 

Statements  of  Foreign  (53-55,59)  554-56 

Capital  and  Assets  of  Foreign  (64) 555 

Agents  of  (66) 555 

Deposits  of  Foreign  (6  0) 556 

Foreign  Mutual  (61) 557 

Frauds  upon  (66 )  558 

Live  Stock  Ins.  Cos.  may  be  Formed  (14)..  542 

Marine  Ins.  Cos.  may  be  Formed  (14) 54  2 

Mutual  Fire  Insurance  Companies — 

Organization  of  (7-11) 540,  541 

Assets  of  (9) 540 

Premium  Notes  of  (9,  23,  28)  540,  545,  547 

.  Subscriptions  to  (10) 541 

Directors  of  (11,  15) 541,  543 

Investment  of  Assets  of  ( 1  2) 541 

Examinationof  Assets  of  (13) 542 

Annual  Meeting  of  (1 5) 543 

"Who  are  Members  of  (23) 545 

Cancellation  of  Policies  of  ( 2  3 ) 545 

Assessments  of  (26,  28) 545-547 

Impairment  of  Assets  of  (3  6) 550 

Not  to  do  Business  on  Stock  Plan  (46)  552 
Co  operative  (46) 552 

Penalties— 

For  Violation  of  Law  (32,  68)    .-  548,  556 

Under  Reciprocal  Laws  (39) 551 

For  not  Paying  Taxes  (48) 552 

For  not  Making  Statements  (51) 554 

For  Fraud  and  False  Swearing  (66) ...  558 
For  Arson  and  Incendiarism(67-72)558,559 
For  Embezzlement  (73) 560 

Policies — 

How  Made  (18) 543 

Cancellation  of  Mutual  (24) 545 

Premium  Notes  (9,  23,  28) 540 

Premium  Notes  Assessments  upon  (24).. .  545 

Premiums — 

Unearned  (21) 544 

Taxation  of  (44,  48) 551,  552 

Real  Estate  of  Insurance  Cos.  (22,  52)544,  554 

Reciprocal  Laws  (39) 547 

Repeal  of  Laws  (47) 552 

Safe  Deposit  Companies — 

May  be  Formed  (14) 542 

Ratio  of  Risk  to  Capital  of  (1 4) 542 

Service  of  Process— (29,53,  64,  65)  547,  554, 

558 

Stockholders,  Liability  of  (4) 

Taxation—  539 

Of  Insurance  Companies  (44,  48).  551,  552 
Municipal  (63) 558 

Taxes,  Penalty  for  not  Paying  (48) 552 


INSURANCE  STATUTES  OF  NEBRASKA, 


Revised  by  Hon.  Jefferson  B.  Weston,,  Auditor  of  State. 


CONSTITUTIONAL  PEOYISIONS  CONCERNING  CORPOEA- 

TIONS. 

1 .  The  legislature  shall  not  pass  local  or  special  laws  granting 
to  any  corporation,  association,  or  individual,  any  special  or  exclu- 
sive privileges,  immunity  or  franchise  whatever.     {Art.  3,  §  15.) 

2.  No  corijoration  shall  be  created  by  special  law,  nor  its  char- 
ter extended,  changed,  or  ameuded,  except  those  for  charitable, 
educational,  penal,  or  reformatory  puqDoses,  which  are  to  be  and  re- 
main under  the  patronage  and  control  of  the  State,  but  the  legisla- 
ture shall  provide  by  general  laws  for  the  organization  of  all  cor- 
porations hereafter  to  be  created.  All  general  laws  passed  pur- 
suant to  this  section  may  be  altered  from  time  to  time  or  repealed. 
[Art.  11,  Miscellaneous  Corporations,  §  1.) 

3.  All  corporations  may  sue  and  be  sued  in  like  cases  as  nat- 
ural persons.     [Ibid,  §  S.) 

4.  In  all  cases  of  claims  against  corporations  and  joint  stock 
associations,  the  exact  amount  justly  due  shall  be  first  ascertained, 
and  after  the  corporate  property  shall  have  been  exhausted,  the 
original  subscribers  thereof  shall  be  individually  liable  to  the  ex- 
tent of  their  unpaid  subscription,  and  the  liability  for  the  unpaid 
subscription  shall  follow  the  stock.      [Ibid,  §  4.) 

o.  The  legislature  shall  provide  by  law  that  in  all  elections  for 
directors  or  managers  of  incorporated  companies,  every  stockholder 
shall  have  the  right  to  vote  in  person  or  by  proxy  for  the  number  of 
shares  of  stock  owaed  by  him,  for  as  many  persons  as  there  are  di- 
rectors or  managers  to  be  elected,  or  to  cumulate  said  shares  and 
give  one  candidate  as  many  votes  as  the  number  of  directors  multi- 
pHed  by  the  number  of  his  shares  of  stock  shall  equal,  or  to  distri- 
bute them  upon  the  same  principle  among  as  many  candidates  as  he 
shall  think  fit ;  and  such  directors  or  managers  shall  not  be  elected 
in  any  other  manner.     {Ibid,  §  5.) 

©.  All  existing  charters  or  grants  of  special  or  exclusive  privi- 
leges under  which  organization  shall  not  have  taken  place,  or  which 
shall  not  be  in  operation  within  sixty  days  from  the  time  this  con- 
stitution takes  effect  [November  1,  1875],  shall  thereafter  have  no 
validity  or  effect  whatever.     {Ibid,  §  6.) 


INSURANCE  COMPANIES  OTHER  THAN  LIFE. 

7.    Hereafter  when  any  number  of  persons  associate  themselves 
together  for  the  purpose  of  forming  an  insurance  company,  for  any 


540  hine's  insiteance  statutes. 

other  purpose  than  life  insurance,  under  the  provisions  of  chapter 
twenty-five  of  the  revision  of  1866,  and  all  acts  amendatory  and 
sjipplementary  thereto,  they  shall  publish  a  notice  of  such  intention 
once  in  each  week,  for  four  weeks,  in  some  public  newspaper  in  the 
county  in  which  such  insurance  company  is  proposed  to  be  located, 
and  they  shall  also  make  a  certificate  under  their  hand,  specifying 
the  name  assumed  by  such  company  and  by  which  it  shall  be 
known,  the  object  for  which  said  company  shall  be  formed,  the 
amount  of  its  capital  stock,  and  the  place  where  the  principal  office 
of  said  company  shall  be  located,  which  certificate  shall  be  acknowl- 
edged before  and  certified  by  some  notary  public  or  clerk  of  court  of 
record  and  forwarded  to  the  Auditor  of  State,  who  shall  submit  the 
same  to  the  Attoruey-General  of  State  for  examination,  and  if  it 
shall  be  found  by  the  Attorney-General  of  State  to  be  in  accordance 
with  the  pro\isions  of  this  act,  and  not  in  conflict  with  the  consti- 
tution and  laws  of  the  United  States  and  this  State,  he  shall  make 
certificate  of  the  facts,  and  return  it  to  the  Auditor  of  State,  who 
shall  reject  the  name  or  title  applied  for  by  any  company  when  he 
shall  deem  the  same  too  similar  to  any  one  already  appropriated  by 
any  other  company,  or  likely  to  mislead  the  public.  {General  Stat- 
utes, 1873, 1).  429,  §  1.) 

8.  When  the  said  certificate  of  the  said  company  shall  have 
received  the  approval  of  the  Attorney  of  State  and  Auditor  of 
State,  the  said  company  shall  cause  the  same  to  be  recorded  as  now 
required  by  law  for  recording  articles  of  incorporation ;  and  said 
persons,  when  incorporated  and  having  in  all  respects  complied 
with  the  provisions  of  this  act  are  hereby  authorized  to  carry  on 
the  business  of  insurance,  as  named  in  such  certificate  of  incorpo- 
ration, and  by  the  name  and  style  provided  therein,  and  shall  be 
deemed  a  body  corporate  with  succession,  they  and  their  associates, 
successors,  and  assigns,  to  have  the  same  general  corporate  i)owers, 
and  be  subject  to  all  the  obligations  and  restrictions  of  said  chapter 
twenty-five  of  revision  of  1866,  and  of  such  acts  as  may  be  amend- 
atory or  supplementary,  except  as  may  be  herein  otherwise  provided. 
{Ibid,  §  2.) 

9.  No  joint-stock  company  shall  be  incorporated  under  the 
provisions  of  this  act,  with  a  smaller  capital  than  one  hundred 
thousand  dollars,  nor  more  than  one  million  dollars,  as  may  be 
specified  in  the  certificate  of  incorporation,  which  stock  shall  be 
divided  into  shares  of  one  hundred  dollars  each,  of  which  capital  at 
least  fifty  per  cent,  shall  be  fully  paid  up  in  cash,  and  that  for  the 
remainder  of  its  capital  there  are  in  its  possession  notes  of  its 
stockholders  secured  by  at  least  one  surety  or  by  mortgages  on  un- 
incumbered real  estate,  within  this  State,  worth  at  least  twice  the 
amount  of  such  notes,  which  notes  or  other  security  shall  be  ap- 
proved by  the  State  Auditor ;  nor  shall  any  company  on  the  plan  of 
mutual  insurance  commence  business  in  this  State  until  agreements 
have  been  entered  into  for  insurance  with  at  least  two  hundred  ap- 
plicants, the  premiums  upon  which  shall  amount  to  not  less  than 
twenty-five  thousand  dollars,  of  which  at  least  five  thousand  dollars 
shall  have  been  paid  in  actual  cash,  and  for  the  remainder  of  which 
notes  of  solvent  parties,  founded  upon  actual  and  bona  fide  applica- 
tions for  insurance,  shall  have  been  received ;  no  one  of  the  notes 
received  as  aforesaid  shall  amount  to  more  than  five  hundred  dol- 
lars, and  no  two  thereof  shall  be  given  for  the  same  risk  or  made 
by  the  same  person  or  firm,  except  when  the  whole  amount  of  such 


NEBRASKA.  541 

notes  does  not  exceed  the  sum  of  five  hundred  dollars ;  nor  shall 
any  note  be  regarded  or  represented  as  capital  stock,  unless  a  policy 
be  issued  upon  the  same  within  thirty  days  after  the  organization  of 
the  company  taking  the  same,  upon  a  risk  which  shall  be  for  no 
shorter  i)eriod  than  twelve  months;  each  of  said  notes  shall  be 
payable  in  whole  or  in  part,  at  any  time  when  the  directors  shall 
deem  the  same  requisite  for  the  payment  of  losses  by  fire  or  inland 
navigation,  and  such  incidental  expenses  as  may  be  necessary  for 
transacting  the  business  of  said  company ;  and  no  notes  shall  be  ac- 
cepted as  part  of  such  capital  stock,  unless  the  same  shall  be  accom- 
panied by  a  certificate  of  a  justice  of  the  peace,  notary  public,  or 
Clerk  of  the  District  Court  of  the  county  in  which  the  person  execu- 
ting such  note  shall  reside,  that  the  person  making  the  same  is,  in 
his  opinion,  pecuniarily  good  and  responsible  for  the  same  in  prop- 
erty not  exempt  from  execution  by  the  laws  of  their  State ;  and  no 
such  note  shall  be  surrendered  while  the  policy  for  which  it  was 
given  continues  in  force.     {Ibid,  p.  430,  §  3.) 

10.  Having  j)ublished  the  notice  and  tiled  publisher's  affidavit 
of  the  publication  thereof  with  the  Auditor  of  State,  together  with 
the  certificate,  as  required  by  the  first  section  of  this  act,  the  per- 
sons named  in  the  certificate  of  incorporation,  or  a  majority  of  them, 
shall  be  commissioned  to  open  books  for  the  subscription  of  stock  to 
the  company,  at  such  times  and  places  as  to  them  may  seem  con- 
venient and  i)roper,  and  shall  keep  the  same  open  until  the  full 
amount  specilied  in  the  certificate  is  subscribed ;  or  in  case  the  busi- 
ness of  such  company  is  proposed  to  be  conducted  on  the  plan  of 
mutual  insurance,  then  open  books  to  receive  propositions  and  enter 
into  agreement  in  the  manner  and  to  the  extent  specified  in  the  third 
section  of  this  act.     ( Ibid,  p.  431,  §  4.) 

1 1 .  The  affairs  of  any  company  organized  under  the  provisions 
of  this  act  shall  be  managed  by  not  more  than  twenty-one  nor  fewer 
than  five  directors,  all  of  whom  shall  be  stockholders  ;  within  thirty 
days  after  the  subscription  books  shall  have  been  filled,  a  ma- 
jority of  the  subscribers  shall  hold  a  meeting  for  the  election  of  di- 
rectors, each  share  entitling  the  holder  thereof  to  one  vote ;  and 
the  directors  there  elected  shall  continue  in  office  until  their  succes- 
sors have  been  duly  chosen  and  have  accepted  the  trust.     {Ibid,  §  5.) 

1 2.  It  shall  be  lawful  for  any  insurance  company  organized 
under  this  act,  or  incorporated  under  any  law  of  this  State,  to  invest 
its  capital  and  the  funds  accumulated  in  the  course  of  its  business, 
or  any  part  thereof,  in  bonds  and  mortgages  on  unencumbered  real 
estate,  within  the  State  of  ^S^ebraska,  worth  double  the  sum  loaned 
thereon,  exclusive  of  buildings,  unless  such  buildings  are  insured  in 
some  responsible  company  or  companies  and  the  policy  or  policies 
transferred  to  said  company,  and  also  in  stocks  of  this  State  or  stocks 
or  treasury  notes  of  the  United  States,  in  the  stocks  and  bonds  of 
any  county  or  incorporated  city  in  this  State,  which  may  have  been 
therefore  authorized  to  be  issued  by  the  Legislature  of  this  State, 
and  to  lend  the  same,  or  any  part  thereof,  on  the  security  of  such 
stock,  or  lands,  or  treasury  notes,  or  upon  bonds  and  mortgages  as 
aforesaid,  and  not  otherwise  ;  and  to  change  and  reinvest  the  same 
in  like  securities,  as  occasion  may  from  time  to  time  require ;  but 
any  surplus  money  over  and  above  the  paid-up  capital  stock  of  any 
such  company  organized  under  this  act  or  incorporated  under  any 
law  of  this  State,  may  be  invested  in  or  loaned  upon  the  pledge  of 
public  stocks  of  United  States  or  any  of  the  States,  or  stocks,  bonds, 


542  hine's  insuhance  statutes. 

or  other  evidences  of  indebtedness  of  any  solvent,  dividend-paying 
institutions  incorporated  under  the  laws  of  this  State  or  the  United 
States,  except  their  own  stock  5  Provided,  ahcays,  That  the  current 
market  value  of  such  stock,  bonds  or  other  evidence  of  indebtedness 
shall  be  at  all  times  during  the  continuances  of  such  laws  at  least 
twenty  per  cent,  more  than  the  sum  loaned  thereon.     {Ibid,  §  6.) 

ISS.  Upon  recei^ing  notification  that  the  requirements  of  the 
preceding  sections  have  been  complied  with,  the  Auditor  of  State 
shall  make  an  examination,  or  cause  one  to  be  made  by  some  dis- 
interested person  officially  appointed  by  him  for  that  purpose,  and 
if  it  shall  be  found  (if  the  examination  shall  be  made  other  than  by 
the  Auditor,  then  the  finding  shall  be  certified  under  oath)  that  the 
capital  herein  required  by  the  company  named,  according  to  the 
nature  of  the  business  proposed  to  be  transacted  by  such  company, 
has  been  paid  in  and  possessed  by  it  in  money,  or  in  such  stocks, 
notes,  bonds,  or  mortgages,  as  are  required  by  the  third  and  sixth 
sections  of  this  act,  then  he  shall  so  certify  ;  and  if  the  examination 
be  made  by  other  than  the  Auditor,  then  the  finding  shall  be  certi- 
fied under  oath  ;  or  if  it  is  proposed  to  be  a  mutual  insurance  com- 
pany, that  it  has  received  and  is  in  actual  possession  of  the  capi- 
tal, premiums,  or  bona  fide  engagements  of  insurance,  or  the  securi- 
ties, as  the  case  may  he,  to  the  extent  and  value  required  by  the 
third  and  sixth  sections  of  this  act,  the  name  and  residence  of  the 
maker  of  each  premium  note  forming  part  of  the  capital  of  any  such 
proposed  mutual  insurance  company,  and  the  amount  of  such  note, 
shall  be  returned  to  the  Auditor.  The  corporators  or  officers  of  any 
such  company  or  proposed  company  contemplated  by  this  act,  shall 
be  required  to  certify,  under  oath,  to  the  Auditors  of  State,  that  the 
capital  exhibited  to  the  person  making  the  examination  directed  in 
this  section,  was  bona  fide  property  of  the  company  so  examined ; 
the  certificates  above  contemplated  shall  be  filed  in  the  office  of  said 
Auditor,  who  shall  thereupon  deliver  to  such  company  a  certified 
copy  of  the  same,  with  his  written  permission  for  them  to  commence 
business  as  proposed  in  their  written  certificate  of  incorporation, 
which  on  being  placed  on  record  in  the  office  of  the  Recorder  of 
the  county  in  which  the  company  is  to  be  located,  by  the  Recorder, 
in  a  book  prepared  by  him  for  that  purpose,  shall  be  their  authority 
to  commence  business  and  issue  policies  ;  and  such  certified  copy  of 
said  certificate  may  be  used  in  evidence  for  or  against  said  com- 
l)any  with  the  same  effect  as  the  originals.     {Ibid,  p.  432,  §  7.) 

1 4.  It  shall  be  lawful  for  any  company  organized  under  this  act, 
or  doing  business  in  this  State :  1st.  To  insure  houses,  buildings,  and 
all  other  kinds  of  property  against  loss  or  damage  by  fire  or  other 
casualty,  and  to  make  all  kind  of  insurance  on  goods,  merchandise, 
or  other  i)roperty,  in  the  course  of  transportation,  whether  on  land 
or  water,  or  any  vessel  afloat,  wherever  the  same  may  be.  2d.  To 
make  insurance  on  the  health  of  individuals,  and  against  the  per- 
sonal injury,  disablement,  or  death,  resulting  from  traveling,  or 
general  accidents  by  land  or  water.  3d.  To  insure  the  fidelity  of 
persons  holding  places  of  public  or  private  trust.  4th.  To  receive  on 
deposit  and  ensure  the  safe-keeping  of  books,  papers,  moneys,  stocks, 
bonds,  and  all  kinds  of  personal  property.  5th.  To  insure  horses, 
cattle,  and  other  stock,  against  loss  or  damage  by  accident,  theft, 
or  any  unknown  or  contingent  event  whatever  which  may  be  the 
subject  of  legal  insurance;  to  lend  money  on  bottomry  or  responden- 
tia, and  to  cause  itself  to  be  insured  against  any  loss  or  risk  it  may 


NEBRASKA.  543 

have  iucurred  iu  the  course  of  its  business  and  upon  the  interest 
which  it  may  have  in  any  property  by  means  of  any  loan  or  loans 
which  it  may  have  made  on  mortgage,  bottomry,  or  respondentia  ; 
and  generally  to  do  and  perform  all  other  matters  and  things  proper 
to  promote  these  objects ;  Provided,  That  no  company  shall  be  or- 
ganized to  issue  policies  of  insurance  for  more  than  one  of  the  above 
live  mentioned  piu'i)oses  ;  and  no  com^iany  that  shall  have  been  or- 
ganized for  either  one  of  said  purposes,  shall  issue  policies  of  insur- 
ance for  any  other ;  and  no  company  organized  under  this  act,  or 
transacting  business  in  this  State,  shall  expose  itself  to  loss  on  any 
one  risk  or  hazard  to  an  amount  exceeding  ten  per  cent,  of  its  paid 
up  capital,  unless  the  excess  shall  be  insured  by  the  same  in  some 
other  good  and  reliable  company ;  and  Provided,  That  the  restric- 
tion as  to  the  amount  of  risk  any  company  shall  assume  shall  not 
apply  to  companies  organized  to  guarantee  the  fidelity  of  persons  in 
places  of  public  or  private  trust,  nor  to  companies  that  receive  on 
deposit  and  guarantee  the  safe- keeping  of  books,  papers,  moneys, 
and  other  property.     {Ibid,  §  8.) 

15.  The  annual  meeting  for  the  election  of  directors  shall  be 
holden  during  the  month  of  January,  as  the  by-laws  of  the  company 
may  dii-ect ;  Provided,  hoicever,  That  if  for  any  cause  the  stockholders 
shall  fail  to  elect  at  any  annual  meeting,  then  they  may  hold  a  spe- 
cial meeting  some  day  subsequent  thereto  for  that  purpose,  by  giv- 
ing thirty  days'  notice  thereof  in  some  newspaper  in  general  circula- 
tion in  the  county  in  which  the  principal  office  of  the  company  shall 
be  located ;  and  the  directors  chosen  at  any  such  annual  or  si)ecial 
meeting  shall  continue  in  ofdce  until  the  next  annual  meeting,  and 
until  their  successors  duly  elected  shall  have  accepted.  [Ibid,  p.  433, 
§9.) 

16,  The  directors  shall  choose  by  ballot  a  president  from  their 
own  number,  and  shall  fill  all  vacancies,  which  shall  arise  in  the 
board  or  in  the  presidency  thereof,  and  the  board  of  directors  thus 
constituted,  or  a  majority  of  them,  when  convened  at  tlie  office  of 
the  company,  shall  be  competent  to  exercise  all  the  powers  vested 
in  them  bv  this  act.     {Ibid,  p.  434,  §  10. ) 

1  7,  The  directors  of  any  such  company  shall  have  power  to  ap- 
point a  secretary  and  any  other  officer  or  agent  necessary  for  transact- 
ing the  business  of  the  comi^any ,  pay  ing  such  salaries  and  taking  such 
securities  as  they  may  deem  reasonable ;  they  may  ordain  and  estab- 
lish such  by-laws  and  regulations,  not  inconsistent  with  this  act  or 
with  the  constitution  and  laws  of  the  United  States  and  of  this 
State,  as  shall  appear  to  them  necessary  for  regulating  and  conduct- 
ing the  business  of  the  company ;  and  it  shall  be  their  duty  to  keep 
full  and  correct  entries  of  their  transactions,  which  shall  at  all  times 
be  open  to  the  inspection  of  the  stockholders,  and  to  the  inspection 
of  i)ersons  invested  by  law  with  the  right  thereof.     {Ibid,  §  11.) 

1 8.  All  policies  or  contracts  of  insurauce  made  or  entered  into 
by  the  company  may  be  made  either  with  or  without  the  seal  of  said 
company ;  but  said  policies  shall  be  subscribed  by  the  president  or 
such  other  officer  as  may  be  designated  by  the  directors  for  that 
purpose,  and  shall  be  attested  by  the  secretary  thereof     (Ibid,  §  12.) 

19.  Transfers  of  stock  may  be  made  by  any  stockholder  or  his 
legal  representative,  subject  to  such  restrictions  as  the  directors 
shall  from  time  to  time  establish  in  their  by-laws,  except  as  herein- 
after provided.     {Ibid,  §  13.) 

20.  Whenever  any  comj)any  organized  under  this  act,  with 


644  hine's  insurance  statutes. 

less  than  the  maxiniiun  capital  limited  in  section  three  thereof, 
shall,  in  the  opinion  of  the  directors  thereof,  require  an  increased 
amount  of  capital,  they  shall,  if  authorized  by  the  holders  of  a  ma- 
joritj'  of  the  stock  to  do  so,  file  with  the  Auditor  of  State  a  certificate 
setting  forth  the  amount  of  such  desired  increase  not  exceeding  said 
maximuui,  and  thereafter  such  company  shall  be  entitled  to  have  the 
increased  amount  of  capital  fixed  by  said  certificate;  and  the 
examination  of  securities  composing  the  capital  stock  thus  increased 
shall  be  made  in  the  same  manner  as  provided  in  section  seven  of 
this  act,  for  the  capital  stock  first  paid  in.     {Ibid,  §  14.) 

21.  It  shall  not  be  lawful  for  the  directors,  trustees,  or  man- 
agers of  any  insurance  comi)any  organized  under  this  act  or  incor- 
porated under  any  law  of  this  State,  to  make  any  dividend  except 
from  the  surplus  profit  arising  from  their  business,  and  in  estimating 
such  profits  there  shall  be  reserved  therefrom  a  sum  equal  to  forty 
per  cent,  of  the  amount  received  as  premiums  on  unexpired  risks 
and  policies,  which  amount  so  reserved  is  hereby  declared  to  be  un- 
earned premiums ;  and  there  shall  also  be  reserved  all  sums  due  the 
corporation  on  bonds  and  mortgages,  bonds,  stocks,  and  book  ac- 
counts of  which  no  part  of  the  principal  or  interest  thereon  has  been 
paid  during  the  year  preceding  such  estimate  of  profits,  and  upon 
which  suit  for  foreclos\ire  or  collections  has  not  been  commenced,  or 
which,  after  judgment  has  been  obtained  thereon,  shall  have  re- 
mained more  than  two  years  unsatisfied  and  upon  which  interest 
shall  not  have  been  paid;  and  in  case  of  any  such  judgment,  the 
interest  due  or  accrued  thereon  and  remaining  unpaid  shall  also  be 
reserved.  Any  dividends  made  contrary  to  these  provisions  shall 
subject  the  company  making  it  to  a  forfeiture  of  their  charter. 
{Ibid,  §  15.) 

22.  No  company  organized  under  this  act  shall  purchase,  hold, 
or  convey  any  real  estate,  save  for  the  piu'pose  and  in  the  manner 
herein  set  fortb,  to  wit:  1st.  Such  as  shall  be  requisite  for  its  con- 
venient accommodation  in  the  transaction  of  its  business ;  2d.  Such 
as  shall  have  been  mortgaged  to  it  in  good  faith  by  way  of  security 
for  loans  previously  contracted  or  for  money  due ;  or,  3d.  Such  as 
shall  have  been  conveyed  to  it  in  satisfaction  of  debts  previously 
contracted  in  the  legitimate  business  of  the  company  or  for  money 
due ;  or  4tb.  Such  as  shall  have  been  purchased  at  sales  or  upon 
judgments,  decrees,  or  mortgages  obtained  or  made  for  such  debts. 
And  it  shall  not  be  lawful  for  any  such  company  to  purchase,  hold, 
or  convey  real  estate  in  any  other  case,  or  for  any  other  purpose,  or 
acquired  in  any  other  manner,  except  that  it  may  convey  real  estate 
which  shall  be  found  in  the  course  of  its  business  not  necessary  for 
its  convenient  accommodation  in  the  transaction  thereof;  and  all 
such  last  mentioned  real  estate  shall  be  sold  and  conveyed  within 
three  years  after  the  same  shall  have  been  deemed  by  the  Auditor 
of  State  unnecessary  for  such  accommodation,  unless  the  company 
shall  procure  a  certiticate  from  the  said  Auditor  that  the  interest  of 
said  company  wiU  materially  suft'er  by  a  forced  sale,  in  which  event 
the  sale  may  be  postponed  for  such  a  period  as  the  said  Auditor  shall 
direct  in  said  certificate.     {Ibid,  p.  435,  §  16.) 

23.  All  notes  deposited  with  any  mutual  insurance  company, 
at  the  time  of  its  organization  as  provided  for  in  section  three  hereof, 
shall  remain  security  for  losses  and  claims,  until  the  accumulation 
of  the  profits  invested  as  required  by  the  sixth  section  of  this  act, 
shall  equal  the  amount  of  cash  capital  required  to  be  possessed  by 


NEBRASKA.  545 

stock  companies  organized  under  this  act,  the  liability  of  each  note 
decreasing  proportionately  as  the  profits  are  accumulated ;  but  any 
note  which  may  have  been  deposited  with  any  mutual  insurance 
company,  subsequent  to  its  organization,  iu  addition  to  the  cash 
premiums,  or  any  insurance  effected  with  such  company  may,  after 
the  expmition  of  the  time  of  such  insurance,  or  upon  the  cancellation 
^by  the  company  of  the  policy,  be  relinquished  and  given  up  to  the 
maker  thereof,  or  his  legal  representatives,  upon  his  paying  his  pro- 
portion of  losses  and  expenses  which  may  have  accrued  thereon  dur- 
ing such  term.  The  directors  or  trustees  of  any  such  company  shall 
have  the  right  to  determine  the  amount  of  the  note  to  be  given,  in 
addition  to  the  cash  premiums,  by  any  person  insured  in  such  com- 
pany ;  and  every  person  effecting  insurance  in  any  mutual  company, 
and  also  their  heu\s,  executors,  administrators,  and  assigns,  continu- 
ing to  be  so  insured,  shall  thereby  become  members  of  said  company 
during  the  period  of  insurance,  and  shall  be  bound  to  pay  for  losses 
and  such  necessary  expenses  as  aforesaid  accruing  to  said  company, 
in  proportion  to  his  or  their  deposit  note  or  notes;  Provided,  ^Jhat 
any  person  insured  iu  any  mutual  company,  except  in  the  case  of 
notes  requii'ed  by  this  act  to  be  deposited  at  the  time  of  its  organ- 
ization, may  at  any  time  return  the  policy  for  cancellation,  and  upon 
payment  of  the  amount  due  at  such  time  upon  his  premium  note, 
shall  be  discharged  from  further  liability  thereon.     {Ibid,  §  17.) 

S4.  The  directors  shall,  as  often  as  they  deem  necessary,  after 
receiving  notice  of  any  loss  or  damage,  settle  and  determine  the 
sums  to  be  paid  by  the  several  members  thereof,  as  their  respective 
portions  of  such  loss,  and  publish  the  same  in  such  manner  as  tbey 
shall  deem  proper  or  the  by-laws  shall  have  prescribed;  but  the 
sum  to  be  paid  by  each  member  shall  always  be  in  i^roportion  to  the 
original  amount  of  his  deposit  note  or  notes,  and  shall  be  paid  to 
the  officers  of  the  company  within  thirty  days  after  the  publication 
of  said  notice ;  and  if  any  member  shall,  for  the  space  of  thirty  days 
after  personal  demand,  or  by  letter,  for  payment  shall  have  been 
made,  neglect  or  refuse  to  pay  the  sum  assessed  upon  him  as  pro- 
portion of  any  loss  aforesaid,  the  directors  may  sue  for  and  recover 
the  whole  amount  of  his  deposit  note  or  notes,  with  cost  of  suit;  but 
execution  shall  issue  for  assessments  and  costs  as  they  accrue  only, 
and  every  such  execution  shall  be  accompanied  by  a  list  of  losses  for 
which  such  assessment  was  made ;  if  the  whole  amount  of  deposit 
notes  shall  be  insufficient  to  pay  the  loss  occasioned,  the  sufferers 
insured  by  the  said  company  shall  receive,  toward  making  good  their 
respective  losses,  a  proportionate  share  of  the  whole  amount  of  said 
notes,  according  to  the  sums  to  them  respectively  insured ;  but  no 
member  shall  ever  be  required  to  pay  for  any  loss  more  than  the 
whole  amount  of  his  deposit  note  or  notes.     [Ibid,  p.  436,  §18.) 

23.  Every  insurance  company  hereafter  organized  as  provided 
in  this  act  shall,  if  it  be  a  mutual  company,  embody  the  word 
"  mutual"  in  its  title,  which  shall  appear  upon  the  first  page  of  every 
policy  and  renewal  receipt ;  and  every  company  doing  business  as  a 
cash  stock  company,  shall,  upon  the  face  of  its  policies,  express  in 
some  suitable  manner  that  such  policies  were  issued  by  stock  com- 
panies.    {Ibid, }).  437,  §  19.) 

26.  It  shall  be  the  duty  of  the  president  or  of  the  vice-president 
and  secretary  of  each  company  organized  under  this  act,  or  incor- 
porated under  any  law  of  this  State,  or  doing  business  in  this  State 
annually,  on  the  first  day  of  January  of  each  year,  or  within  thirty 
35 


546  HINE'S   mSUEANCE   STATUTES. 

days  thereafter,  to  prepare  under  oath  and  deposit  in  the  office  of 
the  Auditor  of  State,  a  full,  true  and  complete  statement  of  the  con- 
dition of  such  company  on  the  last  day  of  the  month  preceding  that 
in  which  such  statement  is  filed,  which  last  statement  shall  exhibit 
the  following  items  and  facts  in  the  follomng  forms,  viz. : 

First. — The  amount  of  capital  stock  of  the  company. 

Second. — The  name  of  the  officers. 

Third. — The  name  of  the  company  and  where  located. 

^oi/r//i.— The  amount  of  capital  stock  paid  up. 

Fifth. — The  property  or  assets  held  by  the  company,  specifying 
the  value  as  near  as  may  be  of  the  real  estate  owned  by  such  com- 
pany. 

1.  The  amount  of  cash  on  hand  and  deposited  in  banks  to 
the  credit  of  the  company,  and  in  what  bank  the  same  is  de- 
posited. 

2.  The  amount  of  cash  in  the  hands  of  agents,  and  in  course 
of  transmission. 

3.  The  amount  of  loans  secured  by  first  mortgages  on  real 
estate,  with  the  rate  of  interest  thereon,  sjiecifying  the  location 
of  such  real  estate,  and  its  assessed  valuation. 

4.  The  amount  of  all  other  bonds  and  loans,  and  how  secured, 
with  the  rate  of  interest  thereon. 

5.  The  amount  due  the  company  on  which  judgments  has  been 
obtained. 

6.  The  amount  of  stocks  of  this  State,  of  the  United  States, 
of  any  incorporated  city  of  this  State,  and  of  any  other  stock 
owned  by  the  company,  specifying  the  amount,  numbers  of 
shares,  and  par  and  market  value  of  each  kind  of  stock. 

7.  The  amount  of  stock  held  by  such  company  as  collateral 
security  for  loans,  with  amount  loaned  on  each  kind  of  stock, 
its  par  and  market  value. 

8.  The  amount  of  assessment  on  stock  and  premium  notes 
paid  and  unpaid. 

9.  The  amount  of  interest  actually  due  and  unpaid. 

10.  All  other  securities  and  their  value. 

11.  The  amount  for  which  premium  notes  have  been  given, 
on  which  policies  have  been  issued. 

Sixth.— The  liabilities  of  such  company,  specifying  the  losses  ad- 
justed and  due. 

1.  Losses  adjusted  and  not  due. 

2.  Losses  unadjusted. 

3.  Losses  in  suspense,  and  the  causes  thereof. 

4.  Losses  resisted  and  in  litigation. 

5.  Dividends  either  in  scrip  or  cash,  specifying  the  amount 
of  each,  declared,  but  not  due. 

6.  Dividends  declared  and  due. 

7.  The  amount  required  to  reinsure  all  outstanding  risks  on 
the  basis  of  forty  per  cent,  of  the  premium  on  all  unexpired 
risks. 

8.  The  amount  due  banks  or  other  creditors. 

9.  The  amount  of  money  ])orrowed,  and  the  security  therefor. 

10.  All  other  claims  against  the  company". 

Seventh. — The  income  of  the  company  during  the  previous  year, 
specifying  the  amount  received  for  premiums  exclusive  of  ])remium 
notes ;  the  amount  of  premium  notes  received ;  the  amount  received 
for  interest ;  the  amount  received  for  assessment-calls  on  stock  or 


NEBRASKA.  547 

notes,   or  premium  notes ;    the   amount  received  from   all   other 
soui'ces. 

Eighth. — The  expenditures  during  the  preceding  year,  specifying 
the  amount  of  losses  paid  during  said  term,  stating  how  much  of 
the  same  accrued  prior,  and  how  much  subsequent  to  the  date  of 
the  preceding  statement,  and  the  amount  at  which  losses  were  esti- 
mated in  such  preceding  statement. 

1.  The  amount  paid  for  dividends. 

2.  The   amount  i)aid  commissions,   salaries,   expenses,   and 
other  charges  of  agents,  clerks,  and  other  employees. 

3.  The  amount  paid  for  salaries,  fees,  and  other  charges  of 
office  and  directors. 

4.  The  amount  paid  for  local.  State,  national,  internal  revenue, 
and  other  taxes  and  duties. 

5.  The  amount  paid  for  all  other  expenses,  expenditures,  in- 
cluding i^rinting,  stationery,  rents,  furniture,  etc. 

Ni)ith.  — The  largest  amount  insured  in  any  one  risk. 

Tenth. — The  amount  of  risks  written  during  the  year  then 
ending. 

Eleventh.  — The  amount  of  risks  in  force  having  less  than  one 
year  to  run. 

Twelfth. — The  amount  of  risks  in  force  having  more  than  one, 
and  not  over  three  years,  to  run. 

Thirteenth. — The  amount  of  risks  having  more  than  three  years 
to  run. 

Fourteenth.  —The  following  question  must  be  answered,  ^iz. : 
"  Are  dividends  declared  on  i)remiums  received  for  risks  not  ter- 
minated ?  " 

The  Auditor  of  State  shall  withhold  the  certificate  of  authority 
from  any  such  company  neglecting  or  failing  to  comply  with  the 
provisions  of  this  section.     {Ibid,  §  20.) 

27.  The  Auditor  of  State  is  hereby  authorized  and  empowered 
to  address  any  inquiries  to  any  insurance  companj^  in  relation  to  its 
doings  and  condition,  or  any  other  matter  connected  with  its  trans- 
actions which  he  may  deem  necessary  for  the  public  good,  or  for  a 
proper  discharge  of  his  duties ;  and  it  shall  be  the  duty  of  any  com- 
pany so  addi-essed  to  promptly  reply  in  writing  thereto.  {Ibid, 
p.  439,  §  21.) 

28.  The  statement  of  any  company,  the  capital  of  which  is 
composed  in  whole  or  in  part  of  notes,  shall,  in  addition  to  the  fore- 
going, exhibit  the  amount  of  notes  originally  forming  the  capital, 
and  also  what  proportion  of  said  notes  are  still  held  by  such  com- 
pany and  considered  capital.     {Ibid,  §  22.) 

29.  It  shall  not  be  lawful  for  any  insurance  company,  associa- 
tion, or  partnership,  organized  or  associated  for  any  of  the  purposes 
specified  in  this  act,  incorporated  by,  or  organized  under  the  laws 
of  any  other  State  of  the  United  States,  or  any  foreign  government, 
directly  or  indirectly,  to  take  risks  or  transact  any  business  of  in- 
surance in  this  State,  unless  possessed  of  two  hundred  thousand 
dollars  of  actual  paid-up  capital,  exclusive  of  any  assets  of  any  such 
company  as  shall  be  deposited  in  any  other  States  or  Territories  for 
the  special  benefit  or  security  of  the  insured  therein.  And  any  such 
company  desiring  to  transact  any  such  business  as  aforesaid,  by  an 
agent  or  agents  in  this  State,  shall  appoint  one  attorney  in  each 
county  in  which  agencies  are  established,  resident  at  the  county 
seat,  and  shall  file  with  the  Auditor  of  State  a  written  instrument 


548  hine's  insurance  statutes. 

duly  signed  and  sealed,  authorizing  such  attorney  of  such  company 
to  acknowledge  service  of  process  for  and  in  behalf  of  such  company 
in  this  State,  consenting  that  such  ser%ice  of  process,  mesne  or  final 
upon  such  attorney,  shall  be  taken  and  held  as  valid  as  if  served 
upon  the  company  to  the  laws  of  this  or  any  other  State,  and  waiv- 
ing all  claim  or  right  of  error  by  reason  of  such  acknowledgment  or 
ser\ice,  and  also  a  certified  copy  of  their  charter  or  deed  of  settle- 
ment, together  with  a  statement,  under  the  oath  of  the  president  or 
vice  president,  or  other  chief  ofQcer,  and  the  secretary  of  the  com- 
pany for  which  they  may  act,  stating  the  name  of  the  company  and 
the  place  where  located,  the  amount  of  its  capital,  with  a  detailed 
statement  of  the  facts  and  items  as  required  Irom  companies  organ- 
ized under  the  laws  of  this  State,  as  per  section  twenty  hereof. 
Such  statement  shall  also  show  to  the  full  satisfaction  of  the  Au- 
ditor of  State,  that  said  comijany  has  deposited,  in  some  one  of  the 
United  States  or  Territories,  a  sum  not  less  than  twenty -five  thou- 
sand dollars  for  the  special  benefit  or  security  of  the  insured  therein, 
and  shall  file  also  a  copy  of  the  last  annual  report,  if  any,  made 
under  any  law  of  the  State  by  which  such  company  was  incorpo- 
rated ;  and  no  agent  shall  be  allowed  to  transact  business  for  any 
company  whose  capital  is  impaired  by  the  liabilities,  as  stated  in 
section  twenty  of  this  act,  to  the  extent  of  tAventy  per  cent,  thereof, 
while  such  deficiency  shall  continue,     {Ibid,  §  23.) 

30.  It  shall  not  be  lawful  for  any  agent  or  agents,  or  individual, 
to  act  for  any  insurance  company  or  companies  referred  to  in  this 
act,  directly  or  indirectly,  in  taking  risks  or  transacting  business  of 
insiu-ance  in  this  State  without  procuring  from  the  Auditor  of  State 
a  certificate  of  authority,  stating  that  such  company  has  complied 
with  all  the  requisitions  of  this  act.     {Ibid, 2)-  440,  §  24.) 

3 1 .  The  statements  and  evidences  of  investments  required  of 
foreign  companies  as  above  shall  be  renewed  annually  in  such  man- 
ner and  form  as  required  by  this  act,  and  as  said  Auditor  may  di- 
rect, with  any  additional  statement  of  the  amount  of  the  losses  in- 
curred or  premiums  received  in  this  State  during  the  preceding 
period,  so  long  as  such  agency  continues;  and  the  said  Auditor,  on 
being  satisfied  that  the  capital,  securities,  and  investments  remain 
secure,  as  hereinbefore  provided,  shall  lurnish  a  renewal  of  his  cer- 
tificate as  aforesaid.     {1  bid,  §  25.) 

32.  Every  insurance  company  organized  under  the  laws  of  or 
doing  business  in  this  State  shall  contorm  to  all  the  provisions  of 
this  act  applicable  thereto  on  or  before  the  first  day  of  Ai)ril,  1873; 
and  when  necessary,  any  existing  compiaiy  shall  change  its  charter 
and  by-laws,  so  as  to  conform  thereto,  by  a  vote  of  a  nuxjority  of  its 
board  of  directors,  and  any  president,  secretary,  or  other  ofticer  of 
any  company  organized  under  the  laws  of  Nebraska,  or  any  ofdcer 
or  person  doing  or  attempting  to  do  business  in  this  State  for  any 
insurance  company  organized  without  this  State,  failing  to  comply 
with  any  of  the  requirements  of  this  act,  or  violating  any  of  the 
provisions  thereof,  shall  be  deemed  guilty  of  a  misdemeanor,  and 
upon  conviction  thereof,  shall  be  fined  in  a  sum  not  exceeding  one 
thousand  dollars,  and  be  imprisoned  in  the  county  jail  for  a  period 
of  not  less  than  thirty  days  nor  more  than  six  months.     {Ibid,  §  26.) 

33.  Every  agent  of  any  insurance  company  shall,  in  all  ad- 
vertisements of  such  agency,  publish  the  location  of  the  company, 
giving  the  name  of  the  city,  town,  or  village  in  which  the  company 
is  located,  and  the  State  or  government  under  the  laws  of  which  it 


NEBEASKA.  549 

is  organized.  The  term  "  agent"  or  "  agents"  used  in  tlie  foregoing 
sections  shall  include  an  acknowledged  agent  or  surveyor,  or  any 
other  person  or  persons  who  shall  in  any  manner,  directly  or  indi- 
rectly, transact  or  aid  in  transacting  the  insurance  business  of  an}- 
insurance  company  not  incorporated  by  the  laws  of  this  State.  The 
provisions  of  the  foregoing  sections  relative  to  foreign  companies 
shall  api)ly  to  all  such  companies,  partnerships,  associations,  or  in- 
dividuals, whether  incorporated  or  not ;  Provided^  That  none  of  the 
provisions  of  this  clause  shall  be  deemed  operative  in  regard  to  in- 
surance upon  goods  or  merchandise  in  transit.     {Ihid,  p.  441,  §  27.) 

34.  It  shall  be  tlie  duty  of  the  Auditor  of  State,  whenever  he 
shall  deem  it  expedient  so  to  do,  in  his  judgment,  to  appoint  one  or 
more  persons,  not  officers,  agents  or  stockholders  of  any  insurance 
company  doing  business  in  this  State,  to  examine  into  the  aflairs 
and  condition  of  any  insurance  company  incorporated  or  doing  busi- 
ness in  this  State,  or  to  make  such  examination  himself ;  and  it 
shall  be  the  duty  of  the  officers  or  agents  of  such  company  or  com- 
panies, to  cause  their  books  to  be  opened  for  the  iDsi)ection  of  the 
Auditor  or  the  person  or  persons  so  appointed,  and  otherwise  facili- 
tate such  examination  so  far  as  may  be  in  their  power  so  to  do,  and 
for  the  purpose  of  arriving  at  the  truth,  in  such  cases  the  Auditor, 
or  person  or  persons  so  appointed  by  him,  shall  have  power  to 
examine,  under  oath,  the  officers  or  agents  of  any  company  or  others 
if  necessary,  relative  to  the  business  and  condition  of  said  company ; 
and  whenever  the  Auditor  shall  deem  it  best  for  the  interest  of  the 
public  so  to  do,  he  shall  i^ublish  the  result  of  such  investigation  in  one 
or  more  papers  of  this  State  ;  and  whenever  it  shall  appear  to  the 
said  Auditor  from  such  examination,  that  the  assets  and  funds  of 
any  company  incorj)orated  in  this  State,  are  reduced  or  imi)aired  by 
the  liabilities  of  said  company,  as  described  under  the  head  of  lia- 
bilities in  the  statement  required  by  this  act,  more  than  twenty  per 
cent,  below  the  paid  up  capital  stock  requiied  by  this  act,  he  may 
direct  the  officers  thereof  to  require  the  stockholders  to  pay  in  the 
amount  ot  such  deficiency  within  such  a  period  as  he  may  designate 
in  such  requisition  ;  or  he  shall  communicate  the  fact  to  the  Attor- 
ney of  State,  whose  duty  it  shall  then  become  to  apply  to  the  dis- 
trict court;  or  if  in  vacation,  to  one  of  the  judges  thereof  for  an 
order  requiring  said  company  to  show  cause  why  their  business 
should  not  be  closed;  and  the  court  or  judge,  as  the  case  maybe, 
shall  thereupon  proceed  to  hear  the  allegations  and  proofs  ot  the 
respective  parties  ;  and  in  case  it  shall  appear  to  the  satisfaction  of 
said  court  or  judge,  that  the  assets  and  funds  of  said  companj^  are 
not  sufficient  as  aforesaid,  or  that  the  interest  of  the  public  re((uire 
it,  the  said  court  or  judge  shall  decree  a  dissolution  of  said  company, 
and  a  distribution  of  its  effei-ts  ;  the  said  court  or  judge  shall  have 
power  to  refer  the  application  of  the  Attorney  of  State  to  a  referee, 
to  enquire  into  and  report  upon  the  facts  stated  herein.     {Tbid,  §  28.) 

35.  Any  com])any  receiving  the  aforesaid  requisition  from  th3 
said  Auditor,  shall  forthwith  call  upon  its  stockholders  for  such 
amounts  as  will  make  its  paid  up  capital  equal  to  the  amount  filed  by 
this  act,  or  the  charter  of  said  company ;  and  in  ease  any  stockholder 
shall  refuse  or  neglect  to  pay  the  amount  so  called  tor  after  notice 
personally  given,  or  by  advertisement,  in  such  time  and  manner  as 
said  Auditor  shall  approve,  it  shall  be  lawful  for  the  said  company 
to  require  the  return  of  the  original  certificate  of  stock  held  by  such 
stockholder,  and  in  lieu  thereof,  to  issue  new  certificates  for  such 


550  HINE'S  mSUEANCE  STATUTES. 

number  of  shares  as  the  said  stoclvholders  may  be  entitled  to,  in  the 
proportion  that  the  ascertained  value  of  the  funds  of  the  said  com- 
pany may  be  found  to  bear  to  the  original  capital  of  the  said  com- 
pany, the  value  of  such  shares  for  which  new  certificates  shall  be 
issued  to  be  ascertained  under  the  direction  of  the  said  Auditor,  the 
company  paying  for  the  fractional  part  of  the  shares.  And  it  shall 
be  lawfid  for  the  directors  of  such  company  to  create  new  stock  and 
dispose  of  the  same,  and  to  issue  new  certificates  therefor"  to  an 
amount  sufficient  to  make  up  the  original  capital  of  the  company ; 
and  in  the  event  of  any  additional  losses  accruing  upon  new  risks 
taken  upon  the  expiration  of  the  period  limited  by  the  said  Auditor 
in  the  aforesaid  requisition  for  the  tilling  uj)  of  the  deficiency  in  the 
capital  of  such  company  ;  and  before  said  deficiency  shall  have  been 
made  up,  the  directors  shall  be  individually  liable  to  the  extent 
thereof.     {Ibid,  p.  442,  §  29.) 

36.  If  upon  examination  it  shall  appear  to  the  said  Auditor 
that  the  assets  of  any  company  chartered  upon  the  plan  of  mutual 
insurance  under  this  act,  are  insufficient  to  justify  the  continuance 
of  such  company  in  business,  it  shall  be  his  duty  to  proceed  in  rela- 
tion to* such  company  in  the  same  manner  as  is  herein  required  in 
regard  to  joint-stock  companies ;  and  the  trustees  or  directors  of 
such  company  are  hereby  made  personally  liable  for  any  losses  which 
maybe  sustained  upon  risks  taken  after  the  expiration  of  the  time 

limited  by  the  said  Auditor  for  filling  up  the  deficiency  in  the 

capital,  and  before  such  deficiency  shall  ))e  made  up ;  any  transfer 
of  the  stock  of  any  company  organized  luider  this  act,  made  during 
the  pending  of  any  investigation  required  above,  shall  not  release 
the  party  making  the  transfer  from  his  liability  for  losses  which  may 
have  accrued  previous  to  such  transfer.     (Ibid,  §  30.) 

37.  The  Auditor  of  State  shall  be  authorized  to  examine  into 
the  condition  and  affairs  of  any  insurance  company  as  provided  for 
in  this  act,  doing  business  in  this  State,  not  organized  under  the 
laws  of  this  State,  or  cause  such  examination  to  be  made  by  some 
person  or  persons  appointed  b}'  him  having  no  interest  in  any  in- 
surance company ;  and  whenever  it  shall  ai)pear  to  the  satislaction 
of  said  Auditor  that  the  affairs  of  any  such  company  are  in  an  un- 
sound condition,  he  shall  revoke  the  certificate  granted  in  behalf  of 
such  company,  and  shall  cause  the  notification  thereof  to  be  pub- 
lished in  S(>me  newspaper  in  general  circulation  published  at  the 
State  capital ;  and  the  agent  or  agents  of  such  company  are,  after 
such  notice,  requested  to  discontinue  the  issuing  of  any  new  policy, 
or  the  renewal  of  any  previously  issued.     {Ibid,  p.  443,  §  31.) 

3  8 .  There  shall  be  paid  by  every  comjiany,  association ,  person, 
or  persons,  agent  or  agents,  to  whom  this  act  shall  ai)ply,  the  follow- 
ing fees :  For  filing  and  examination  of  the  first  api)lication  of  any 
company,  and  issuing  of  the  certificate  of  license  thereon,  fifty  dol- 
lars, which  shall  go  to  the  Auditor  ;  for  filing  each  annual  statement 
herein  required,  twenty  dollars ;  for  each  certificate  authority,  two 
dollars  ;  for  every  copy  of  pajier  filed  as  herein  provided,  the  sum 
of  ten  cents  per  folio,  and  fifty  cents  for  certifying  the  same  and 
affixing  the  seal  of  office  thereto ;  all  of  which  fees  shall  be  paid  to 
the  officer  required  to  t)erform  the  duties.     {Ibid,  §  32.) 

39.  Whenever  the  existing  or  luture  laws  of  any  other  State 
of  the  United  States  shall  require  of  insurance  companies  incor- 
porated by  or  organized  under  the  laws  of  this  State,  having  agen- 
cies in  such  other  State,  or  of  the  agents  thereof,  any  dej)Osit  of 


;    'J 

I 


NEBRASKA.  •  551 

securities  in  such  State  for  tbe  protection  of  policy-holders  or  other- 
wise, or  any  payment  for  taxes,  flue,  penalties,  certificates  of  author- 
ity, license  fees,  or  otherwise,  greater  than  the  amount  required  for 
such  purposes  from  similar  companies  of  other  States  by  the  then 
existing  laws  of  this  State,  then,  and  in  every  such  case,  all  com- 
panies of  such  States  establishing  or  having  theretofore  established 
an  agency  or  ageucies  in  this  State,  shall  be  and  are  hereby  required 
to  make  the  same  dei)osit  for  a  like  purpose  with  the  Auditor  of  this 
State,  and  to  pay  said  Auditor,  for  taxes,  fines,  penalties,  certificates 
of  authority,  license  fees,  or  otherwise,  an  amount  equal  to  the 
amount  of  such  charges  and  payments  imposed  upon  or  required,  by 
the  laws  of  such  State,  of  the  companies  of  this  State  or  the  agents 
thereof     {Ibid,  §  32.) 

40.  It  shall  be  the  duty  of  every  insurance  company,  of  the 
kind  provided  in  this  act,  doing  business  in  this  State,  organized 
under  the  laws  of  this  State  or  any  other  State  or  country,  to  pub- 
lish once  annually,  in  two  newspapers  of  general  circulation,  one  of 
which  newspapers  shall  be  published  at  the  capital  of  the  State 
(and  in  case  of  companies  organized  in  the  State  of  Nebraska,  one 
of  which  shall  be  published  in  the  county  where  the  principal  office 
is  located),  a  certificate  from  the  Auditor  of  State  that  such  company 
has  in  all  respects  complied  with  the  laws  of  this  State  relating  to 
insurance.     (/Z>jrf,  ^.  444,  §  34.) 

41.  The  necessary  expenditures  for  any  examination  made  or 
ordered  to  be  made  by  the  Auditor  of  the  State,  under  this  act, 
shall  be  certified  to  by  him  and  paid  on  his  requisition  by  the  com- 
pany which  is  the  subject  of  such  examination ;  Provided,  That  the 
Auditor  of  State  shall  have  the  power,  upon  receiving  information 
that  the  capital  of  any  company  is  inq)aired,  to  call  upon  any  such 
company  for  a  fidl  statement  of  its  condition,  and  in  event  of  refusal 
or  neglect  of  any  company  to  answer  the  requisition  of  the  Auditor 
as  aforesaid,  he  shall  proceed  to  make  the  examination  required  by 
this  act,  and  to  take  the  necessary  action  to  terminate  the  business 
of  said  company  in  this  State.     {Ibid,  §  35.) 

43,  It  shall  be  the  duty  of  the  Auditor  of  State  to  cause  to  be 
prepared  and  furnished  to  each  of  the  companies  organized  under 
the  laws  of  this  State,  and  to  attorneys  or  agents  of  companies  in- 
corporated by  other  States  and  foreign  governments,  who  may 
apply  for  the  same,  i)rinted  forms  of  statements  required  by  this 
act,  and  he  may  from  time  to  time  make  such  changes  in  the  form 
of  these  statements  as  sball  seem  to  him  best  adapted  to  elicit  from 
the  companies  a  true  exhibit  of  their  condition  in  respect  to  the 
several  points  hereintofore  enumerated.     {Ibid,  §  36.) 

41$.  It  shall  be  the  duty  of  the  Auditor  of  State  to  cause  the 
information  contained  in  the  statements  required  of  the  companies 
organized  in  this  State,  to  be  arranged  in  tabular  form,  and  prepare 
the  same  in  a  single  document  for  printing,  and  submit  the  same  to 
the  legislature,  as  a  portion  of  his  regular  report  to  that  body. 
{Ibid,  §  37.) 

44.  Section  nineteen  of  chapter  forty-six  of  the  Revision  of 
1866,  and  all  acts  and  parts  of  acts  amendatory  thereto,  in  relation 
to  taxing  insurance  companies  in  this  State,  are  hereby  repealed  ; 
and  it  is  enacted  in  lieu  thereof,  the  following,  to  wit :  Each  and 
every  insurance  company  transacting  business  in  this  State,  shall 
be  taxed  upon  the  excess  of  premiums  received  over  losses  and 
ordinary  expenses  incurred  within  the  State  during  the  year  pre- 


552  hixe's  insurance  statutes. 

vious  to  the  year  listing  in  the  county  where  the  agent  conducts  the 
business,  at  the  same  rate  that  all  other  personal  property  is  taxed, 
and  the  agent  shall  render  the  list  and  be  personally  liable  for  the 
tax  ;  and  if  he  refuses  to  render  the  list,  or  to  make  afiidavit  that 
the  same  is  correct,  the  amount  may  be  assessed  according  to  the 
best  knowledge  and  discretion  of  the  assessor;  and  the  county  board 
of  equalization  may,  at  their  discretion,  add  fifty  per  cent,  to  the 
amount  returned  by  the  assessor.  Insui'ance  companies  shall  be 
subject  to  no  other  taxation  under  the  laws  of  this  State,  except 
taxes  on  real  estate,  and  the  fees  imposed  by  section  thirty-two  of 
this  act.     (Ibid,  §  38.) 

45.  It  shall  not  be  lawful  for  any  company  organized  upon  the 
mutual  i)lan,  to  do  business  and  take  risks  upon  the  stock  plan, 
neither  for  a  company  organized  as  a  stock  company,  to  do  busi- 
ness upon  the  plan  of  a  Mutual  Insurance  Company.  {Ibid,  p.  445, 
§  39.) 

46.  I^othing  in  this  act  shall  be  so  construed  as  to  prevent  any 
number  of  persons,  not  exceeding  two  hundred,  from  making  mutual 
pledges  and  giving  valid  obligations  to  each  other  for  their  own  in- 
surance from  loss  by  fli-e  or  death  ;  but  such  association  of  persons 
shall  in  no  case  insure  any  property  not  owned  and  occupied  by  one 
of  their  number,  and  no  life,  except  that  of  their  own  number  ; 
nor  shall  the  provisions  of  this  act  be  applicable  to  such  associa- 
tions or  companies  ;  Provided^  Such  associations  or  companies  shall 
in  no  case  pay  any  salaries  or  compensations  to  officers,  agents  or 
any  other  employees,  and  shall  receive  no  premiums,  nor  make  any 
dividends,     (ibid,  §  40.) 

47.  That  portion  of  chapter  twenty-five,  of  the  revision  of 
1866,  Avhich  relates  to  insurance  companies,  and  all  acts  and  parts 
of  acts  amendatory  and  supplementary  thereto,  are  hereby  re- 
pealed, except  so  far  as  the  same  relates  to  the  business  of  life  in- 
surance companies;  and  the  Auditor  of  State  is  authorized  to  return 
the  deposits  made  under  section  twelve,  chapter  twenty -five  of  the 
revision  of  1866,  when  the  companies  making  the  same  shall  have 
complied  with  this  act ;  Provided,  Such  deposits  shall  not  be  needed 
for  the  payment  of  losses  due  from  the  company  having  made  the 
same.     {Ibid,  §  41.) 

48.  Insurance  companies  of  every  kind,  transacting  business 
in  this  State,  shall  be  taxed  in  the  same  amount,  and  at  the  same 
rate  that  all  other  property  is  taxed,  upon  the  amount  of  i)remiums 
taken  by  them  during  the  year  previous  to  the  listing  in  the  pre- 
cinct ;  when  the  agent  conducts  the  business  of  said  company,  the 
agent  shall  be  personally  liable  for  the  taxes ;  and  if  he  fail  or  re- 
fuse to  render  the  list,  or  to  swear  to  the  same  as  herein  required, 
the  amount  may  be  assessed  according  to  the  best  knowledge  and 
information  of  the  assessor,  and  the  county  board  of  equalization 
may,  at  their  discretion,  add  fifty  per  cent,  returned  by  the  assessor. 
Whenever  any  insurance  company  shall  fail  to  render  the  list  in  this 
section  j)rovided,  or  shall  fail  or  refuse  to  pay  the  taxes  assessed 
and  levied  as  herein  provided,  before  the  same  become  delinquent, 
it  shall  be  unlawful  thereafter  for  any  such  company  to  transact  any 
insurance  business  in  this  State  until  such  taxes  shall  have  been 
paid ;  and  every  officer  or  agent  of  such  company  or  persons  who 
shall  transact  any  business  for  such  after  it  shall  have  failed  or  re- 
fused to  pay  the  taxes  assessed  against  it  as  above  provided,  while 
such  taxes  remain  unpaid  and  delinquent,  shaU  be  deemed  guilty 


NEBRASKA.  553 

of  a  misdemeanor,  and  upon  conviction  thereof  in  the  district  court 
of  the  proper  county,  sliall  be  fined,  not  to  exceed  five  hundred  dol- 
lars, and  imprisoned  in  the  county  jail  not  exceeding  six  months. 
{General  Statutes,  1873,  jp.  903,  §  19.)' 


LIFE  INSURANCE  COMPANIES. 

49.  It  shall  be  the  duty  of  each  and  every  insurance  company 
incorporated  under  the  laws  of  the  State,  to  file  with  the  Auditor  of 
the  State  a  full  and  specific  statement  of  the  amount  of  cash  paid 
in  upon  said  stock ;  the  amount  of  stock  not  paid  for  in  cash  ;  the 
amount  secured  by  mortgages  or  pledges  of  real  estate ;  the  names 
and  residences  of  the  stockholders  in  said  company,  with  the  amount 
of  stock  owned  or  held,  set  opposite  the  name  of  each,  and  if  not 
paid  up  in  cash,  the  amount  unsecured  and  the  amount  secured, 
specifying  whether  by  real  or  personal  security,  also  set  opposite  the 
name  of  each  ;  the  names  of  all  the  officers  and  agents  of  the  com- 
pany, wherever  residing ;  the  amount  of  j)olicies  issued  by  and  out- 
standing against  the  company,  at  the  date  of  said  report;  the  amount 
of  premiums  received  by  said  comj)any,  during  the  preceding  six 
months ;  the  amount  of  cash  on  hand ;  the  amount  of  bills  payable 
and  receivable  at  the  date  of  said  statement ;  the  amount  of  real 
estate  owned  by  said  company,  where  held  and  owned,  and  in  what 
manner  such  real  estate  became  vested  in  said  company ;  which  re- 
port and  statement  shall  be  verified  by  the  oath  of  the  president 
and  secretary  of  the  company.     {General  Statutes,  1873,  jj.  160,  §  1.) 

50.  It  shall  be  the  duty  of  every  insurance  company  now  cre- 
ated, or  that  may  hereafter  be  created  under  the  laws  of  this  State, 
to  file  a  semi-annual  statement  of  the  affairs  of  said  company,  with 
the  Auditor  of  the  State,  on  the  first  day  of  January  and  July  in 
each  year,  which  statement  shall  be  verified  by  the  oath  of  the  sec- 
retary of  the  conlpan3^     Such  statement  shall  contain : 

First. — The  name  and  locality  of  the  company. 
Second. — The  amount  of  capital  stock  of  said  company. 
Third. — The  amount  of  its  capital  stock  paid  up. 
Fourth. — The  assets  of  the  company,  including — 

1.  The  amount  of  cash  on  hand. 

2.  The  amount  of  cash  in  hands  of  agents. 

3.  The  real  estate  unincumbered. 

4.  The  bonds  and  notes  of  the  comj)any,  and  how  they  are 
secured,  with  the  rates  of  interest  thereon,  and  whether  given 
in  payment  of  stock  subscriptions,  or  for  bona  fide  loans. 

5.  The  debts  of  the  company  secured  by  mortgage, 

6.  Debts  otherwise  secured. 

7.  Debts  for  premiums. 

8.  All  other  securities. 

Fifth.~T\iQ>  amount  of  liabilities  due  or  not  due  to  banks  or  other 
creditors  by  the  company. 

Sixth. — Losses  adjusted  and  due. 

Seventh. — Losses  adjusted  and  not  due. 

Eighth. — Losses  unadjusted. 

Ifinth. — Losses  in  suspense. 

Tenth.— All  other  claims  against  the  company. 

Flcventh. — The  greatest  amount  insured  by  any  one  rislc. 

And  the  Auditor  shall  cause  a  brief  abstract  of  such  statement 


554  hene's  insurance  statutes. 

to  be  publislied  in  at  least  one  newspaper  at  the  capital  of  tlie  State, 
and  sucli  company  shall  pay  for  said  publication.     {Ibid,  §  2.) 

51,  A  failure  to  comply  with  the  provisions  of  the  two  pre- 
ceding sections,  shall  subject  the  president  and  secretary  of  any 
company,  each,  individually,  to  the  penalty  of  one  hundred  dollars, 
to  be  recovered  in  an  action  at  law  in  the  name  of  any  citizen  of  the 
State,  one-half  of  the  same  to  the  use  of  the  State,  and  the  other 
moiety  to  the  use  of  the  informer      {Ibid,  p.  161,  §  3.) 

»5!2.  It  is  declared  unlawful  for  any  insurance  company  in  this 
State  to  piu'chase  or  hold  any  real  estate,  save  what  shall  be  neces- 
sary for  the  transaction  of  its  legitimate  business  of  insurance  ;  and 
deeds  and  conveyances  to  said  company,  for  any  other  purposes,  are 
hereby  declared  to  be  void.     {Ibid,  §  4.) 

.13.  It  shall  not  be  lawful  for  any  agent  or  agents  of  any  in- 
surance company,  incorporated  by  any  other  State  or  Territory,  di- 
rectly or  indirectly,  to  take  risks  or  transact  any  business  of  insur- 
ance in  this  State  without  first  procuring  a  certificate  from  the  Au- 
ditor of  the  State;  and  before  obtaining  such  certificate,  such  agent 
or  agents  shall  furnish  the  Auditor  with  a  statement,  under  the 
oath  of  the  president  and  secretary  of  the  company  for  which  he  or 
they  may  act,  which  statement  shall  show : 

First. — The  name  and  locality  of  the  company. 

Second. — The  amount  of  its  capital  stock. 

Third. — The  amount  of  its  capital  stock  paid  up. 

Fourth. — The  assets  of  the  company,  including— 

1.  The  amount  of  cash  on  hand,  and  in  the  hands  of  agents 
and  other  persons. 

2.  The  real  estate  unencumbered. 

3.  The  lands  owned  by  the  company,  and  how  they  are  se- 
cured, with  the  rate  of  interest  thereon. 

4.  The  debts  of  the  company  secured  by  mortgage. 

5.  Debts  otherwise  secured. 

6.  Debts  for  premiums. 

7.  All  other  securities. 

Fifth. — The  amount  of  liabilities  due  or  not  due  to  banks  or 
other  creditors  by  the  company. 

/Sixt/i.— Losses  adjusted  and  due. 

Seventh. — Losses  adjusted  and  not  due. 

Eighth. — Losses  unadjusted. 

Ninth. — Losses  in  suspense,  waiting  for  further  proof. 

Tenth. — All  other  claims  against  the  company. 

Eleventh. — The  greatest  amount  insured  by  any  one  risk. 

Twelfth. — The  greatest  amount  allowed  by  the  rules  of  the  com- 
pany to  be  insured  in  any  one  city,  town  or  village. 

Thirteenth. — The  greatest  amount  allowed  to  be  insured  in  any 
one  block. 

Fourteenth. — The  act  of  incorporation  of  such  company. 

Which  statement  shall  be  filed  in  the  office  of  the  said  Auditor, 
together  with  a  written  instrument  under  the  seal  of  the  company 
signed  by  the  president  and  secretary,  authorizing  such  agent  to 
acknowledge  service,  consenting  that  service  of  process  upou  such 
agent  shall  be  taken  and  held  to  be  as  valid  as  if  served  upon  the 
company,  according  to  the  laws  of  the  State,  or  any  State  or  Terri- 
tory, and  waiving  all  claims  of  error  by  reason  of  such  service ;  and 
no  insurance  company,  or  agents  of  any  insurance  company,  incor- 
porated by  any  other  State  or  Territory,  shall  transact  any  business 


NEBRASKA.  655 

of  insurance  in  this  State,  unless  such  company  is  possessed  of  at 
least  one  hundred  thousand  dollars  of  actual  capital,  invested  in 
stocks  of  at  least  par  value,  or  in  bonds  or  mortii^ages  on  real  estate 
worth  double  the  amount  for  which  the  same  is  mortgaged ;  and 
upon  tiling  the  aforesaid  statement  and  instrument  with  the  Auditor 
of  the  State,  and  furnishing  him  with  satisfactory  evidence  of  such 
instrument,  as  aforesaid,  it  shall  be  the  duty  of  said  Auditor  to  is- 
sue a  certificate  thereof,  with  authority  to  transact  business  of  in- 
surance, to  the  agent  or  agents  applying  for  the  same ;  and  the  Au- 
ditor may  demand  and  receive  two  dollars  for  every  such  certificate, 
to  be  paid  by  the  company.     {Ibid,  §  5.) 

54.  It  shall  be  unlawful  for  any  incorporated  company  or  as- 
sociation, partnership,  firm  or  individual,  or  any  member  or  agent, 
or  agents  thereof,  or  for  any  agent  or  agents  of  any  company  incor- 
porated by  any  foreign  government,  other  than  a  State  of  this 
Union,  to  transact  any  business  of  insurance  in  this  State  without 
procuring  a  certificate  of  authority  from  the  Auditor  of  this  State, 
such  company,  association,  partnership,  firm  or  individual,  or  any 
agent  or  agents  thereof,  having  first  filed,  under  oath,  in  the  ofl&ce 
of  said  Auditor,  a  statement,  setting  forth  the  charter  or  act  of  in- 
corporation of  any  and  every  such  incorporated  company,  and  the 
by-laws,  copartnership  agreement  and  articles  of  association  of  any 
and  every  such  incorporated  company,  association,  partnership  or 
firm  ;  and  the  name  and  residence  of  such  individual,  and  the  names 
and  residences  of  the  members  of  every  such  partnership  or  firm; 
and  the  matters  required  to  be  specified  by  the  provisions  of  this 
chapter  and  the  written  authority  therein  mentioned  ;  and  furnish 
evidence  to  the  satisfaction  of  the  Auditor  of  the  State,  that  said 
company  has  invested  in  stocks  of  some  one  or  more  of  the  States 
of  this  IJuion,  or  of  the  Uuited  States,  the  amount  of  one  hundred 
thousand  dollars,  and  that  such  stocks  are  held  by  citizens  of  the 
United  States,  or  in  bonds  or  mortgages  of  real  estate  situated  in 
the  United  States,  fully  securing  the  amount  for  which  the  same  is 
mortgaged,  or  bonds  of  cities  of  the  United  States,  the  aggregate 
market  value  of  the  investment  of  the  company  in  which  shall  not 
be  less  than  one  hundred  thousand  dollars ;  and  such  corporated 
company  or  unincorporated  company,  association,  partnership,  firm 
or  individual,  or  any  agent  or  agents  thereof,  filing  said  statement 
and  furnishing  evidence  of  investment  as  aforesaid,  shall  be  entitled 
to  a  certificate  of  authority  for  such  body  or  individual  in  like  man- 
ner as  is  provided  in  this  chapter.     {Ibid,  p.  163,  §  6.) 

55.  The  statement  and  evidences  of  investment  required  by 
this  chapter,  shall  be  renewed  annually  in  the  month  of  January  of 
each  year.  The  Auditor  of  State,  upon  being  satisfied  that  the 
capital,  securities  and  investments  remain  secure,  shall  furnish  a 
renewal  of  certificates,  as  aforesaid;  and  the  company,  agent,  or 
agents  obtaining  such  certificates,- shall  file  the  same,  together  with 
the  statement  upon  which  it  was  obtained  or  renewed,  in  the  office 
of  the  Auditor  of  the  State.     {Ibid,  §  7.) 

56.  Any  person  or  firm  in  this  State  who  shall  receive  or  re- 
ceipt for  any  money  on  account  of  or  for  any  contract  of  insurance 
made  by  him  or  them,  or  for  any  such'  insurauce  comjiany  or  indi- 
vidual aforesaid,  or  who  shall  receive  or  receipt  for  money  from 
other  persons  to  be  transmitted  to  any  such  company  or  individual 
aforesaid,  for  a  i^olicy  or  policies  of  insurance  or  any  renewal  there- 
of, although  such  x>olicy  or  policies  of  insurance  may  not  be  signed 


556  hine's  insurance  statutes. 

by  him  or  tliem  as  agent  or  agents  of  such  comi^any,  or  who  shall 
in  any  wise,  directly  or  indirectly,  make  or  cause  to  be  made  any 
contract  or  contracts  of  insurance,  for  or  on  account  of  such  com- 
pany aforesaid,  shall  be  deemed,  to  all  intents  and  purposes,  an 
agent  or  agents  of  such  company,  and  shall  be  subject  and  liable 
to  all  the  provisions  of  this  chapter.     {Ibid,  §  8.) 

57.  Copies  of  all  papers  required  by  this  chapter  to  be  depos- 
ited in  the  office  of  the  Auditor  of  this  State,  certified  under  the 
hand  of  such  Auditor  to  be  true  and  correct  copies  of  such  papers, 
shall  be  received  as  evidence  in  all  courts  and  places,  in  the  same 
manner  and  have  the  same  force  and  effect  as  the  original  would 
have  if  produced.     {Ibid,  p.  164,  §  9.) 

58.  Any  person  or  persons  violating  the  provisions  of  this 
subdivision  shall  upon  conviction  thereof,  in  any  court  of  compe- 
tent jurisdiction,  be  fined  in  any  sum  not  exceeding  one  thousand 
dollars,  or  imprisoned  in  the  county  jail  not  more  than  thirty  days, 
or  both,  at  the  discretion  of  the  court.  Violations  of  the  provisions 
of  this  subdivision  may  be  prosecuted  by  information  filed  by  the 
Ijrosecuting  attorney  of  the  i^roper  county,  or  by  indictment  of  the 
grand  jury.     {Ibid,  §  10.) 

59.  Any  insurance  company  complying  with  the  provisions  of 
this  subdivision,  and  securing  the  certificate  of  the  Auditor  for  any 
of  its  agents,  shall  not  be  required  to  furnish  the  single  statement, 
and  evidences  required  thereby,  for  more  than  one  of  such  agents, 
which  being  filed  with  the  Auditor  of  this  State,  shall  be  deemed  a 
sufficient  compliance  for  its  free  transaction  of  business  in  this 
State.     {Ibid,  §  11.) 

00.  If  any  insurance  company,  firm  or  individual,  or  their  agent 
or  agents,  having  filed  its  or  their  statement  as  required  by  this 
subdivision,  and  conformed  to  the  requirements  thereof,  shall  have 
on  deposit  in  any  other  State  or  Territory,  or  elsewhere  than  in  this 
State,  any  portion  of  its  capital  or  earnings  as  a  giuiranty  fund  for 
the  exclusive  benefit  or  security  of  persons  insured  in  such  State 
or  Territory,  or  other  jDlace,  it  shall  be  the  duty  of  the  said  Auditor 
of  the  State  to  withhold  from  such  body  or  individual  so  alienating 
any  such  portion  of  their  capital  or  resources,  the  certificates  and 
authority  in  this  subdivision  j)rovided  for,  until  such  body  or  indi- 
vidual shall  file  with  the  Auditor  of  the  State,  a  statement,  duly 
verified  by  the  oath  or  affirmation  of  the  president  or  secretary  of 
such  incorporated  company,  association,  partnership  or  firm,  or  of 
such  individual,  showing  the  amount  of  premiums  received  in  this 
State  by  such  company  during  the  year  ending  on  the  first  of  Jan- 
uary next  preceding  the  filing  of  said  statement,  and  shall  deposit 
in  this  State,  in  such  manner  as  the  Auditor  of  the  State  shall  di- 
rect, five  per  cent,  of  the  amount  received  in  money,  or  any  solvent 
State  or  United  States  stocks  of  at  least  par  value,  or  mortgages 
on  real  estate  situated  in  this  State,  of  at  least  double  the  value 
for  which  the  same  is  mortgaged ;  which  statement  and  deposit 
shall  be  so  made  from  year  to  year,  at  the  time  of  each  renewal  or 
original  grant  of  authority  by  said  Auditor,  until  the  sum  of  forty 
thousand  dollars  is  deposited  as  aforesaid,  which  said  sum  and 
every  yearly  j^art  deposited  as  aforesaid,  shall  be  held  under  con- 
trol of  such  Auditor  of  the  State,  as  a  guaranty  fund  for  the  bene- 
fit of  such  persons  as  may  be  in  any  manner  insured  in  their  prop- 
erty by  such  company  in  this  State,  and  the  same  or  any  part  of 
the  sum  so  deposited,  shall  not  be  drawn  out  of  the  depositors, 


NEBRASKA.  557 

until  all  claims  for  losses  or  premiums,  or  risks  unexpired,  shall  be 
paid  and  discharged,  or  until  all  deposits  made  in  other  States,  Ter- 
ritories, or  other  i^laces  not  within  this  State  shall  be  withdrawn  ; 
and  in  case  of  the  insolvency  of  any  such  company,  the  sums  so  de- 
posited as  aforesaid  shall  be  applied  by  the  Auditor  of  State,  pro 
tanto,  towards  the  payment  of  all  claims  against  such  body  or  indi- 
vidual tiled  in  his  office,  duly  liquidated  and  authenticated,  and 
losses  and  premiums  or  risks  unpaid  on  policies  issued  within  six 
months  after  such  insolvency  may  occur.  Any  such  body  or  indi- 
vidual shall  be  deemed  insolvent,  ui)on  failure  to  pay  any  undis- 
puted loss  insured  against  within  this  State  for  the  space  of  ninety 
days  after  final  judgment  for  the  amount  of  any  loss  so  insured 
against,  when  no  appeal  shall  have  been  taken  from  such  judgment 
by  either  party,  or  other  proceeding  began,  to  vacate,  modity,  re- 
verse or  review  such  judgment,  or  to  arrest  the  same,  or  to  obtain  a 
new  trial.  Such  body  or  individual  shall  be  entitled  to  receive  the 
interest  or  dividends  on  such  stocks  so  deposited  Irom  time  to  time 
as  the  same  may  become  due.  This  section  shall  not  apply  to  any 
of  the  aforesaid  bodies  or  individuals  who  have  made  no  such  de- 
posits, as  in  this  section  mentioned,  elsewhere  than  in  this  State. 
{Ibid,  §  12.) 

61 .  l^iutual  insurance  companies  incorporated  by  any  State  or 
Territory  other  than  the  State  of  I^^ebraska,  upon  tiling  in  the  office 
of  the  Auditor  the  act  of  incorporation  of  said  company,  together 
with  a  written  instrument  under  seal  of  said  company,  signed  by 
the  president  and  secretary  of  said  company  under  oath,  certifying 
that  said  company  is  possessed  of  a  capital  of  at  least  one  hundred 
thousand  dollars,  secured  by  lien  on  real  estate,  worth,  at  cash 
valuation,  at  least  tive  times  the  amount  of  said  capital,  and  not 
encumbered  to  more  than  one-fourth  of  said  cash  valuation,  shall 
be  entitled  to  a  certiticate  from  said  auditor,  with  authority  to 
transact  business  of  insurance  in  this  State,  and  said  company  shall 
be  exempt  from  the  provisions  of  this  subdivision,  with  the  excep- 
tion of  the  publication  of  statement  and  certiticate  of  the  Auditor. 
{Ibid,  p.  165,  §13.) 

G'Jl,  It  shall  be  the  duty  of  the  agent  or  agents  in  either  of  the 
foregoing  sections  mentioned,  before  taking  any  risk  or  transacting 
any  business  of  insurance  in  this  State,  to  tile  in  the  ofl&ce  of  the 
County  Clerk  of  the  county  of  which  he  or  they  may  desire  to  estab- 
lish an  agency  for  any  such  company,  a  copy  of  the  statement 
required  to  be  tiled  with  the  Auditor  of  the  State  as  aforesaid,  to- 
gether with  a  certificate  of  such  Auditor,  which  shall  be  carelully 
preserved  for  public  inspection  by  said  clerk ;  and  said  statement 
and  certiticate  shall  be  published  one  week  in  one  daily,  and  four 
weeks  in  one  weekly  newspaper  printed  and  published  in  the  county 
in  which  such  agent  or  agents  has  or  have  his  or  their  office  ot  busi- 
ness as  such  agent  or  agents ;  and  if  no  daily  paper  is  published  in 
such  county,  then  such  publication  shall  be  sufficient  if  made  in 
one  weekly  newspaper  as  aforesaid ;  but  if  no  weekly  newspaper  be 
printed  or  x)ublished  in  such  county,  then  such  publication  shall  be 
made  in  one  weekly  newspaper  of  this  State  of  most  general  circu- 
lation in  such  county.     {Ibid,  p.  16G,  §  14.) 

MUNICIPAL  TAXATION  OF   INSURANCE   COMPANIES. 
63.    The  cities  (of  the  second  class)  coming  under  the  pro- 


558  hine's  insurance  statutes. 

visions  of  this  act,  in  their  corporate  capacities,  are  authorized  and 
empowered  to  enact  ordinances  for  the  following  purposes,  in  addi- 
tion to  the  other  powers  granted  by  this  act :  To  levy  and  collect  a 
license  tax  on  life  or  fire  insurance  companies  or  agencies.  {General 
Statutes,  1873,2)'  144,  §  31,  par.  4.) 


SUITS  AGAmST  INSUEAKCE   COMPANIES. 

64.  When  the  defendant  is  an  incorporated  insurance  com- 
pany, and  the  action  is  brought  in  a  county,  in  which  there  is  an 
agency  thereof,  the  service  may  be  upon  the  chief  officer  of  such 
agency.     {I  bid,  p.  535,  §  74.) 

65.  When  the  defendant  is  a  foreign  corporation,  having  a 
managing  agent  in  this  State,  the  service  may  be  upon  such  agent. 
{Ibid,  §  75.) 

FRAUD   AND  FALSE   SWEAEING. 

66.  If  any  person  or  persons  shall  obtain,  cause  to  be  ob- 
tained, or  attempt  to  obtain  from  any  life  or  accident  insurance 
company  any  sum  of  money,  on  any  policy  of  life  or  accident  insur- 
ance issued  by  any  company  in  this  State,  by  falsely  or  fraudulently 
representing  the  person  or  persons  insured  as  dead,  or  shall  cause 
any  person  or  persons  to  be  insured  under  an  assumed  name,  and 
shall  falsely  represent  the  fictitious  person  or  persons  so  insured  as 
dead,  and  shall  therebj^  obtain,  cause  to  be  obtained,  or  attempt  to 
obtain  from  such  company  the  amount  of  such  insurance,  and  shall 
falsely  obtain,  cause  to  be  obtained,  or  attemi)t  to  obtain  from  any 
such  life  or  accident  insurance  company,  any  sum  of  money  upon 
any  life  or  accident  policy  of  such  company,  by  means  of  false  and 
fraudulent  written  representation  or  affidavits,  falsely  representing 
that  the  jjerson  whose  life  was  insured,  was  dead,  or  that  the  person 
insured  against  accident  was  injured,  every  person  so  offending,  if 
the  sum  so  obtained,  attempted,  or  caused  to  be  obtained,  shall  be 
equal  to  or  exceed  the  sum  of  thirty-tive  dollars,  shall  be  punished 
by  imprisonment  in  the  penitentiary,  not  exceeding  fifteen  years ; 
and,  if  the  sum  so  obtained,  attempted  or  caused  to  be  obtained, 
shall  be  less  than  thirty-five  dollars,  shall  be  fined  in  any  sum  not 
more  than  five  hundred  dollars,  or  be  imprisoned  in  the  jail  of  the 
proper  county  not  exceeding  six  months,  or  both  at  the  discretion 
of  the  court.     {Ibid,  p.  755,  §  141.) 


ARSON  AND  INCENDIARISM. 

67.  If  any  person  shall  willfully  and  maliciously  burn,  or  cause 
to  be  burned,  any  dwelling-house,  kitchen,  smoke-house,  shop,  barn, 
stable,  storehouse,  warehouse,  malt-house,  stiU-house,  mill,  or  pot- 
tery, the  property  of  any  other  person ;  or,  any  buildings,  the  prop- 
erty of  any  other  person,  of  the  value  of  fifty  dollars,  or  containing 
property  of  the  value  of  fifty  dollars;  or  any  church,  meeting-house, 
court-house,  work-house,  school-house,  jail,  or  other  public  building; 
or  any  ship,  boat,  or  other  water  craft,  of  the  value  of  fifty  dollars, 
or  any  bridge  of  the  value  of  fifty  dollars,  erected  across  any  of  the 


NEBRASKA.  559 

waters  within  this  State;  every  person  so  offending  shall  be  deemed 
guilty  of  arson,  and  shall  be  imprisoned  in  the  penitentiary  not 
more  than  twenty  years  nor  less  than  one  year.  {Ibid,  p.  731, 
§54.) 

68.  If  any  person  shall  willfully  and  maliciously  set  fire  to 
any  of  the  buildings  or  other  property  described  in  the  foregoing 
section,  with  intent  to  burn  or  destroy  the  same ;  every  person  so 
offending  shall  be  imprisoned  in  the  penitentiary,  and  kept  at  hard 
labor,  pot  more  than  seven  years  nor  less  than  one  year.  {Ibid, 
§  55.) 

60,  Every  person  who  shall  willfully  and  maliciously  burn,  or 
cause  to  be  burned,  any  dwelling-house,  kitchen,  smoke-house,  shop, 
office,  barn,  stable,  storehouse,  warehouse,  still-house,  mill,  pottery, 
or  any  other  building  of  the  value  of  fifty  dollars  5  or  any  ship,  boat, 
or  other  water-craft,  of  the  value  of  fifty  dollars ;  or  any  goods,  wares, 
merchandise,  or  other  chattels,  of  the  value  of  fifty  dollars,  which 
shall  be  at  the  time  the  property  of  such  person,  and  insured  against 
loss  or  damage  by  fire,  with  intent  to  prejudice  such  insurer ;  every 
person  so  offending  shall  be  deemed  guilty  of  arson,  and  shall  be 
imprisoned  in  the  penitentiary  not  more  than  twenty  years  nor  less 
than  one  year.     {Ibid,  p.  732,  §  56.) 

70.  If  any  person  shall  willfully  and  maliciously  set  fire  to  any 
of  the  buildings,  water-craft,  or  other  property  described  in  the 
foregoing  section,  and  which  shall  be  at  the  time  the  property  of 
such  person,  and  insured  against  loss  or  damage  by  fire,  with  intent 
to  burn  or  destroy  the  same,  and  with  intent  to  j)rejudice  such  in-, 
surer ;  every  person  so  offending  shall  be  imprisoned  in  the  peniten- 
tiary not  more  than  seven  years  nor  less  than  one  year.  {Ibid, 
§  57.) 

71.  If  any  person  shall  willfully,  maliciously,  and  unlawfully 
attempt  to  burn,  or  cause  to  be  burned,  any  dwelling-house,  kitchen, 
smoke-house,  shop,  barn,  stable,  storehouse,  warehouse,  malt-house, 
still-house,  mill,  or  pottery,  the  property  of  any  other  person,  of  the 
value  of  fifty  dollars ;  or  any  chui-ch,  meeting-house,  court-house, 
work-house,  school-house,  jail,  or  other  public  building ;  or  any  ship, 
boat,  or  other  water-craft,  of  the  value  of  fifty  dollars;  or  any  bridge 
of  the  value  of  fiftj"  dollars,  erected  across  any  of  the  waters  within 
this  State ;  or  if  any  person  shall  willfully,  maliciously,  or  unlawful- 
ly attempt  to  set  fire  to  any  of  the  buildings  or  other  property  de- 
scribed herein,  with  intent  to  burn  or  destroy  the  same,  by  igniting 
or  trying  to  set  fire  to  or  ignite  the  same,  or  any  material  or  thing 
therein,  or  any  combustible  material  or  thing  without  the  same  and 
nearly  adjoining  thereto,  though  the  same,  or  part  thereof,  be  not 
fired  or  burned;  every  person  so  offending  shaU  be  fined  in  any  sum 
not  exceeding  three  hundred  dollars,  or  imprisonment  in  the  county 
jail  for  a  term  not  exceeding  four  months,  or  both,  at  the  discretion 
of  the  court.     {Ibid,  §  58.) 

72.  If  any  person  shall  willfully  or  maliciously  set  fire  to,  or 
burn,  or  cause  to  be  burned,  any  barrack  or  stack  of  hay,  wheat, 
rye,  oats,  barley,  flax,  hemp,  or  fodder,  or  grain  of  any  kind;  or  any 
corn-crib,  or  place  wherein  corn  may  be  deposited  ;  or  any  fence, 
boards,  plank,  scantling,  rails,  tan-bark,  or  timber,  the  property  of 
another,  and  of  the  value  of  thirty-five  dollars  or  upwards;  every 
person  so  offending  shall  be  imprisoned  in  the  penitentiary  not  more 
than  three  years  nor  less  than  one  year.     {Ibid,  p.  733,  §  00.) 


560  hike's  insurance  statutes. 


EMBEZZLEMENT. 

73.  If  any  clerk,  agent,  or  servant  of  any  private  person,  or 
of  any  co-partnership  (except  apprentices  and  persons  within  the 
age  of  eighteen  years),  or  if  any  offlcer,  agent,  clerk,  or  servant  of 
any  incorporated  comi3any,  or  joint  stock  company,  shall  embezzle 
or  convert  to  his  own  use,  or  fraudulently  take  or  make  away  with, 
or  secrete  with  intent  to  embezzle,  or  fraudulently  convert  to  his 
own  use,  without  the  assent  of  his  or  her  employer  or  emi)loyers,  or 
the  owner  or  owners  thereof,  any  money,  goods,  rights  in  action,  or 
other  valuable  security  or  effects  whatever  belonging  to  any  other 
person  or  persons,  body  politic  or  corporate,  which  shall  come  into 
his  or  her  possession  or  care  by  virtue  of  such  employment ;  every 
such  person  so  offending  shall  be  punished  in  the  manner  prescribed 
by  law  for  feloniously  stealing  i^roperty  of  the  value  of  the  articles 
so  embezzled,  taken  or  secreted,  or  of  the  value  of  any  sum  of  money 
payable  or  due  upon  any  right  in  action  so  embezzled.  Every  em- 
bezzlement of  any  evidence  of  debt  negotiable  by  delivery  only,  and 
actually  executed  by  the  master  or  employer  of  any  such  clerk, 
agent,  officer,  or  servant,  but  not  delivered  or  issued  as  a  valid  in- 
strument, shall  be  deemed  an  offense  within  the  meaning  of  this 
section.     {Ibid,  p.  748,  §  121,  as  amended  by  laws  of  1875,  j?.  26,  §  2.) 

74.  For  General  Provisions  relating  to  Corporations,  see  Gene- 
ral Statutes,  1873,  pp.  178-182. 


INDEX  TO  NEVADA. 


PAGE 

AOENT  of  Foreign  Companies- 
Embezzlement  by  ( 1 7) -  666 

False  Statements  by  (10) 564 

Mnst  File  Certificate  and  Bond  (5^  8^ 

9) 562-64 

Mnst  Make  Annual  Statement  (5) 56C' 

Penalty  for  Violation  of  Act(7,l  3)  564,  565 
Snb- Agent  not  Included  (7,  12)  .-  564,  565 

Taxation  of  (5 ,  13) 563-65 

To  Accept  Service  (11) 564 

Who  shall  be  Deemed  (6) 563 

Annual  Statement  of  Foreign  Cos.  (5).  563,  563 
Arson,  Crime  and  Penalty  of  (14-16).  565,  566 


Corporations — 

Debts  of.  Corporators  not  Liable  for  (3)  562 
General  ProTieions  Concerning  (18)...  566 

May  Sue  and  be  Sued  (4) 562 

Must  Form  under  General  Laws  (1 ) 562 

Property  of,  Subject  to  Taxation  (2). . .  562 


Foreign  Companies- 
Agent  must  File  Certificate  and  Bond 

(5,  8,9) 562-64 

Agent  must  Make  Annual  Statement 

(6) 562 

Agent  must  Pay  Taxes  (5, 12) 562,  565 

Attorney  to  Accept  Service  (11) 564 

Embezzlement  by  Agent  (17) 566 

False  Statements  (10) 564 

Penalty  for  Violation  of  Act  (7,13)  564,  565 
"Who  shall  be  Deemed  Agents  and  In- 
surers (6) 563 

EmbbiSzlement  of  Agent  (17) 566 

Penalty— 

For  Arson  (14-16) 565,  566 

For  False  Statements  (10) 564 

For  Violation  of  Act  (7,  13) 564,  565 

Taxation— 

Of  Agents  of  Foreign  Cos.  (6,  12)-  562-65 
Of  Corporations  (2).... 568 


36 


NSURANCE  STATUTES  OF  NEVADA. 


Revised  hy  Hon.  W.  W.  Sohart,  Controller. 


CONSTITUTIONAL  PROVISIONS  CONCERNING  CORPORA- 
TIONS. 

1 ,  The  legislature  shall  pass  no  special  act  in  any  manner  re- 
lating to  corporate  powers,  except  for  municipal  purposes;  but 
corporations  may  be  formed  under  general  laws;  and  all  such  laws 
may,  from  time  to  time,  be  altered  or  repealed.     {Art.  8,  §  1.) 

•S,  All  real  property  and  possessory  rights  to  the  same,  as  well 
as  personal  x^roperty  in  this  State,  belonging  to  corporations  now 
existing  or  herealter  created,  shall  be  subject  to  taxation  the  same 
as  property  of  individuals  ;  Provided,  That  the  property  of  corpora- 
tions formed  for  municipal,  charitable,  religious,  or  educational  pur- 
poses may  be  exempted  by  law.     {Ihid,  §  2.) 

3.  Dues  from  corporations  shall  be  secured  by  such  means  as 
may  be  prescribed  by  law;  Proi?«7ef7,  That  corporators  in  corpora- 
tions formed  under  the  laws  of  this  State  shall  not  be  individually 
liable  for  the  debts  or  liabilities  of  such  corporations.     {Ibid,  §  3.) 

4.  Corporations  may  sue  and  be  sued  in  all  courts,  in  like 
manner  as  individuals.     {Ibid,  ^5.) 


FOREIGN  INSURANCE  COMPANIES. 

5.  From  and  after  the  passage  of  this  act,  it  shall  be  unlawful 
for  any  person  or  fii'm,  officer  or  agent,  to  collect  premiums  of  insur- 
ance in  this  State,  in  any  manner,  or  in  any  capacity  whatsoever, 
on  either  life,  lire,  or  inland  risks,  for  or  on  account  of  any  company, 
association,  or  individual  insurer,  not  incorporated  under  the  laws  of 
this  State,  unless  such  iierson  or  firm,  officer  or  agent,  shall  have 
first  filed  with  the  Controller  of  State  the  following  described  docu- 
ments : 

First. — A  certified  copy  of  the  power  of  attorney,  certificate  of 
agency,  open  policy,  commission,  or  other  authority  or  agreement 
under  which  such  person,  firm,  officer  or  agent,  shall  claim  to  be 
authorized  to  collect  premiums  of  insurance  in  this  State. 

Second. — A  good  and  sufficient  bond,  to  be  signed  by  the  person 
or  firm,  officer  or  agent,  so  authorized  by  the  power  of  attorney,  or 
other  authority  as  aforesaid,  as  principal,  with  two  good  and  suffi- 
cient sureties,  to  be  approved  by  the  Controller,  in  the  penal  sum  of 
two  thousand  dollars,  for  each  fire  insurance  company,  or  one  thou- 
sand dollars  for  each  life  insurance  company,  or  three  thousand  dol- 
lars for  each  inland  insurance  company,  association, fiim,  or  individ- 
ual not  incorporated  under  the  laws  of  this  State,  for  whose  account 


NEVADA.  563 

it  is  proposed  to  collect  premiums  of  insurance  in  this  State ;  the 
conditions  of  such  bonds  to  be  as  follows,  viz. :  First,  That  the  per- 
son or  lirm,  agent  or  officer,  named  therein,  acting  on  behalf  of  the 
company,  association,  firm,  or  individual,  named  therein,  will  pay  to 
the  Treasurer  of  the  county,  or  city  and  county,  in  which  the  princi- 
l^al  office  of  the  agency  shall  be  located,  such  sum  per  quarter, 
quarterly  in  advance,  for  a  license  to  transact  an  insurance  business, 
or  such  other  license  or  licenses  as  are  or  may  be  imposed  by  law  so 
long  as  the  agency  shall  remain  in  the  hands  of  the  person  or  firm, 
oflflcer  or  agent,  named  as  principal  in  the  bond.  Second,  That  the 
person  or  firm,  officer  or  agent,  so  specified  as  above,  will  x)ay  or 
cause  to  be  paid  to  the  State,  all  stamp  duties  on  gross  amounts 
insured  by  tbem,  in  such  manner  and  at  such  times  as  may  be  pre- 
scribed by  law,  inclusive  of  renewals  on  existing  policies.  Third, 
That  within  thirty  days  after  the  first  day  of  June,  in  the  year  of 
our  Lord  one  thousand  eight  hundied  and  seventy-three,  and  within, 
thirty  days  after  the  first  of  June  in  each  succeeding  year,  the  agent 
or  officer  named  in  the  bond  shall  render  to  the  Treasurer  of  the 
county,  or  city  and  count}',  in  which  the  principal  office  of  the  agency 
shall  be  located,  a  statement  sworn  to  by  him,  and  exhibiting  the 
gross  amounts  of  premiums  collected  by  the  agency,  inclusive  of  the 
amounts  collected  by  sub  agents  throughout  the  State,  for  each 
company  or  association,  firm  or  indi\idual  insurer  represented  by 
him  or  them  respectively,  from  which  shall  be  deducted  the  gross 
amount  of  return  premiums.  The  first  statement  shall  exhibit  the 
amounts  so  collected  between  the  first  day  of  February  and  the  first 
day  of  June,  in  the  year  of  our  Lord  one  thousand  eight  hundred 
and  seventy-three,  and  subsequent  statements  shall  exhibit  the 
amounts  so  collected  during  the  year  terminating  on  the  first  day  of 
Jime  in  each  year  respectively,  and  that  on  filing  the  statements 
as  herein  required,  the  agent  or  agents  or  officer  named  in  the  bond 
shall  pay  to  the  Treasurer  of  the  count}',  or  city  and  county  afore- 
said a  tax  of  two  per  cent,  on  the  amount  of  gross  premiums,  after 
deducting  return  premiums  as  set  forth  in  his  statement,  and  col- 
lected from  fire  and  inland  risks,  and  a  tax  of  one  per  cent,  on 
the  amount  of  the  premiums  collected  from  life  risks.  And  for  the 
purposes  of  this  act,  all  premiums  shall  be  deemed  to  have  been 
collected  which  have  been  entered  upon  the  books  of  the  agency. 
(La«rso/1873,j;.  46,  §1.) 

6.  For  the  purposes  of  this  act,  all  persons,  firms,  and  officers 
of  companies  and  associations,  not  incorporated  under  the  laws  of 
this  State,  and  engaged  in  collecting  premiums  of  insurance,  directly 
or  indirectly,  on  fire,  life,  or  inland  risks,  shall  be  deemed  to  be 
agents  of  foreign  insurance  companies,  and  liable  to  all  the  ])rovi- 
sionsof  this  Act;  and  all  express  companies  not  so  incorporated,  as 
aforesaid,  engaged  in  the  carriage  of  treasure  or  merchandise  from 
and  within  this  State,  and  insuring  the  same,  whether  themselves 
assuming  the  risks,  or  whether  the  risks  be  reinsured  by  companies 
or  associations  not  chartered  by  this  State,  shall  be  deemed  foreign 
insurers  within  the  meaning  of  this  act,  and  shall  be  required  to 
tile  with  the  Controller  a  separate  bond  for  each  express  company 
taking  risks  as  aforesaid,  and  for  each  foreign  company  or  associa- 
tion reinsuring  them  on  such  risks.     {Ibid,  p.  47,  §  2.) 

7.  Every  person  or  firm  who  shall  effect,  agree  to  effect,  or 
procure  any  insurance  for  citizens  of  this  State,  from  or  on  account 
of  any  insurers  or  insiu-ance  companies  whatever,  not  incorporated 


564  niNE'S  INSUEANCE   STATUTES. 

under  the  laws  of  this  State,  from  and  after  the  passage  of  this  act, 
without  first  having  executed  and  filed  the  bond  required  in  section 
one  of  this  act,  shall  be  deemed  guilty  of  a  misdemeanor,  and  shall, 
on  conviction  thereof,  be  fined  in  the  sum  of  two  thousand  dollars 
for  each  company  or  association  on  whose  account  such  insurance 
shall  have  been  effected,  one  half  of  such  fine  to  be  for  the  use  of  the 
State,  and  oue  half  for  the  benefit  of  the  informer.  But  nothing 
herein  contained  shall  apply  to  the  sub-agents  or  employees  of  any 
principal  agent  who  shall  have  complied  with  the  requirements  of 
this  act.     {Ibid,  j).  48,  §  3.) 

8.  A  copy  of  the  bond  herein  required  to  be  filed  with  the  Con- 
troller, certified  by  that  officer,  shall  be  filed  with  the  Treasurer  of 
the  county,  or  city  and  county,  where  the  principal  ofiice  of  the 
agency  shall  be  located,  before  any  license  shall  be  issued  to  any 
agent  for  the  transaction  of  insurance  business,  and  shall  remain  on 
file  in  the  office  of  the  County  Treasui'er  until  he  is  notified  in  writ- 
ing, by  the  Controller,  of  the  termination  of  the  agency  and  cancel- 
lation of  the  bond.     {Ibid,  §  4.) 

9.  Whenever  the  same  person,  firm,  officer,  or  agent  shall  de- 
sire to  collect  premiums  of  insurance  for  more  than  one  company, 
association,  or  individual,  not  incorporated  under  the  laws  of  this 
State,  the  Controller  shall  require  a  separate  bond,  as  provided  in 
section  one,  for  each  company  or  association  so  represented  by  such 
person,  firm,  officer,  or  agent.     {Ibid,  §  5.) 

10.  If  any  agent  or  officer  of  a  foreign  insurance  company,  as 
defined  in  section  two  of  this  act,  shall  make  any  false  statement, 
concealment,  or  misrepresentation  in  the  sworn  statement  required  • 
by  section  oue  of  this  act,  with  the  intent  to  defraud  the  State  of 
revenue,  he  shall  be  deemed  guilty  of  perjury,  and  shall  be  liable,  on 
conviction  thereof,  to  the  pains  and  penalties  as  provided  by  law  for 
the  punishment  thereof.  All  penalties  imposed  by  this  act  shall  be 
collected  in  the  name  of  the  people  of  this  State,  by  the  prosecuting 
attorney  of  the  county,  or  city  and  county,  where  the  offense  shall 
have  been  committed.     {Ibid,  §  6.) 

1 1 .  Said  companies  and  associations  shall  duly  execute,  ac- 
knowledge and  deliver,  and  cause  to  be  duly  recorded  in  the  office  of 
the  Controller  of  State,  a  good  and  sufficient  i^ower  of  attorney,  to 
some  person  who  shall  be  a  citizen  of  the  United  States  and  a  citi- 
zen and  resident  of  the  State  of  Nevada,  which  power,  so  long  as 
such  company  shall  have  outstanding  policies  of  insiu'ance  in  said 
State,  shall  be  irrevocable,  except  by  substitution  of  other  person 
or  persons  qualified  as  aforesaid,  authorizing  and  empowering  such 
attorney  or  attorneys  to  accept  service  of  all  writs  and  processes  re- 
quisite and  necessary  to  the  complete  acquisition  of  jurisdiction  of 
such  company  by  any  of  the  courts  of  this  State,  or  United  States 
courts  therein,  and  constituting  such  attorney  or  attorneys  the  au- 
thorized agent  or  agents  of  such  company,  upon  whom  lawful  and 
valid  service  of  all  writs  and  process  may  be  made,  in  all  actions  or 
special  proceedings  instituted  by  or  against  any  such  company,  in 
any  of  the  courts  of  this  State,  or  in  any  Federal  court  within  this  j  jt| 
State,  and  which  shall  be  necessary  to  the  acquisition  or  complete  |  rid 
exercise  of  the  jurisdiction  aforesaid  of  said  courts.     {Ibid,  §  7.)  ' 

1 2.  There  shall  be  levied  upon  and  collected  from  each  person,      ( 
firm,  officer,   or  agent  collecting  premiums   of  insurance  in  this 
Stat€,  or  in  any  manner  or  in  any  capacity  whatsoever,  on  either      i 
fire,  life,  inland  risks,  for  or  on  account  of  any  company,  associ-      i 


'i 


I 


NEVADA.  565 

ation,  corporation,  or  iudividual,  a  license  tax  of  twenty-five  dollars 
per  quarter  year,  payable  quarterly  in  advance,  to  such  officer  as 
may  be  appointed  under  the  revenue  laws  of  this  State.  Such  col- 
lector shall  account  for  and  pay  over  the  same  at  the  time  and  in  the 
manner  that  may  be  provided  by  law  for  the  payment  of  other  State 
and  county  licenses ;  the  Treasurer  of  the  county,  or  city  and 
county,  shall  pay  into  the  State  treasury  all  moneys  collected 
under  the  provisions  of  this  act,  at  the  same  time  and  in  the  same 
manner  as  other  moneys  belonging-  to  this  State  may  be  required  to 
be  paid :  but  nothing  contained  in  this  act  shall  be  construed  to  ap- 
ply to  sub-agencies  reporting  to  and  under  control  of  the  agent  at 
the  city,  or  city  and  county,  where  the  prinicipal  office  of  the  agency 
shall  be  located,  antl  all  requirements  of  this  act  shall  be  complied 
with  by  the  prinicipal  agents  as  aforesaid,  who  shall  be  deemed  the 
agent  for  that  purpose.     {Ibid,  p.  49,  §  8.) 

13.  Every  williul  \iolation  of  the  provisions  of  this  act  shall 
be  deemed  a  misdemeanor,  and  subject  the  party  violating  to  a 
penalty  of  five  hundred  dollars  for  each  violation,  which  shall  be 
sued  for  and  recovered  in  the  name  of  the  State  of  Nevada,  by  the 
District  Attorney  of  the  county  in  which  the  company  or  the  agent 
or  agents  so  violating  shall  be  situated  ;  and  the  said  penalty,  when 
recovered,  shall  be  paid  into  the  treasury  of  said  county.  In  case 
of  non-payment  of  such  penalty,  the  party  offending  shall  be  liable 
to  imprisonment  for  a  period  not  exceeding  six  months,  in  the  dis- 
cretion of  any  court  having  the  jurisdiction  thereof.     (  Ibid,  §  9.) 


AESON  AND  INCENDIAEISM. 

14.  Every  person  who  shall  willfully  and  maliciously  burn,  or 
cause  to  be  burned,  in  the  night  time,  any  dwelling-house  in  which 
there  shall  be  at  the  time  some  human  being,  shall  be  deemed  guilty 
of  arson  in  the  first  degree,  and  upon  conviction  thereof,  shall  be 
punished  by  imprisonment,  not  less  than  two  years,  and  which  may 
extend  to  life,  in  the  State  prison.  {Compiled  Laws,  1873,^.568, 
§56.) 

13.  Every  person  who  shall  willfully  and  maliciously  burn,  or 
cause  to  be  burned,  any  dwelUng-house  or  building  owned  by  him- 
self, or  the  property  of  another,  in  the  day  time,  or  in  the  night  or 
day  time,  willfully  burn,  or  cause  to  be  burned,  any  kitchen,  office, 
shop,  barn,  stable,  store-house,  warehouse,  or  other  building,  or 
stacks,  or  stocks  of  grain,  or  standing  crops,  the  property  of  any 
other  person  or  corjioration,  or  any  church,  meeting-house,  school- 
house,  State-house,  court-house,  or  other  public  building,  or  any 
ship,  vessel,  boat,  or  other  water-cratt,  or  any  bridge  of  the 
value  of  fifty  dollars  or  more,  erected  across  any  of  the  waters  of 
this  State,  such  person  so  offending  shall  be  deemed  guilty  of  arson 
in  the  second  degree,  and,  upon  conviction  thereof,  shall  be  pun- 
ished by  imprisonment  in  the  State  prison,  for  a  term  not  less  than 
one  year  nor  more  than  ten  years  ;  and  shoiUd  the  life  or  lives  of  any 
person  or  persons  be  lost  in  consequence  of  such  burning,  as  men- 
tioned in  this  and  the  preceding  section,  su(;li  otiender  shall  be 
deemed  guilty  of  murder,  and  shall  be  indicted  and  punished  ac- 
cordingly.    {Ibid,  §  57.) 

10.  Every  person  who  shall  willfully  burn,  or  cause  to  be 
burned,  any  building,  or  any  goods,  wares,  merchandise,  or  other 


566  hine's  insurance  statutes. 

chattel,  which  shall  be  at  the  time  insured  against  loss  or  damage 
by  fire,  with  intent  to  injure  or  defraud  such  insurer,  whether  the 
same  be  the  property  of  such  person,  or  of  any  other,  shall,  upon 
conviction,  be  adjudged  guilty  of  arson  in  the  second  degree,  and 
punished  accordingly.     {Ibid,  §  58.) 


EMBEZZLEMENT. 

17.  If  any  clerk,  ajiprentice,  or  servant,  or  other  person, 
whether  bound  or  hired,  to  whom  any  money,  or  goods,  or  chattels, 
or  other  property,  shall  be  intrusted  by  his  master  or  employer,  shall 
withdraw  himself  from  his  master  or  employer,  and  go  away  with 
the  said  money,  goods,  chattels,  or  property,  or  any  part  thereof, 
with  the  intent  to  steal  the  same,  and  defraud  his  master  or  em- 
ployer thereof,  contrary  to  the  trust  or  confidence  in  him  reposed  by 
his  said  master  or  employer,  or  being  in  the  service  of  his  said 
master  or  employer,  shall  embezzle  the  said  moneys,  goods,  chattels, 
or  property,  or  any  part  thereof,  or  otherwise  shall  convert  the  same 
to  his  own  use,  with  like  purpose  to  steal  the  same,  every  such  per- 
son so  offending  shall  be  punished  in  the  manner  prescribed  by  law, 
for  feloniously  stealing  property  of  the  value  of  the  articles  so  taken, 
embezzled,  or  converted.     {Ibid,  p.  571,  §  74.) 

1 H.  For  General  Provisions  relating  to  Corporations,  see  Com- 
pUed  Laws,  1873,  pp.  272-281;  Laws  of  1875,  pp.  68,  69. 


INDEX  TO   NEW  HAMPSHIRE. 


FAGB 
AOKNT8— 

To  Produce  Books  and  Papers  (4,  13)569, 

572 

Licenses  (12) 571 

Penalty   for   Doing   Busineis  without 

License  (12) 571 

Penalty  for  Violating  Law  (20) 574 

Knowledge  of  Facts  Affects  Policy  (30)  575 
Of  Mutual  Fire  Insurance  Companies 

(43-46) 577 

Embezzlement  by  (56) 578 

Annual  Statementa-(14,  18) 572,573 

Blanks  for  (1 4) 57;J 

Arson,  Crime  and  Penalty  of  (53-5 5) 578 

Assessments  of  Mutual  Companies    (39, 

41,  42) 576,  577 

Assets  Required  (9) 570 

Attorney — 

Appointment  of  (10,  24) 571,  575 

Service  of  Process  on  (1  6)  573 

Attoniey-(Teneral  to  Prosecute,  when  (20)  574 

Chabter  and  By-Laws  to  be  Filed  (1 1).  -  -  571 

Copies  of  Papers  to  be  Evidence  (17) 573 

Corporations,  General  Provisions  Relating 

to  (57) 578 

Embkzzlembnt,  Crime  and  Penalty  of  (56)  570 

Fbes  Paid  to  Commissioner  (5,  11,  12, 

14,18) 569,571-73 

Impairmkst  of  Capital  (9) 570 

Incendiarism,  Crime  and  Penalty  of  (63'- 

55) 578 

Insurable  Interests  of  Railroad  Companies 

(47-49) 577 

Insurance  Commissioner- 
Appointment  and  Term  of  OflBce  of  (1)  569 

Who  shall  not  be  Appointed  (2) 569 

Report  of  (3,  4,  21) 569,  574 

To  Examine  Companies  (4,13,19)  569,  572, 

574 
Fees  to  be  CoUected  by  (5,  11,  12, 

14,  18) 569,  571-73 

Duties  when  Companies    are    Deemed 

Unsafe(6,  19-  570,674 

Expenses    when   Attending    National 

Convention  (8) 570 

To  License  Companies  (11) 571 

To  License  Agents  (12) 571 

To  Furnish  Blanks  (14) 572 

To  Assess  Taxes  (15) 573 

To  Report  Violations  of  Law  to  Attor- 
ney-General (20) 574 

Service  of  Process  (22,  23) 574,575 


PAGE 

Insurance  Companies — 

Examination  of  (4,   6,  13,  19)569,570, 

572,  573 

Injunctions  Against  (6,  7) 570 

Capital  and  Assets  Required  (9) 570 

Attorney  of  (10,  16,  24) 571,  573 

License  of  (11) 571,  575 

Statements  of  (11) 571 

To  File  Charter,  etc.  (11) 571 

Annual  Statements  of  (1 4,  18)...  572,  573 

Taxation  of  (15) 573 

SuitsAgain8t(16,28,33,34)o73,  575,  576 

Penalty  for  Violating  Laws  (20) 574 

To  File  a  Certain  Agreement  ^22) 574 

To  Adjust  Losses,  when  (25) 575 

To  Rebuild,  when  (27)  575 

To  Notify  Assured  of  Adjustment  of 

Loss  (32) 576 

Judgments  Against  (36) 576 

May  iBsure  against  Damage  by  Light- 
ning (36)  576 

Joint  Stock  Insurance  Companies,  Capital 

and  Assets  of  (9) 57U 

Laws  Repealed  (24) 575 

Licenses — 

Of  Companies  (11; 571 

Of  Agents  (12) 571 

Fee8for(ll,  12) 571 

Penalty  for   Doing    Business    without 

(12,  16) 571,573 

When  Revoked  (16) 573 

Life  Insurance  for  the  Benefit  of  Married 
Women  and  Children  and  Others  (50- 
52) 577,  578 

Life  Insurance  Companies,  Capital  and  As- 
sets of  (9) 570 

Loss- 
Adjustment  of  (25) 575 

Rebuilding  After  (26,  27) 575 

Suits  for  (28,  33) 575,  576 

Notice  of(31) 576 

Amount  of  (3 2) 576 

Recovery  of  (3  5) 576 

Mutual  Insurance  Companies— (37-49)  576, 

577 

Capital  and  Assets  of  Foreign  (9) 570 

Liability  of  Members  of  ( 3  7 ) 576 

May  Limit  Field  of  Operations  (38).  - .  576 

Assessments  of  (39,  41,  42) 576,  577 

Duties  of  Treasurer  of  39) 576 

May  Terminate  Policies  (40) 57ti 

Agents  of  (4 3-46) 577 


5G8 


INDEX  TO    NEW  HAMPSHIRE. 


PAGE 

Penalties— 

for  Doing  Business  without  License 
(12) 571 

For  not  raying  Tax  (16) 573 

For  Embezzlement  (56) 578 

For  Violating  Laws  (20) 574 

For  Neglect  of  Duty  by  Treasurer  of 

Mutual  Fire  Insurance  Cos.  (39) 576 

For  Arson  and  Incendiarism  (53-55)  578 
Policy — 

Misrepresentation  in  Obtaining  (29)..  575 
Knowledge  of  Facts  Affects  (30) 575 


PAOE 

Policy  (Continued)— 

Mutual  Fire  Insurance  Companies  may 

Terminate  (40) 576 

On  Life  for  Benefit  of  Married  "Women 
and  ChUdren  and  Others  (50-52)  577,  578 

Power  of  Attorney  (10) 571 

Premiums,  Taxation  of  (15) 573 

Sebvici  of  Process  ( 1 0  , 1 6 , 2  2 , 2  3 )  571,  573-75 

Tax  on  Premiums  (15) 573 

Wives'  Policy  (60-62) 577,578 


INSURANCE  STATUTES  OF  NEW  HAMPSHIRE. 


Revised  by  Hon.  Oliver  FiUshury,  Insurance  Commissioner. 


INSUEANCE   COMMISSIONER. 

1.  One  Insurance  Commissioner  shall  be  appointed  by  the 
Governor  and  Council,  wlio  shall  hold  office  for  three  years,  and 
until  another  is  appointed  and  qualifietl  in  his  stead ;  but  he  may  be 
removed  at  pleasure  by  the  Governor  and  Council,  and  his  duties 
shall  be  the  same  as  those  of  Insurance  Commissioners  under  exist- 
ing laws.  [General  Statutes,  1867, p.  323,  §  1,  as  amended  by  laws  of 
1869,  p.  273,  §  1.) 

2.  No  director,  agent,  or  other  officer  of  any  insurance  com- 
pany, or  person  who  has  been  such  within  one  year,  shall  be  so  ap- 
pointed.    {Ibid,  §  2.) 

3.  Such  Commissioner,  on  or  before  the  twentieth  day  of  May, 
annually,  shall  file  in  the  office  of  the  Secretary  of  State  his  report, 
showing  the  amount  of  capital  stock  and  premium  notes  of  each 
company  by  him  examined,  the  amount  of  property  at  risk,  the 
amount  of  losses  in  the  two  preceding  years,  the  sums  assessed,  the 
amount  of  indebtedness  for  money  borrowed,  and  for  losses  unpaid, 
the  salaries  and  emoluments  of  the  president,  secretary,  treasurer, 
and  each  director,  and  the  whole  amount  each  person  holding 
office  therein  has  received  or  is  to  receive  for  hi»  services  for  the 
year ;  the  expenses  of  adjusting  losses,  the  sums  paid  or  allowed  for 
travel  andjyer  diem  to  ofQcers  and  agents  while  attending  thereto, 
the  sums  paid  agents  for  each  application  taken  by  the  company, 
the  rate  per  cent,  and  the  aggregate  amount  allowed  agents  for  col- 
lecting assessments,  the  amount  of  each  of  the  two  last  assessments 
laid,  and  the  amount  collected  on  each,  and  any  other  facts  calcu- 
lated to  give  the  public  full  and  satisfactory  information  of  the  con- 
dition and  management  of  such  company.     {Ibid,  §  4.) 

4.  The  Insurance  Commissioner  shall  annually  include  in  his 
report  an  abstract  of  the  annual  statements  made  to  him  by  insur- 
ance companies  established  out  of  the  State,  but  doing  business  in 
this  State  by  an  agent  or  agents  residing  here ;  and  may  examine 
into  the  business  transacted  in  this  State  by  any  such  agent,  and  re- 
quire him  to  produce  all  books  and  X)apers  within  his  control  relat- 
ing to  the  business  of  such  agency,  and  the  affiiirs,  condition,  and 
management  of  such  company,  and  to  answer  in  writing,  under  oath, 
all  reasonable  questions  relative  thereto,  and  especially  in  relation 
to  the  business  transacted  bv  said  company  in  this  State.  {Ibid, 
p.  324,  §  0.) 

5.  The  Commissioner  shall  receive  from  each  company  exam- 
ined by  him,  and  from  each  agent  so  examined,  ten  cents  a  mile  each 
way  for  his  actual  travel  to  make  such  examination,  and  three  dol- 
lars for  each  day  necessarily  spent  in  making  such  examination  and 


570  hine's  insurance  statutes. 

report;  but  if  more  than  one  company  or  agency  is  examined  at  the 
same  time  in  one  town  he  shall  not  tax  more  than  one  travel,  or 
more  than  his  actual  travel  from  one  place  of  examination  to  another. 
{Ibid,  §  6.) 

6.  If  the  Commissioner,  upon  such  examination  or  otherwise, 
becomes  satisfied  it  is  unsafe  for  the  public  that  any  company  shall 
continue  its  business,  or  if  the  officers  or  agents  of  any  company 
shall  not  permit  a  full  examination  of  its  affairs,  or  shall  not  furnish 
the  necessary  facilities  therefor,  he  shall  immediately  x>resent  the 
facts  in  writing  to  some  Justice  of  the  Supreme  Court,  who  shall 
forthwith  issue  an  injunction  prohibiting  said  company  from  issuing 
any  policy ;  and  said  Commissioner  shall  cause  the  same  to  be  duly 
served.    {Ibid,  §  7.) 

7.  After  notice  and  a  hearing,  said  Justice  may  dissolve,  modi- 
fy, or  continue  such  injunction,  and  make  further  orders  and  decrees 
as  the  circumstances  of  the  case  and  the  protection  of  the  public 
may  render  proper.     {Ibid,  §  8.) 

8.  Whenever  the  Insurance  Commissioner  of  this  State  shall 
attend  the  annual  session  of  the  National  Insurance  Convention  of 
the  United  States,  composed  of  the  insurance  officials  of  the  several 
States,  his  traveling  fare  and  hotel  expenses,  not  exceeding  the  sum 
of  two  hundred  dollars  annually,  properly  itemized  and  duly  audited 
by  the  G-overuor  and  Council,  shall  be  paid  out  of  any  money  in  the 
Treasury  not  otherwise  appropriated.     {Laws  o/1872,  chap.  78.) 


INSURANCE  COMPANIES  AND  AGENCIES. 

9.  No  joint  stock  insurance  company  not  organized  under  the 
laws  of  this  State,  shall  be  permitted  or  allowed  to  transact  the 
business  of  such  company  in  this  State,  unless  it  shall  have  a  bona  fide 
paid  up  capital,  invested  in  securities  readily  convertible  into  cash 
of  at  least  one  hundred  thousand  dollars,  nor  unless  such  company 
shall  have,  in  addition  to  such  capital,  assets  equal  in  amount  to  all 
its  outstanding  liabilities,  reckoning  fifty  per  cent,  of  premiums  on 
outstanding  fire  risks,  the  whole  amount  of  premium  on  marine 
risks,  and  the  premium  reserve  on  life  risks,  based  on  the  Actuaries' 
Table  of  Mortality,  with  interest  at  four  per  cent,  as  a  liability ;  Pro- 
vided, That  the  Insurance  Commissioner  may,  at  his  discretion,  license 
any  company  to  do  business  in  this  State  whose  impairment  of 
capital  does  not  exceed  twenty  per  cent,  on  the  above  rule ;  nor 
shall  any  mutual  fire  or  life  insurance  company,  or  co-operative  in- 
surance company,  association  or  society,  not  organized  under  the 
laws  of  this  State,  be  permitted  or  allowed  to  transact  the  business 
of  such  company  in  this  State,  unless  it  possesses  assets  amounting 
to  one  hundred  thousand  dollars,  invested  in  securities  readily  con- 
vertible into  cash,  nor  unless  it  possesses  such  assets  equal  to  all  its 
outstanding  liabilities  (including  reinsurance,  to  be  estimated  as  in 
the  case  of  joint  stock  insurance  companies  above-named,  and  in- 
cluding the  amount  of  guaranty  capital  as  a  liability) ;  nor  until 
all  the  laws  relating  to  insurance  companies  of  other  States,  en- 
acted by  this  State,  shall  have  been  complied  with.  {Laws  of  1870, 
chap.  1,  §  1.) 

lO.  Every  such  insurance  company  shall,  before  doing  business 
in  this  State,  on  and  after  the  fiist  day  of  September,  eighteen  hun- 
dred and  seventy,  appoint  in  writing  a  citizen  thereof,  resident 


NEW  HA^rPSHIEE.  571 

therein,  namiug  the  place  of  such  residence,  an  attorney,  upon 
whom  all  legal  processes  against  such  company  may  be  served,  with 
like  eftect  as  if  the  company  existed  in  this  State ;  and  said  writing 
or  power  of  attorney  shall  stipulate  and  agree,  on  the  part  of  the 
company  making  the  same,  that  any  legal  process  against  such 
company,  served  on  said  attorney,  shall  be  of  the  same  force  and 
validity  as  if  served  on  said  company.  Said  appointment,  or  a  copy 
thereof,  duly  certified  and  authenticated,  together  with  the  accept- 
ance of  the  appointment  by  such  attorney,  shall  be  filed  in  the 
office  of  the  Insurance  Commissioner,  and  copies  certified  by  him 
shall  in  all  cases  be  competent  evidence.  This  appointment  shall 
be  continued  so  long  as  the  comj^any  making  the  same  shall  trans- 
act any  business  in  this  State,  and  while  any  liability  against  such 
company  shall  remain  in  this  State,  and  shall  not  be  revoked  until 
the  same  power  is  conferred  upon  another,  and  a  like  copy  filed,  as 
aforesaid.  Service  upon  such  attorney  shall  in  all  cases  be  deemed 
sufficient  ser^^ce  upon  the  principal.  {Ibid,  §  2,  as  amended  by  laics 
0/1872,  chap.  37,  §  1.) 

11.  It  shall  not  be  lawful  for  any  insurance  company  named 
in  section  one  to  transact  any  insurance  business  in  this  State  on 
and  after  the  first  day  of  September,  eighteen  hundred  and  seventy, 
unless  such  company  shall  first  obtain  license  of  the  Insurance  Com- 
missioner, authorizing  the  company  so  to  do.  Before  receiving 
such  license,  the  company  shall  file  with  the  insurance  commissioner 
a  certified  copy  of  its  charter  and  by-laws,  and  a  full  statement, 
under  oath,  of  its  president  and  secretary,  showing  the  financial 
condition  and  standing  of  the  company,  in  accordance  with  blanks 
furnished  by  him,  except  in  cases  where  the  company  have  already 
filed  such  annual  statement.  Ujiou  receiving  such  copies  and  state- 
ment, if  the  Commissioner  is  satisfied  with  the  same,  and  that  the 
company  meets  the  requirements  of  section  one,  and  has  complied 
with  the  requirements  of  section  two,  of  this  act,  he  shall  grant  such 
license,  authorizing  such  company  to  do  insurance  business  by 
authorized  agents,  subject  to  the  laws  of  this  State,  until  the  first 
day  of  April  thereafter ;  and  annually  thereafter,  on  the  first  day 
of  April,  such  license  may  be  renewed,  so  long  as  such  company 
shall  comply  with  the  requirements  aforesaid,  and  the  Commissioner 
shall  regard  the  company  as  safe,  reliable,  and  entitled  to  public 
confidence.  For  each  license  and  renewal,  as  above,  the  company 
shall  pay  to  the  Insurance  Commissioner  the  sum  of  five  dollars. 
{Ibid,  §  3.) 

1 3.  No  person  shall  act  as  an  agent  of  any  insurance  company 
aforesaid,  not  organized  under  the  laws  of  this  State,  on  and  after 
the  first  day  of  September,  eighteen  hundred  and  seventy,  until  he 
shall  have  filed  with  the  Insurance  Commissioner,  a  certificate  from 
the  company,  or  its  authorized  general  agent,  authorizing  him  to 
act  as  such  agent,  and  obtained  license  thereon  from  him  so  to  do,  for 
each  company  for  which  he  proposes  to  act.  Upon  filing  the  certifi- 
cate aforesaid,  the  Commissioner  shall  issue  a  license  to  such  per- 
son to  act  as  an  insurance  agent  in  this  State,  provided  the  com- 
pany for  which  such  person  proposes  to  procure  or  solicit  applica- 
tions for  insurance  therein,  shall  be  authorized  to  do  insurance 
business  in  this  State ;  which  license  shall  continue  until  the  first 
day  of  April  thereafter,  unless  for  cause  revoked  in  the  meantime. 
And,  upon  filing  a  certificate  as  aforesaid,  such  license  may  be  re- 
newed on  the  said  first  day  of  April,  and  annually  thereafter,  and 


572  hike's  insurance  statutes. 

for  such  license,  and  each  subsequent  renewal,  the  person  receiving 
the  same  shall  pay  to  the  Commissioner  the  sum  of  one  dollar.  If 
any  person  shall  solicit  or  receive  any  risk  or  application  for  insur- 
ance, or  receive  money  or  value  therefor,  for  any  insurance  com- 
pany or  agent,  without  such  license  from  the  Commissioner,  he 
shall  be  punished  for  each  offense  by  fine  not  exceeding  one  hun- 
dred dollars,  one-half  to  the  use  of  tbe  prosecutor.  But  any  policy 
issued  on  an  application  thus  procured,  shall  bind  the  company,  if 
otherwise  valid ',  Provided,  however.  That  this  section  shall  not 
apply  to  any  person  who  only  acts  as  clerk  to  any  insurance  com- 
Ijany  or  agent.     {Ibid,  §  4.) 

13.  The  Insurance  Commissioner  shall  be  authorized,  at  any 
time,  to  examine  into  the  condition  and  affairs  of  any  insurance  com- 
pany not  organized  under  the  laws  of  this  State,  doing  business  or 
proposing  to  do  business  therein,  or  cause  such  examination  to  be 
made  by  some  person  appointed  by  him,  not  interested  in  such 
company,  and  may,  in  like  manner,  examine  into  the  business  trans- 
acted by  any  agent  of  such  company  in  this  State,  and  may 
require  such  company  or  agent  to  produce  all  books  and 
papers  relating  to  such  company  or  agency,  and  to  answer  in  writing, 
under  oath,  all  reasonable  questions  relating  thereto  ;  and  if,  in  his 
opinion,  the  afltairs  of  such  company  are  in  an  unsound  or  failing 
condition,  he  shall  revoke  any  license  that  may  have  been  granted  to 
such  company,  and  all  licenses  that  may  have  been  granted  to 
agents  of  such  company,  by  written  notice  to  the  company,  and 
publication  of  same  in  one  newspaper  in  Concord  and  Manchester, 
each  having  the  largest  circulation  in  the  State,  from  those  places. 
{Ibid,  §  5.) 

14.  Every  insurance  company  not  organized  under  the  laws 
of  this  State,  and  doing  business  therein,  shall  on  or  before  the  first 
day  of  March,  in  each  year,  transmit  to  the  Insurance  Commissioner 
a  statement,  under  oath,  of  its  president  and  secretary,  of  the  whole 
amount  of  i^remiums  received  in  money,  or  in  the  form  of  notes, 
credits,  loans,  or  any  other  substitute  for  money,  by  or  on  account 
of  said  company,  during  the  year  ending  on  the  thirty -first  day  of 
the  preceding  December,  for  any  insurance  made  by  it  on  persons 
or  property  in  this  State,  also  exhibiting  its  assets,  liabilities, 
amount  of  capital  stock  actually  paid  in,  the  amount  of  outstanding 
risks,  and  the  business  standing,  and  affairs  of  the  company 
generally,  in  accordance  with  blanks  to  be  furnished  by  the  Com- 
missioner, adapted  to  the  business  of  such  company,  and  shall  pay 
to  the  Commissioner,  upon  filing  such  statement,  the  sum  of  five 
dollars.  And  for  the  purpose  of  the  above  statement,  the  Commis- 
sioner shall  prepare  suitable  blanks,  proposing  such  interrogatories 
as  may  be  necessary  to  ascertain  the  business  standing  and  affairs 
of  such  company,  and  forward  duplicates  of  the  same  in  the  month 
of  December,  in  each  year,  to  every  such  company;  and  the  Com- 
missioner may  demand  a  like  statement  of  its  standing  and  affairs 
at  any  other  time  when,  iu  his  opinion,  the  same  may  be  necessary 
for  the  safety  of  the  public.     {Ibid,  §  6.) 

15.  The  Insurance  Commissioner  shall,  on  or  before  the  first 
day  of  Ajjril,  in  each  year,  assess  a  tax  against  every  insurance 
company  aforesaid,  of  one  per  cent,  on  the  whole  amount  of  pre- 
miums received  in  money,  or  in  the  form  of  notes,  credits,  loans,  or 
any  other  substitute  for  money,  by  or  on  account  of  said  com- 
pany, during  the  year  ending  on  the  thirty-first  day  of  the  preced- 


NEW  HAMPSHIRE,  573 

ing  December,  for  any  insurance  made  by  it  on  persons  or  ])roperty 
in  this  State,  during  said  year,  and  shall  give  notice  of  said  assess- 
ment, and  the  amount  of  said  tax,  to  the  president,  secretary  or 
treasurer  of  every  such  company,  by  mail  or  otherwise,  and  shall 
file  a  list  of  said  assessment  with  the  State  Treasurer ;  and  every 
insurance  company  shall  pay  the  amount  of  tax  so  assessed  to  the 
State  Treasurer,  within  one  month  after  notice,  as  aforesaid,  who 
shall  receipt  for  the  same.  In  case  any  insurance  comj)any  shall 
refuse  or  neglect  to  pay  the  full  amount  of  such  tax,  as  aforesaid, 
the  Insurance  Commissioner  may,  at  his  discretion,  revoke  the  license 
of  such  company  to  do  business  in  this  State,  and  the  license  of 
every  agent  of  such  company.     {Ibid,  §  7.) 

16.  Any  person  having  a  claim  against  any  insurance  com- 
pany not  organized  under  the  laws  of  this  State,  may  sue  therefor 
in  the  courts  of  this  State^  and  any  service  made  upon  the  author- 
ized attorney  of  such  company  shall  be  valid  and  binding  on  the 
company  and  hold  it  to  answer  such  suit,  and  the  judgment  rendered 
in  such  suit  shall  bind  the  company  as  a  valid  judgment  in  every 
respect,  whether  the  defendants  appear  or  not ;  this  pro\asion  also 
to  embrace  all  cases  of  foreign  attachment  or  trustee  suits.  For 
the  purpose  of  receiving  any  notice  or  service  of  any  fact,  proceed- 
ing or  process,  the  attorney  of  the  company  shall  be  regarded  as 
authorized  until  another  is  appointed.  Unless  any  such  judgment 
shall  be  paid  within  thirty  days  after  demand  made  upon  such 
attorney,  by  the  ofl&cer  holding  the  execution,  the  Insurance  Com- 
missioner may  suspend  the  power  of  the  company  to  do  business 
in  this  State  until  it  shall  be  paid ;  and  if  the  company  or  any  agent 
therefor,  shall  issue  any  policy  in  this  State  during  such  suspension, 
said  company  and  agent  shall  each  forfeit  a  sum  not  exceeding  two 
hundred  dollars.  But  any  policy  so  granted  shall  be  valid  and 
binding  against  the  company.     {Ibid,  §  8.) 

17.  All  copies  of  charters,  by-laws,  certificates,  appointments, 
and  all  copies  of  other  papers  required  by  law  to  be  filed  in  the 
office  of  the  Insurance  Commissioner,  made  and  certified  by  him, 
shall,  in  all  cases,  be  competent  evidence  in  the  courts  of  the  State. 
{Ibid,  §  10.) 

18.  Every  joint  stock  insurance  company  and  ever}- mutual 
fire  or  life  insurance  company,  incorporated  by  or  organized  under 
the  laws  of  this  State  and  doing  business  therein,  shall,  annually, 
in  the  month  of  January,  make  and  transmit  to  the  Insurance 
Commissioner  a  statement  under  oath  of  its  president  and  secre- 
tary, in  accordance  with  blanks  to  be  furnished  by  him,  showing 
the  amount  of  its  capital  stock,  premium  notes,  amount  at  risk, 
risk,  receipts,  losses,  expenditures,  assets,  liabilities,  salaries  and 
emoluments,  assessments,  rate  per  cent,  allowed  for  collecting,  i)ro- 
curing  applications,  and  any  other  facts  calculated  to  give  full  and 
satisfactory  information  relating  to  the  condition  and  management 
of  the  comi)any,  for  and  during  the  year  ending  the  thirty-first  day 
of  the  preceding  December,  and  shall  pay  the  Commissioner,  upon 
transmitting  the  same,  the  sum  of  five  dollars.     {Ibid,  §  11.) 

19.  It  shall  be  the  duty  of  the  Insurance  Commissioner,  upon 
petition  of  five  or  more  policy-holders  of  any  insurance  company 
organized  under  the  laws  of  this  State,  setting  forth  that  they 
believe  such  company  unsound,  or  that  there  is  waste  or  misman- 
agement in  the  affairs  of  such  company,  Avith  reasons  for  such 
belief,  to  make  personal  examination  of  the  affairs  of  such  company. 


574  hine's  insurance  statutes. 

at  the  expense  of  the  company,  and  for  such  purpose  he  shall  have 
access  to  all  the  records,  books  and  papers  of  the  company,  and 
may  examine  under  oath  any  officer  or  agent  of  such  company.  If, 
upon  examination,  the  Commissioner  shall  be  of  opinion  that  the 
affairs  of  the  company  are  in  such  condition  as  to  render  it  unsafe 
or  unworthy  of  public  confidence,  he  shall  file  a  petition  against 
such  company  in  the  office  of  the  supreme  judicial  court  for  the 
county  in  which  such  company  has  its  principal  place  of  business, 
for  closing  the  affairs  of  said  company ;  ?ynd  any  judge  of  said  court 
may  issue,  under  the  provisions  of  chapter  one  hundred  and  ninety 
of  the  General  Statutes,  a  temporary  injunction,  to  restrain  such 
company  from  doing  business,  which  shall  be  dissolved  or  made  per- 
manent by  said  court,  upon  the  hearing  and  determination  of  said 
petition ;  and  the  court  may  make  such  further  orders  and  decrees 
as  the  circumstances  of  the  case  and  the  protection  of  the  public 
may  render  proper.     {Ibitlj  §  12.) 

20.  Whenever  the  Insurance  Commissioner  shall  have  reason 
to  believe  that  any  insurance  company  named  in  section  one  of  this 
act,  or  any  insurance  company  organized  under  the  laws  of  this 
State,  or  any  officer  or  agent  of  the  aforesaid  insurance  companies, 
or  any  other  person,  shall  have  \aolated  any  law  of  this  State  re- 
lating to  such  companies,  officers  or  agents,  or  the  business  of 
insurance,  or  failed  to  comply  with  any  requisition  of  the  laws  of 
this  State  relating  to  such  companies,  officers  or  agents,  or  the  busi- 
ness of  insurance,  he  shall  forthwith  report  the  fact,  with  any 
information  he  may  have  relating  thereto,  to  the  Attorney-General 
of  the  State,  who  shall,  if  in  his  judgment  it  is  advisable  so  to  do, 
prosecute  every  such  company,  officer,  agent  or  other  person  there- 
for, and  any  such  company,  officer,  agent,  or  other  person,  upon 
conviction,  shall  be  liable,  for  each  offense,  to  a  fine  not  exceeding 
two  thousand  dollars  and  costs  of  prosecution.     {Ibid,  §  13.) 

21.  The  Insurance  Commissioner  shall  include  in  his  annual 
report  of  the  insurance  companies  of  this  State,  an  abstract  of  the 
annual  statements  made  to  him  by  insurance  companies  of  other 
States,  with  such  statistics,  general  information  and  suggestions 
relating  to  the  subject  of  insurance,  as  he  may  think  proper  to  in- 
sert in  such  report,  giving  the  name  and  location  of  every  such 
company,  and  the  name  and  residence  of  the  attorney  of  every  such 
company  upon  whom  notice  of  process  may  be  served ;  and  he 
shall  keep  on  file  the  charters  of  all  such  companies,  and  all  certi- 
ficates relating  to  the  means  or  authority  of  such  companies,  and 
the  name  and  residence  of  every  agent  licensed  to  do  insurance 
business  in  this  State,  together  with  the  certificate  of  the  company, 
or  general  agent  of  such  company,  upon  which  such  agents  have 
been  licensed ;  and  the  fees  from  agents  and  companies  for  licenses, 
filing  annual  statements,  and  examinations,  hereinbefore  provided 
for,  together  with  any  fees  he  may  receive  for  copies  furnished  by 
him,  shall  be  in  full  compensation  for  his  services  as  commissioner. 
{Ibid,^  14.) 

APPOINTMENT  OF  ATTORNEY. 

22.  No  insurance  company  not  of  this  State,  nor  its  agents, 
shall  do  business  in  this  State  after  March  1,  1876,  until  it  has  filed 
with  the  Insurance  Commissioner  of  this  State  a  written  stipula- 
tion, duly  authenticated  by  the  company,  agreeing  that  any  legal 


NEW  HAMPSHIRE.  575 

process  affecting  the  company,  served  on  the  Insurance  Commis- 
sioner for  tbe  time  being,  shall  have  the  same  effect  as  if  served 
personally  on  the  company  within  this  State.  {Laics  of  1875,  cha}). 
38,  §  1.) 

23.  In  all  cases  where  the  Commissioner  is  served  with  pro- 
cess, it  shall  be  his  duty  to  make  a  written  memorandum  of  the 
fact,  and  to  forthwith  inform  the  company  by  letter,  maded  by  him 
to  the  principal  office  of  the  company  in  this  country,  and  shall  on 
the  next  subsequent  day  forward  the  copy  of  the  process  served  on 
him  to  the  company  sued  in  a  separate  envelope.     {Ibid,  §  2.) 

24.  All  acts  and  parts  of  acts  requiring  such  companies  to 
appoint  any  other  attorney  in  this  State  shall  be  and  hereby  are  re- 
pealed on  the  iirst  day  of  March,  one  thousand  eight  hundred  and 
seventy-six,  but  all  other  provisions  of  existing  law  relating  to  for- 
eign insurance  companies  shall  be  in  full  force  as  heretofore.  {Ibid, 
§3.) 

FIKE  INSUKAi^CE  LOSSES. 

25.  All  fire  insurance  companies  doing  business  in  this  State, 
whether  organized  under  the  laws  of  New  Hampshire  or  any  other 
State,  shall,  within  fifteen  days  after  notice  of  any  loss  by  fire  upon 
any  risk  taken  by  them  in  this  State,  adjust  the  same.  {Laws  of 
1871,  chap.  22,  §  1.) 

26.  Any  company  having  decided  to  enter  upon  any  premises 
destroyed  or  damaged  by  fire,  to  rebuild  or  repair  the  same  shall 
commence  within  twenty  days  after  said  adjustment  shall  be  made 
to  rebuild  or  repair,  and  prosecute  the  work  with  all  reasonable 
diligence  until  completed.     {Ibid,  §  2.) 

27.  Any  person  insured  against  loss  or  damage  by  fire  by  any 
insurance  company,  upon  the  neglect  of  said  company  to  adjust  said 
loss  or  damage  by  agreeing  to  pay  the  same,  or  rebuild  or  repair  the 
premises,  may,  after  fifteen  days  after  having  given  notice  of  such 
loss  or  damage  to  said  company,  proceed  to  rebuild  or  repair  said 
premises  at  the  expense  of  said  company,  who  shall  be  hoi  den  for 
all  reasonable  expenses  incurred  therein,  and  loss  sustained  by  their 
neglect,  not  exceeding  the  amount  insiu'ed ;  or  may  commence  an 
action  of  law  and  recover  loss  or  damage  sustained.     {Ibid,  §  3.) 


SUITS  AGAINST  INSUEANCE  COMPANIES. 

28.  Every  person  suffering  loss  or  damage  covered  by  any 
policy  of  insurance  may  bring  his  action  therefor  in  the  county  of 
his  residence,  if  he  so  elects.     {General  /Statutes,  lSG7,p.  325,  §  1.) 

29.  No  policy  of  insurance  shall  be  avoided  by  reason  of  any 
mistake  or  misrepresentation,  unless  it  appears  to  have  been  inten- 
tionally and  fraudulently  made ;  but  the  party  insuring,  in  any  ac- 
tion brought  against  them  on  such  policy,  may  show  the  facts,  and 
the  jury  shall  reduce  the  amount  for  which  such  party  would  other- 
wise be  liable  as  much  in  jiroportion  as  the  premium  ought  to  have 
been  increased  if  no  mistake  or  misrepresentation  had  occurred. 
{Ibid,  §  2.) 

30.  If  any  company  shall  issue  any  policy  upon  an  application 
prepared  by  a  third  person  assuming  to  act  as  their  agent  or  other- 
wise, they  shall  be  affected  by  his  knowledge  of  any  facts  relating 


576  hine's  insurance  statutes. 

to  the  property  insured  as  if  they  were  stated  in  the  application. 
(Ibid,  §  3.) 

31.  In  case  of  loss  or  damage  of  any  property  insured,  the 
party  insured  shall  give  notice  thereof  in  writing  to  the  secretary, 
a  director,  or  agent  of  the  company,  within  thirty  days.    {Ibid,  §  4.) 

3iS.  Such  company,  upon  view  or  otherwise,  shall,  as  soon  as 
may  be,  determine  the  amount  of  such  loss  or  damage,  and  notify 
the  assured  or  his  agent  thereof  in  writing.     {Ibid,  §  5.) 

33.  If  dissatisfied  with  such  determination,  the  party  insured 
may  bring  his  action,  by  causing  his  writ  to  be  served  on  the  proper 
ofiicer  or  agent  of  such  company,  within  six  mouths  after  the  recep- 
tion of  such  notice  in  writing,  and  not  afterward.     {Ibid,  §  G.) 

34.  Unless  the  company  in  their  notice  of  the  amount  of  loss 
or  damage  determined  by  them,  shall  notify  the  insured  that  his 
action  will  be  forever  barred  by  law  if  his  writ  is  not  served  on 
them  or  their  agent  within  six  months  next  after  the  service  of  such 
notice  upon  him,  he  may  bring  his  action  at  any  time.   {Ibid,  §  7.) 

35.  If  upon  trial  the  insured  recovers  more  than  the  amount 
determined  by  the  insurers,  he  shall  have  judgment  and  execution 
immediately  therefor,  with  interests  and  costs.  If  he  recovers  no 
more  than  such  amount,  the  court  may  allow  interest  thereon,  and 
such  costs  to  either  party  as  may  be  just ;  but  execution  shall  not 
issue  against  the  company  within  three  months,  unless  by  special 
order  of  court.     {I  bid,  §  8.) 

36.  Any  insurance  company  may  insure  against  damage  to 
property  by  lightning  whether  such  damage  is  caused  by  burning  or 
otherwise,  and  shall  be  liable  therefor.     {Ibid,  §  9.) 


MUTUAL  INSURANCE  COMPANIES. 

37.  Members  of  mutual  insurance  companies  shall  not  be  in- 
dividually liable  to  pay  any  debts  of  their  respective  companies,  be- 
yond their  liability  to  assessments  for  losses  occurring  therein,  nor 
to  such  assessments  beyond  the  amount  of  their  deposit  notes. 
{General  Statutes,  lS67,p,  326,  §  1.) 

38.  Any  such  company,  organized  under  the  general  laws  of 
this  State,  may,  by  vote,  limit  its  operations  to  any  city  or  town ; 
and  such  vote  being  recorded  in  the  records  of  the  company,  they 
shall  be  forever  barred  from  insuring  projierty  situate  beyond  the 
limits  of  such  city  or  town.     {Ibid,  §  U.) 

39.  The  treasurer  of  every  such  company  shall  enter,  in  suit- 
able books  provided  for  the  j)urpose,  all  assessments  made  and  sums 
received  from  expired  and  siu-rendered  policies,  and  shall  charge 
himself  with  the  whole  of  such  assessments,  and  with  all  money  and 
evidences  of  debt  of  the  company  received  by  him,  and  shall  balance 
his  accounts  yearly,  before  the  annual  meeting ;  and  for  neglect  of 
either  of  said  provisions  he  shall  forfeit  twenty-five  dollars,  to  the 
person  who  shall  sue  therefor.     {Ibid,  §  3.) 

40.  Any  such  company  may  terminate  policies  therein,  by  pub- 
lishing a  notice  to  all  persons  insured  of  the  time  when  such  policies 
will  terminate,  and  at  the  same  time  giving  or  mailing  a  like  notice 
to  each  party  insured.     {Ibid,  §  4.) 

4 1 .  No  person  insured  in  such  company,  or  any  class  thereof, 
in  which  the  amount  insured  is  less  than  fifty  thousand  dollars, 
shall  be  assessed  any  greater  sum  than  he  would  be  if  that  amount 


NEW  HAMPSHIRE.  577 

were  insured  ;  buttlie  officers  of  such  company  shall  be  individually 
liable  for  the  balance  not  provided  for  by  such  assessment.  {Ibid, 
§  5.) 

VJ.  No  more  than  thirty  per  cent,  above  its  actual  indebted- 
ness shall  be  assessed  by  any  such  company  to  close  its  affairs;  and 
the  officers  and  agents  thereof  shall  not  receive  more  than  twenty 
per  cent,  of  the  money  collected  for  their  services  in  closing  its 
business.     {Ibid,  §  6.) 

43.  Agents  to  take  applications  for  insurance  may  be  ap- 
pointed by  the  directors  of  any  insurance  company  organized  under 
the  laws  of  this  State ;  but  every  such  appointment,  before  it  shall 
take  effect,  shall  be  recorded  by  the  town  clerk  of  the  town  in  which 
he  resides,  and  of  each  town  in  which  he  shall  act.     {Ibid,  §  7.) 

44.  Before  any  agent  is  appointed,  the  fees  to  be  paid  by  ap- 
plicants for  an  application  and  for  a  policy,  and  the  cash  premium 
to  be  paid  for  insurance,  shall  be  fixed  and  limited  by  the  directors  ; 
and  the  amount  so  fixed  and  limited  shall  be  stated  in  his  appoint- 
ment and  on  each  policy.    {Ibid,  §  8.) 

45.  The  town  or  towns  in  which  each  agent  may  take  applica- 
tions shall  be  prescribed  and  stated  in  his  appointment,  and  no  more 
t'lan  two  agents  in  any  county  shall  be  authorized  to  take  apj)lica- 
tions  in  anj-  town  except  that  in  which  they  reside.  {Ibid,  j). 
327,  §  9.) 

46.  Every  such  agent  shall,  before  acting  as  such,  give  bond 
to  the  company,  with  suret  es  to  the  satisfaction  of  the  directors,  for 
the  faithful  performance  of  his  duties,  to  pay  to  the  company  all 
money  by  him  received  for  policies  or  premiums,  and  to  repay  on 
demand,  all  other  and  larger  fees  than  those  prescribed  by  the 
directors  ;  and  such  bond  may  be  sued  in  the  name  of  the  company, 
by  any  person  from  whom  money  has  been  taken  contrary  to  said 
rules.    {Ibid,  §  10.) 


mSURABLE  INTEREST  OF  RAILROAD  COMPANIES. 

47.  The  proprietors  of  every  railroad  shall  be  liable  for  all 
damages  which  shall  accrue  to  any  person  or  property  by  fire  ob 
steam  from  any  locomotive  or  other  engine  on  such  road.  {General 
Statutes,  1867,  p.  (ilO,  §  8.) 

48.  Such  proprietors  shall  have  an  insurable  interest  in  all 
property  situate  on  the  line  of  such  road,  exposed  to  such  damage, 
and  may  effect  insurance  thereon  for  their  own  benefit.     {Ibid,  §  9.) 

49.  Any  insurance  ett'ected  by  the  owners  of  such  property 
thereon  shall  so  far  iniu-e  to  the  benefit  of  the  proprietors  of  such 
railroad  that  in  case  of  loss  such  proprietors  shall  be  entitled  to  a 
deduction  from  the  damages  of  the  amount  received  thereon,  except 
the  premium  and  expense  of  recovering  the  same,  or  to  an  assign- 
ment of  the  whole  damages  sustained.     {Ibid,  §  10) 


LIFE    INSURANCE    FOR    THE    BENEFIT    OF    MARRIED 
WOMEN,  CHILDREN,  AND  OTHERS. 

50.     Any  policy  of  insurance  on  the  life  of  any  person,  expressed 
to  be  for  the  benefitof  any  married  woman,  whether  effected  by  her- 
self, or  her  husband,  or  any  other  person,  shall  inure  for  her  bene- 
37 


578  hine's  insurance  statutes. 

tit,  or,  in  case  of  her  death,  to  her  children,  if  any,  against  the  claims 
of  the  creditors  or  representatives  of  the  person  effecting  the  same. 
{General  Statutes,  1867, p.  329,  §  1.) 

51.  When  a  policy  of  insurance  is  effected  by  any  person  on 
his  own  life  or  the  life  of  another,  expressed  to  be  for  the  benefit  of 
a  third  person  or  his  representatives,  the  party  for  whose  benefit 
such  policy  is  so  expressed  to  be  made  shall  be  entitled  to  the  sum 
so  insured,  against  the  claims  of  the  creditors  or  representatives  of 
the  party  effecting  the  same.     {Hid,  §  2.) 

52,  But  if  it  appears  that  such  policy  was  procured  with  intent 
and  to  the  effect  to  defraud  creditors  of  the  person  effecting  the 
same,  the  party  receiving  the  money  secured  bj'  such  policy  shall  be 
liable  to  such  creditors  for  the  amount  of  all  premiums  i)aid  for  such 
insurance  and  interest,     {Ibid,  §  3. ) 


AKSON  AM)  LN^CENDIAEISM. 

53.  If  any  person  shall  willfully  and  maliciously  burn  any 
dwelling-house,  or  any  out-building  adjoining  thereto,  or  any  build- 
ing whereby  any  dwelling-house  shall  be  burned,  he  shall  be  impris- 
oned from  seven  to  thirty  years.   {General  Statutes,  1867,  p.  225,  §  1.) 

54.  If  any  i^erson  shall  '\\illfully  and  maliciously  burn  any 
vessel  lying  within  the  body  of  any  county,  or  any  bridge,  or  any 
building  other  than  those  described  in  the  preceding  section,  he 
shall  be  imprisoned  from  two  to  twenty  years.     {Ibid,  §  2.) 

55.  If  any  person  shall  ^villfnlly  burn  anj"  stack  of  com,  hay, 
grain,  or  flax,  or  any  fence,  or  any  pile  of  boards,  lumber,  or  wood, 
or  any  trees  or  underwood  of  another,  he  shall  be  imprisoned  from 
one  to  three  years,  or  fined  not  exceeding  one  thousand  dollars  and 
imprisoned  not  exceeding  one  year.     {Ibid,  §  3.) 

EMBEZZLEME^sT. 

56.  Any  insurance  agent  doing  business  in  this  State,  who 
shall  appropriate  to  his  own  use  any  money,  or  substitute  for 
money,  received  by  him  as  such  agent,  and  refuse  or  neglect  to  pay 
over  such  money,  or  substitute  for  money,  to  the  company  or  other 
party  entitled  to  receive  the  same,  for  the  space  of  thirty  days 
after  notice  to  make  such  payment,  shall  be  deemed  guilty  of  lar- 
ceny, and  upon  conviction,  shall  be  punished  therefor  in  accordance 
with  the  laws  of  this  State.     {Lairs  of  1810,  chap.  1,  §  9.) 

57.  For  General  Provisions  relating  to  Corporations,  see  Gen- 
eral Statutes,  1867,  pp.  275-285  ;  laws  of  1874,  pp.  287,  290. 


INDEX  TO  NEW  JERSEY. 


PAGK 

A.cciDEJiT  Insurance  Companies— (2) 581 

Capital  of  (8,  9) 582,  583 

Annual  Statements  of  (35,  46)..-  588,  591 
Licenseof  Foreign  (48  j  592 

Agents— 

Who  Deemed  (43) 591 

Licenses  of  (42,  48,  55) 590,  592,  593 

Licenses  of  Life  (48,  55) 592,593 

Penalty    for   doing   Business  "Wi.hont 

License  (3T,  42) 539,  590 

Certiiicate  of  Authority  (51) 592 

Embezzlement  by  (77) 597 

Annual  Statement3-(34,  35,  46)...  588,  591 

Blank  Forms  for  (35,  4 6) 588,  591 

Fees  tor  Filing  (42) 590 

Annuity  Companies  ^2) 581 

Ai-son,  Crime  and  Penalty  of  ^72-76).  596,  597 

Assets,  Premium  Notes  as  (22) 585 

Attorney-General- 

To  Examine  Charters  (10) 535 

To  Sue  for  Penalties  (35 588 

To  Apply  for  lujuuction  (36,  3 8).. 588-90 

Capital — 

Subscriptions  to  (6) 582 

Amount  Required  (8,9,40,47)  583,  590,  592 

Increase  of  a  4-1  6,  29) 584,  587 

Investment  of  (11,  12,  16,  20) 58-3-85 

Impairment  of  (,26,  36) 586,  589 

Dividends  upon  (26,27) 586,  587 

Tax  on  (27) 587 

Ratio  of  Risk  to  (40; 590 

Of  Mutual  Companies  (27) 587 

Certificates  under  Reciprocal  Laws  (.60)  -  - .  594 

Certificate  of  Authority — 

When  Issued  (47,  51) 591,  592 

When  Renewed  (.11) 592 

When  Revoked  (52) 592 

When  Necessary  (53) 593 

ToAgents(51) 592 

Charter  of  Insurance  Companies — (4) 581 

Limit  of  C4,  25, 581,  586 

Extension  of  (24) 586 

Commissioner  of  Insurance— (39) 590 

Report  of(39) 590 

(See  Secretary  of  State.) 

ComptroUer,  Duties  of  (1 1 ,  12) 583,  594 

Corporations- 
Constitutional  Provisions   Concerning 

(1) 581 

General  Provisions  Relating  to  (.7  8) .  - .  597 

Declabation— 

To  be  Made  by  Corporators  (4,  24)  581,  586 
To  be  PubUshed  (5) 582 


pagb 

Deposits — 

Of  Companies  (11,  12,  30,  33,41)583, 

584,  587,  588,  590 
TJuder  Reciprocal  Laws  (5  5-5  7) 593 

Embezzlement,  Crime  and  Penalty  of  (77)  597 

Fees— 

Of  Secretary  of  State  (28,  34,  42, 

48) 587,  588,  591,  592 

For  Valuing  Life  Policies  (34) 588 

For  Filing  Statement  (42) 590 

For  Licenses  (42,  48,  5 5)  ..590,  592,  593 
Under  Reciprocal  Laws  (55-57) 593 

Fire,  Inquests  in  Cases  of  (65,  71)--  595,  596 

Fire  Insurance  Companies — (2) 58L 

Capital  of  (, 8 > 583 

Esamiuatiou  ot  (3  6) 589 

Foreign  Insurance  Companies— (,46-61)591-95 

Examination  ot  (36-38) 588-90 

Aiinual  Statements  of  (.36,  46)...  5i38,  59i 

Ratio  of  Risk  to  Capital  (,40) 590 

Capital  of  (47) 59^ 

Certificate  of  Authority  (47) 592 

Fees  for  Licenses  of  (48) 592 

Tax  on  Premiums  of  (4  8) 59;i 

Real  Estate  of  1 6  8) 593 

Health  Insurance  Companies— (2) 581 

Capital  of  (8,  9) 582,  583 

Annual  Staiemeuts  of  (35) 5o8 

Illegal  Business,  what  is  (53,  59)  ..  593,  594 

Impairment  of  Capital  (26,  36; 586,  5b9 

Incendiarism,  Ciime  and  Penalty  of  (72- 

7Gj 596,  597 

Inquests  iu  Cases  of  Fire  (65-71) 595,  59u 

Insurance  Cos.  of  the  State  (,2-45) 581-591 

Alay  Insure,  wnat  (2) 581 

Powers  of  (3) 581 

Limitations  upon  (3,  19) 561,  565 

Charter  of  (4) 5bl 

Limitof  Charter  of  (4,  25) 581,  58t> 

To  Publisu  Declaration  (5) 582 

Subscriptions  to  Capital  of  (6; 582 

Joint  Stock  and  Mutual  Defined  (7)  -  •  -  oS2 

Capital  ot  (,8,  9) 583 

Investment  of  Capital  of  (11,  12,  16, 

20) 5«3-585 

May  Commence  Btisiness,  when  (10).  -  583 
Deposits  of  (11,  12,  30,  33,  41). -- •''^83, 

584,  58  J,  588,  590 

Mortgages  of  (12) 584 

Increase  of  Capital  of  (14-16,29)  584,  587 
Suits  by  and  against  Members  of  (1 7)  .  584 


580 


INDEX  TO   NEW  JERSEY. 


PAGE 

Insuranoe  Cos.  of  the  State  (Continued) — 

Subject  to  Law  of  Corporations  (18)..  585 

Loans  of  (20,  27,  40) 585-87,  590 

Real  Estate  of  (2 1 ) 585 

Liability  of  Stockholders  of  (22,  23, 

26,  27) 586,587 

Eeorganization  of  (24) 586 

Dividends  of  (26,  27) 586,  587 

Impairment  of  Capital  of  (26) 586 

Tax  on  Capital  of  (27) 586 

Surplus  Made  Capital  (29) 587 

Deposits,  in  Order  to  do  Business  in 

other  States  (30,  31) 587 

Annual  Statements  of  (34,  35) 588 

Penalty  for  Neglecting  to  File  Annual 

Statements  (35) 588 

Examination  of  (36-38) 588-90 

Dissolution  of  (36-38,  44) 588-91 

May  Issue  Policies,  when  (40) 590 

Katio  of  Eisk  to  Capital  of  (40) 590 

Insurance  Companies,  Foreign  (46-61)  59L-95 

(See  Foreign  Insurance  Companies.) 
Insurance  Laws,  to  whom  Applicable  (43, 

45) 591 

Joint  Stock  Companies — 

Defined  (7) 582 

Capital  of  (8,40) 583,  590 

Increase  of  Capital  of  (14-1 6,  29)  581,  587 
Reorganization  of  (24) 586 

Licenses— 

Of  Companies  (48) 592 

Of  Agents  (42,  48,  55) 590,  592,  593 

Under  Reciprocal  Laws  (55-57) 593 

Life  Instirance  for  Married  Wonaen    and 

Children  (62-64) 595 

Life  Insurance  Companies — 

Capital  of  (8,  9,  27) 582,  583,  587 

Limit  of  Charter  of  (4,  25) 581,  586 

Annual  Statements  of  (34,  35) .588 

Valuationof  Policies  of  (34,  60)..  588,  594 

Examination  of  (3  8) 596 

Dissolution  of  (38) 590 

Licenses  of  Foreign  (48) 592 

Tax  on  Foreign  (48) 592 

License  of  Agents  of  (4  8  ,  55) 592,  593 

Live  Stock  Insurance  Companies— (2) 581 

Tax  on  Foreign  (48) 592 

Marine  Insuranoe  Companies — (2) 581 

Loans  of  (20) 585 

Annual  Statements  of  (35,  46) 588,  591 

Tax  on  Foreign  (48) 592 

Mortgages  to  be  Verified  (12) 584 

Mutual  F.  and  M.  Ins.  Cos.,  Capital  of  ^8).  583 

Mutual  lusurdnce  Companies — 

Defined  (7) 582 

Subscriptions  to  (6) 582 

May  Change  to  Joint  Stock  (24) 586 

Reorganization  of  (24) 586 

Capital  of  (27) 587 

Annual  Statements  of  (35) 588 

Impairment  of  Assets  (36) 589 


PAGE 

Mutual  Insurance  Companies  (Continued) — 
Mutual  Life  Ins.  Cos.,  Capital  of  (9)  - . .  583 

Penalties— 

For  Xeglect  to  File  Statement  (35)....  588 
For  Violating  Laws  (39,  54,  61). . .  .590, 

593,  595 
For  Doing   Business  without  License 

(37,  42) 589,  590 

Under  Reciprocal  Laws  (55-57) 593 

For  Arson  and  Incendiari.sm  (72,  76)  596, 

597 

For  Embezzlement  (77) 597 

Policies — 

Valuation  of  Life  (34,  60) 588,  594 

On  Lives  for  Women  and  Children  (62- 

64) 595 

PremiumNotes  (8,  22) 583,  585 

Premiums,  Tax  on  (48) 592 

Ratio  of  Risk  to  Capital  (40) 590 

Real  Estate- 
Loans  Upon  (20) 585 

Amount  Company  may  Hold  (21,  58)  585 

594 

Reciprocal  Laws  (55,  60) 593,  594 

Reinsurance  of  Risks  (3) 581 

Repeal  of  Laws  (45) 591 

Secretary  of  State- 
Commissioner  of  Insuranoe  (39) 590 

Duties  in  Organization  of  Companies 

(10) 583 

To  Certify  that    Deposits    have   been 

Made  (13) 584 

Feefj  of  (28,  34,  42,  48)  587,  588,  590,  592 

To  Value  Life  Policies  (34) 588 

To  Furnish  Blanks  for  Annual  State- 
ments (35,  46) 588,  591 

To  Examine  Companies  (36-38)..  589,  590 

Report  of  (39) 590 

To  Authorize  Companies  to  do  Business 

(40) 590 

To  Approve  Deposits  (41)  590 

To  Issue  Certificate  of  Authority  (47, 

51) 592 

To  Pay  Certain  Taxes  to  Fire  Depart- 
ments (49) 592 

To  Account  for  Moneys  (50) 592 

To    Revoke   Certificate    of  Authority 

(52) 592 

To  Enforce  Reciprocal  Laws  (57,  60}  .'593, 

594 
Tax— 

On  Capital  (27) 587 

On  Premiums  (48) 592 

For  Support  of  Fire  Departments  (49)  592 

Under  Reciprocal  Laws  (55-5  7) 593 

Treasurer,  Duties  and  Compensation  of  (3 1 , 

32) 587,588 

Valuation  of  Life  Policies   (34,  60)  588,  594 
Wives'  Policies  (62-64) 595 


INSURANCE  STATUTES  OF  NEW  JERSEY. 


Revised  by  Son.  Henry  G.  Kelsey,  Secretary  of  State. 


CONSTITUTIONAL    PROVISIONS    CONCERNING    COR- 
PORATIONS. 

1 .  The  legislature  shall  pass  no  special  act  conferring  corporate 
powers,  but  they  shall  pass  general  laws  under  which  corporations 
may  be  organized,  and  corporate  powers  of  every  natui'e  obtained, 
subject,  nevertheless,  to  repeal  or  alteration  at  the  will  of  the  legis- 
lature.    {Art.  4,  §  l^par.  11.) 

INSURANCE  COMPANIES  OF  THE  STATE. 

2.  Any  number  of  persons,  not  less  than  thirteen  in  number, 
may  associate  and  form  an  incorporated  company  for  either  of  the  fol- 
lowing purposes,  to  wit : 

First. — To  make  insurance  upon  vessels,  freights,  goods,  wares, 
merchandise,  specie,  bullion,  jewels,  profits,  commissions,  bank 
notes,  bills  of  exchange,  and  other  evidences  of  debts,  bottomry 
and  respondentia  interests,  and  to  make  all  and  every  insurance 
appertaining  to  or  connected  with  marine  risks  of  transportation 
and  navigation. 

Second.— To  make  insurance  on  dwellings,  houses,  stores,  and  all 
kinds  of  buildings,  and  upon  househould  furniture,  merchandise, 
live  stock  and  other  property,  against  loss  or  damage  by  fire  and 
the  risks  of  inland  navigation  and  transportation. 

Third. — To  make  insurance  upon  the  health  or  lives  of  individ- 
uals, and  against  accidents  and  every  insurance  appertaining  there- 
to, or  connected  with  health,  accident  or  life  risks,  and  to  grant, 
purchase  or  dispose  of  annuities.     {Revised  Statutes  of  1875,  p.  77, 

§  14.) 

3.  Any  company  organized  under  this  act  shall  have  power  to 
make  reinsurance  of  any  risks  taken  by  them  respectively,  and  may 
make  insurance  upon  any  or  all  of  the  risks  mentioned  in  the  sub- 
divisions of  the  last  preceding  section  ;  but  no  company  making  in- 
surance on  the  health  or  Mves  of  individuals  shall  be  permitted  to 
take  any  other  kind  of  risks,  nor  shall  the  business  of  life,  accident 
or  health  insurance  be  in  any  wise  connected  or  united  in  any  com- 
pany making  insurance  on  marine  or  fire  risks.     {Ibid,  §  15.) 

4.  Such  persons  shall  make,  acknowledge,  and  file  in  the  office 
of  the  Secretary  of  State,  a  declaration  in  writing,  signed  by  all 
the  corj)orators,  expressing  their  intention  and  desire  to  form  a 


582  hine's  insurance  statutes. 

company  for  the  purpose  of  transacting  the  business  of  insurance, 
and  setting  fortli  : 

First. — The  name  of  such  company  to  be  used  in  its  business 
and  dealings. 

Second. — The  place  where  the  office  of  said  company  is  located 
and  its  general  business  conducted. 

Third. — The  character  of  the  insurance  business  proposed  to  be 
carried  on  by  said  company,  that  is  to  say,  whether  the  same  shall 
be  under  the  first,  second,  or  third  subdivisions  of  the  twenty-fourth 
sections  of  this  act  or  any  branch  of  either  of  such  subdivisions. 

Fourth. — Whether  the  said  i)roposed  company  shall  be  a  joint 
stock  insurance  company,  or  a  mutual  insurance  company. 

Fifth.— 1(  the  same  shall  be  a  joint  stock  insurance  company, 
the  amount  of  the  capital  stock  thereof,  and  the  number  of  shares 
into  which  it  is  divided,  and  the  sum  with  which  they  will  com- 
mence business;  if  the  same  shall  be  a  mutual  insurance  company, 
tiie  amount  of  cash  capital  stock  subscribed,  and  with  which  they 
propose  to  commence  business. 

Sixth. — The  names  and  residences  of  the  subscribers  to  the  cap- 
ital stock  akeady  subscribed  for  and  the  number  of  shares  by  them 
respectively  agreed  to  be  taken. 

Seventh. — The  period  at  which  such  company  shall  commence 
and  terminate,  not  exceeding  thirty  years,  except  in  case  of  life  in- 
surance, which  may  be  perpetual. 

Eighth. — The  number  of  trustees  or  directors  proposed  to  be 
elected,  and  the  manner  and  times  of  electing  them. 

Ninth. — Said  declaration  and  certificate  shall  also  comj^rise  a 
copy  of  the  charter,  if  any,  i^roposedto  be  adopted  by  said  company. 
{Ibid,  §  16.) 

5.  Such  persons  shall  cause  a  notice  of  their  intention  to  form 
such  company  to  be  published  once  in  each  week,  for  two  weeks,  in 
a  public'  newspaper  in  the  county  in  which  such  insurance  company 
is  proposed  to  be  located,  and  if  no  newspaper  be  published  in 
such  county,  then  in  a  newspaper  of  this  State  published  neaiest  to 
the  same.     {Ibid,}).  78,  §  17.) 

6.  It  shall  be  lawful  for  the  individuals  associated  for .  the 
purpose  of  organizing  any  company  under  this  act,  after  having 
published  the  notice  and  filed  their  declaration  and  charter  as  re- 
quired by  the  preceding  section,  to  open  books  for  subscription  to 
the  capital  stock  of  the  company  so  intended  to  be  organized,  and 
to  keep  the  same  open  until  the  fidl  amount  specified  in  the  charter 
is  subscribed;  or  in  case  the  business  of  such  company  is  proposed 
to  be  (ionducted  on  the  plan  of  mutual  insurance,  then  to  open  books 
to  receive  propositions,  and  enter  into  agreements,  in  the  manner 
and  to  the  extent  hereinafter  specified.     {Ibid,  ^  IS.) 

.  7,  Such  companies  may  be  organized  under  this  act,  either  as 
companies  having  capital  stock  to  be  subscribed  and  paid  for  and 
divided  into  shares,  which  companies  are  herein  called  joint  stock 
insurance  companies,  or  they  may  be  formed  for  the  purposes  afore- 
said, on  the  plan  of  mutual  insurance,  which  companies  are  herein 
called  mutual  insurance  companies.     {Ibid, p.  79,  §  19.) 

8.  No  joint  stock  insurance  company  formed  under  this  act 
shall  be  organized  with  a  smaller  capital  than  one  hundred  thousand 
dollars,  or  entitled  to  commence  business  until  said  sum  is  actually 
paid  in  cash ;  nor  shall  any  mutual  insurance  company,  for  the  pur- 
pose of  marine  or  fire  insurance,  be  entitled  to  commence  business 


NEW  JERSEY.  583 

until  a^eements  have  beeu  entered  into  for  insurance,  the  premiums 
on  which  shall  amount  to  twenty  thousand  dollars,  and  notes  have 
been  received  in  advance  therefor,  i)ayable  at  or  within  twelve 
months  from  the  date  thereof,  and  thirty  thousand  dollars  shall 
have  been  subscribed  as  capital  stock,  and  actually  paid  in  cash ; 
such  notes  shall  be  considered  a  part  of  the  capital  stock  of  such 
mutual  insurance  company,  and  shall  be  valid  and  negotiable  and 
collectable  for  pa;\dng  any  losses  which  may  accrue,  or  any  other 
lawful  use  or  purpose.     {Ibid,  §  20.) 

9,  No  company  formed  under  this  act  for  doing  the  business  of 
life,  health  or  accident  insurance  on  the  plan  of  mutual  insurance, 
shall  commence  business  until  a  cash  cai)ital  of  twenty -five  thou- 
sand dollars  shall  have  been  i^aid  in  cash   as  aforesaid.     {Ibid, 

1 0,  The  certificate  and  charter  filed  by  such  persons  shall  be 
examined  by  the  Attorney-General,  at  or  before  the  expiration  of 
such  notice,  and  if  found  by  him  to  be  in  accordance  with  this  act, 
and  not  inconsistent  with  the  constitution  or  laws  of  this  State,  he 
shall  so  certify  them  to  the  Secretary  of  State ;  and  the  Secretary 
of  State  shall  thereupon  make  examination  and  ascertain  whether 
the  capital  herein  required  of  the  company  named  in  the  charter, 
according  to  the  nature  of  the  business  j)roposed  to  be  transacted 
by  such  company,  has  been  paid,  and  is  possessed  by  said  company 
in  money,  or  in  such  bonds  and  mortgages  as  are  required  by  this 
act ;  or,  if  a  mutual  comjiany,  whether  it  has  received  or  is  in  actual 
possession  of  the  capital,  premium  notes,  and  bona  fide  engagements 
of  insurance,  or  other  securities,  to  the  full  extent  and  of  the  value 
herein  required ;  and  he  shall  further  ascertain  the  name  and  resi- 
dence of  the  maker  of  each  premium  note  forming  part  of  the  capi- 
tal, and  the  amount  of  such  note  ;  and  the  corporators  of  such  com- 
pany shall  be  required  to  certify,  under  oath,  that  the  capital 
exhibited  on  such  examination  is  6o>ia_^/Ze  property  of  said  coraijany; 
such  certificates  shall  be  filed  with  the  Secretary  of  State,  who  shall 
thereupo7i  deliver  to  such  company  a  certified  copy  of  their  certifi- 
cate of  organization,  and  the  charter,  if  any,  accompanying  the 
same,  and  of  said  certificates,  which  on  being  filed  in  the  office  of 
the  Clerk  of  the  county  where  the  company  is  to  be  located,  shall  be 
their  authority  to  commence  business  and  issue  policies ;  and  such 
certified  copy  of  said  certificate  of  organization,  charter,  and  of  said 
certificates,  may  be  used  in  evidence,  for  or  against  such  company, 
with  the  same  effect  with  the  originals.     {Ibid,  §  22.) 

11,  It  shall  not  be  lawful  for  any  company  organized  under 
this  act  to  transact  business  until  such  company  shall  have  depos- 
ited with  the  Comptroller  of  this  State  the  sum  of  twenty  thousand 
dollars  in  stocks  or  in  bonds  and  mortgages ;  such  stocks  shall  be 
the  public  stocks  or  bonds  of  this  State,  or  of  the  United  States,  or 
the  States  of  New  York,  Ohio,  Massachusetts  or  Penn.sylvania,  or  of 
the  incorporated  cities  of  this  State,  bearing  at  least  six  per  centum 
interest ;  such  mortgages  shall  be  on  unencumbered  productive  real 
estate  within  this  State,  worth  double  the  amount  so  invested ;  and 
the  said  Comptroller  may  from  time  to  time,  after  such  company  shall 
have  commenced  the  transaction  of  business,  require  further  de- 
posits of  stocks,  bonds  and  mortgages,  as  aforesaid,  to  an  amount 
equal  to  one-fifth  of  the  issued  policies  of  such  company,  not  to 
exceed  in  all  the  sum  of  one  hundred  thousand  dollars.  {Ibid,  p.  80, 
§23.) 


584  hike's  insurance  statutes. 

Ifi,  To  every  mortgage  deposited  with  the  Comptroller  of  this 
State  as  herein  pro>'ided,  the  president  of  the  comijauy  depositing 
the  same  shall  annex  his  affidavit  that  said  mortgage  was  made  and 
taken  in  good  faith  for  money  loaned  by  the  company  to  the 
amount  therein  named,  and  that  no  part  thereof  has  since  been 
paid  or  retm-ned,  and  that  he  has  reason  to  believe  and  does 
believe  that  the  premises  thereby  mortgaged  are  worth  at  least 
double  the  amount  of  the  mortgage  thereon ;  the  Comptroller  shall 
])rescribe  such  regulations  for  ascertaining  the  title  and  value 
of  such  real  estate  as  he  may  deem  necessary;  the  Comptroller 
shall  hold  said  stocks,  bonds  and  mortgages  as  seciunty  for  policy- 
holders in  said  companies,  but  shall,  so  long  as  any  company  so  de- 
positing shall  continue  solvent,  and  shall  comply  with  all  the 
requisites  of  the  laws  of  this  State  applicable  to  such  company, 
permit  such  company  to  collect  the  interest  or  dividends  on  its 
bonds  and  mortgages  or  stocks  so  deposited,  and  irom  time  to  time 
to  withdraw  any  of  such  securities,  on  depositing  with  the  Comp- 
troller other  like  securities,  stocks  or  mortgages,  the  par  value  of 
which  shall  be  equal  to  the  par  value  of  such  as  may  be  withdrawn ; 
each  mortgage,  so  substituted,  to  be  also  accompanied  with  an  affi- 
davit, as  required  in  the  preceding  section;  and  the  Comptroller 
shall  i)rescribe  such  regidntions  for  ascertaining  the  title  and  value 
of  the  real  estate  covered  by  the  mortgage  so  substituted  as  he  may 
deem  necessary.   {Ibid,  §  2i.) 

IS.  The  Secretary  of  State  shall  be  satisfied  and  so  certify 
upon  said  certified  copy  of  such  certificate  of  organization,  before 
giving  such  company  the  same,  that  such  deposit  as  herein  required 
to  be  made,  of  stocks  or  mortgages,  with  the  Comptroller,  has  been 
duly  made  by  such  company,     (ibid,  p.  SI,  §  25.) 

14.  It  shall  be  lawful  for  any  joint  stock  company  organized 
under  this  act  to  increase  the  amount  of  their  capital  stock  in  the 
manner  hereiuafter  mentioned ;  the  directors  of  such  company,  or  a 
majority  of  them,  shall  file  in  the  office  of  the  Secretary  of  State 
a  declaration  of  their  intention  to  increase  their  capital,  and  they 
shall  ])ubli8h  notice  of  the  same  for  thirty  days  in  the  manner  pre- 
scribed in  the  seventeenth  seel  ion  of  this  act.    {Ibid,  §  26.) 

15.  It  shall  be  lawful  for  the  said  directors  or  a  majority 
of  the  same,  after  having  })ublished  the  notice  before  mentioned, 
and  filed  a  copy  of  the  same,  with  proof  of  publication,  in  the  office 
of  the  Secretary  of  State,  to  open  books  of  subscriptions  for  said 
increase  of  capital,  and  keep  the  same  open  until  the  full  amount 
thereof  shall  be  subscribed ;  and  they  shall  for  forty  days  after 
opening  said  books,  give  the  stockholders  in  said  company  the 
privilege  of  subscribing  for  said  stock ;  and  if  at  the  end  of  said 
time  they  shall  not  have  sul)scribed  for  the  same,  then  other  j)ers,ous 
may  subscribe  therefor.    {Ibid,  §  27.) 

1 6.  The  whole  of  the  increased  capital  shall  be  paid,  and  may 
be  invested,  and  an  examination  thereof  shall  be  made,  and  a  cer- 
tificate of  such  examination  filed,  as  is  provided  in  this  act ;  and 
thereupon  the  said  increase  shall  be  deemed  a  part  of  the  capital  of 
said  comi^any,  subject  to  all  the  provisions  of  this  act  applying  to 
the  same.    (Z/>«7,i?.  82,  §  28.) 

1 7.  Suits  at  law  may  be  maintained  by  any  corporation  formed 
under  this  act  against  any  of  its  members  or  stockholders  for  any 
cause  relating  to  the  business  of  such  corporation  ;  also  suits  at  law 
may  be  prosecuted  and  maintained  by  any  member  or  stockholder 


NEW    JERSEY.  585 

against  such  corporation  for  losses  which  may  accrue  if  payment  is 
withheld  more  than  two  months  in  all  risks  after  such  losses  shall 
have  become  due.   {Ibidj  §  29.) 

1 8.  All  companies  formed  under  this  act  shall  be  deemed  and 
taken  to  be  bodies,  corporate  and  politic,  in  fact  and  in  name, 
and  shall  be  subject  to  all  the  provisions  of  the  laws  of  this  State 
in  relation  to  corporations,  so  far  as  the  same  are  applicable.  {Ibid, 
§30.) 

1 9.  No  company  formed  under  this  act  shall  directly  or  indi- 
rectly deal  or  trade  in  buying  and  selling  any  goods,  wares,  mer- 
chandise or  other  commodities  whatever,  unless  said  goods,  wares 
or  merchandise  shall  come  into  possession  of  said  company  in  the 
legitimate  pursuit  of  their  business.    {Ibid,  §  31.) 

20.  It  shall  be  lawfid  for  any  company  organized  under  this 
act  to  invest  its  capital,  or  the  funds  accumulated  by  its  business, 
or  any  part  thereof,  in  bonds  and  mortgages  on  unencumbered  real 
estate,  within  this  State,  worth  double  the  amount  so  invested,  and 
also  in  the  stocks  or  bonds  of  the  incorporated  cities  of  this  State, 
or  the  stocks  or  bonds  of  this  State,  or  of  the  United  States,  or  the 
States  of  Xew  York,  Ohio,  Massachusetts  or  Pennsylvania,  and  to 
lend  the  same,  or  any  part  thereof,  on  the  security  of  such  stock  or 
bonds ;  and  any  company  organized  for  the  purpose  of  marine  in- 
siu'ance  may,  in  addition  to  the  foregoing,  loan  their  funds  on  bot- 
tomry and  respondentia,  and  change  and  reinvest  the  same,  as 
occasion  may  from  time  to  time  require.    (Ibid,  §  32.) 

21.  An  J'  company  organized  by  special  charter  of  this  State  or 
under  the  provisions  of  this  act,  shall  be  permitted  to  purchase, 
hold  and  convey  real  estate  for  the  purposes  (and  no  other)  and  in 
the  manner  herein  set  forth,  that  is  to  say : 

First. — Such  as  shall  be  requisite  for  its  immediate  accommoda- 
tion in  the  transaction  of  its  business  ;  or. 

Second. — Such  as  shall  have  been  mortgaged  to  it  in  good  faith 
by  way  of  security  for  loans  previously  contracted  or  for  moneys 
due;  or, 

Third. — Such  as  shall  have  been  conveyed  to  it  in  satisfaction 
of  debts  previously  contracted  in  the  course  of  its  dealings  ;or, 

Fourth.  Such  as  shall  have  been  purchased  at  sales  upon  judg- 
ments, decrees  or  mortgages  obtained  or  made  for  such  debts ;  and 
it  shall  not  be  lawful  for  any  incoriDorated  company,  as  aforesaid, 
to  purchase,  hold  or  convey  real  estate,  in  any  other  case  or  for  any 
other  purpose ;  and  all  such  real  estate  as  may  be  acquired  as  afore- 
said, and  which  shall  not  be  necessary  for  the  accommodation  of 
such  company,  in  the  conveident  transaction  of  its  business,  shall 
be  sold  and  disposed  of  within  five  years  after  such  company  shall 
have  acquired  title  to  the  same ;  and  it  shall  not  be  lawful  for  such 
company  to  hold  such  real  estate  for  a  longer  period  than  that  above 
mentioned,  unless  the  said  company  shall  jirocure  a  certificate  from 
the  Chancellor  that  the  interests  of  the  company  will  suffer  materi- 
ally by  a  forced  sale  of  such  real  estate,  in  which  event  the  time  for 
the  sale  may  be  extended  to  such  a  time  as  the  Chancellor  shall 
direct  in  said  certificate.     {Ibid, p.  83,  §  33.) 

22.  The  trustees  and  corporators  of  any  company  organized 
under  this  act,  and  those  entitled  to  a  participation  of  the  profits, 
shall  be  jointly  and  severally  liable  until  the  whole  amount  of  the 
capital  proi)Osed  to  be  raised  by  the  company  shall  have  been  paid 
in,  and  a  certificate  thereof  recorded,  as  hereinbefore  provided  j 


586  hine's  insuhance  statutes. 

notes  taken  in  advance  of  premiums,  under  this  act,  are  not  to  be 
considered  debts  of  the  corajDany,  in  determining  whether  a  com- 
pany is  insolvent,  but  are  to  be  regarded  as  assets  of  the  company. 
{IM(J,  §  34.) 

S3.  When  any  company  shall  be  formed  under  the  provisions 
of  this  act,  the  capital  stock  of  which  by  the  terms  of  its  charter 
shall  exceed  the  sum  hereby  required  for  the  organization  of  such 
company,  the  trustees  and  corporators  of  such  company,  and  those 
entitled  to  a  participation  of  the  profits  of  the  same,  shall  be  relieved 
from  the  joint  and  general  liability  in  the  last  section  of  the 
act  mentioned,  when  capital  to  the  amount  required  for  such 
organization  shall  be  paid  in  and  invested  as  herein  required.  {Ibid, 
p.  84,  §  35.) 

24.  Any  existing  joint-stock  company,  incorporated  by  this 
State  for  either  of  the  j)urposes  mentioned  in  this  act,  may,  at  any 
time  after  notice  being  given  for  three  months  in  a  newspaper  of 
this  State,  published  in  the  county  where  such  company  is  located, 
and  if  no  newspaper  be  published  in  such  county,  tbeu  in  a  news- 
paper published  nearest  to  the  same,  of  such  intention,  and  with  the 
written  consent  of  three-fourths  in  amount  of  its  stockholders,  or  if 
a  mutual  company,  with  the  unanimous  consent  of  its  trustees  or 
directors,  extend  its  original  charter  to  the  time  specified  by  the 
provisions  of  this  act,  by  altering  or  amending  the  same,  so  as  to 
accord  with  the  provisions  of  this  act,  and  filing  a  cojiy  of  the  same, 
so  altered  or  amended,  together  with  a  declaration,  under  its  cor- 
porate seal,  signed  by  its  president  and  directors,  of  their  desire  for 
such  extension,  and  also  the  written  consent  of  three-fourths  in 
amount  of  its  stockholders,  and  the  unanimous  consent  of  the  trus- 
tees or  directors  as  aforesaid  to  such  extension,  in  the  office  of  the 
Secretary  of  State ;  and  upon  the  filing  such  consent,  declaration 
and  charter,  the  same  proceedings  shall  be  had  as  are  required  by 
the  thirty-second  section  of  this  act ;  and  any  of  the  mutual  insur- 
ance companies  already  chartered  by  the  Legislature  of  this  State 
may,  after  giving  ninety  days'  notice  in  three  of  the  public  i)apers 
of  the  State,  change  to  joint  stock  companies,  by  proceeding  in 
accordance  with  and  conforming  their  charter  to  the  provisions  of 
this  act.     {Ibid,  §  36.) 

S5.  All  the  charters  formed  or  extended  under  this  act  shall  be 
of  thirty  years'  duration  each,  except  those  of  life  insurance,  which 
shall  be  without  limit  of  time,  but  the  legislature  may  at  any  time 
alter,  amend  or  repeal  this  act,  or  dissolve  and  provide  for  the  clos- 
ing up  the  business  a.nd  affairs  of  any  company  formed  under  it. 
{Ibid,  §  37.) 

26.  jS[o  dividend  shall  ever  be  made  by  any  company  incor- 
porated under  this  act  when  its  capital  stock  is  impaired,  or  when 
the  making  of  such  dividend  would  have  the  effect  of  impairing  its 
capital  stock ;  and  any  dividend  so  made  shall  subject  the  stock- 
holders receiving  the  same  to  a  joint  and  several  liability  to  the 
creditors  of  said  company  to  the  extent  of  the  dividend  so  made. 
{Ibid,  p.  85,  §  38.) 

S7.  It  shall  be  lawful  for  any  mutual  company,  established  in 
conformity  with  the  provisions  of  this  act,  to  unite  a  cash  capital  to 
any  extent,  as  an  additional  security  to  the  members  over  and  above 
their  premiums  and  stock  notes,  which  additional  cash  capital  shall 
be  left  open  for  accumulation,  and  shall  be  loaned  and  invested  as 
provided  in  the  thirty-second  section  of  this  act ;  and  the  company 


NEW  JERSEY.  587 

may  allow  an  interest  on  sueli  cash  ca])ital,  and  a  participation  in 
its  profits,  and  prescribe  the  liability  of  the  owner  or  owners  thereof 
to  share  in  the  losses  of  the  company  ;  and  such  cash  capital  shall 
be  liable  as  the  capital  stock  of  the  company  in  the  payment  of  its 
debts ;  every  company  organized  nnder  this  act  shall  pay  into  the 
Treasury  of  this  State,  for  the  school  fund,  one-quarter  of  one  per 
centum  per  annum  on  its  capital  stock,  and  which  amount  shall  be 
paid  iu,  under  cath  or  affirmation  of  the  president  and  secretary 
thereof.     {Ihid,  §  39.) 

98.  The  Secretary  of  State  shall  be  entitled  to  charge  and 
receive  from  the  persons  or  companies  requiring  his  service  under 
this  act  such  fees  as  are  allowed  by  law  for  similar  services ;  and 
when  duties  are  required  of  him  not  provided  for  by  law,  such  fur- 
ther compensation  as  the  Attorney-General  may  direct,     (ihid^  §  40.) 

29.  Whenever  it  shall  appear  to  the  satisfaction  of  the  Secre- 
tary of  State,  as  the  result  of  examination,  as  provided  for  by  this 
act,  that  any  joint  stock  insurance  company,  incorporated  by  the 
legislature  of  this  State,  shall  hav^e  a  net  surplus,  after  providing 
for  the  capital  stock,  reinsurance  and  all  claims  for  losses  and  other 
actual  liabilities,  of  not  less  than  fifty  thousand  dollars,  which 
amount  shall  be  represented  by  scrip  issued  by  said  company,  the 
Secretary  of  State  shall  issue  a  certificate  of  the  amount  of  such  net 
surplus,  and  such  company  upon  a  vote  therefor  of  a  majority  of  all 
the  directors  thereof,  may  increase  the  capital  stock  to  the  amount 
of  such  certificate,  or  any  portion  thereof,  in  exchange  for  said  scrip, 
and  may  issue  certificate  of  such  stock,  which  shall  contain  the  same 
provisions,  and  in  shares  of  similar  amount  with  that  originally 
issued  ;  in  the  case  of  mutual  insurance  companies  of  this  State,  if 
upon  such  examination  the  Secretary  of  State  shall  find  a  net  sur- 
plus, after  providing  for  reinsurance  and  all  claims  for  losses  and 
other  actual  liabilities,  equal  to  the  amount  of  scrip  issued,  he  shall 
issue  a  certificate  of  the  amount  of  such  net  surplus,  and  such  com- 
pany, upon  a  vote  therefor,  of  a  majority  of  all  the  directors  thereof, 
may  create  a  capital  stock  for  the  whole  or  any  portion  of  the 
amount  of  such  scrip  in  exchange  for  said  scrip,  and  may  issue  cer- 
tificates of  such  stock,  which  shall  be  divided  into  shares  of  such 
amount,  and  the  holders  thereof  shall  be  entitled  to  such  privileges, 
and  subject  to  such  liabilities  as  the  board  of  directors  thereof  may 
determine  not  inconsistent  with  the  charter  of  such  company,  or 
with  the  laws  of  this  State.     [Ibid,,  §  41.) 

30.  Whereas^  by  the  laws  of  some  of  the  United  States  it  is 
provided  that  insurance  companies  incorporated  under  the  laws  of 
this  State  shall  not  transact  business  in  said  States  except  on  a  de- 
posit of  securities  in  said  laws  named ;  therefore,  it  shall  be  lawful 
for  the  Treasurer  of  this  State,  to  receive  from  any  insurance  com- 
pany incorporated  under  the  laws  of  this  State  a  deposit  of  such  se- 
curities as  shall  be  necessary  to  enable  such  company  to  transact 
business  in  any  of  the  United  States  under  the  laws  of  said  States, 
respectively.     {Ibid,  p.  86,  §  42.) 

31.  The  said  securities  shall  be  held  by  the  Treasurer  so  long 
as  such  company  shall  desire  to  transact  business  in  the  States  re- 
quiring such  deposit ;  but  the  company  making  the  deposit  shall  be 
at  liberty  to  draw  the  dividends  or  receive  the  interest  on  such  se- 
curities; and  whenever  any  such  company  shall  desire  to  discon- 
tinue its  business  in  said  States,  and  such  deposit  shall  no  longer 


588  hine's  insurance  statutes. 

be  required  by  the  laws  of  said  States,  the  Treasurer  shall  return  the 
said  secmities  to  the  companj^  depositing  the  same.     {Ibid,  §  43.) 

32.  The  Treasurer,  for  performing  the  duties  required  by  the 
two  preceding  sections  of  this  act,  shall  receive  such  comi^ensation 
as  is  provided  for  performing  like  duties  by  this  act.     {Ibid,  §  44.) 

33.  I^othing  in  either  of  the  three  last  preceding  sections  of 
this  act  shall  be  construed  in  any  wise  to  alter  or  interfere  with  any 
of  the  requirements  hereinbefore  made  of  the  deposit  of  securities 
by  companies  not  specially  incori)orated,  but  organized  under  the 
provisions  hereinbefore  enacted.     [Ibid,  p.  87,  §  45.) 

34.  It  shall  be  the  duty  of  every  life  insurance  company  incor- 
porated by  the  laws  of  this  State  to  make  returns  in  January  of 
each  year  to  the  Secretary  of  this  State,  showing  aU  its  policies 
and  annuity  bonds  in  force  on  the  first  day  of  said  month,  with  such 
particulars  of  the  same  as  are  necessary  for  ttie  valuation  thereof,  as 
hereinafter  directed ;  the  Secretary  of  State  shall  thereupon  compute 
or  cause  to  be  computed  the  value  of  such  policies  and  bonds,  or  what 
is  known  as  the  reinsurance  fund  therefor,  according  to  the  Ameri- 
can Experience  Table  of  Mortality  and  interest  at  the  rate  of  four 
and  a  half  per  centum,  or  according  to  the  Actuaries*  Mortality  and 
four  per  centum  interest,  or  according  to  rhj  other  recognized 
standard  of  valuation  as  he  may  deem  best  for  the  security  of  the 
business  and  the  safety  of  the  persons  insured ;  upon  such  valua- 
tion being  made  and  a  certificate  thereof  furnished  by  the  secretary, 
each  company  shall  pay  to  such  ofiicer  to  defray  the  expense  thereof, 
the  sum  of  one  cent  for  every  thousand  dollars  of  the  whole  amount 
Insured  by  its  policies  so  valued.     {Ibid,  §  46.) 

35.  Every  fire,  life,  accident,  marine,  or  other  insurance  com- 
panj^  incorporated  or  doing  business,  or  which  may  be  hereafter  au- 
thorized to  do  business  under  the  laws  of  this  State,  shall,  annu- 
ally, during  the  month  of  January,  file  in  the  Department  of  State 
of  this  State,  a  statement  exhibiting  its  condition  on  the  thirty-first 
day  of  December  last  preceding,  as  by  this  act  required  of  insur- 
ance companies  of  other  States  and  nations  doing  business  in  this 
State;  and  for  this  purpose  it  shall  be  the  duty  of  the  Secretary  of 
State  to  furnish  blank  forms  for  statements,  the  same  as  now  in  use, 
which  forms  may  by  him  be  from  time  to  time  changed,  as  may  be 
requisite  to  secure  full  information  as  to  the  standing  and  condition 
of  such  insurance  companies;  Provided,  That  the  statements 
required  of  purely  mutual  companies  taking  notes  in  whole  or  in 
part  for  jiremiums,  which  notes  are  liable  to  assessments,  shall  be 
in  such  form  as  the  Secretary  of  State  may  prescribe  adapted  to  the 
use  of  such  companies ;  any  insurance  company  failing  to  make  and 
file  such  statement  for  the  space  of  thirty  days  from  the  time  above 
fixed  for  such  filing,  or  to  reply  in  writing  to  any  inquiry  made  by 
the  Secretary  of  State  touching  the  same,  within  twenty  days,  shall 
be  subject  to  a  penalty  of  five  hundred  dollars,  and  a  like  pen-  i 
alty  for  every  month  that  such  company  shall  continue  thereafter  to  " 
transact  any  business  of  insurance  without  filing  such  statement,  to  ;  J 
be  sued  for  and  recovered  in  the  name  and  for  the  benefit  of  the  \  > 
State,  by  the  Attorney-General,  on  notice  of  the  Secretary  of  State,  j  i 
{Ibid,  §  47.)  I  i 

3«i5.  It  shall  be  the  duty  of  the  Secretary  of  State,  whenever  <( 
he  shall  deem  it  expedient,  or  at  the  request  of  such  company,  or  5| 
like  request  in  writing  by  three  or  more  policy-holders  therein,  or 
creditors  thereof,  himself,  or  by  such  person  or  persons  as  he  may  de- 


r 


NEW  JERSEY.  589 

signate  to  examine  into  the  affairs  of  any  fire  insurance  comi)any 
organized  under  the  laws  of,  or  by  its  agents  doing  business  in  tliis 
State ;  Provided,  That  not  more  than  one  examination  shall  be  made 
at  the  request  of  policy-holders  or  creditors  in  any  one  year  ;  and  it 
shall  be  the  duty  of  the  officers  or  agents  of  any  such  company  doing- 
business  in  this  State  to  exhibit  all  its  books,  records  and  accounts 
for  the  i)uri)ose  of  such  examination,  and  otherwise  to  facilitate  the 
same  so  far  as  it  may  be  in  their  power  to  do,  and  for  that  purpose 
the  Secretary  of  State  or  his  representatives,  shall  have  power  to 
examine,  under  oath,  the  officers  and  agents  of  any  company  rela- 
tive to  the  business  and  affairs  of  such  company;  and  whenever  the 
Secretary  of  State  shall  deem  it  necessary  to  the  public  good,  he 
shall  publish  the  result  of  such  examination  in  two  newspapers 
published  in  the  city  of  Trenton,  and  two  x^ublished  in  the  county 
where  the  company  is  located  ;  and  whenever  it  shall  appear,  as  the 
result  of  such  examination,  that  the  assets  of  any  tire  in- 
surance company  organized  under  the  laws  of  this  State,  after 
charging  it  with  an  amount  requisite  for  the  reinsurance  of  all  its 
outstanding  risks  and  with  its  other  proper  liabilities,  excepting 
capital  stock  paid  in,  amount  to  less  than  three-fourths  of  such  cap- 
ital, if  it  be  a  joint-stock  capital  company,  or  in  the  case  of  mutual 
companies,  if  the  assets,  less  unsettled  claims  and  other  actual  lia- 
bilities, amount  to  less  than  three-fourths  of  the  sum  requisite  for 
reinsurance,  then  he  shall  call  upon  said  company  to  make  up  such 
deficiency  within  such  reasonable  time  as  he  shall  fix,  and  on  failure 
to  comply  with  such  requisition  he  shall  communicate  the  fact  to 
the  Attorney-Geueral,whose  duty  it  shall  then  become  to  ajiply  forth- 
with to  the  Chancellor  for  an  order  to  show  cause  why  an  injunction 
should  not  issue  restraining  them  from  doing  further  business,  and 
the  Chancellor  shall  thereupon  proceed  to  hear  the  allegations  and 
proofs  of  the  respective  parties;  and  in  case  it  shall  appear  to  his 
satisfaction  that  the  assets  and  funds  of  said  company  are  not  suf- 
ficient as  aforesaid,  or  that  the  interests  of  the  people  so  require, 
the  Chancellor  shall  decree  a  dissolution  of  said  company  and  a  dis- 
tribution of  its  effects  ;  the  Chancellor  shall  have  j)Ower  to  refer  the 
application  of  the  Attorney-General  to  a  master  to  inquire  into  and 
report  upon  the  facts  alleged.     {Ibid,  j)-  88,  §  48.) 

;I7.  Whenever  it  shall  appear  to  the  Secretary  of  State,  as  the 
result  of  examination  as  provided  in  this  act,  that  the  affairs  of  any 
company  not  incorporated  by  this  State  and  doing  business  herein, 
are  in  an  unsound  condition,  estimated  in  the  same  manner  pre- 
scribed in  the  preceding  sections,  he  shall  revoke  the  certificates 
granted  to  such  company  and  its  agents,  and  shall  cause  a  notifica- 
tion thereof  to  be  published  at  least  six  times  in  two  newspapers 
published  in  the  cities  of  Trenton  and  Newark  res[)ectively  ;  and  all 
agents  of  such  company,  after  the  first  publication  of  such  notice, 
shall  be  required  to  discontinue  the  issuing  of  new  policies  or  the 
renewing  of  any  previously  issued ;  and  any  such  agent  who  shall 
make,  issue,  or  deliver  any  policy,  or  the  renewal  of  any  policy  of 
insurance,  or  collect  or  receive  any  premium  of  insurance,  or  in  any 
way  transact  any  business  of  insurance  on  behalf  of  any  such  com- 
pany, shall  be  liable  to  the  same  penalties,  to  be  recovered  in  like 
manner  as  prescribed  in  the  ninth  section  of  this  act.  [Ibid,  ih  89, 
§  49.) 

1*8.  The  provisions  of  the  foregoing  sections,  so  far  as  may  be, 
shall  be  held  to  apply  to  life  insurance  companies  of  this  State,  or 


590  HI^^:'s  insurance  statutes. 

of  other  States  and  governments  doing  business  in  this  State,  and 
such  comi^anies  shall  be  subject  to  the  same  examinations,  liabilities 
and  requirements  as  by  such  sections  imposed  upon  fire  insurance 
companies,  and  the  same  duties  are  imposed  upon  the  Secretary  of 
State,  the  Attorney-General  and  the  Chancellor ;  Provided^  That  in- 
junction shall  issue  only  when  it  shall  appear  by  examination  that 
the  assets  of  any  life  insurance  company,  as  aforesaid,  are  not  suf- 
ficient to  reinsure  its  outstanding  risks  and  discharge  its  total 
actual  liabilities ;  the  actual  expenses  of  all  examinations  made 
under  authority  of  this  act  shaU  be  paid  by  the  companies  examined. 
{Ihid,  p.  90,  §  50.) 

3S&.  The  Secretary  of  State  shall  be,  by  virtue  of  his  ofiQce, 
Commissioner  of  Insui'ance,  and  it  shall  be  his  duty  to  make  annual 
report  to  the  legislature,  containing  a  summary  of  the  statement  of 
every  insurance  company  filed  in  his  office  as  required  by  law,  to- 
gether with  such  facts  and  information  touching  the  same  as  may  be 
in  his  possession,  which  report  shall  be  published  as  are  other  legis- 
lative documents  ;  and  for  the  piu'pose  of  carrying  out  the  i)rovision8 
of  this  act  the  said  Secretary  shall  be  authorized  to  expend  from  the 
sum  annually  received  from  taxes  on  insiu-ance  companies  of  other 
States  an  amount  not  exceeding  ten  per  centum  thereof;  the  penalty 
for  violation  of  this  act,  except  where  otherwise  provided,  shall  be 
the  same,  to  be  collected  in  the  same  manner  as  i)rovided  in  the 
ninth  section  of  this  act.     (i  hid,  §  51.) 

40.  No  insurance  company  hereafter  organized  in  this  State 
shall  issue  policies  until,  upon  examination  by  the  Secretary  of 
State,  it  shall  have  been  found  to  have  complied  with  the  laws 
thereof;  nor  until  the  said  Secretary  shall  have  issued  his  certificate, 
setting  forth  such  fact,  and  authorizing  the  company  to  commence 
business,  and  that  no  insurance  company  organized  under  the  laws 
of  this  State,  or  transacting  business  in  this  State,  shall  expose  it- 
self to  loss  on  any  risk  or  hazard  by  fire,  to  an  amount  exceeding  ten 
per  centum  of  its  paid  up  capital,  or,  in  the  case  of  mutual  com- 
panies, of  their  net  assets ;  Provided,  That  no  joint  stock  capital 
insurance  company  shall  hereafter  be  organized  in  this  State,  or  do 
any  business  of  insurance,  until  it  shall  have  a  fully  paid  up  capi- 
tal of  at  least  one  hundred  thousand  dollars  ;  and  that  no  such  com- 
pany shall  make  any  loan  or  investment  on  the  security  of  its  own 
capital  stock.     [Ibid,  §  52.) 

4:1.  The  deposits  of  securities  now  required,  or  which  may 
hereafter  be  required  to  be  made  by  any  insiu'ance  company  of  this 
State,  shall  be  approved  by  the  Secretary  of  State,  and  he  shall 
have  authority  to  examine  the  same  at  all  times,  and  may  order  the 
same,  or  any  i)art  thereof,  changed  at  his  pleasure,  and  no  change 
or  transfer  of  the  same  shall  be  made  without  his  assent.  {Ibid, 
p.  91,  §  53.) 

42.  Any  person  or  firm  who  shall  in  any  manner  act  for  or  on 
behalf  of  another  in  the  placing  or  procuring  of  any  insurance  in  any 
company  of  another  State  or  nation  that  has  not  comphed  with  the 
laws  of  this  State,  shall  be  liable  to  the  same  penalties  to  be  recov- 
ered in  like  manner  as  lirescribed  in  section  nine  of  this  act ;  certifi- 
cates of  authority  may  be  issued  to  persons  to  place  or  cause  to  be 
prociu-ed  insurance  in  companies  which  have  complied  with  the  laws 
of  this  State,  although  such  person  may  not  be  the  commissioned 
agent  of  such  company,  and  that  the  amount  to  be  paid  for  filing 


NEW  JERSEY.  591 

the  statements  required  by  this  act,  or  any  of  them,  and  for  certifi- 
cates to  agents  of  foreign  companies  shall  be  five  dollars.    {Ibid,  §  54.) 

43.  The  several  provisions  of  this  act  shall  be  deemed  and 
held  to  extend  to  and  include  all  and  every  person  and  persons  who 
shall,  within  this  State,  make  or  cause  to  be  made,  procure,  or  cause 
to  be  procured,  or  who  shall,  directly  or  indirectly,  act  in  the  mak- 
ing or  causing  to  be  made,  or  in  the  procuring  or  causing  to  be  pro- 
cured, any  agreement,  contract  or  policy  of  insurance  upon  property 
or  lives  in  this  State,  by  any  insiu-auce  company  not  incorporated 
by  the  laws  of  this  State,  or  by  any  individual  residing  out  of  this 
State,  notwithstanding  such  i^erson  or  persons  shall  not  be  the  agent 
or  agents  of  such  insurance  company  or  individual  or  individuals, 
or  shall  not  act  for  or  in  behalf  of  such  company  or  individual  or 
individuals,  or  that  such  agTeement,  contract  or  policy  of  insurance 
shall  appear  to  have  been  made  or  entered  into  out  of  this  State. 
{Ibid,  §  55  ) 

44.  The  provisions  in  the  "  Act  concerning  corporations  "  con- 
tained for  the  winding  up  and  dissolving  of  any  corporation,  are 
hereby  severally  made  applicable,  so  far  as  possible,  to  any  corpora- 
tion formed  or  organized  by  virtue  hereof;  and  the  fifty -third  and 
fifty-fourth  sections  of  the  "  Act  to  authorize  and  regulate  the  busi- 
ness of  banking,"  shall  be  and  the  same  are  hereby  extended  to  all 
insurance  companies  incorporated  under  the  laws  of  this  State,  and, 
so  far  as  practicable,  to  the  business  and  assets  of  companies  of 
other  States  doing  business  herein.     {Ibid,  p.  92,  §  56.) 

45.  This  act  shall  be  held  and  construed  to  extend  to  and  in- 
clude any  and  every  company  transacting  the  business  of  insurance 
of  whatever  kind  in  this  State,  and  all  acts  or  parts  of  acts  incon- 
sistent or  conflicting  with  this  act,  be  and  the  same  are  hereby  re- 
pealed.    {Ibid,  §  57.) 

mSURAXCE  COMPANIES  OF  OTHER  STATES  AND  FOR- 
EIGN COUNTRIES. 

46.  All  insurance  companies  organized  under  the  laws  of  other 
States  or  foreign  governments,  and  transacting  insurance  in  this 
State,  shall,  during  the  month  of  January  of  each  year,  furnish  to 
the  Secretary  of  State  a  statement  signed  and  sworn  to  by  their 
president  and  secretaiy,  specifying  the  name  of  the  company,  where 
located,  the  amount  of  paid-up  capital  and  assets  of  which  they  are 
possessed ;  showing  the  manner  of  investments,  whether  in  bonds, 
mortgages,  real  estate,  public  stocks,  or  other  securities,  and  partic- 
ularizing the  amount  of  each  class  of  investment ;  also,  the  amount 
of  income  for  the  year  i^ast,  the  amount  of  losses  for  the  same  time, 
the  amount  of  claims  unpaid,  the  amount  necessary  for  reinsurance, 
the  whole  number  of  policies  issued  in  this  State  for  the  preceding 
year,  the  gross  amount  of  cash  premiums  received  therefor  for  the 
same  period,  the  name  and  residence  of  each  agent  in  this  State,  and 
the  amount  of  premiums  received  by  each  during  the  preceding 
year  ;  and  it  shall  be  the  duty  of  the  Secretary  of  State  to  prepare 
a  form  of  statement,  to  be  filled  up  by  such  insurance  companies  or 
associations,  establishing  agencies  or  transacting  the  business  of 
insurance  in  this  State,  which  shall  conform  to  the  above  require- 
ments.    {Revised  Statutes,  1875,  p.  72,  §  1.) 

47.  If  upon  filing  the  statement  aforesaid  it  shall  appear  that 
the  company  or  association  is  possessed  of  an  actually  paid-in  and 


592  hine's  insurance  statutes. 

well  invested  capital  stock  of  at  least  one  hundred  and  fifty  thou- 
sand dollars  over  and  above  all  claims  and  liabilities,  and  has  paid 
the  license  and  tax  hereinafter  provided  for,  then  the  Secretary  of 
State  shall  issue  a  certificate  of  autliority  to  the  company  for  the 
transaction  of  business,  and  allowing  agencies  to  be  established  in 
this  State.     {Ihid,  p,  73,  §  2.) 

48.  Annually, .on  or  before  the  first  day  of  February  in  each 
year,  every  such  fire,  life,  accident,  marine,  or  live-stock  insurance 
company  shall  pay  to  the  Secretary  of  State  the  sum  of  fifty  dollars, 
as  license  for  transacting  business  in  this  State,  and  pay  a  tax  oi 
two  per  centum  on  all  premiums  received  by  said  companies  in  tbis 
State  for  the  preceding  year;  Provided^  hoivever,  That  life  insurance 
companies  of  States  which  do  not  impose  a  greater  assessment  upon 
the  agents  of  such  companies  incorporated  by  this  State,  shall  pay 
annually,  on  or  before  the  first  day  of  February,  to  the  Secretary  of 
State,  in  lieu  of  the  tax  of  two  per  centum,  the  sum  of  twenty  dol- 
lars for  each  and  every  agent  appointed  by  and  acting  for  them. 
{Ibid,yS.) 

49.  When  there  shnll  exist  in  any  city,  borough,  or  township 
of  this  State  an  organized  fire  department,  and  a  charitable  associa- 
tion or  organization  for  the  accumulation  and  disbursement  of  a 
fund  for  the  benefit  of  disabled  or  incapacitated  fii'emen  or  their 
families,  all  the  moneys  received  by  the  Secretary  of  State,  as  herein 
provided  as  payment  of  the  tax  of  two  per  centum  u{)on  the  pre- 
miums received  by  the  agents  of  foreign  fire  insurance  companies 
within  the  limits  of  such  city,  borough,  or  township,  shall  be  received 
for  the  benefit  of  and  be  appropriated  and  applied  to  the  use  of  the 
charitable  f and  of  the  said  fire  department;  and  the  Secretary  of 
State,  before  the  first  day  of  Aj)ril  in  each  year,  shall,  upon  due 
proof  of  the  bona  fide  existence  of  such  organization  or  association, 
pay  over  the  sums  by  him  received  for  the  benefit  of  its  charitable 
fund  during  the  preceding  year,  as  above  provided,  to  the  treasurer 
thereof,  or  to  such  other  officer  as  may  be  duly  authorized  to  receive 
the  same,  taking  a  proper  receipt  therefor.     {Ibid,  §  4.) 

50.  The  Secretary  of  State  shall,  on  the  first  day  of  April  of 
each  year,  make  a  full  and  complete  statement  to  the  Comptroller 
of  all  sums  of  money  received  by  him  from  the  said  foreign  in- 
surance companies  on  account  of  the  license,  and  tax  of  two  per 
centum,  and  of  all  payments  in  lieu  of  said  tax;  and  he  shall  also 
give  an  account  of  all  payments  made  by  him  to  charitable  fire  asso- 
ciations, in  pursuance  of  the  fourth  section  of  this  act;  and  the 
amount  remaining  in  his  hands  he  shall  i^ay  over  to  the  Treasurer 
of  the  State  upon  a  receipt  countersigned  by  the  Comptroller.  {Ibid, 
p.  74,  §  5.) 

51 .  The  Secretary  of  State  shall  issue  a  certificate  of  authority 
to  all  agents  appointed  and  commissioned  by  any  such  foreign  in- 
surance company  which  have  complied  with  the  requirements  of 
this  act,  to  transact  business  in  the  State  for  one  year,  from  the 
first  day  of  February,  anno  domini  eighteen  hundred  and  seventy- 
five,  and  the  same  shall  be  renewed  annually  duiing  the  month  of 
January  every  year.     {Ibid,  §  6.) 

59.  The  Secretary  of  State  shall  have  authority  to  revoke  and 
cancel  any  certificate  issued  by  him  upon  being  satisfied  that  the 
statement  upon  which  such  certificate  of  authority  was  issued  is 
fraudulent,  or  that  the  capital  of  the  company  since  the  issue  of  the 
certificate  has  become  impaired.     {Ibid,  §  7.) 


NEW  JERSEY.  593 

53.  It  shall  not  be  lawful  for  any  persons  or  persons  to  seek,  take, 
or  effect,  or  cause,  or  procure  to  be  made  or  effected,  or  receive  appli- 
cation for  any  insurance  of  whatever  kind,  by  or  in  behalf  of  any 
person,  insurance  company  or  association  not  incorporated  under 
and  by  virtue  of  the  laws  of  this  State,  and  no  person  shall,  directly 
or  indirectly,  take,  effect  or  renew  a  policy  of  insurance  of  any  kind, 
on  any  person  or  thing,  within  this  State,  for  any  such  person,  as- 
sociation or  company,  without  having  first  obtained  the  certificate 
of  authority  as  mentioned  in  this  act.     {Ibid,  §  8.) 

54.  Every  violation  of  the  last  section  of  this  act  shall  subject 
the  party  violating  to  a  penalty  of  five  hundred  dollars  for  each  vio- 
lation, which  shall  be  sued  for  and  recovered,  in  the  name  of  the 
State,  by  the  prosecutor  of  the  pleas  of  the  county  in  which  such 
violation  shall  occur,  and  one-half  of  the  said  penalty,  when  recov- 
ered, shall  be  paid  into  the  treasury  of  said  county,  for  the  charita- 
ble fund  of  any  fire  department  therein,  or  if  none,  for  said  county, 
and  the  other  half  to  the  informer  of  violation.     {Ibid,  p.  75,  §  9.) 

55.  When  by  the  laws  of  any  other  State  or  nation  any  taxes, 
fines,  penalties,  licenses,  fees,  deposits  of  moneys  or  of  securities,  or 
other  obligations  or  prohibitions  are  imposed  on  life  insurance  com- 
panies of  this  State  doing  business  in  such  other  State  or  nation,  or 
upon  their  agents  therein,  so  long  as  such  laws  continue  in  force, 
the  same  taxes,  fine,  penalties,  licenses,  fees,  deposits,  obligations 
and  ]>rohibitions,  of  whatever  kind,  shall  be  imposed  upon  all  such 
insurance  companies  of  such  other  State  or  nation  doing  business 
within  this  State  and  upon  their  agents  here ;  Provided,  That  nothing 
herein  shall  be  held  to  repeal  or  reduce  the  license  fee  of  fifty  dollars 
required  of  life  insurance  companies  of  other  States  doing  business 
in  this  State,  or  the  further  payment  of  twenty  dollars  for  each  and 
every  agent  appointed  by  and  acting  for  them,  when  by  the  provi- 
sions of  this  act  such  two  per  centum  is  not  payable.     {Ibid,  §  10.)- 

56.  When  by  the  laws  of  any  other  State  or  nation,  any  taxes, 
fines,  penalties,  licenses,  fees,  deposits  of  money  or  of  securities,  or 
other  obligations  or  prohibitions  are  imposed  on  insurance  comijanies, 
other  than  life  insurance,  of  this  State  doing  business  in  such  other 
State  or  nation,  or  upon  their  agents  therein,  so  long  as  such  laws 
continue  in  force,  the  same  taxes,  fines,  ]>enalties,  licenses,  fees,  de- 
posits, obligations  and  prohibitions  of  whatever  kind  shall  be  im- 
posed upon  all  such  insurance  companies  of  such  other  State  or 
nation  doing  business  within  this  State  and  upon  their  agents  here; 
Provided,  That  nothing  herein  shall  be  held  to  repeal  or  reduce  the 
license  fee  of  fifty  dollars  required  of  fire  insurance  companies  of 
other  States  doing  business  in  this  State,  or  the  further  payment  of 
a  tax  of  two  per  centum  on  all  premiums  received  by  said  conijja- 
uies  in  this  State  for  the  preceding  year.     {Ibid,  §  11.) 

57.  The  provisions  of  the  last  two  sections  of  this  act  shall  be 
held  and  construed  to  apply  to  and  include  any  and  all  rules,  regu- 
lations, requirements  or  impositions  of  whatever  kind,  as  well  by 
any  department  or  officer  of  the  government  of  any  State  or  nation, 
as  by  the  laws  thereof;  and  it  is  hereby  expressly  made  and  declar- 
ed to  be  the  duty  of  the  Secretary  of  State  of  this  State  to  strictly 
enforce  the  provisions  aforesaii  in  this  section  mentioned.  {Ibid, 
p.  76,  §  12.) 

58.    Any  insurance  company  organized  under  the  laws  of  any 
other  State  or  of  the  United  States,  and  transacting  the  business 
of  insurance  in  this  State,  shall  be  permitted  to  purchase,  hold  and 
38 


594  hike's  insueance  statutes. 

convey  real  estate  situate  in  this  State,  for  the  purposes,  and  no 
other,  and  in  the  manner  herein  set  forth,  to  wit : 

Fh'st.  —  iinch  as  shall  be  requisite  for  its  immediate  accommoda- 
tion in  the  transaction  of  its  business  ;  or, 

Second.— iiuch  as  shall  have  been  mortgaged  to  it  in  good  faith 
by  way  of  secuiity  for  loans  previously  contracted,  or  for  money  due ; 

Third. — Such  as  shall  have  been  conveyed  to  it  in  satisfaction  of 
debts  previously  contracted  in  the  course  of  its  dealings  ;  or, 

Fourih. — Such  as  shall  have  been  purchased  at  sales  upon  judg- 
ments, decrees  or  mortgages  obtained  or  made  for  such  debts ;  and 
it  shall  not  be  lawfid  for  any  such  company  to  purchase,  hold  or 
convey  real  estate  in  this  State  in  any  other  case,  or  for  anj^  other 
purpose  ;  and  all  such  real  estate  as  may  be  acquired  as  aforesaid, 
and  which  shall  not  be  necessary  for  the  accommodation  of  such 
company  in  the  convenient  transaction  of  its  business,  shall  be  sold 
and  disposed  of  within  five  years  after  such  company  shall  have  ac- 
quired title  to  the  same ;  and  it  shall  not  be  lawi'ul  for  such  com- 
pany to  hold  such  real  estate  for  a  longer  period  than  that  above 
mentioned,  unless  the  said  company  shall  procure  a  certificate  from 
the  Chancellor,  that  the  interests  of  the  company  will  sufter  mate- 
rially by  a  forced  sale  of  such  real  estate  ;  in  which  event  the  time 
for  the  sale  may  be  extended  for  such  period  as  the  Chancellor  shall 
dii'ect  in  such  certificate.     (Ihid,  §  13.) 

59.  It  shall  not  be  lawful  for  any  insurance  company  of  any 
kind  whatsoever,  not  incorporated  under  or  by  wtue  of  the  laws 
of  this  State,  itself  or  by  its  agents,  surveyors,  canvassers  or  other 
representative  of  whatever  designation,  nor  for  any  such  agent, 
canvasser  or  representative  of,  nor  for  any  person  on  behalf  of 
any  such  insurance  company  to  open  or  maintain  any  office,  or  in 
any  manner,  directly  or  indirectly,  transact  any  business  of  insur- 
ance within  this  State,  notwithvStanding  such  business  may  be  trans- 
acted whoUj'  with  citizens  of  other  States,  without  ha\ang  previously 
complied  with  the  provisions  of  the  act  to  which  this  is  a  supplement, 
and  the  various  supplements  thereto.     {Laws  of  1875,  p.  108,  §  1.) 

60.  If  by  virtue  of  the  laws  of  any  State  or  nation,  or  by  any 
rule,  regulation  or  requirement  of  the  oflicer  charged  with  the  execu- 
tion of  the  insui'ance  laws  of  any  such  State  or  nation,  any  certificate 
of  the  Secretary  of  State  of  this  State,  in  any  wise  relating  to  the 
business  or  condition  of  any  insurance  company  of  this  State  trans- 
acting business  or  applying  for  authority  to  transact  business  in  any 
such  State  or  nation,  shall  be  refused  or  not  recognized,  then  it  shall 
be  the  duty  of  the  Secretary  of  State  of  this  State,  to  refuse  to  ac- 
cept any  certificate  of  such  officer  of  another  State  or  nation,  in  any 
wise  relating  to  the  business  or  condition  of  any  insurance  company 
of  such  State  or  nation,  transacting  business  or  appl;>1ng  for  author- 
ity to  transact  business  in  this  State,  and  any  insurance  company  of 
such  other  State  or  nation,  transacting  business  or  applying  for  au- 
thority to  transact  business  in  this  State,  shall  be  subject  to  the 
same  rules,  regulations,  exactions,  examinations,  and,  in  the  case  of 
life  insurance  companies,  to  the  same  valuations  of  policies,  and  in 
every  other  respect  to  the  same  requirements  as  by  the  act  to  which 
this  is  a  supplement  and  the  various  supplements  thereto,  are  im- 
posed upon  insurance  companies  of  this  State ;  and  it  shall  not  be 
Lawful  for  any  insurance  company  of  such  other  State  or  nation, 
itself  or  by  its  agents,  or  otherwise,  or  by  any  person  on  behalf 


NEW  JERSEY.  595 

thereof,  directly  or  indirectly,  to  transact  any  business  of  insurance 
witliin  this  State,  without  having  fully  complied  with  the  provisions 
of  this  act.     {Ibid,  §  2.) 

61.  The  penalty  for  every  violation  of  this  act  shall  be  five 
hundred  dollars,  to  be  sued  for  and  collected,  on  complaint,  in  the 
name  of  the  State,  by  the  prosecutor  of  the  pleas  for  the  county 
where  the  ofieuse  shall  have  been  committed;  and  the  person  or 
persons  against  whom  a  judgment  shall  be  obtained  shall  be  com- 
mitted to  the  county  jail  until  such  fine  and  costs  are  paid  or  other- 
wise discharged ;  and  one-half  of  said  penalty,  when  recovered,  shall 
be  paid  to  the  charitable  fund  of  any  fire  department  in  said  county, 
and  the  other  half  to  the  complainant.     {Ibid,  p.  109,  §  3.) 


LIFE    INSUEANCE    FOR    THE     BENEFIT     OF     MARRIED 
WOMEN  AND   CHILDREN. 

62.  It  shall  be  lawful  for  any  married  woman,  by  herself  and  in 
her  name,  or  in  the  name  of  any  third  person,  with  his  assent  as  her 
tmstee,  to  cause  to  be  insured,  for  her  sole  use,  the  life  of  her  hus- 
band for  any  definite  period  or  for  the  term  of  his  natural  life ;  and 
in  case  of  her  surviving  her  husband,  the  sum  or  net  amount  of  the 
insurance  becoming  due  and  payable  by  the  terms  of  the  insurance 
shall  be  payable  to  her,  to  and  for  her  own  use,  free  from  the  claims 
of  the  representatives  of  her  husband  or  his  creditors.  {Laws  of 
1851,  p.  31,  §  1,  as  amended  by  laws  of  1871,  p.  25.) 

6J*.  In  case  of  the  death  of  the  wife  before  the  decease  of  her 
husband,  the  amount  of  the  insurance  may  be  made  payable,  after 
the  death,  to  her  children,  for  their  use,  and  to  their  guardian,  if 
under  age.     {Ibid,  §  2.) 

64.  Any  married  woman  holding  a  policy  of  insurance  on  the 
life  of  her  husband  or  other  person  may  transfer  and  assign  the  same 
to  her  husband  or  to  any  other  person  or  persons  with  his  assent  as 
if  she  was  at  the  time  of  making  such  transfer  and  assignment  a 
single  female,  and  the  assignee  or  assignees  of  such  policy  or  policies 
shall  hold  the  same  in  as  full  and  ample  a  manner  as  if  the  assignor, 
at  the  time  of  making  such  assignment,  had  been  sole  and  unmar- 
ried.    {Laws  of  1875,  p.  78.) 

INQUESTS  IN  CASES  OF   FIRES. 

65.  Whenever  it  shall  be  made  to  appear  by  the  affidavit  of  a 
creditable  witness,  that  there  is  ground  to  believe  that  any  building 
has  been  maliciously  set  on  fire  or  attempted  to  be,  any  coroner, 
sheriff,  or  justice  of  the  peace  of  the  county  in  which  such  crime  is 
supposed  to  have  been  committed,  to  whom  such  affidavit  shall  be 
delivered,  and  who  shall  be  requested  by  the  president,  secretary,  or 
agent  of  any  insurance  company,  to  investigate  the  truth  of  such  be- 
lief, shall  do  so  forthwith.     {Laws  of  1S7 5,  p.  33,  §  1.) 

66.  For  the  purpose  of  such  investigation,  such  officers  shall 
possess  all  the  powers  now  conferred  by  law  upon  coroners,  in  regard 
to  inquests  upon  dead  bodies.     {Ibid,  §  2.) 

67.  The  jury,  after  being  duly  sworn,  shall,  with  the  officer 
holding  the  investigation,  inspect  the  jjlace  where  the  fire  was,  or 
was  attempted,  and  shall  hear  the  testimony,  and  after  so  doing, 
shall  deliver  to  the  officer  holding  such  investigation,  their  inquisi- 


596  hike's  insurance  statutes. 

tion  in  writing,  signed  by  them,  in  whicli  they  shall  find  and  certify 
how  and  in  what  manner  such  fire  happened  or  was  attempted,  and 
all  the  circumstances  attending  the  same,  and  who  was  or  were 
guilty  thereof,  either  as  principal  or  accessory,  and  in  what  manner; 
&  the  jury  are  unable  to  ascertain  the  origin  or  circumstances  of 
such  fire,  they  shall  find  and  certify  accordingly.     {Ibid,  §  3.) 

G8.  If  the  jury  find  that  any  building  bas  been  designedly  set 
on  fire,  or  has  been  attempted  so  to  be,  the  officer  holding  such  in- 
vestigation, shall  have  i)ower  to  issue  process  for  the  arrest  of  the 
party  charged  with  such  ofiense,  and  to  convict  him  to  await  the  ac- 
tion thereon  of  the  next  grand  jury  of  that  county  ;  Provided,  He  be 
not  already  in  custody ;  and  shall  also  have  power,  when  in  his 
judgment  necessary,  to  bind  over  the  witnesses  to  a])pear  and 
testify  at  the  next  criminal  court  of  said  county.  (Ibid,  p.  34, 
§4.) 

GO.  The  officer  issuing  such  process,  shall  have  the  same 
power  to  examine  the  party  arrested  as  is  now  possessed  by  justices 
of  the  peace  in  criminal  arrests,  and  shall  proceed  in  like  manner. 
{Ibid,  §  5.) 

70.  The  testimony  of  all  witnesses  examined  before  the  jury 
under  this  law,  shall  be  reduced  to  writing,  by  or  under  the  direction 
of  the  officer  holding  the  investigation,  and  shall  be  returned  by 
him,  together  with  the  inquisition  of  the  jury,  and  all  recognizances 
and  examinations  taken  under  his  hand  and  seal,  to  the  next  crimi- 
nal court  of  record  to  be  held  in  said  county.     {Hid,  §  C.) 

71.  The  costs  and  expenses  of  such  investigation  shall  be 
ascertained  and  taxed  in  the  same  manner  as  provided  by  law  for 
like  services  by  coroners  when  holding  inquests  upon  dead  bodies, 
and  shall  be  paid  by  the  insurance  company  whose  president,  secre- 
tary, or  agent  has  reques<^ed  such  investigation ;  and  any  such  of&- 
cer  may,  before  he  proceeds  to  the  business  of  the  inquiry,  require 
of  the  said  insurance  company  a  bond  in  the  sum  of  one  hundred 
dollars,  conditioned  for  the  payment  of  said  fees  after  the  conclusion 
of  said  inquest.     {Ibid,  §  7.) 


AESON  AND  INCENDIAEISM. 

73.  If  any  person  willfully  and  maliciously  shall  burn,  or 
cause  to  be  burned,  or  aid,  counsel,  procure,  or  consent  to  the  burn- 
ing of  the  dwelling-house  of  another,  or  any  kitchen,  shop,  barn, 
stable,  or  other  out-house  that  is  a  parcel  thereof,  or  belonging  or 
adjoining  thereto,  or  any  other  building,  by  means  whereof  a  dwell- 
ing-house shall  be  burnt,  then,  and  in  every  such  case,  the  person  so 
offending  shall  be  adjudged  guilty  of  arson,  and  be  proceeded 
against  for  a  high  misdemeanor,  and,  on  conviction,  shall  be  pun- 
ished by  fine,  not  exceeding  two  thousand  dollars,  and  imprison- 
ment at  hard  labor,  for  any  term  not  exceeding  tifteen  years,  or 
either  of  them.     {Revised  Statutes,  1874,  j?.  150.  §  84.) 

73.  If  any  person  willfully  and  maliciously  shall  burn,  or 
cause  to  be  burned,  or  aid,  counsel,  procure,  or  consent  to  the 
burning  of  any  barn,  stable,  or  other  building  of  another,  not  a 
parcel  of  a  dwelling-house,  or  any  shop,  store-house,  warehouse,; 
malt-house,  mill,  or  other  building  of  another,  or  any  ship,  boat, 
or  other  vessel  of  another,  lying  within  the  bod}"  ot  any  county, 
of  this   State,   or  any  church,  meetinghouse,  court-house,  work- 


II 


NEW  JERSEY.  597 

house,  jail,  or  other  public  buikliug,  theu,  and  in  every  such  case, 
the  person  so  oftending  shall  be  adjudged  guilty  of  a  misde- 
meanor, and,  on  conviction,  shall  be  punished  by  line,  not  exceeding 
one  thousand  dollars,  and  imprisonment  at  hard  labor  for  any  term 
not  exceeding  ten  years,  or  either  of  them.     [Ibid,  §  85.) 

74.  If  any  i)erson  shall  willfnlly  and  maliciously  set  fire  to,  or 
aid,  procure,  or  consent  to  the  setting  fire  to  any  church,  meeting- 
house, coiu't-house,  workhouse,  jail,  or  other  public  building,  or  any 
dwelling-house,  kitchen,  shop,  storehouse,  warehouse,  malt-house, 
mill,  barn,  stable,  or  other  house  or  building  of  another,  or  any  ship, 
boat,  or  vessel  of  another,  lying  within  the  body  of  any  county  in 
this  State,  with  intent  to  burn  the  same,  then,  and  in  every  such, 
case,  the  person  so  offending  shall  be  adjudged  guilty  of  a  misde- 
meanor, and,  on  being  thereof  convicted,  shall  be  punished  by  fine 
not  exceeding  five  hundred  dollars,  and  imprisonment  at  hard  labor 
for  any  term  not  exceeding  five  years,  or  either  of  them.  {Ibid,  §  86.) 

75.  If  any  person  shall  willfully  and  maliciously  set  fire  to  or 
burn,  or  aid,  counsel,  procure,  or  consent  to  the  setting  fire  to  or 
burning  of  any  building,  ship,  or  vessel,  or  any  goods,  wares,  mer- 
chandise, or  other  chattels,  which  shall  at  the  time  be  insured  by 
any  person  or  corporation  against  loss  or  damage  by  fire,  with  in- 
tent to  prejudice  any  person  or  corporation  that  has  underwritten 
or  shall  underwrite  any  policy  of  insurance  thereon,  whether  the 
same  be  the  property  of  such  person,  or  any  other,  such  person  so 
oftending  shall  be  adjudged  guilty  of  a  misdemeanor,  and  on  convic- 
tion, shall  be  punished  by  fine  not  exceeding  one  thousand  dollars, 
or  imprisonment  at  hard  labor  for  a  term  not  exceeding  ten  years, 
or  either  of  them.    {Ibid,  p.  151,  §  87.) 

76.  If  any  person  shall  willfully  set  fire  to  or  burn,  or  aid, 
counsel,  procure,  or  consent  to  the  setting  fire  to  or  burning,  of  any 
dwelling  house,  shop,  barn,  stable,  warehouse,  or  other  building  of 
another,  in  his  or  her  possession,  with  intent  to  defraud  any  person 
whatever,  such  occupant  shall  be  deemed  guilty  of  a  misdemeanor, 
and  on  conviction,  shall  be  punished  by  fine  not  exceeding  one 
thousand  dollars,  and  imprisonment  at  hard  labor  for  any  term  not 
exceeding  five  years,  or  either  of  them.     {Ibid,  §  88.) 


EMBEZZLEMEN^T. 

77.  If  any  servant,  employee,  or  agent,  of  any  individual  or  in- 
corporated company  shall  take  or  receive  any  money,  bank  bill  or  note, 
for  or  above  the  price  or  value  of  twenty  dollars,  belonging  to  his 
master,  employer,  or  to  the  said  incorporated  company,  with  intent 
to  defraud  such  master,  employer,  or  incorporated  company  thereof, 
and  shall  willfully  retain  and  apin^opriate  to  his  own  use  the  said 
money,  bank  bill,  or  note,  knowing  the  same  to  belong  to  his  master, 
employer,  or  to  the  said  incorporated  comi)any,  every  person  so  of- 
fending shall  be  deemed  guilty  of  a  misdemeanor,  and,  on  convic- 
tion shall  be  punished  by  fine  not  exceeding  five  hundred  dollars,  or 
imprisonment  at  hard  labor  not  exceeding  three  years,  or  both. 
{Revised  IStatutes,  p.  175,  §  IGI.) 

78.  For  General  Provisions  concerning  Corporations,  see 
Nixon's  Digest,  18G8,  pp.  167-173, 404-409  ;  Laws  of  1871,  p.  58;  Laws 
of  1872,  p.  27  ;  Laws  of  1875,  p.  45. 


INDEX  TO  NEW  YORK 


FAOB 

Accident  Inrnrance  Companies- 
Organization  of  (125) 643 

Capital  and  Deposits  of  (126,132)643,  645 
Kestrictions  upon  Business  of  (127)  --  643 
Advertising  Statements  (44,  89).  617,  619,  632 
Agencies  of  Marine  Insurance  Companies  in 

Foreign  Countries  (100) 636 

Agents — 

Term  Defined  (44) 617-619 

To  haye  Certificate  of  Authority  (44, 
89,  145,  147)617-619,  632,  649,  650,  651 

Advertising  by  (4 4) 617-619 

To  Cease  Business,  when  (49) 621 

Of  Marine  Insurance  Companies  (89)..  632 
Service  of  Process  on  (44,  146)  617-619, 

649,  650 

Taxation  of  (18  5-207) 662-68 

Bonds  of  (186) 603 

Taxation  of  for  Support  of  Fire  Depart- 
ments (190-207) 664-68 

InNewTork  City  (193-207) 664-68 

Embezzlement  by  (305,  306) 686 

Annual  Statements— (43,  44,  46-48, 
89,  90,  99,  101,  142,  146- 
148,  150)  616-19,620,  632,  633,  635,  636, 

647,  651,  652 
Penalty  for  Failing  to  make  (43,  47, 

91,  149) 616-20,  633,  652 

Blank  Forms  for  (4 3,  142) 616,  647 

Of  Receivers  and  Trustees  (63) 625 

Of  Companies  from  Foreign  Countries 

(48,147,  148) 620,  651,652 

Arsou,CrimeandPenalty  of  (291-301)  684,685 
Assessments  of  Mutual  Fire  Insurance  Com- 
panies (33) 612 

Assets— 

Of  Mutual  Fire  Insurance  Cos.  (25)  ...  608 
Investment  of  (27,  132,  133,  136, 

145) 609,  645,  646,  649,  650 

Note8a8(38) 613 

Of  Companies  from  Foreign  Countries 

(67) 625 

Of  Mutual  Marine  Insurance  Cos.  (88)  631 
Of  Life  Insurance  Companies    (132, 

133,  136,  145) 645,  646,  649,  650 

Attorney  of  Foreign  Insurance  Companies 

(44,  145,  226) 617-19,  649-50,  671 

Attorney -General- 

To  Sue  for  Penalties  (51) 622 

To  Examine  Charters  (30,  97,  130)  619, 

634,644 


PAOB 

Broker — 

Term  Defined  (44) 617-19 

Unlawful  Business  of  (44) 617-19 

Canada  Fire  Insurance  C  ompanies,  Depos- 
its of(45)  620 

Capital — 

To  be  Specified  in  Charter  (23) 608 

Impairment  of  (9,  44,  49,  57,  83, 
99,  1 11 ,  1 1 6)  604,  617-19,  621,  624,  630, 

635,  638,  640 

Of  Fire  Insurance  Companies  (25) 608 

Katio  of  Risk  to  (25,  66) 608,625 

Subscriptions  to  (26,  87,  131)  609,   631, 

645 
Investment  of  (27,   89,   93,   112, 
132,   145,  210,   211)609,   632,  633. 
639,  645,  649,  650,  668,  669 

Of  Mutual  Companies  (.34) 613 

Of  Participating  Companies  (35) 613 

Increase  of  (40,62,  114)  ....615,  625,  639 

Of  Foreign  Companies  (44) 617-19 

Reduction  of  (57-62) 624-625 

Of  Companies  from  Foreign  Countries 

(67,  68) 625 

Tax  on  (70) 627 

Under  Surplus  Law  (82) 629 

Of  Marine  Insurance  Companies  (88).  -  631 
Of  Mutual  Marine  Insurance  Companies 

(112,  113,  117,  119)  ....639-641,  642* 
Of  Health  and  Casualty  Cos.  (126)  ...  643 
Of  Life  Insurance  Companies  (1  32).  --  643 
Of  Foreign  Life  Insurance  Companies 

(145) 649,  650 

Certificate— 

Of  Authority  Required  (44,89)  617-19,  632 

Under  Reciprocal  Laws  (17) 607 

Filing  and  Publication  of  (44) 617-19 

When  Revoked  (49,  73,  116,  152)62), 

627,  640,  653 

Of  Foreign  Companies  (70) 627 

Of  Agent  (44,  89,  145,  147)  617-19,  632 

649-51 

Fees  for  (146) 651 

Charter — 

AppUcationfor(4-7) 603,  604 

Amendment  and  Extension  of  (4-7)603,  604 
Of  New  Companies  to  be  Filed  (22)..-  608 

Of  Fire  Insurance  Companies  (23) 608 

Examination  of  (30,97,130)  610.  634,  644 
Forfeiture  of  (32,  128) 611,  644 


INDEX   TO   NEW   YORK. 


599 


PAGB 

Charter  (Continued)— 

Extension    of   (39,   40,    52,    103, 

1 09) 614 ,  615,  623,  637,  638 

Of  Foreign  Companies  to  be  Filed  (44)  617 

619 
Of  Marine  Insurance  Companies  (95).  634 

Limit  ol  (52,  104,  156) 623,  637,654 

Of  Life  Insurance  Cos.  (128,  156)644,  664 
Corporation — 

Constitutional  Provisions   Concerning 

(1-3) 603 

Charters  of  (4-7) 603,  604 

General  Provisious  Relating  to  (307).  687 

Declaration  of  Corporators  (22) 608 

Deposits — 

Under  Reciprocal  Laws  (17) 607 

Of  Companies  from  Foreign  Countries 

(44) 617-19 

Of  Canadian  Insurance  Companies  (45)  620 
Of  Health  and  Casualty  Insurance  Com- 
panies (126) 643 

Of  Life  Insurance  Cos.  (132,  147)  645,  651 

Annual  Examination  of  (136) 646 

Transfer  of  (164-167) 655,  656 

Under  Registration  Law  (1 69-1 8 1 )  656-61 
OfPlate  Glass  Insurance  Cos.  (230)  ..  672 
Directors- 
Qualifications  (23,  128,  129). -.608,  644 

To  Declare  Dividends  (32) 6J1 

To  Issue  Kew  Stock  (49,  99) 621,  635 

Majority  to  be  Citizens  of  State  (128, 

129) 644 

May  File  Amended  Certificate  of  Incor- 
poration (208,209) 668 

Dividends— 

Of  Fire  Insurance  Cos.  (32,  40)..  611,  615 

Under  Surplus  Law  (81) 629 

Of  Marine  Insurance  Cos.  (1 1 1 ,  1 1 8)  638, 

641 
Of  Life  Insnreinoe   Companies    (161- 
163,  168) 655,  656 

Embezzlement,    Crime    and    Penalty     of 

(305,  306) 686 

FbE8— 

Paid  by  Companies  (9,  15,  41,  146)604, 

606,  615,  651 

Under  Reciprocal  Laws  (17) 607 

Remitted,  when  (17) 607 

Of  County  Clerks  (53,  151) 623,653 

For  Certificates  of  Authority  (146)..-  651 

Fidelity  Insurance  Companies — (125) 643 

Capital  and  Deposits  of  (126,  132)..  643, 

645 
Restrictions  upon  Business  of  ( 1 2  7)  ■ .  -  643 
Fire  Departments,  Taxation  for  Support  of 

(16,  190-207) 606,  664-68 

Fire  Insurance  Companies — 

Examination  of  (9,  43,  49,  60) 604, 

616,  621,  622 
Impairment  of  Capital  of  (9,  44,  49, 
67,  83) 604,  617-19,621,  624,  630 


PAHB 

Fire  Insurance  Companies  (Continued)— 

Fees  Paid  by  (1 5,  1 7) 606,  607 

To  Pay  Expenses  of  Insurance  Depart- 
ment (15) 606 

Tax  on  Premiums  of  (1 6) 606 

Incorporation  under  General  Laws  (1 8, 

22-26,  30,  31,  55) 607-U,  624 

May  Insure,  what  (18-21) 607,608 

May  Reinsure  (21) 608 

Corporators  ot  to  File  Declaration  (22)  608 

Charter  of  (4-7,  22,  23) 603,  604,  608 

Restrictions  upon  Business  of  (24) 608 

Ratio  of  Risk  to  Capital  (26) 608 

Capital  of  Joint  Stock  (25) 608 

Assets  of  Mutual  (25) 608 

Investment  of  Capital  and  Assets    of 

(27,  210,  211) 609,  668,  669 

Real  Estate  of  ^28,  29) 610 

Examination  of  Charter  and  Capital  of 

(30) 610 

May  Commence  Business,  when  (30)..   610 

Seal  and  By-Laws  of  (31) 611 

Dividends  of  (32) 61X 

Capital  ot  Mutual  (34) 613 

Participating  (36) 613 

Suits  by  and  against  Members  of  (37).  613 

Liabilities  of  Stockholders  of  (3 8) 613 

Extension  of  Charter  of  (39,  40,  52).  614, 

615,  623 

Limit  of  Charter  of  (62) 623 

Mutual  may  Become  Joint  Stock  (39).  614 

Increase  of  Capital  of  (40,  ei) 615,  625 

Formed  under  Previous  Acts  (41) 615 

Subject  to  Corporation  Laws  (42) 615 

Annual  Statements  of  (43,  44,  46- 

48,  90) 616-20,  633 

To  Reply  to  Enquiries  of  Superintendent 

of  Insurance  Department  (43) 616 

Attorney  of  Foreign  (44) 617-19 

Capital  of  Foreign  (44) 617-19 

Deposits  of  Canada  (46) 680 

Dissolution  of  (49,  60) 621,622 

Liens  upon  Stock  of  Members  of  (56)..  624 
Reduction  of  Capital  of  (57-62)..  624,  625 
Annual  Statements  of  Receivers  and 

Trustees  of  (63) 623 

Guaranty  Surplus  Funds  of  (76-83)  628-30 

May  Change  Fiscal  Tear  (102) e."?? 

(See  Foreign  Fire  Insurance  Cos.) 

Fire  Marshal,  Metropolitan  (276-282). 681-83 

Fire  Underwriters,  New  York  Board   of 

(263-262) 676-79 

Fires,  Investigation  into  Origin  of  (283- 

290) 683-84 

Fiscal  Year,  Companies  may  Change  (1 02, 

222) 6:J7,  671 

Foreign  Fire  Insurance  Companies- 
Tax  on  Premiums  of  ( 1  6) 606 

Capital  of  (26,  44,  67)  ...6  8,617-19,625 

Assets  of  Mutual  (26) 608 

To  Appoint  Attorney  (44) 617-19 

To  File  Statement  and  Charter  (44). 617-19 
Impairment  ot  Capital  of  (44) 617-19 


600 


INDEX  TO  NEW   TDEK. 


PAGE 

Foreign  Fire  Insurance  Cos.  (Continued)— 
Service  of  Process  on  (44,  226-229) 

617-19,  671,672 

Deposits  of  (44,  45) 617-20 

Fees  for  Examining  Mortgages  of  (44) 

617-19 
Annual  Statements  of  (44,   46-48, 

90,  148,  150) 617-20,  633,652 

Forbidden  to  do  Business  in  the  State 

(64,65) 625 

Eatio  of  Risk  to  Capital  (66 ) 625 

Assets  to  be  Held  by  Trustees  (67) 625 

Appointment  of  Trustees  of  (69) 626 

Reinsurance  of  Risks  of  ( 7 1 ) 627 

Tax  on  Capital  of  (T2) 627 

Subject  to  Same   Conditions  as   State 

Companies  (73) 627 

Term  Defined  (75) 628 

Restrictions  upon  Business  of  (127)--  643 
Foreign  Life  Disurance  Companies — 

Annual  Statements  of  (46,  145,147)620, 

649-51 
Restrictions  upon  Business  of  (127)- •  643 

Capital  and  Assets  of  (145) 649-50 

To  File  Certificates  of  Authority  (145, 

1^41^) 649-51 

Attorney  of  (1 45,  147) 649-51 

Service  of  Process    on   (145,    147, 

226-229) 649-51,671,  672 

Tax  on  Premiums  of  (147) 651 

Discontinuance  of  Business  of  ( 1 5  5 ) . .  654 
Foreign  Marine  Insurance  Companies- 
Capital  of  (89) 632 

Annual  Statements  of  (90-92) 633 

Examination  of  (116) 640 

Taxation  of  (185-1 89) 662,  663 

Bond  of  A  gents  of  ( 1  8  6) 663 

Restrictions  upon  (189) 663 

QUARAKTT  Surplus  Law  (76-83). 628-30 

Geneva  Award  (121) 642 

Health  Insurance  Companies— (125) 643 

Capital  and  Deposits  of  (126,1  32)643,  645 
Restrictions  upon  Business  of  (127)  ••  643 

Impairment  of  Capital  (9,  44,  49,  67, 

83,  99,  111,116)  604,  617-19,  621,  624, 
630,  635,  638,  640 
Incendiarism,  Crime  and  Penalty  of  (291- 

301) 684-86 

Inquests  in  Cases  of  Fire  (283-290). .683,  684 
Insurance — 

Varieties  of  (126) 643 

Limited    Partnerships,    not    fo   make 

(221) 670 

Of  Public  Buildings  (223) 671 

Of  School-houses  (224) 671 

Against  Loss  of  Live  Stock  by  Theft 

(233-246) 673-75 

Insurance  Department — 

Established  (8) 604 

Superintendent  of  (9) 604 


PAQR 


Insurance  Department  (Continued)- 
Expenses  of  (15) 


(506 


Laws  Repealed  (54,  158,  196,  207, 

282) 623,  655,665,  668,683 

Licenses  under  Reciprocal  Laws  (17) 607 

Life  Insurance  for    Married  Women    and 

Children  (182-1 84) 062 

Life  Insurance  Companies- 
Annual   Statements  of   Foreign    (46, 

90) 620,  £33 

May  Change  Fiscal  Tear  (1 02) 6:37 

Organization   of   (125,    128,    130, 

131,  134) 643-46 

May  Insure,  what  (125) 643 

Restrictions  upon  Business  of  (127)  --  643 

Charter  of  (1 28 ) 644 

Majority  of  Directors  to  be  Citizens  of 

the  State  (128,  129) 644 

Examination  of  C  harter  of  ( 1 3  0) 644 

Subscription  to  Capital  of  ( 1 3 1 ) 645 

Capital  of  (13  i) 645 

Investment  of  Capital   and  Assets  of 

(132,  133,  136) 645,  646 

Deposits  of  (132,  136,  147,  164)  645, 

646,  651,  655 
To  File  Papers  in  County  Clerk's  Office 

(134,  136) 646 

Amendment  of  Charter  of  (1 3  8) 646 

Real  Estate  of  (139) 647 

Seal  and  By-Laws  of  (140) 647 

Suits  by  and  against  Members  of  (140)  647 
Subject  to  Corporation  Laws  (141)..  647 
Annual  Statements  of  (1 42, 1 45)647,  649-50 

Valuation  of  Policies  of  ( 1 4  3) 648 

Capital  and  Assets  of  Foreign  (145)  649-50 

To  Appoint  Attorney  (145) 649-50 

Tax  on  Foreign  (147) 651 

Examination  of  (144,  162,  163)  649,  653 

Penalty  for  Violating  Laws  (154) 654 

Dissolution  (162,  166,  176)  653,  654,  658 

Term  of  Charter  of  (1  56) 654 

May  Avail  Themselves  of  Provisions  of 

Act  (167) 654 

Taxation  of  Mutual  (159,  160) 655 

ToReport  Dividends  (161,  162) 655 

Dividends  of  (163, 168) 655,  656 

Transfer  of  Deposits  of  (1 64-1 67)  655,  656 
Registration  of  Policies  of  (1 69-1 81)  656 

661 

(See  Foreign  Life  Insurance  Cos.) 

Live  Stock  Insurance  Companies— (125)..  643 

Capital  and  Deposits  of  (126,132)  643,645 

Restrictions  upon  Business  of  ( 1 2 7)  ■ .  •  643 

Live   Stock,    Companies   for   Recovery  of 

Stolen  (233-246) 673-75 

Marine  Insurance  Companies- 
Geneva  Award  (124) 643 

Annual  Statements  of  (46,  89,  92, 
99,  111,  148)   620,  632,  633,  635,  638, 

652 
Impairment  of  Capital  of   ^7,   99, 
111,  116) 624,  035,  638,  640 


INDEX  TO   NEW   YORK. 


601 


PAQE 

Marine  Insnranco  Companies  (Continued)  — 
Koduotionof  Capital  of  (57-62)  -  Crii,  625 
Incorporation  of  (.84,  86,  87)...-  630,  6:n 

May  Insure,  what  (8-4) 630 

Capital  and  Assets  of  (88,  121).-  631,  642 
Annual  Statements  of  Foreign  (92) ...  633 
Inve.stmeut  of  Capital    and  Assets  of 
(93,  112,  210,  21 1')  633,  639,  668,  669 

Real  Estate  of  (94) 633 

Charter  of  (95) 634 

Organized  under  Special  Charter  (96)  634 
Examination  of  Charter   and   Capital 

(97) 634 

By-Laws  of  (98) 635 

Dissolution  of  (99,  116) 635,  640 

May  Establish  Agencies    in    Foreign 

Countries  (100)  636 

May  Change  Fiscal  Year  (1 02) 637 

Extension  of  Charter  of  (103,  109, 

123) 637,  638,  642 

Limit  of  Charter  of  (104' 637 

Suits  by  and  against  Members  of  ( 1 05)  637 

Subject  to  Corporation  Laws  (1 06 ) 637 

Restrictions  upon  Business  of  ( 1 0  7 ) . .  -  638 
May  Sell  Abandoned  Property  (108)..  638 
Liability    of    Stockholders    of    (110, 

112,  122) 638,  fc39,  642 

Dividends  of  ( 1 1 1) 638 

Capital  of  Mutual  (112,  113,  117> 

119) 639-42 

Increase  of  Capital  (114) 639 

Liens  upon  Stock  of  Members  of  (1 1 5)  640 

Examination  of  (1 1 6) 640 

(See  Mutual  Marine  Insurance  Cos.) 

Mutual  Fire  Insurance  Companies — 

Assets  of  (25) 608 

Premium  Notes  of  (2  5 ,  3  3 ,  2 1 2) 608, 

612,  669 

Subscriptions  to  (26) 609 

Examination  of  Assets  of  (30) 610 

Liability  of  Members  of  (33) 612 

Assessments  of  ^33) 612 

Capital  of  (34) 61-3 

To  be  so  Designated  (36) 613 

Extension  of  Charter  of  (39,  40,  52)614, 

615,  623 

May  become  Joint  Stock  (39) 614 

Dissolution  of  (49,  247-252)  621,  675, 676 

Loans  of  (213,  214) 669 

To   Advertise    Unclaimed    Dividends 

(215) 669 

Receiversof  (216-219,  247-252)..  669, 

670,  675,  676 
Votes  by  Proxy  (2201 (570 

Mutual  Life  Insurance  Companies — 

Taxation  of  (159,  160) 655 

To   Advertise    Unclaimed    Dividends 

(215) 669 

Receivers  of  (2 1 6-2 19) 669,  670 

Mutual  Marine  Insurance  Companies — 

Polices  of  (95) 634 

Extensionof  Charter  of  (103,  123).  637, 

642 


I'AOR 

Mutual  Marine  Insurance  Cos.  (Continued) — 
May  become  Joint  Stock  (103,  119).  637, 

642 
Capital  of  (112,  113,  117,  119)..  639, 

641,  642 

Dissolution  of  (116) 640 

Dividends  upon  Capital  of  (1 1 8) 641 

Scrip  of  (118) 641 

Elections  of  (160) 655 

To    Advertise    Unclaimed    Dividends 

(215) 669 

Receiversof  (216-219) :....669,670 

New  York  Board  of  Fire  Underwriters— 

(253-262) 676-79 

Underwiiters'  Guild  (263-275) 679-81 

Metropolitan    Fire-Marshal  of   (276- 
282)  681-83 

Penalties — 

If  Superintendent  Violates  Laws  (9)  ■  - .  604 

Under  Reciprocal  Laws  (17) 607 

For  Making  False  Statements  (32) 611 

For  not  Making  Statements  (43,  47, 

91,  149) 616,  620,  6.35,  652 

For  Violation  of  Laws  (44,  74,  89, 

154> 617-19,  627,  632,654 

Suits  for  (51) 622 

On  Foreign  Fire  Insurance  Cos.  (65)..  625 

For  Embezzlement  (306) 686 

For  Effecting  Insurance  without  First 

Filing  Bond  (187,  201) 663,  667 

How  Collected  (188,204)  663,  667 

For  not  Paying  Tax  (192,  195)  .  664,  665 
If  Steam  Boiler  Insurance  Companies 

Neglect  to  Report  (232) 672 

For   Arson    and   Incendiarism    (291- 

301) 684,  685 

For  Fraud  on  Ins.  Cos.  (302,  304) ...  686 
Plate  Glass  Ins.  Cos.,  Deposits  of  (230). ..  672 
Policies — 

Of  Mutual  or  Stock  Companies  to  be  so 

Designated  (36) 613 

Valuation  of  Life  (143) 648 

Registration  of  Life  (169-181) 656-61 

On  Lives  for  the  Benefit  of  Married 

"Women  and  Children  (182,  184)..  662 
Premium  Notes-(25,  33,  212)  .608,612,  669 

Loans  upon  (213) 069 

Premiums — 

Tax  on  (16,  147) 606,  651 

Liens  on  Stock  for  (5  6) 624 

Rbal  Estate— 

Of  Fire  Insurance  Cos.  (28,29) 610 

Of  Marine  Insurance  Companies  (94)  .  633 
Of  Life  Insurance  Companies  (1 39).  - .  647 

Receivers- 
of   Life   Insurance    Companies   under 

Registration  Law  (175-181) 658-61 

Of   Mutual    Companies     (216-219* 
247-252) 66'.),  670,  675,  676 

Registration  of  Life  Policies  (1 69-1 8 1)  656-61 


602 


INDEX  TO  NEW  YORK. 


PAGB 

Reinsurance  of  Risks  (2 1 ,  71,  85,  125)608, 

627,  631,643 
Repeal  of  Laws  (52,   64,   158,    196, 

207,  282) 623,655,  665,  668,  683 

Report  of  Superintendeut  of  the  Insurance 
Department  (11,  43,  99,  143)  605,  616, 

635,  648 
Risk,  Ratio  of  to  Capital  (25) 608 

Service  ofProce»s(44, 145, 147,  226- 

229) 617-19,649-51,  671,  672 

Steam   Boiler   Inspection    and    Insurance 

(231,  232) 672 

Stockholders,  LiabUityof  (38,  1 10,  112)  613, 

638,  639 
Superintendent  of  Insurance  Department- 
Appointment  and  Term  of  (9) 604 

Salary  of  (9) 604 

General  Powers  and  Duties  of  (9-1  7)  604-7 
To  Examine  Companies  (9,  49,   60, 
69,  73,  116,144,152,153)  604,  621 
622,  626,  627,  640,  649,  653 

Penalty  for  Violating  Laws  (9 ) 604 

Bond  of  (9) 604 

Appointment  and  Bond  of  Deputy  (9)..  604 
May  Refuse  Admission  to  Companies 

(9) 604 

Report  of  (11,  43,  99,  143)605,616,  635, 

648 

Seal  of  Office  (12) 605 

Papers  Certified'by,  to  be  Evidence  (12, 

97,  134) 605,  634,  646 

To  have  Custody  of  Documents  (13)..  606 

Rooms  for  Office  of  ( 1 4) 605 

Fees  Collected  by  (1 6,  1 7,  1 46) 606, 

607,  651 
To  Collect  Excess  of  Expenses  over 

Fees  (15) 606 

To  Remit  Fees,  when  (17) 607 

To  Approve  Name  of  Company  (23, 

128) 608,644 

May  Extend  the  Time  for  Holding  Real 

Estate  (28,  94) 610,  633 

To  Examine  Capital  and  Assets  of  Kew 

Companies  (30,  97) 610,  634 

To  Certify  Profits  of  Participating  Com- 
panies (35) 613 

To  Approve  Increase  of  Capital  (40)..  615 


PAOK 

Superintendent  of  Insurance  Department  (Con- 
tinued)— 
May  Address  Inquiries  to  Companies 

(43,  144) 616,649 

To  Furnish  Blanks  for  Statements  (43, 

142) 616,  64 

To  "Wind    up    Companies    (49,    99, 

116,  152,  155). -.621,  635,  640,653,654 
May  Permit  Companies  to  Reduce  Capi- 
tal (58)  • 624 

To  Certify  Capita)  of  Foreign  Cos.  (68)  626 
To   Renew    Certificates    of  Authority 

(44,  89)  617-19 

To  Revoke   Certificates    of   Authority 

(49,  73,  116) 621,  627,  640 

To  Furnish  Certified  Copies  of  Papers 

130,  134) 644,  646 

To  Value  Life  Policies  (143) 648 

May  Accept  Valuations  of  Other  States 

(143) 648 

Duties  under  Registration  Law  (170- 

181) 656,661 

Surplus  Funds  of  Firelns.Cos.  (76-83)  C28,  630 

Taxation — 

Dnder  Reciprocal  Laws  (1  7) 607 

Of  Mutual  Life  Ins.  Cos.  (159,  160).  655 
Of  Foreign   Insurance  Comp  inies  and 

Agents  (185-207) 662-68 

For    Support    of    Fire    Departments 

(190-207) 664-68 

Of  Capital  ( 72) 627 

Of  Premiums  (16,  147) 606,  6.51 

Treasurer — 

Duties  in  Transferring  Deposits  (1 64- 

167) 655,  656 

Duties  under  Registration  Law  (172).  6*17 

Undbrweitkrb— 

New  York  Board  of  Fire  (253-262)   676, 

679 
Guild,  New  York  (263-275) 679-81 

Valuation  of  Life  Policies  (143) 648 

Votes  of  Married  Women  when  Stockhold- 
ers (225) 671 

Voting  by  Proxy  (220) 670 

WrvEB' Policy  (182-184) 668 


INSURANCE  STATUTES  OF  NEW  YORK. 


Revised  by  Son.  Orlow   W.  Chapman^  Superintendent  of  the  Insurance 

Department. 


CONSTITUTIONAL  PROVISIONS  CONCERNING  CORPORA- 
TIONS. 

1 .  Corporations  may  be  formed  under  general  laws  ;  but  shall 
not  be  created  by  special  act,  except  for  municipal  purposes,  and  in 
cases  where,  in  the  judgment  of  the  legislature,  the  objects  of  the 
corporation  cannot  be  attained  under  general  laws.  All  general 
laws  and  special  acts,  passed  pursuant  to  this  section,  may  be 
altered  from  time  to  time,  or  repealed.     {Art.  8,  §  1.) 

2.  Dues  from  corporations  shall  be  secured  by  such  individual 
liability  of  the  corporators,  and  other  means,  as  may  be  prescribed 
by  law.     {Ihid^  §  2.) 

3.  The  term  corporations,  as  used  in  this  article,  shall  be  con- 
strued to  include  all  associations  and  joint-stock  companies  having 
any  of  the  powers  or  privileges  of  corporations  not  possessed  by  in- 
dividuals or  partnerships.  And  all  corporations  shall  have  the 
right  to  sue  and  shall  be  subject  to  be  sued  in  all  courts  in  like 
cases  as  natural  persons.     {I bid,  §  3.) 


APPLICATIONS   TO  THE   LEGISLATURE,  FOR  ACTS   OF 
INCORPORATION,  AMENDMENTS,  ETC. 

4,  All  persons  applying  to  divide  or  alter  the  bounds  of  any 
county,  city  or  village  j  or  to  erect  a  new  county ;  or  to  incorporate 
a  new  city  or  village: 

And  all  persons  applying  for  the  removal  of  any  court-house,  or 
the  imposing  of  a  tax  for  making  or  improving  a  road,  or  for  any 
other  local  purpose  in  any  county,  where  all  or  any  of  the  inhabit- 
ants of  such  county  are  proposed  to  be  taxed  : 

Shall  give  notice  of  such  intended  application  by  advertisement 
to  be  published  for  at  least  six  weeks  successively,  immediately  be- 
fore such  application,  or  before  the  first  day  of  the  session  at 
which  the  same  is  to  be  made,  in  a  newspaper  printed  in  the  county 
or  in  each  of  the  counties  where  the  objects  of  such  applica- 
tion are  intended  to  be  carried  into  effect,  and  also  in  case  of  in- 
tended application  for  the  imposition  of  any  tax  as  aforesaid,  in  the 
State  paper.  {Laws  of  1818,  p.  121,  and  Revised  Statutes,  part  J., 
cMp.  VII.,  title  3,  §  1 ;    Vol.,  I.  p.  154,  Edmonds'  edition.) 

5,  Every  association  intending  to  apply  to  the  legislature  for 
an  act  of  incorporation,  and  every  corporation  intending  to  apply 
for  an  alteration,  amendment  or  extension  of  its  charter,  shall  cause 


604  hine's  insurance  statutes. 

the  like  notice  of  such  application  to  be  published  in  the  State 
paper,  and  also  in  a  newspaper  printed  in  the  couuty  in  which  such 
corporation  is  intended  to  be,  or  shall  have  been  established. 
{Ibid  ;  and  Revised  Statutes,  part  I.,  chap.  VII.,  title  3,  §  2  ;  Vol.  J., 
p.  154,  Edmonds'  edition.) 

6=  If  no  newspaper  be  printed  in  a  county  in  which  any  notice 
is  required  to  be  published,  such  notice  shall  be  published  in  like 
manner,  in  the  place  nearest  thereto  in  which  a  newspaper  shall  be 
printed.  [Ibid;  and  Revised  Statutes,  part  /.,  chap.  VII.,  title  3, 
§  3  ;    Vol.  1.,  p.  154,  Udmonds'  edition.) 

7.  If  the  application  be  for  an  act  of  incorporation,  the  notice 
shall  specify  the  amount  of  the  cai)ital  stock  requisite  to  carry  the 
objects  of  such  incorporation  into  eft'ect ;  and  if  the  application  be 
for  an  alteration  in  any  charter  already  granted,  the  notice  shall 
state  specifically  the  alteration  intended  to  be  applied  for.  (i  bid  ; 
and  Revised  Statutes, part  I,  chap.  VII.,  title  3, §  4;  Vol.  I., p.  154, 
Edmonds'  edition.) 

INSUEANCE  DEPARTMENT. 

8.  There  is  hereby  established  a  separate  and  distinct  depart- 
ment, which  shall  be  charged  with  the  execution  of  the  laws  here- 
tofore passed,  or  that  may  be  hereafter  passed,  in  relation  to  insur- 
ance.    {Laics  of  1859,  chap.  366,  §  1.) 

9.  The  chief  officer  of  the  said  department  shall  be  denomi- 
nated the  Superintendent  of  the  Insurance  Department.  After  the 
expiration  of  the  term  of  office  of  the  present  Superintendent,  or 
whenever  a  vacancy  shall  occur  in  such  office,  such  chief  officer  shall 
be  appointed  by  the  Grovernor  by  and  with  the  advice  and  consent 
of  the  Senate,  and  shall  hold  his  office  for  the  term  of  three  years. 
He  shall  receive  an  annual  salary  of  seven  thousand  dollars,  to  be 
paid  in  monthly  installments,  which  salary  shall  be  in  full  for  all 
services  to  be  performed  by  said  Superintendent  in  any  capacity, 
and  all  fees  and  moneys  collected  by  him  shall  be  paid  into  the  State 
Treasury  monthly.  He  shall  employ,  from  time  to  time,  the  neces- 
sary clerks  to  discharge  such  duty  as  he  shall  assign  them,  whose 
compensation  shall  be  paid  to  them  monthly  on  his  certificate  and 
upon  a  warrant  of  the  Comptroller.  He  shall  appoiut  one  of  the 
said  clerks  to  be  his  deputy,  who  shall  possess  the  power  and  per- 
form the  duties  attached  by  law  to  the  office  of  principal,  during  a 
vacancy  in  such  office  and  during  the  absence  or  inability  of  his 
principal.  Whenever  examinations  shall  be  made  of  any  insurance 
company  by  the  Superintendent  or  Deputy  Superintendent  person- 
ally, or  by  one  or  more  of  the  regular  clerks  of  said  department,  no 
charge  shall  be  made  on  such  examination  but  for  the  necessary 
traveling  and  other  actual  expenses,  and  all  charges  for  making  ex- 
aminations of  any  insurance  company,  and  all  charges  against  any 
company  by  any  attorney  or  appraiser  of  this  department,  shall  be 
presented  in  the  form  of  an  itemized  bill,  which  shall  first  be  ap- 
proved by  the  said  Superintendent  and  then  audited  by  the  Comp- 
troller, and  shall  be  paid  on  his  warrant,  drawn  in  the  usual  manner 
upon  the  State  Treasurer,  to  the  person  or  persons  making  such  ex- 
amination, and  the  company  examined,  on  receiving  a  certified  copy 
of  said  bill  of  charges,  as  audited  and  paid  by  the  Comptroller,  shall 
repay  the  amount  of  the  same  to  the  said  Superintendent,  to  be  by 
him  paid  into  the  State  Treasury  to  replace  the  money  drawn  out  as 


NEW  YORK.  G05 

above  provided  for ;  and  no  company  examined  shall  either  directly 
or  indirectly  pay,  by  way  of  gift,  gratuity,  or  otherwise,  any  other 
or  further  sum  to  said  Superintendent  or  examiners  for  services,  ex- 
tra services,  or  for  i)ur])oses  of  legislation,  or  on  any  other  pretense 
whatever.  Said  Superintendent,  examiner  or  any  ofiBcer,  clerk  or 
other  employee  of  any  insurance  company,  violating  the  jjrovisions 
of  this  section,  shall  be  guilty  of  a  misdemeanor.  Within  fifteen 
days  from  the  time  of  notice  of  their  appointment  respectively,  the 
Superintendent  and  his  deimty,  shall  take  and  prescribe  the  oath  of 
office  prescribed  by  the  constitution,  and  file  the  same  in  the  office  of 
the  Secretary  of  State  ;  and  the  said  officers  shall  be  in  all  resjjects 
subject  to  the  pro\isions  of  the  sixth  title  of  chapter  five  of  the  first 
part  of  the  Eevised  Statutes,  as  far  as  the  same  may  be  applicable ; 
and  within  the  said  fifteen  days  the  said  Superintendent  of  the  In- 
surance Department  shall  give  to  the  people  of  the  State  of  New 
York  a  bond  in  the  penalty  of  twenty-five  thousand  dollars,  with 
two  good  sureties,  to  be  approved  by  the  Comptroller,  conditioned 
for  the  faithful  discharge  of  the  duties  of  his  office ;  and  tbe  said  Su- 
perintendent shall  not,  either  directly  or  indirectly,  be  interested  in 
any  insurance  company  except  as  an  ordinary  policyholder.  {Ibid, 
§  2,  as  amended  by  laws  of  18G1,  chap.  326,  §  1,  and  by  laics  o/1873, 
chap.  593,  §  1.) 

1 0,  The  said  Superintendent  shall  have  power  to  refuse  admis- 
sion to  any  company,  corporation  or  association,  applying  to  be  per- 
mitted to  transact  the  business  of  insurance  in  this  State  from  any 
other  State  or  country,  whenever  upon  examination,  the  capital 
stock  of  such  company,  corporation  or  association  shall  be  impaired, 
and,  also,  whenever,  in  his  judgment,  such  refusal  to  admit  shall 
best  promote  the  interests  of  the  people  of  this  State.  {Laics  of 
1873,  chap.  593,  §  2.) 

1 1 ,  The  Superintendent  of  the  Insurance  Department  shall 
possess  all  the  powers,  perform  all  the  duties,  and  be  subjected  to 
all  the  obligations  and  penalties,  now  conferred  by  law  u])on  the 
Comptroller  of  this  State,  or  to  which  the  Comptroller  is  subject  in 
relation  to  insurance  companies  and  the  formation  thereof,  under 
the  laws  relating  thereto,  so  that  every  power  and  duty  thereby 
conferred  on  the  Comptroller  shall,  from  and  after  the  ai)pointment 
of  such  Superintendent,  be  transferred  to  and  conferred  upon  the 
said  Superintendent.  In  addition  to  the  requirements  of  the  laws  of 
eighteen  hundred  and  fifty-three  relating  to  the  annual  reports  rela- 
tive to  insurance,  the  Superintendent  shall  be  required  to  report  the 
names  and  compensation  of  the  clerks  employed  by  him,  and  the 
whole  amount  of  exi^enses  of  the  department  during  the  year  ;  such 
report  shall  be  made  by  or  before  the  first  day  of  April,  and  fifteen 
hundred  copies  for  the  use  of  the  Superintendent,  and  the  usual 
number  of  copies  for  the  use  of  the  legislature,  shall  be  printed  by 
the  printer  employed  to  print  legislative  documents.  {Laws  of  1859, 
chap.  36G,  §  3,  as  amended  by  laws  of  1860,  chap.  514,  §  1.) 

19.  The  said  Superintendent,  with  the  approval  of  the  Gover- 
nor, shall  devise  a  seal  with  suitable  inscriptions,  for  his  office,  a 
descripton  of  which,  with  a  certificate  of  approval  by  the  Governor, 
shall  be  filed  in  the  office  of  the  Secretary  of  the  State,  with  an 
impression  thereof,  which  seal  shall  thereupon  be  and  become  the 
seal  of  office  ot  the  Superintendent  of  the  Insurance  Department,  and 
the  same  may  be  renewed  whenever  necessary.  Every  certificate, 
assignment  or  conveyance  executed  by  the  said  Superintendent,  in 


606  hike's  insxjrance  statutes. 

pursuance  of  any  authority  conferred  on  liim  by  law,  and  sealed  with 
his  said  seal  of  office,  shall  be  received  as  evidence,  and  may  be  re- 
corded, in  the  proper  recording  offices,  in  the  same  manner  and  with 
the  like  effect  as  a  deed  regularly  acknowledged  or  proved  before  an 
officer  authorized  by  law  to  take  the  proof  or  acknowledgment  of 
deeds;  and  all  copies  of  papers  in  the  office  of  the  said  Superinten- 
dent, certified  by  him  and  authenticated  by  the  said  seal,  shall  in 
all  cases  be  evidence  equally  and  in  like  manner  as  the  original. 
An  impression  of  said  seal  directly  on  paper  shall  be  as  valid  as  if 
made  on  a  wafer  or  wax.     {Ibid,  §  4.) 

1 3.  All  books,  papers  and  documents,  securities,  stocks,  bonds 
and  mortgages,  and  all  other  papers  whatever  in  the  Comptroller's 
office  and  in  the  office  of  the  Secretary  of  State,  relating  to  the  busi- 
ness of  insurance,  shall,  on  demand,  be  delivered  and  transferred  to 
the  Superintendent  of  the  Insurance  Department,  and  be  and  remain 
in  his  charge  and  custody.     {Ibid,  §  5.) 

14.  There  shall  be  assigned  to  the  said  Superintendent,  by  the 
ti-ustees  of  the  State  Hall,  suitable  rooms  therein  for  conducting  the 
business  of  said  department,  and  the  said  Superintendent  shall,  from 
time  to  time,  furnish  the  necessary  furniture,  stationery,  fuel,  lights, 
and  other  proper  conveniences  for  the  transaction  of  the  said  busi- 
ness, the  expenses  of  which  shall  be  paid  on  the  certificate  of  the 
Superintendent  and  the  warrant  of  the  Comptroller.     {Ibid,  §  6.) 

15.  There  shall  be  paid  by  every  company,  association,  person 
or  jjersons,  or  agent,  to  whom  this  act  shall  apply,  the  following 
fees  toward  paying  the  expenses  of  executing  this  act :  For  filing  the 
declaration  now  required  by  law,  or  the  certified  copy  of  a  charter 
also  now  required,  the  sum  of  thirty  dollars ;  for  filing  the  annual 
statement  now  required,  twenty  dollars;  for  each  certificate  of 
authority  and  certified  copy  thereof,  such  sum,  not  exceeding  five 
dollars,  as  shall  be  fixed  from  time  to  time  by  the  said  Superinten- 
dent; for  every  copy  of  paper  filed  in  his  office,  the  sum  often  cents 
per  folio,  and  for  affixing  the  seal  of  said  office  to  such  copy  and  cer- 
tifying the  same,  one  dollar.  In  case  the  expenses  of  said  depart- 
ment shall  exceed  the  amount  of  fees  collected  under  this  act,  and 
paid  into  the  State  treasury  (exclusive  of  the  tax  upon  marine  pre- 
miums), the  excess  of  such  expenses  shall  be  annually  assessed  by 
the  Superintendent,  pro  rata,  upon  all  insurance  companies  of  this 
State ;  and  the  said  Superintendent  is  hereby  empowered  to  collect 
such  assessments  and  pay  the  same  into  the  State  treasury.  {Ibid, 
§  7,  as  amended  by  laws  of  1871,  chap.  709,  §  1.) 

16.  The  taxes  on  premiums  which  by  existing  laws  are  re- 
quired to  be  paid  into  the  State  treasury,  and  for  the  benefit  of  the 
tire  departments  of  the  several  cities  and  incorporated  villages  of 
this  State,  on  the  first  day  of  February  in  each  year,  and  all  taxes 
on  premiums  which  now  are  or  hereafter  shall  be  required  by  law 
to  be  paid  to  the  Superintendent  of  the  Insurance  Department,  shall 
hereatter  be  paid  on  the  first  day  of  January  in  each  year,  and  shall 
be  upon  the  premiums  which  during  the  year  or  part  of  the  year 
ending  on  the  preceding  thirty-first  day  of  December  shall  have 
been  received  by  any  insurance  company,  or  by  any  i^erson  acting 
as  agent  therefor,  or  for  any  individuals  or  association  of  individuals, 
not  incorporated  or  authorized  by  the  laws  of  this  State,  to  effect 
insurances  against  fire,  inland,  marine,  life,  casualty^  or  other  losses 
and  risks,  or  which  shall  have  been  received  by  any  person  for  any 
such  company  or  agent,  or  shall  have  been  agreed  to  be  paid  for  any 


NEW   YORK.  607 

insurance  effected  or  agreed  to  be  effected  or  procured  by  such  corn- 
pan}'  or  agent,  or  against  fire,  inland,  marine,  life,  casualty  or  other 
risks,  although  such  companies,  associations  or  individuals  may  be 
incorporated  or  authorized  for  that  purpose  by  any  other  State  or 
country.     {Laics  of  1866,  chap.  825,  §  1.) 

17.  Whenever  the  existing  or  future  laws  of  any  other  State 
of  the  United  States  shall  require  of  insurance  companies,  incorpor- 
ated by  or  organized  under  the  laws  of  this  State,  and  having  agen- 
cies in  such  other  States,  or  of  the  agents  thereof,  any  deposit  of 
securities  in  such  State  for  the  protection  of  policy-holders,  or  other- 
wise, or  any  payment  for  taxes,  fines,  penalties,  certificates  of  au- 
thority, license  fees,  or  otherwise,  greater  than  the  amount  required 
for  such  purposes  from  similar  companies  of  other  States  by  the 
then  existing  laws  of  this  State,  then,  and  in  every  such  case,  all  com- 
panies of  such  States  establishing,  or  having  heretofore  established 
an  agency  or  agencies  in  the  State,  shall  be  and  are  hereby  required 
to  make  the  same  deposit  for  a  like  purpose  in  the  Insurance  De- 
partment oi  the  State,  and  to  pay  the  Superintendent  of  said  Insur- 
ance Department  for  taxes,  fines,  penalties,  certificates  of  authority, 
license  fees  and  otherwise,  an  amount  equal  to  the  amount  of  such 
charges  and  payments  imposed  by  the  laws  of  such  State  upon  the 
companies  of  this  State  and  the  agents  thereof.  And  the  Superin- 
tendent of  the  Insurance  Department  is  hereby  authorized  to  remit 
any  of  the  fees  and  charges  which  he  is  required  to  collect  by  exist- 
ing laws,  except  such  as  he  is  required  to  collect  under  and  by  virtue 
of  this  act ;  Provided,  hoivever.  That  no  discrimination  shall  be  made 
in  favor  of  one  company  over  any  other  from  the  same  State.  [Laws 
of  1865,  chajp.  694,  §  1,  as  amended  by  laws  of  1875,  chap.  60,  §  1.) 


FIRE   INSURANCE   COMPANIES   AND   AGENCIES. 

1 8.  Any  number  of  persons,  not  less  than  thirteen,  may  asso- 
ciate and  form  an  incorporated  company  for  the  following  purposes, 
to  wit: 

To  make  insurance  on  dwelling-houses,  stores  and  all  kinds  of 
buildings,  and  upon  household  furniture  and  other  property,  against 
loss  or  damage  by  fire,  and  the  risks  of  inland  navigation  and  trans- 
portation.    {Laics  of  1853,  chap.  466,  §  1.) 

19.  Any  and  all  insurance  companies,  incorporated  under  the 
provisions  ot  the  act  entitled  "  An  act  to  provide  for  the  incorpora- 
tion of  insurance  companies,"  passed  April  tenth,  eighteen  hundred 
and  forty-nine ;  or  under  the  provisions  of  the  act  entitled  "  An  act 
to  provide  for  the  incorporation  of  fixe  insurance  companies,"  passed 
June  twenty- fifth,  eighteen  hundred  and  fifty -three;  which  shall,  in 
the  declaration  and  charter  provided  to  be  filed  by  the  third  sections 
of  such  acts  respectively,  have  expressed  an  intention  to  make  in- 
surance, onvhich  shall  have  power  to  make  insurance  against  loss 
or  damage  by  the  risks  of  inland  navigation  or  transportation,  shall 
have  power  to  make  insurance  upon  vessels,  boats,  cargoes,  goods, 
merchandise,  freights  and  other  property  against  loss  and  damage 
by  all  or  any  of  the  risks  of  lake,  river,  canal  and  inland  navigation 
and  transportation,     {Laws  0/I86I,  chap.  92,  §  1.) 

20.  Any  insurance  company  hereafter  incorporated  under  the 
last  of  said  acts,  may  have  the  powers  aforesaid,  if  in  its  charter  it 
shall  express  its  intent  to  exercise  such  powers.    {Ibid,  §  2.) 


608  hine's  insubance  statutes. 

21.  Any  company  organized  under  this  act,  shall  have  power 
to  efifect  reinsurance  of  any  risks  taken  by  them  respectively.  (Laica 
of  1853,  chap.  466,  §  2.) 

Q3.  Such  persons  shall  file  in  the  office  of  the  Superintendent 
of  the  Insurance  Department  a  declaration  signed  by  all  the  corpor- 
ators, expressing  their  intention  to  form  a  company  for  the  pur- 
pose of  transacting  the  business  of  insurance  as  expressed  in  the 
first  section  of  tliis  act,  which  declaration  shall  also  comprise  a  copy 
of  the  charter  proposed  to  be  adopted  by  them,  and  shall  publish 
a  notice  of  their  intention  in  a  public  newspaper,  in  the  county  in 
which  such  insurance  company  is  proposed  to  be  located,  for  at 
least  two  weeks  successively.  {Ibid,  §  3,  as  amended  by  laws  of 
1873,  chap.  851,  §  1.) 

SI5.  The  charter  comprised  in  such  declaration,  shall  set  forth 
the  name  of  the  company ;  the  place  where  the  principal  office  for 
the  transaction  of  its  business  shall  be  located ;  the  mode  and  manner 
in  which  the  corporate  powers  granted  by  this  act  are  to  be  exer 
cised ;  the  mode  and  manner  of  electing  trustees  or  directors,  a 
majority  of  whom  shall  be  citizens  of  this  State;  and  of  filling 
vacancies  (but  each  director  of  a  stock  company  shall  be  the  owner 
in  his  own  right  of  at  least  five  hundred  dollars'  worth  of  the  stock 
of  such  company,  at  its  par  value) ;  the  period  for  the  commence- 
ment and  termination  of  its  fiscal  year,  and  the  amount  of  capital  to 
be  employed  in  the  transaction  of  its  business ;  and  the  Superin- 
tendent of  the  Insiu-ance  Department  shall  have  the  right  to  reject 
any  name  or  title  of  any  company  applied  for,  when  he  shall  deem 
the  name  too  similar  to  one  already  appropriated,  or  likely  to  mis- 
lead the  public  in  any  respect.     {Ibid,  §  4.) 

5 4.  No  company  formed  under  this  act  shall  directly  or  in- 
directly,  deal  or  trade  in  buying  goods,  wares,   merchan  Use,  or 
other  commodities  whatever,  excepting  such  articles  as  may  have 
been  insured  by  any  company,  and  are  claimed  to  be  damaged  by 
fire  or  water.     {Ibid,  §  5.) 

55.  No  joint-stock  company  shall  be  incorporated  under  this 
act  in  the  city  and  county  of  New  York,  nor  in  the  county  of  Kings, 
nor  shall  any  company  incorporated  under  this  act  establish  any 
agency  for  the  transaction  of  business  in  either  of  said  counties,  with 
a  smaller  capital  than  two  hundred  thousand  dollars,  nor  in  any 
other  county  in  this  State  with  a  smaller  capital  than  fifty  thou- 
sand dollars;  nor  shall  any  company  formed  for  the  purpose  of 
doing  the  business  of  fire  or  inland  navigation  insurance,  on 
the  plan  of  ujutual  insurance,  commence  business,  if  located  in  the 
city  of  New  York  or  in  the  county  of  Kings,  nor  establish  any 
agency  for  the  transaction  of  business  in  either  of  said  counties, 
until  agreements  have  been  entered  into  for  insurance  with  at  least 
four  hundred  applicants,  the  premiums  on  which  shall  amount  to 
not  less  than  two  hundred  thousand  dollars,  of  which  forty  thousand 
dollars  at  least  shall  have  been  paid  in  cash,  and  notes  of  solvent 
parties,  founded  on  actual  and  bona  file  applications  for  insurance, 
shall  have  been  received  for  the  remainder;  nor  shall  any  mutual 
insurance  company  in  any  other  county  of  the  State  commence  busi- 
ness until  agreements  have  been  entered  into  for  insurance  with  at 
least  two  hundred  applicants,  the  premiums  on  which  shall  amount 
to  not  less  than  one  hundred  thousand  dollars,  of  which  twenty 
thousand  dollars  at  least  shall  have  been  paid  in  cash,  and  notes  of 
solvent  parties,  founded  on  actual  and  bona  fide  applications  for  in- 


NEW   YORK.  609 

surance,  shall  have  been  received  for  the  remainder.  No  one  of  the 
notes  received  as  aforesaid  shall  amount  to  more  than  five  hundred 
dollars;  and  no  two  shall  be  given  for  the  same  risk,  or  be  made 
by  the  same  person  or  firm,  except  where  the  whole  amount  of  such 
notes  shall  not  exceed  five  hundred  dollars ;  nor  shall  any  such  note 
be  represented  as  capital  stock  unless  a  policy  be  issued  upon  the 
same  within  thirty  days  after  the  organization  of  the  company,  upon 
a  risk  which  shall  be  for  no  shorter  period  than  twelve  months. 
Each  of  said  notes  shall  be  payable,  in  i)art  or  in  whole,  at  any  time 
when  the  directors  shall  deem  the  same  requisite  for  the  payment 
of  losses  by  fire  or  inland  navigation,  and  such  incidental  expenses 
as  may  be  necessary  for  transacting  the  business  of  said  company. 
And  no  note  shall  be  accepted  as  part  of  such  capital  stock,  unless 
the  same  shall  be  accompanied  by  a  certificate  of  a  justice  of  the 
peace  or  supervisor  of  the  town  or  city  where  the  person  making 
such  note  shall  reside,  that  the  person  making  the  same  is,  in  his 
opinion,  pecuniarily  good  and  responsible  for  the  same,  and  no 
such  note  shall  be  sm-rendered  during  the  life  of  the  policy  for 
which  it  was  given.  No  fire  insurance  company  organized  under 
this  act  or  transacting  business  in  this  State,  shall  expose  itself  to 
any  loss  on  any  one  fire  or  inland  navigation  risk,  or  hazard,  to  an 
amount  exceeding  ten  per  cent,  of  its  paid-up  capital.  {Ibid,  §  6, 
as  amended  by  laws  of  1854,  cJiaj).  369,  §  1,  and  by  laws  of  1862,  chap. 
3t37,  §  1.) 

26.  It  shall  and  may  be  lawful  for  the  individuals  associated 
for  the  purpose  of  organizing  any  company  under  this  act,  after 
having  published  the  notice  and  filed  their  declaration  and  charter, 
as  required  by  the  third  section  of  this  act,  and  also  on  filing  in 
the  office  of  the  Superintendent  of  the  Insurance  Department  proof 
of  such  publication,  by  the  affidavit  of  the  publisher  of  such  news- 
paper, his  foreman  or  clerk,  to  open  books  for  subscription  to  the 
capital  stock  of  the  company  so  intended  to  be  organized,  and  to 
keep  the  same  open  until  the  full  amount  specified  in  the  charter  is 
subscribed ;  or  in  case  the  business  of  such  company  is  proposed  to 
be  conducted  on  the  plan  of  mutual  insurance,  then  to  open  books 
to  receive  propositions,  and  enter  into  agreements  in  the  manner 
and  to  the  extent  specified  in  the  sixth  section  of  this  act.  {Ibid, 
§7.) 

97.  It  shall  be  lawful  for  any  fire  insurance  company  organ- 
ized under  this  act,  or  incorporated  under  any  law  of  this  State,  to 
invest  its  capital  and  the  funds  accumulated  in  the  course  of  its 
business,  or  any  part  thereof,  in  bonds  and  mortgages  on  unincum- 
bered and  improved  real  estate  within  the  State  of  New  York, 
worth  fifty  per  cent,  more  than  the  sum  loaned  thereon,  exclusive 
of  buildings,  unless  such  buildings  are  insured  and  the  policy  trans  - 
ferred  to  said  company,  and  also  in  the  stocks  of  this  State  or 
stocks  or  treasurj^  notes  of  the  United  States,  and  also  in  the  stocks 
and  bonds  of  any  county  or  incorporated  city  in  this  State,  author- 
ized to  be  issued  by  the  legislature,  and  to  lend  the  same,  or  any 
part  thereof,  in  the  security  of  such  stocks  or  bonds  or  treasury 
notes,  or  upon  bonds  and  mortgages  as  aforesaid,  and  to  change 
and  reinvest  the  same  as  occasion  may,  from  time  to  time,  require ; 
but  any  surplus  money  over  and  above  the  capital  stock  of  any 
such  fire  and  inland  navigation  insurance  companies,  or  any  fire  in- 
surance companies  incorporated  under  any  law  of  this  State,  may 
be  invested  in  or  loaned  upon  the  pledge  of  the  public  stock  or  the 
39 


610  HINB'S  INSURAI^CE   STATUTES. 

bonds  of  the  United  States  or  any  one  of  the  States,  or  the  stocks, 
bonds  or  other  evidences  of  indebtedness  of  auy  solvent  dividend- 
paying  institutions  incorporated  under  the  laws  of  this  State  or  of 
the  United  States,  except  their  own  stock,  and  any  amount,  not  ex- 
ceeding one-half  the  annual  i)remium  receipts  of  any  company  upon 
its  outstanding  policies  in  any  other  State  of  the  United  States, 
may  be  invested  upon  bond  and  mortgage  security  upon  real  estate 
in  such  State,  which  shall  be  certified  by  the  Superintendent  of 
the  Insurance  Department  of  this  State  to  be  unincumbered,  im- 
proved, and  worth  double  the  sum  loaned  thereon,  or  in  the  stocks 
or  bonds  of  any  foreign  country  to  the  extent  which  may  be  pro- 
vided under  the  laws  thereof  as  the  condition  of  such  company 
doing  business  therein;  provided,  that  such  investment  in  such 
foreign  stocks  or  bonds  shall  be  made  only  from  funds  which  con- 
stitute a  surplus  over  and  above  capital  and  other  liabilities  and 
subject  to  the  approval  of  the  Superintendent  of  the  Insurance 
Department.     {Ibid,  §  8,  a«  amended  by  laws  of  1871,  chap.  608,  §  1.) 

28.  ^o  company  organized  by  or  under  this  act  shall  purchase, 
hold,  or  convey  real  estate,  excepting  for  the  purposes  and  in  the 
manner  herein  set  forth,  to  wit : 

1.  Such  as  shall  be  requisite  for  its  convenient  accommodation 
in  the  transaction  of  its  business ;  or, 

2.  Such  as  shall  have  been  mortgaged  to  it  in  good  faith,  by 
way  of  security  for  loans  previously  contracted,  or  for  money  due ;  or, 

3.  Such  as  shall  have  been  conveyed  to  it  in  satisfaction  of  debts 
previously  contracted  in  their  legitimate  business,  or  for  money 
due;  or, 

4.  Such  as  shall  have  been  purchased  at  sales  upon  judgments,  de- 
crees, or  mortgages  obtained  or  made  for  such  debts  ;  and  it  shall  not 
be  lawful  for  any  such  comj)any  to  purchase,  hold,  or  convey  real 
estate  in  any  other  case,  or  for  anj^  other  puipose ;  and  all  such  real 
estate  as  may  be  acquired,  as  aforesaid,  and  which  shall  not  be 
necessary  for  the  accommodation  of  such  company  in  the  transac- 
tion of  its  business,  shall  be  sold  and  disposed  of  within  five  years 
after  such  company  shall  have  acquired  title  thereto,  unless  the 
company  shall  procure  a  certificate  from  the  Superintendent  of  the 
Insurance  Department,  that  the  interests  of  the  company  will  suffer 
materially  by  a  forced  sale  thereof,  in  which  event  the  sale  may  be 
postponed  for  such  a  period  as  the  said  Superintendent  shall  direct 
in  said  certificate ;  and  the  said  Superintendent  may  also  give  such 
certificate  and  extend  the  time  for  holding  real  estate,  in  the  like 
circumstances,  on  the  application  of  any  insiu'ance  comjpany  here- 
tofore incorporated.     {Ibid,  §  9.) 

29.  The  time  within  which  any  fire  insurance  company  of  this 
State  may  sell  and  convey  real  estate  now  held  or  owned  by  it,  is 
hereby  extended  five  years  from  the  passage  of  this  act.  {Laws  of 
1864,  chap.  563,  §  3.) 

30.  The  charter  and  i>roof  of  publication  herein  required  to  be 
filed  by  every  such  company  shall  be  examined  by  the  Attorney- 
General,  and,  if  found  conformable  to  this  act  and  not  inconsistent 
with  the  constitution  or  laws  of  this  State,  shall  be  certified  by  him 
to  the  Superintendent  of  the  Insurance  Department,  who  shall 
thereupon  cause  an  examination  to  be  made,  either  by  himself  or  by 
three  disinterested  persons  specially  appointed  by  him  for  that  pur- 
pose, who  shall  certify,  under  oath,  that  the  capital  herein  required 
of  the  company  named  in  the  charter,  according  to  the  nature  of  the 


NEW   YORK.  611 

business  proposed  to  be  transacted  by  such  company,  has  been  paid 
in  and  is  possessed  by  it  in  money,  or  in  such  stocks  and  bonds  and 
mortgages  as  are  required  by  the  eighth  section  of  this  act,  or,  if  a 
mutual  company,  that  it  has  received  and  is  in  actual  possession  of 
the  capital,  premiums,  or  bona  fide  engagements  of  insurance,  or 
other  securities,  as  the  case  may  be,  to  the  full  extent  and  of  the 
value  required  by  the  sixth  section  of  this  act ;  and  the  name  and 
the  residence  of  the  maker  of  each  premium  note  forming  part  of 
the  capital,  and  the  amount  of  such  note,  shall  be  returned  to  the 
said  Superintendent ;  and  the  corporators  or  oflicers  of  such  com- 
pany shall  be  required  to  certify,  under  oath,  that  the  capital  exhib- 
ited to  those  persons  is  bona  fide  property  of  the  company.  Such 
certificates  shall  be  filed  in  the  office  of  the  said  Superintendent, 
who  shall  thereupon  deliver  to  such  company  a  certified  copy  of  the 
charter  and  of  said  certificates,  which,  on  being  filed  in  the  offit^e  of 
the  Clerk  of  the  county  where  the  company  is  to  be  located,  shall 
be  their  authority  to  commence  business  and  issue  policies ;  and 
such  certified  copy  of  the  charter  and  of  said  certificates  may  be 
used  in  e\idence  for  or  against  said  company,  with  the  same  effect 
with  the  originals.     {Laics  o/1853,  chap.  466,  §  10.) 

3 1 .  The  corporators,  or  the  trustees  or  directors,  as  the  case 
may  be,  of  any  company  organized  under  this  act  shall  have  power 
to  make  such  by-laws,  not  inconsistent  with  the  constitution  or  laws 
of  this  State,  as  may  be  deemed  necessary  for  the  government  of 
its  officers  and  the  conduct  of  its  affairs,  and  the  same  when  neces- 
sary to  alter  and  amend ;  and  they  and  their  successors  may  have  a 
common  seal,  and  may  change  and  alter  the  same  at  their  ijleasure. 
{Ibid,  §  11.) 

3tJ.  It  shall  not  be  lawful  for  the  directors,  trustees,  or  mana- 
gers of  any  fire  insurance  company  to  make  any  dividend,  except 
from  the  surplus  profits  arising  from  their  business;  and  in  estimat- 
ing such  profits  there  shall  be  reserved  therefrom  a  sum  equal  to 
the  whole  amount  of  premiums  on  unexpired  risks  and  policies, 
which  are  hereby  declared  to  be  unearned  premiums ;  and,  also, 
there  shall  be  reserved  all  sums  due  the  corporation  on  bonds  and 
mortgages,  bonds,  stocks,  and  book  accounts,  of  which  no  part  of 
the  principal  or  the  interest  thereon  has  been  paid  during  the  last 
year,  and  for  which  foreclosure  or  suit  has  not  been  commenced  for 
collection,  or  which,  after  judgment  obtained  thereon,  shall  have 
remained  more  than  two  years  unsatisfied,  and  on  which  interest 
shall  not  have  been  paid ;  and,  also,  there  shall  be  reserved  all  inter- 
est due  or  accrued  and  remaining  unpaid ;  Provided,  always,  That 
any  company  may  declare  dividends  not  exceeding  ten  i)er  cent,  on 
its  capital  stock  in  any  one  year  that  shall  have  accumulated,  and 
be  in  possession  of  a  fund,  in  addition  to  the  amount  of  its  capital 
stock,  and  of  such  dividend,  and  all  actual  outstanding  liabilities, 
equal  to  one-half  of  the  amount  of  all  premiums  on  risks  not  termi- 
nated at  the  time  of  making  such  dividend.  Any  dividend  made 
contrary  to  these  provisions  shall  subject  the  company  making  the 
same  to  a  forfeiture  of  its  charter,  and  each  stockholder  receiving  it 
to  a  liability  to  the  creditors  of  such  company  to  the  extent  of  the 
dividend  received,  in  addition  to  the  other  penalties  and  punish- 
ments in  such  case  made  and  provided.  This  section  shall  not  ap- 
ply to  the  declaration  of  scrip  dividends  by  participating  companies; 
but  no  such  scrip  dividends  shall  be  paid  except  from  surplus  pro- 
fits, after  reserving  all  sums  as  above  provided,  including  the  whole 


612  hike's  ensueance  statutes.  I 

I 

amount  of  premiums  on  unexpired  risks.     The  word  "  year,"  wlier-    | 
ever  used  in  this  section,  shall  be  construed  to  mean  the  calendar    ^ 
year.     {Ibid,  §  12,  as  arnended  by  laws  of  1862,  chap.  367,  §  3,  by  laws     > 
of  1864,  chaj).  563,  §  2,  %  laws  of  1865,  chap.  199,  §  1,  and  by  laws  of 
1867,  chap.  91.  §  7.) 

3J{.     All  notes  deposited  with  any  mutual  insurance  company 
at  the  time  of  its  organization,  as  pro^ided  in  section  six,  shall  re-      j 
main  as  security  for  all  losses  and  claims,  until  the  accumulation  of 
the  profits,  invested  as  required  by  the  eighth  section  of  this  act,      I 
shall  equal  the  amount  of  cash  capital  required  to  be  possessed  by      I 
stock  companies  organized  under  this  act,  the  lial)ility  of  each  note      ; 
decreasing  proportionately  as  the  profits  are  accumulated ;  but  any 
note  which  may  have  been  dej)osited  with  any  mutual  insurance     j 
company  subsequent  to  its  organization,  in  addition  to  the  cash      i 
premium  on  any  insurance  effected  with  such  company,  may,  at  the 
expiration  of  the  time  of  such  insurance,  be  relinquished  and  given 
up  to  the  maker  thereof,  or  his  representative,  upon  his  paying  his 
proportion  of  all  losses  and  expenses  which  may  have  accrued 
thereon  during  such  term.     The  directors  or  trustees  of  any  such 
company  shall  have  the  right  to  determine  the  amount  of  the  note 
to  be  given  in  addition  to  the  cash  premium  by  any  person  insured 
in  such  company  ;  but  in  no  case  shall  the  note  be  more  than  five 
times  the  whole  amount  of  the  cash   premium.     And  every  j)erson 
effecting  insurance  in  any  mutual  companj^,  and  also  their  heirs, 
executors,  administrators   and  assigns,  continuing  to  be  so  insured, 
shall  thereby  become  members  of  said  corporation  during  the  period 
of  insurance,  and  shall  be  bound  to  pay  for  losses  and  such  neces- 
sary expenses,  as  aforesaid,  accruing  in  and  to  said  company  in  pro- 
portion to  the  amount  of  his  deposit  note  or  notes.     The  directors 
shall,  as  often  as  they  deem  necessary,  after  receiving  notice  of  any 
loss  or  damage  by  fire  sustained  by  any  member,  and  ascertaining 
the  same,  or  after  the  rendition  of  any  judgment  against  said  com- 
pany for  loss  or  damage,  settle  and  determine  the  sums  to  be  paid 
by  the  several  members  thereof  as  their  respective  portion  of  such 
loss,  and  publish  the  same  in  such  manner  as  they  shall  see  fit  or  as 
the  by-laws  shall  have  prescribed;  and  the  sum  to  be  paid  by  each 
member  shall  always  be  in  i)roportiou  to  the  original  amount  of  his 
deposit  note  or  notes,  and  shall  be  paid  to  the  oflBcers  of  the  com- 
pany within  thirty  days  next  after  the  publication  of  said  notice. 
And  if  any  member  shall,  for  the  space  of  thirty  days  after  the  pub- 
lication of  said  notice,  and  after  personal  demand  for  pa;\Tneut  shall 
have  been  made,  neglect  or  refuse  to  pay  the  sum  assessed  upon 
him  as  his  proportion  of  any  loss,  as  aforesaid,  in  such  case  the  di- 
rectors may  sue  for  and   recover  the  whole  amount  of  his  deposit 
note  or  notes,  with  costs  of  suit ;  but  execution  ^hall  only  issue  for    , 
assessments  and  costs  as  they  accrue,  and  every  such  execution  shall    j 
be  accompanied  by  a  list  of  the  losses  for  which  the  assessment  is 
made.     If  the  whole  amount  of  deposit  notes  shall  be  insufficient  to   ] 
pay  the  loss  occasioned  by  any  fire  or  fires,  in  such  case  the  suffer-   ; 
ers  insured  by  the  said  company  shall  receive,  towards  making  good    ; 
their  respective  losses,  a  proportional  share  of  the  whole  amount  of  i 
said  notes,  according  to  the  sums  by  them  respectively  insui'ed;  | 
but  no  member  shall  ever  be  required  to  pay,  for  any  loss  occa-  ; 
sioned  by  fire  or  inland  navigation,  more  than  the  whole  amount  of 
his  deposit  note.     {Laws   of  1853,  chup.  466,  §  13,  as  amended  by 
lairs  0/1854,  chap.  369,  §  3.) 


NEW  YORK.  613 

31.  It  shall  be  lawful  for  any  mutual  insui-ance  company,  estab- 
lished in  conformity  with  the  provisionsof  this  act,  to  unite  a  cash 
capital  to  any  extent,  as  au  additional  security  to  its  members,  over 
and  above  their  cash  premiums  and  premium  notes  ;  Provided,  That 
such  cash  capital  shall  not  be  less  than  thirty  thousand  dollars,  and 
which  additional  cash  capital  shall  be  loaned  and  vested  as  provided 
in  the  eighth  section  of  this  act ;  and  the  company  may  allow  an  in- 
terest on  such  cash  capital,  aiul  a  participation  in  its  profits,  and  pre- 
scribe the  liability  of  the  o^^^le^  or  oxAmers  thereof  to  share  in  the 
losses  of  the  company,  and  such  cash  capital  shall  be  liable  as  the 
capital  stock  of  the  company  in  the  payment  of  its  debts  ;  Provided, 
That  such  cash  capital  shall  in  all  cases  be  i)aid  in  at  the  organization 
of  the  company,  and  satisfactory  evidence  of  that  fact  furiashed 
to  the  Superintendent  of  the  Insurance  Department.      {Ibid,  §  14.) 

H5.  Any  existing  joint-stock  fire  insurance  company,  and  any 
company  formed  under  this  law,  may  (the  Avritten  consent  of  the 
holders  of  three-fourths  in  amount  of  the  stock  fii'st  being  had)  per- 
mit the  insured  to  participate  in  the  profits  of  the  business  of  such 
company,  and  provide  how  far  any  scrip,  issued  to  the  insured  for 
such  profits,  shall  be  liable  for  the  losses  to  be  sustained  ;  and  any 
company  so  doing,  whenever  an  amount  not  less  than  one  hundred 
thousand  dollars  has  been  accumulated  and  scrip  so  issued  there- 
f(u-,  may,  Avith  the  written  consent  of  the  holders  of  tliree-fourths  in 
amount  of  the  stock,  pay  off  and  cancel  an  amount  of  the  original 
cash  capital  equal  to  one-half  of  the  accumulated  profits,  and  so 
may  continue  from  time  to  time  until  the  whole  amount  of  the  ori- 
ginal cash  capital  is  paid  off;  Provided,  That  before  any  portion  of 
such  capital  stock  shall  be  so  paid  off,  proof  shall  be  exhibited  to 
the  said  Superintendent  that  an  amount  of  accumulated  profits  has 
been  realized,  scrip  issued  therefor,  and  investment  made  thereof, 
pursuant  to  the  provisions  of  the  eighth  section  of  this  act,  at  least 
equal  to  double  the  amount  so  desired  to  be  paid  off  and  canceled, 
and  the  said  Superintendent  shall  also  first  certify  that  he  is  satis- 
tied  with  such  proof.     {Ibid,  §  14.) 

;J0.  Every  fire  and  inland  navigation  insurance  company  here- 
after organized  shall,  if  it  be  a  mutual  company,  embody  the  word 
"  mutual "  in  its  title,  which  shall  appear  on  the  first  page  of  every 
policy  and  renewal  receipt ;  and  every  company  doing  business  as  a 
cash  stock  company  shall,  upon  the  face  of  its  policy  in  some  suita- 
ble manner,  express  that  such  policy  is  a  stock  policy.     {Ibid,  §  15.) 

37.  Suits  at  law  may  be  maintained  by  any  corporation,  formed 
under  this  act,  against  any  of  its  members  or  stockholders  for  any 
cause  relating  to  the  business  of  such  corporation  ;  also  suits  at  law 
may  be  prosecuted  and  maintained  by  any  member  or  stockholder 
against  such  corporation  for  any  losses  which  may  have  accrued,  if 
payment  is  withheld  more  than  thirty  days  ai'ter  such  losses  may 
have  become  due  ;  and  any  member  or  stockholder,  not  individually 
a  i)arty  to  such  suits,  may  be  a  witness  therein.     {Ibid,  §  16.) 

:i  8 .  The  trustees  and  corporators  of  any  company  organized  un- 
der this  act,  and  those  entitled  to  a  participation  of  the  i)rofits  of  such 
company,  shall  be  Jointly  and  severally  liable  for  all  debts  or  respon- 
sibilities of  such  company,  until  the  wbole  amount  of  the  capital  of 
such  company  shall  have  been  paid  in  and  a  certificate  thereof  re- 
corded, as  herein  before  provided.  Notes  taken  in  advance  of  pre- 
miums under  this  act,  are  not  to  be  considered  debts  of  the  com- 


614  hine's  insurance  statutes. 

pany  iii  determining  whether  a  company  is  insolvent,  but  are   to 
be  regarded  as  assets  of  tlie  company.     {Ibid,  §  17.) 

39.     Any  existing  joint-stock  fire  insurance  company  heretofore 
incoi)orated  under  the  laws  of  this  State,  and  any  company  organ- 
ized under  this  act,  having  a  capital  of  at  least  one  hundred  and  fifty 
thousand  dollars,  may,  without  increasing  its  capital  at  any  time, 
within  two  years  previous  to  the  termination  of  its  charter,  after 
giving  notice,  at  least  once  a  week  for  six  weeks  successively  in  a 
newspaper  published  in  the  county  where  such  company  is  located, 
of  such  intention,  and  with  a  declaration,  under  its  corporate  seal, 
signed  by  the  president  and  two-thirds  of  its  directors,  of  their  de- 
sire for  such  extension,  extend  the  term  of  its  original   charter 
to  the  time  specified  in  the  twenty-sixth  section  of  this   act   by 
altering  and  amending  the  same  so  as  to  accord  with  the  provisions 
of  this  act,  and  filing  a  copy  of  such  amended  charter,  with  the  dec- 
laration aforesaid,  in  the  ofBce  ol  the  Suiieriutendent  of  the  Insur- 
ance Department,  whereupon  the  same  iiroceedings  shall  be  had  as 
are  required  in  the  tenth  section  of  this  act;  and  any  mutual  insur- 
ance company,  heretofore  incorporated  or  organized  under  any  of 
the  laws  of  this  State,  having  surplus  assets  aside  from  premium 
and  stock  notes,  sufficient  to  reinsure  all  its  outstanding  risks,  after 
having  given  notice  once  a  week*  for  six  weeks  of  their  intention  and 
of  the  meeting  hereinafter  provided  for  in  the  State  paper,  and  in 
a  newspaper  published  in  the  county  where  such  company  is  located, 
may,  with  the  consent  of  two-thirds  of  the  corporators  or  members 
present  at  any  regular  annual  meeting,  or  at  any  special  meeting 
duly  called  for  the  purpose,  or  with  the  consent  in  writing  of  two- 
thirds  of  tlie  corporators  or  members  of  such  company  and  the  con- 
sent also  of  three-fourths  of  the  trustees  or  directors,  unless  other- 
wise provided  in  the  charter,  become  a  joint-stock  company,  by  con- 
forming its  charter  to  and  otherwise  j)roceediug  in  accordance  with 
this  act,  and  every  member  of  such  company,  on  the  day  of  said  an- 
nual or  special  meeting,  or  the  date  of  said  \vi"itten  consent,  shall  be 
entitle  to  [)riority  in  subscribing  to  the  cajntal  stock  of  said  company, 
for  one  month  after  the  opening  of  the  books  of  subscri])tion  to  such 
capital  stock,  in  proportion  to  the  amount  of  cash  premiums  paid  in 
by  such  members  on  unexi)ired  risks  in  force  on  the  day  of  said  an- 
nual or  special  meeting,  or  the  date  of  said  written  consent ;  and 
every  company  so  extended  or  changed,  shall  come  under  provisions 
of  this  act,  in  the  same  manner  as  if  it  had  been  incorporated  origi- 
nally under  this  act.     Every  mutual  insurance  company  heretofore 
incorporated  under  the  laws  of  this  State,  and  doing  business  with 
a  capital,  in   ]>remium   notes,  of  at  least  fifty  thousand  dollars, 
may,  at  any  time,  within  two  years  previous  to  the  termination  of 
its  charter,  without  increasing  its  ca])ital,  after  giving  notice,   at 
least  once  a  week  for  six  weeks  successively,  in  a  newspaper  pub- 
lished in  the  county  where  such  com])any  is  located,  of  such   in- 
tention, and  with  a  declaration,  under  its  cori)orate  seal,  signed  by 
its  president  and  two-thirds  of  its  directors,  of  their  desire  for  such 
extension,  extend  the  term  of  its  original  charter  to  the  time  speci- 
fied in  the  twenty-sixth  section  of  this  act,  by  altering  and  amend- 
ing the  same  so  as  to  accord  with  the  provisions  of  this  act,  and  filing 
a  copy  of  such  amended  charter,  with  the  declaration  aforesaid,  in 
the  office  of  the  Superintendent  of  the  Insurance  Department,  where- 
upon the  same  proceedings  shall  be  had  as  are  required  in  the  tenth 
section  of  this  act,  except  as  to  its  ca])ital,  which  shall  be  certified  to 


NEW   YORK.  615 

be  in  accordauce  with  the  provisions  of  this  section,  applicable  to 
the  reorganization  of  mntual  insurance  companies.  Every  mutual 
insurance  company  so  extended  shall,  except  as  to  the  amount  of  its 
capital,  come  under  the  provisions  of  this  act,  in  the  same  manner 
as  if  it  had  been  incorporated  originally  under  this  act.  {Ihid,  §  18, 
as  amended  by  the  laws  o/1854,  chap.  369,  §  2,  and  by  the  laws  of  1S62, 
chap.  367,  §  4.) 

40.  Any  existing  fire  insurance  company,  and  any  company 
formed  under  this  law,  may  at  any  time,  with  the  written  consent 
of  the  Superintendent  of  the  Insurance  Department,  increase  the 
amount  of  its  capital  stock,  change  its  name,  or  avail  itself  of 
any  powers  conferred  by  the  i)rovisions  of  this  act  or  any  amend- 
ments thereto,  after  notice  given  once  a  week  for  six  weeks  in  the 
State  paper,  and  in  any  newspaper  i)ublished  in  the  county  where 
such  company  is  located,  of  such  intentions,  with  the  written  con- 
sent of  three-fourths,  in  amount,  of  its  stockholders,  unless  otherwise 
provided  in  its  charter,  or,  if  a  mntual  company,  with  the  unani- 
mous consent  of  its  trustees,  unless  otherwise  provided  in  its  char- 
ter, by  altering  or  amending  its  charter  in  this  respect,  and  filing 
such  written  consent  of  said  Superintendent,  a  copy  of  its  charter, 
so  amended,  together  with  a  declaration  under  its  cor])orat€  seal, 
signed  by  its  president  and  directors,  of  their  desire  so  to  do,  with 
such  written  consent  of  three-fourths,  in  amount,  of  its  stockholders 
or  the  unanimous  consent  of  the  trustees  as  aforesaid  to  such  in- 
crease, change  of  name  or  acquisition  of  such  additional  powers,  in 
the  office  of  the  said  Superintendent,  and  upon  the  same  proceed- 
ings being  had  as  are  required  by  the  tenth  section  of  this  act. 
And  whenever  any  company  formed  under  this  law  shall  have  ac- 
cumulated, and  be  in  possession  of,  a  fund  in  addition  to  the  amount 
of  its  capital  stock,  and  all  actual  outstanding  liabilities  in  excess 
of  one-half  of  the  amount  of  all  premiums  on  risks  not  terminated, 
such  company  may  increase  its  capital  stock  from  such  fund ;  and 
distribute  said  increase  pro  rata  to  the  stockholders  of  such  com- 
pany ;  Provided,  always,  That  such  increase  shall  be  equal  to  at 
least  twenty-five  per  cent,  of  the  original  capital  stock  of  said  com- 
pany, and  shall  have  been  approved  by  the  Superintendent  of  the 
Insurance  Department,  and  authorized  by  at  least  three-fourths  of 
the  Board  of  Directors  of  said  company,  and  provided,  also,  that 
any  company  may  hereafter  make  and  declare  a  dividend,  as  pro- 
vided by  the  ])rovisions  of  the  general  insurance  act.  {Ibid,  §  19, 
4is  amended  by  laics  of  1870,  chap.  476,  §  1,  and  by  laws  of  1875,  chap. 
208,  §  1.) 

41.  Such  companies  as  may  have  been  incorporated  or  ex- 
tended under  the  "  Act  to  i)rovide  for  the  incori)oration  of  insurance 
companies,"  passed  April  10,  1849,  are  hereby  brouglit  under  all 
the  provisions  of  this  act,  except  that  their  capitals  may  continue 
of  the  amounts  named  in  their  respective  charters  during  the  exist- 
ing term  thereof,  and  are  also  entitled  to  all  the  i)rivileges  granted 
by  said  charters.     {Ibid,  §  20.) 

42.  All  companies  incorporated  or  extended  under  this  act 
shall  be  deemed  and  taken  to  be  bodies  cori)orate  and  politic,  in 
fact  and  in  name,  and  shall  be  subject  to  all  the  provisions  of  the 
Eevised  Statutes,  and  acts  supplemental  thereto,  in  relation  to  cor- 
porations so  far  as  the  same  are  ai)i>licable.     {Ibid,  §  21.) 

43.  It  shall  be  the  duty  of  the  president  or  vice-i)resident  and 
secretary  of  each  company  organized  under  tliis  act,  or  incor]>orated 


616  HINE'S  liMSUEANCE  STATUTEfc?. 

under  any  law  of  this  State,  annually,  on  the  first  day  of  January, 
or  within  oue  month  thereafter,  to  prepare,  under  their  own  oath, 
and  deposit  in  the  office  of  the  Superintendent  of  the  Insurance 
Department,  a  statement  of  the  condition  of  such  company  on  the 
thirty -first  day  of  December  then  next  preceding,  exhibiting  the 
following  facts  and  items,  in  the  following  form,  namely: 

First. — The  amount  of  the  capital  stock  of  the  company. 

Second. — The  property  or  assets  held  hj  the  company,  specify- 
ing: 

1.  The  value,  or  as  nearly  as  may  be,  of  the  real  estate  held 
by  such  company. 

2.  The  amount  of  cash  on  hand  and  deposited  in  banks  to 
the  credit  of  the  company,  specifying  in  what  banks  the  same 
are  deposited 

3.  The  amount  of  cash  in  the  hands  of  agents  and  in  course 
of  transmission. 

4.  The  amount  of  loans  secured  by  bonds  and  mortgages, 
constituting  the  first  lien  on  real  estate,  on  which  there  shall 
be  less  than  one  year's  interest  due  or  owing. 

5.  The  amount  of  loans  on  which  interest  shall  not  have  been 
paid  within  one  year  previous  to  such  statement. 

6.  The  amount  due  the  company  on  which  judgments  have 
been  obtained. 

7.  The  amount  of  stocks  of  this  State,  of  the  United  States, 
of  any  incorporated  city  of  this  State,  and  of  any  other  stocks 
owned  by  the.  company,  specifying  the  amount,  number  of 
shares,  and  par  and  market  value  of  each  kind  of  stock. 

8.  The  amount  of  stocks  held  thereby  as  collateral  security 
for  loans,  with  the  amount  loaned  on  each  kind  of  stock,  its  par 
and  the  market  value. 

9.  The  amount  of  assessments  on  stock  or  premium  notes 
paid  and  uni^aid. 

10.  The  amount  of  interest  actually  due  and  unpaid. 

11.  The  amount  of  premium  notes  on  hand  on  w^hich  policies 
are  issued. 

Third. — The  liabilities  of  snch  company,  specifying : 

1.  The  amount  of  losses  due  and  yet  unpaid. 

2.  The  amount  of  claims  for  losses  resisted  by  the  company. 

3.  The  amount  of  losses  incurred  during  the  year,  including 
those  claimed  and  not  yet  due,  and  of  those  reported  to  the 
company  upon  which  no  action  has  been  taken. 

4.  The  amount  of  dividends  declared  and  due,  and  remaining 
unpaid. 

5.  The  amount  of  dividends,  either  cash  or  scrip,  declared 
but  not  yet  due. 

6.  The  amount  of  money  borrowed  and  security  given  for  the 
payment  thereof. 

7.  The  amount  of  all  other  existing  claims  against  the  com- 
pany. 

Fourth. — The  income  of  the  company  during  the  preceding  year, 
specifying : 

1.  The  amount  of  cash  premiums  received. 

2.  The  amount  of  notes  received  for  premiums. 

3.  The  amount  of  interest  money  recei\ed. 

4.  The  amount  of  income  received  from  other  sources. 
Fifth. — The  expenditures  during  the  preceding  year,  specifying : 


NEW   YORK.  617 

1.  The  amoimt  ot"  losses  paid  diiriug  the  year,  stating  how 
much  of  the  same  accrued  prior  and  how  much  subsequent  to 
the  date  of  the  preceding-  statement,  and  the  amount  at  which 
such  losses  were  estimated  in  such  preceding  statement. 

2  The  amount  of  di\  idends  paid  during  the  year. 

3.  The  amount  of  expenses  paid  during  the  year,  including 
commissions  and  fees  to  agents  and  officers  of  the  company. 

4.  The  amount  paid  in  taxes. 

5.  The  amount  of  all  other  payments  and  expenditures. 

The  Superintendent  of  the  Insurance  Department  is  hereby  au- 
thorized and  empowered  to  addi^ess  any  inquiries  to  any  insurance 
company,  or  the  secretary  thereof,  in  relation  to  its  doings  or  con- 
dition, or  any  other  matter  connected  with  its  transactions,  and  it 
shall  be  the  duty  of  any  company  so  addressed  to  promptly  reply  in 
writing  to  any  such  inquiries. 

The  statement  of  any  company,  the  capital  of  wMcli  is  composed, 
in  whole  or  in  part,  of  notes  shall,  in  addition  to  the  foregoing,  ex- 
hibit the  amount  of  notes  originally  forming  the  capital,  and  also 
what  proportion  of  said  notes  is  still  held  by  such  company  and  con- 
sidered capital.  The  statement  herein  pro\'ided  for  shall  be  in  lieu 
of  any  or  all  statements  now  required  by  any  existing  law  or  pro- 
vision. Every  fire  insurance  company  organized  under  any  law  of 
this  State  failing  to  make  and  deposit  such  statement  or  to  reply 
to  any  inquiry  of  the  said  Superintendent,  shall  be  subject  to  the 
penalty  of  fl\e  hundred  dollars ;  and  an  additional  five  hundred 
dollars  for  every  month  that  such  company  shall  continue  thereafter 
to  transact  any  business  of  insm^ance. 

It  shall  be  the  duty  of  the  Superintendent  of  the  Insurance  De- 
partment to  cause  to  be  prepared  and  furnished  to  each  of  the  com- 
panies, and  to  the  attorneys  of  companies  incorporated  by  other 
States  and  foreign  governments,  printed  forms  of  the  statements  re- 
quired by  this  act ;  and  he  may,  from  time  to  time,  make  such 
changes  in  the  forms  of  such  statements  as  shall  seem  to  him  best 
ada[)ted  to  elicit  from  the  companies  a  true  exhibit  of  their  condi- 
tion in  respect  to  the  several  points  herein  before  enumerated. 

It  shall  be  the  duty  of  the  Su[)erintendent  of  the  Insurance  De- 
partment to  cause  the  information  contained  in  the  statements 
required  by  this  section  to  be  arranged  in  a  tabular  form,  and  ])re- 
pare  the  same  in  a  single  document  for  i^rinting,  which  he  shall 
communicate  to  the  legislature  annually.  {I hid,  §  22,  as  amended  by 
laics  0/1854,  chap.  369,  §  4.) 

44.  It  shall  not  be  lawful  for  any  fire  insurance  company, 
association,  or  partnership,  incorporated  by  or  organized  under  the 
laws  of  any  other  State  of  the  United  States,  or  any  foreign  govern- 
ment, directly  or  indirectly,  to  take  risks  or  transact  any  business 
of  insurance  in  this  State,  unless  possessed  of  the  amount  of  actual 
capital  required  of  similar  companies  formed  under  the  provisions 
of  this  act;  and  any  such  company  desiring  to  transact  any  such 
business,  as  aforesaid,  by  an  agent  or  agents  in  this  State,  shall  first 
appoint  an  attorney  in  this  State  on  whom  ]>rocess  of  law  can  be 
served,  and  file  in  the  office  of  the  Superintendent  of  the  Insurance 
Department  a  certified  copy  of  the  vote  or  resolution  of  the  directors 
appointing  such  attorney,  which  appointment  shall  continue  until 
another  attorney  be  substituted ;  in  case  any  such  insurance  com- 
pany shall  cease  to  transact  business  in  this  State,  according  to  the 
laws  thereof,  the  agents  last  designated  or  acting  as  such  for  such 


618  mine's  insurance  statutes. 

corporation,  shall  be  deemed  to  continue  agents  for  such  corpora- 
tion for  the  purpose  of  serving  process  for  commencing  actions  upon 
any  policy  or  liability  issued  or  contracted  while  such  corporation 
transacted  business  in  this  State,  and  service  of  such  process  for  the 
causes  aforesaid  upon  any  such  agent,  shall  be  deemed  a  valid  per- 
sonal service  upon  such  corporation  j  and  also  a  certified  copy  of 
their  charter  or  deed  of  settlement,  together  with  a  statement, 
under  the  oath  of  the  president  or  vice-president  and  other  chief 
officer  and  secretary  of  the  company,  for  which  he  or  they  may  act, 
stating  the  name  of  the  company  and  place  where  located,  the 
amount  of  its  cajiital,  with  a  detailed  statement  of  its  assets,  show- 
ing the  amount  of  cash  on  hand,  in  bank,  or  in  the  hands  of  agents ; 
the  amount  of  real  estate,  and  how  much  the  same  is  incumbered  by 
mortgage ;  the  number  of  shares  of  stock  of  every  kind  owned  by 
the  compan}^,  the  par  and  market  value  of  the  same;  amount  loaned 
on  bond  and  mortgage;  the  amount  loaned  on  other  security, 
stating  the  kind,  and  the  amount  loaned  on  each,  and  the  estimated 
value  of  the  whole  amount  of  such  securities  ;  any  other  assets  or 
property  of  the  company;  also  stating  the  indebtedness  of  the  com- 
pany ;  the  amount  of  losses  adjusted  and  unpaid,  the  amount  in- 
curred and  in  process  of  adjustment,  the  amount  resisted  by  the 
company  as  illegal  and  fraudulent,  and  any  other  claims  existing 
against  the  company;  also  a  cop}"  of  the  last  annual  report,  if  any, 
made  under  any  law  of  the  State  by  which  such  company  was  in- 
corporated ;  and  no  agent  shall  be  allowed  to  transact  business  for 
any  company  (nor  shall  any  agent  or  broker  be  allowed  to  negotiate 
for  or  place  any  risk  with  any  company  whose  capital  is  impaired 
to  the  extent  of  twenty  per  cent,  thereof,  while  such  deficiency  shall 
continue ;  and  any  company  incorporated  by  or  organized  under  any 
foreign  government,  shall,  in  addition  to  the  foregoing,  deposit  with 
the  Superintendent  of  the  Insurance  Department,  for  the  benefit 
and  security  of  policy-holders  residing  in  the  United  States,  a  sum 
not  less  than  two  hundred  thousand  dollars  in  stock  of  the  United 
States  or  the  State  of  New  York,  in  all  cases  to  be,  or  to  be  made  to 
be,  equal  to  a  stock  producing  six  per  cent,  per  annum,  said  stocks 
not  to  be  received  by  said  Sui)erintendent  at  a  rate  above  their  par 
value,  or  above  their  current  market  value ;  or  in  bonds  and  mort- 
gages on  improved  unincumbered  real  estate  in  the  State  of  New 
York,  worth  fifty  per  cent,  more  than  the  amount  loaned  thereon ; 
or  in  such  stocks  and  securities  as  now  are  or  which  may  hereafter 
be  receivable  by  the  Bank  Department  as  security  for  circulating 
notes.  The  stocks  and  secuiities  so  deposited  may  be  exchanged 
from  time  to  time  for  other  securities,  receivable  as  aforesaid,  and 
so  long  as  the  company  so  depositing  shall  continue  solvent  and 
comply  with  the  laws  of  this  State,  may  be  permitted  by  the  said 
Superintendent  to  collect  the  interest  or  dividends  on  said  deposit. 
The  said  deposits  shall  be  in  lieu  of  the  investments  in  the  name  of 
trustees,  as  heretofore  required,  and  upon  its  being  duly  made, 
either  by  the  transfer  of  the  trust  funds,  or  otherwise,  the  trustees 
shall  thereby  be  discharged  from  all  liability ;  and  Avhere  a  deposit 
is  made  of  bonds  and  mortgages,  accompanied  by  full  abstracts  of 
title  and  searches,  the  fees  for  an  examination  of  title  by  counsel  to 
be  paid  by  the  party  making  the  deposit  shall  not  exceed  twenty 
dollars  for  each  mortgage ;  and  the  fees  for  an  appraisal  of  property 
shall  be  five  dollars  to  each  appraiser,  not  exceeding  two,  besides 
expenses  for  each  mortgage.      Nor  shall  it  be  lawtul  for  any  agent 


^ 


NEW    YORK.  X  619 

or  agents  to  act  for  any  company  or  companies  referred  to  in  this 
section,  directly  or  indirectly,  in  taking  risks,  or  transacting  the 
business  of  fii-e  or  inland  na^ig•atiou  insurance  in  this  State,  without 
procuring  from  the  Superintendent  of  the  Insurance  Dei)artment  a 
certiticate  of  authority  stating  that  such  company  has  complied 
with  all  the  requisitions  of  this  act  which  apply  to  such  companiCvS, 
and  the  name  of  the  attorney  appointed  to  act  for  such  company. 
A  certiHed  cojjy  of  such  certificate  of  authority,  with  statement, 
must  be  filed  by  the  agent  in  the  office  of  the  Clerk  of  every  county 
where  such  company  has  agents,  and  shall  be  published  in  the 
paper  in  which  the  State  notices  are  required  to  be  inserted,  four 
successive  times  after  the  filing  of  such  statement,  as  aforesaid ; 
and  within  thirty  days  thereafter  proof  of  such  publication,  by  the 
affidavit  of  the  publisher  of  such  newspaper,  his  foreman  or  clerk, 
shall  be  filed  in  the  office  of  the  said  Superintendent.  The  state- 
ments and  evidences  of  investments  required  by  this  section  shall  be 
renewed  from  year  to  year  in  such  manner  and  form  as  may  be  re- 
quired by  said  Superintendent,  with  an  additional  statement  of  the 
amount  of  premiums  received  aud  losses  incurred  in  this  State 
during  the  preceding  year,  so  long  as  such  agency  continues  ;  and 
the  said  Superintendent,  on  being  satisfied  that  the  capital,  securi- 
ties and  investments  remain  secure,  as  hereinbefore  provided,  shall 
furnish  a  renewal  of  his  certificate,  as  aforesaid,  and  the  agent  or 
agents  obtaining  such  certificate,  shall  file  a  certified  copy  of  the 
same  in  the  office  of  the  Clerk  of  the  county  in  which  such  agency 
shall  be  established,  within  the  month  of  January.  But  any  com- 
pany organized  under  or  incorporated  by  any  foreign  government 
may  furnish  and  file  such  annual  statements  and  evidences  in  the 
month  of  January,  in  each  year,  made  out  for  the  year  ending  on 
the  ijreceding  thirtieth  day  of  June,  if  accompanied,  also,  by  an 
annual  supplementary  statement,  duly  verified  by  the  attorney  or 
general  agent  of  the  company  in  this  State,  showing  the  amount  of 
risks  written,  premiums  received,  losses  sustained,  aud  taxes  paid 
in  this  State  for  the  year  ending  on  the  preceding  thirty-first  day  of 
December ;  said  supplementary  statement  shall  also  contain  a 
description  of  the  investments  of  such  company  in  this  country, 
and  such  other  information  as  may  be  required  by  the  said  Super- 
intendent. (Whenever,  by  the  provisions  of  this  section,  it  shall  be 
unlawful  for  any  fire  insurance  company,  association,  or  partnership 
herein  specified,  to  take  risks  or  transact  the  business  of  fire  insur- 
ance within  this  State,  through  agents,  or  otherwise,  it  shall  be  like- 
wise unlawful  for  any  broker  or  brokers,  or  other  persons  acting 
for  persons,  firms,  or  corporations,  in  this  State  or  elsewhere,  to 
negotiate  for  or  place  risks  in  any  such  insurance  company,  or  in 
any  way  or  manner,  aid  such  persons,  firms  or  corporations  in 
effecting  such  unauthorized  insurances.)  Any  violation  of  any  of 
the  provisions  of  this  section  shall  subject  the  party  violating  to  a 
penalty  of  five  hundred  dollars  for  each  violation,  and  of  the  addi- 
tional sum  of  one  hundred  dollars  for  each  month  during  which  any 
such  agent  shall  neglect  to  make  such  publication,  or  to  file  such 
affidavits  or  statements  as  are  herein  required.  Every  agent  of  any 
fire  insurance  company  shall,  in  all  advertisements  of  such  agency, 
publish  the  location  of  the  company,  giving  the  name  of  the  city, 
town  or  village  in  which  the  company  is  locjited,  and  the  State  or 
goverment  under  the  laws  of  which  it  is  organized.  The  term  agent 
or  agents,  used  in  this  section,  shall  include  an  acknowledged  agent 


620  hine's  insurance  statutes. 

or  surveyor,  or  any  other  person  or  persons  who  shall,  in  any  man- 
ner, aid  in  transacting  the  insurance  business  of  any  insurance  com- 
pany not  incoiporated  by  the  laws  of  this  State  (and  the  term 
broker  or  brokers,  also  used  in  this  section,  is  hereby  declared  to  in- 
clude all  i)ersons  and  firms  whose  business,  in  whole  or  in  part,  it 
is  to  negotiate  for  and  place  risks,  deliver  the  policies  covering  the 
same,  and  collect  the  premiums  therefor).  The  provisions  of  this 
section  shall  apply  to  all  foreign  companies,  partnerships,  associa- 
tions and  individuals,  whether  incorporated  or  not.  {Ibid,  §  23, 
as  amended  by  Imcs  of  1862,  chap.  367,  §  5,  and  by  laws  of  1875,  chap. 
555,  §  1.) 

45.  Any  insurance  company  incorporated  by  or  organized 
under  the  laws  of  the  Dominion  of  Canada,  for  the  transaction  of 
the  business  of  fire  and  inland  navigation  insurance,  may  deposit 
with  the  Superintendent  of  the  Insurance  Department,  for  the 
benefit  and  security  of  policy-holders  residing  in  the  United  States, 
a  sum  not  less  than  two  hundred  thousand  dollars,  in  stocks  or 
bonds  of  the  Dominion  of  Canada,  or  in  stocks  or  bonds  of  the 
United  States,  or  of  the  State  of  New  York.  If  any  securi- 
ties, other  than  those  above-named,  are  offered  as  a  deposit, 
they  may  be  accei»ted  at  such  valuation  and  on  such  conditions  as 
the  Superintendent  of  the  Insui'ance  Department  may  direct ;  and 
if  the  market  value  of  any  of  the  securities  which  have  been  de- 
posited by  any  com])any  shall  decline  below  that  at  which  they 
were  deposited,  the  Superintendent  of  the  Insiu*ance  Department 
may  call  upon  the  comi)any  to  make  a  further  deposit,  so  that  the 
market  value  of  all  the  securities  deposited  by  any  company  shall 
be  equal  to  the  amount  which  it  is  required  to  deposit.  But  such 
company  shall,  in  all  other  respects,  be  subject  to  and  comply  with 
all  the  pro^^sions  of  existing  laws  of  this  State  relative  to  insurance 
companies  incorporated  by  or  organized  under  any  foreign  govern- 
ment transacting  the  business  of  fire  and  inland  navigation  insur- 
ance within  this  State.     {Laws  of  1S74:,  chap.  331,  §  1.) 

4:<>.  AU  foreign  insurance  companies,  associations,  corporations, 
partnerships  and  individuals,  transacting  the  business  of  fire, 
marine,  or  life  insiu'ance,  or  any  other  kind  of  insiuance  in  this 
State,  shall  make  annual  statements  of  their  condition  and  affairs 
to  the  Insurance  Department,  in  the  same  manner  and  in  the  same 
form  as  similar  companies  organized  under  the  laws  of  this  State. 
{Laics  0/1861,  chap.  334,  §  1.) 

47.  In  case  of  neglect  or  refusal  to  make  such  annual  state- 
ment as  aforesaid,  all  persons  acting  in  this  State  as  agents  or  other- 
wise in  transacting  the  business  of  insurance  for  said  companies, 
cor] (orations,  associations,  partnerships  or  individuals,  shall  be 
subject  to  the  same  penalties  provided  by  law  in  case  of  the  failure 
of  any  insurance  company,  organized  under  the  laws  of  this  State, 
to  make  an  annual  statement  as  now  provided  by  law.     {Ibid,  §  2.) 

48.  Foreign  insurance  companies  shall,  hereafter,  be  required 
to  make  and  file  their  annual  statements  on  the  1st  day  of  June  in 
each  year,  oi'  within  thirty  days  thereafter,  made  out  for  the  year 
ending  on  the  preceding  thirty-first  day  of  December  ;  the  supple- 
mentary anniTal  statement  of  their  business  and  affairs  in  the 
United  States,  shall  continue  to  be  filed  in  the  month  of  January  in 
each  year,  made  out  for  the  year  ending  on  the  thirty-first  day  of 
December,  immediately  ]>receding.  {Laws  ofl8Q5,  chap.  199,  §  2,  as 
amended  by  laws  of  1867,  chap.  709,  §  1.) 


NEW   YORK.  C21 

49.  It  shall  be  tlie  duty  of  the  Superinteudeut  of  the  Insur- 
auee  Departmeut,  whenever  he  shall  deem  it  exi)edient  so  to  do,  to 
appoint  one  or  more  persons,  not  officers  of  any  fire  insurance  com- 
pany doing  business  in  this  State,  tt>  examine  into  the  affairs  of  any 
fire  insurance  company  incorporated  in  this  State,  or  doing-  business 
by  its  agents  in  this  State ;  and  it  shall  be  the  duty  of  the  officers 
or  agents  of  any  such  company  doing  business  in  this  State  to 
cause  their  books  to  be  opened  for  the  inspection  of  the  person  or 
persons  so  appointed,  and  otherwise  to  facilitate  such  examination 
so  far  as  it  may  be  in  their  power  to  do;  and  for  that  puri)ose  the 
said  Superintendent,  or  i)erson  or  persons  so  appointed  by  him, 
shall  have  power  to  examine,  under  oath,  the  officers  and  agents  of 
any  company  relative  to  the  business  of  said  company ;  and  when- 
ever the  said  Superintendent  shall  deem  it  for  the  interest  of  the 
jiublic  so. to  do,  he  shall  publish  the  result  of  such  investigation  in 
one  or  more  papers  in  this  State ;  and  whenever  it  shall  appear  to 
the  said  Superintendent,  from  such  examination,  that  the  assets  of 
any  company  incorporated  in  this  State  are  insufficient  to  justify 
the  continuance  in  business  of  any  such  company,  he  may  direct  the 
officers  thereof  to  require  the  stockholders  to  pay  in  the  amoimt  of 
such  deficiency  within  such  period  as  he  may  designate  in  such  re- 
quisition, or  he  shall  communicate  the  fact  to  the  Attorney-General, 
whose  duty  it  shall  then  become  to  apply  to  the  Suiireme  Coiu't  for 
an  order  requmng  them  to  show  cause  why  the  business  of  such 
comj)any  should  not  be  closed,  and  the  court  shall  thereupon  pro- 
ceed to  hear  the  allegations  and  proofs  of  the  respective  parties ; 
and  in  case  it  shall  appear  to  the  satisfaction  of  said  coiu't  that  the 
assets  and  funds  of  said  company  are  not  sufficient,  as  aforesaid,  or 
that  the  interests  of  the  public  so  require,  the  said  court  shall 
decree  a  dissolution  of  said  company  and  a  distribution  of  its  effects. 
The  Supreme  Court  shall  have  power  to  refer  the  application  of  the 
Attorney-General  to  a  referee,  to  inquire  into  and  report  upon  the 
facts  stated  therein.  Any  company,  recei>ing  the  aforesaid  requi- 
sition from  the  said  Superintendent,  shall  forthwith  call  upon  its 
stockholders  for  such  amounts  as  will  make  its  capital  equal  to  the 
amount  fixed  by  the  charter  of  said  company;  and  in  case  any 
stockholder  of  such  company  shall  refuse  or  neglect  to  pay  the 
amount  so  called  for,  after  notice  personally  given  or  by  advertise- 
ment, in  such  time  and  manner  as  the  said  Superintendent  shall 
approve,  it  shall  be  lawful  for  the  said  company  to  require  the 
return  of  the  original  certificate  of  stock  held  by  such  stockholder, 
and  in  lieu  thereof  to  issue  new  certificates  for  such  nimiber  of 
shares  as  the  said  stockholder  may  be  entitled  to  in  the  proportion 
that  the  ascertained  value  of  the  funds  of  the  said  company  may  be 
found  to  bear  to  the  original  capital  of  the  said  company  ;  the  value 
of  such  shares  for  which  new  certificates  shall  be  issued  to  be  ascer- 
tained under  the  direction  of  the  said  Superintendent,  and  the  com- 
pany paying  for  the  fractional  parts  of  shares  ;  and  it  shall  be  law- 
ful for  the  directors  of  such  company  to  create  new  stock  and  dis- 
pose of  the  same,  and  to  issue  new  certificates  therefor,  to  an 
amount  sufficient  to  make  up  the  original  capital  of  the  company. 
And  it  is  hereby  declared  that,  in  the  event  of  any  additional 
losses  accruing  upon  new  risks,  taken  after  the  expiration  of  the 
period  limited  by  the  said  Superintendent  in  the  aforesaid  requisi- 
tion for  the  filling  up  of  the  deficiency  in  the  capital  of  such  com- 
pany, and  before  said    deficiency  shall   have  been  made   up,    the 


622  hine's  insurance  statutes. 

directors  shall  be  individually  liable  to  the  exteut  thereof.  And  if, 
uj^ou  such  examination,  it  shall  appear  to  the  said  Superintendent 
that  the  assets  of  any  company  chartered  on  the  plan  of  mutual  in- 
siu-ance  under  this  act  are  insufficient  to  justify  the  continuance  of 
such  company  in  business  it  shall  be  his  duty  to  proceed  in  relation 
to  such  company  in  the  same  manner  as  is  herein  required  in  regard 
to  joint  stock  companies  ;  and  the  trustees  or  directors  of  such  com- 
pany are  hereby  made  personally  liable  for  any  losses  which  may  be 
sustained  upon  risks  taken  after  the  expiration  of  the  period  limited 
by  the  said  Superintendent  for  filling  up  the  deficiency  in  the 
capital,  and  before  such  deficiency  shall  have  been  made  up.  Any 
transfer  of  the  stock  of  any  company  organized  under  this  act, 
made  during  the  pending  of  any  such  investigation,  shall  not 
release  the  party  making  the  transfer  from  his  liability  for  losses 
which  may  have  accrued  previous  to  the  transfer.  And  whenever 
it  shall  appear  to  the  said  Superintendent,  from  the  report  of  the 
person  or  persons  appointed  by  him,  that  the  affairs  of  any  com- 
pany not  incorporated  by  the  laws  of  this  State  are  in  an  un- 
sound condition,  he  shall  revoke  the  certificates  granted  in  behalf 
of  such  company,  and  shall  cause  a  notification  thereof  to  be  pub- 
lished in  the  State  paper  for  foui"  weeks ;  and  the  agent  or  agents  of 
such  company  is,  after  such  notice,  required  to  discontinue  the 
issuing  of  any  new  policy  and  the  renewal  of  any  previously  issued. 
{Laws  of  1853,  cha2y.  466,  §  24.) 

50.  It  shall  be  the  duty  of  the  Superintendent  of  the  Insurance 
Department  to  make  the  examination  into  the  affairs  of  any  fire  in- 
surance company  doing  business  in  this  State,  in  the  manner  author- 
ized by  section  twenty- four  of  the  act  of  which  this  is  amendatory, 
whenever  any  stockholder  or  creditor  of  any  such  company  shall,  by 
a  declaration  subscribed  and  sworn  to  by  him,  notify  the  said  Super- 
intendent that,  from  facts  within  the  knowledge  of  the  person  mak- 
ing such  declaration,  he  believes  that  the  condition  of  such  insur- 
ance company  does  not  justify  its  continuance  in  business.  Such 
examination  may  also  be  made  without  any  such  declaration  when- 
ever the  said  Superintendent  shall  deem  it  expedient,  and  the 
Supreme  Court  shall  have  power,  after  any  such  examination  shall 
have  been  made  in  either  of  the  cases  mentioned  in  said  section 
twenty-four,  to  a|)point  a  receiver  of  its  property  and  effects,  and  no 
stockholder  or  creditor,  unless  with  the  consent  of  such  company  by 
a  vote  of  its  board  of  directors  at  a  meeting  called  for  the  purpose, 
shall  have  the  right  to  maintain  an  action  for  the  dissolution  of  any 
such  company,  or  to  apply  for  the  appointment  of  a  receiver  of  its 
property  and  effects  until  after  notification  to  the  said  Superin- 
tendent by  such  creditor  or  stockholder  as  hereinbefore  provided, 
the  said  Superintendent  of  the  Insurance  Department  shall  have  re- 
fused or  neglected  for  the  space  of  ten  days  from  the  filing  of  such 
notice,  to  make  the  examination  authorized  by  said  section  twenty- 
four  of  the  act  of  which  this  is  amendatory.  {Laws  of  1873,  chap. 
851,  §  2.) 

5 1 .  Every  penalty  provided  for  by  this  act  (incurred  outside 
of  the  limits  of  the  city  and  county  of  New  York)  shall  be  sued  for 
and  recovered  in  the  name  of  the  People  by  the  District  Attorney 
of  the  county  in  which  the  company  or  the  agent  or  agents  so  vio- 
lating shall  be  situated  (or  in  which  the  act  in  violation  was  com- 
mitted or  suffered),  and  one-half  of  said  penalty  when  recovered 
shall  be  paid  into  the  treasury  of  said  county,  and  the  other  half  to 


NEW   YORK.  633 

the  informer  of  such  violation.  Such  penalties  may  also  be  sued  for 
and  recovered  in  the  name  of  the  People  by  the  Attorney-General, 
and  when  sued  for  and  collected  by  him  shall  be  paid  into  the  State 
treasury.  (And  every  penalty  provided  for  by  this  act  when 
incurred  within  the  limits  of  the  city  and  county  of  New  York  shall 
go  and  be  paid  to  the  informer  of  such  violation,  who  ou  the  giving, 
approval,  and  tiling  of  the  bond  hereinafter  mentioned,  may  sue  for 
and  recover  such  penalty  in  the  name  of  the  People  of  this  State  ou 
the  relation  of  such  informer;  and  every  such  suit  or  action  shall  be 
deemed  a  private  suit  or  action  and  which  may  be  discontinued  and 
the  relator  be  nousuiied  therein  as  in  private  actions,  the  said  relator 
being  liable  for  the  costs  thereof  in  cases  where  the  defendant  suc- 
ceeds in  the  action ;  and  in  such  cases  judgment  shall  be  entered 
against  such  relator  for  costs  in  the  same  manner  as  if  the  relator 
was  the  nominal  plaintiff;  and  in  all  cases  wherein  judgment  is  ob- 
tained against  the  party  prosecuted,  the  judgment  may  be  canceled 
and  discharged  by  the  relator,  or  the  attorney  for  the  relator,  in  the 
same  manner  as  if  such  relator  was  the  nominal  plaintiff.  Any  citi- 
zen of  this  State  or  body  corporate  created  by  or  under  the  laws  of 
this  State  may  be  an  informer,  and  shall  be  comj^etent  to  act  and 
stand  as  relator  in  any  action  for  a  penalty  or  penalties  incurred 
under  this  act  within  the  limits  of  the  city  and  county  of  New  York, 
on  filing  in  the  office  of  the  clerk  of  the  court  in  which  such  action 
is  to  be  prosecuted  a  bond  executed  by  one  or  more  sureties  to  the 
defendant  in  such  action  in  the  penalty  of  five  hundred  dollars,  to 
be  approved  by  a  judge  or  justice  of  said  court,  conditioned  to  pay 
all  costs  that  may  be  recovered  in  such  action  against  such  relator 
in  case  the  party  prosecuted  succeeds  in  the  action,  the  sureties  in 
which  shall  be  residents  of  the  city  and  county  of  New  York  and 
freeholders,  and  shall  acknowledge  the  same  before  an  officer 
.  authorized  to  take  proof  and  acknowledgment  of  deeds,  a  copy  of 
which  bond  shall  be  served  on  the  party  prosecuted  with  the  sum- 
mons in  such  action.)  In  case  of  the  non-payment  of  any  of  the 
penalties  jjrovided  for  in  this  act  the  party  offending  shall  be  liable 
to  imprisonment  for  a  period  not  exceeding  six  months  in  the  discre- 
tion of  any  court  having  cognizance  thereof.  {Laics  of  1853,  chap. 
466,  §  25,  as  amended  by  laics  o/1862,  chap.  367,  §  5,  and  by  laws  of 
1875,  chap.  555,  §  2.) 

53.  All  companies  incorporated  or  extended  under  this  act  may 
provide,  in  their  charters,  for  not  more  than  thirty  years'  diu'ation ; 
but  the  Legislature  may  at  any  time  alter,  amend,  or  repeal  this 
act,  and  provide  for  the  closing  up  of  the  business  and  affairs  of 
any  company  formed  under  it.  Nothing  herein  contained  shall  be 
construed  to  ])revent  subsequent  extensions  of  the  charters  of  com- 
panies organized  or  extended  under  this  act.     {Ibid,  §  26.) 

5J8.  Every  County  Clerk  shall  demand  and  receive,  for  every 
paper  filed  in  his  office,  under  this  act,  the  sum  of  ten  cents,  to  be 
accounted  for  and  paid  over  to  the  county  treasury,  as  provided  by 
law  with  regard  to  other  fees.  {Ibid,  §  27,  as  modified  by  laws  of 
1859,  chap.  366,  §  7.) 

54.  So  much  of  the  act  entitled  "  An  act  to  provide  for  the  in- 
corporation of  insurance  companies,"  passed  April  10. 1819,  as  relates 
to  fire  and  inland  navigation  insurance,  is  hereby  repealed;  but  such 
appeal  shall  not  affect  or  apply  to  any  company  or  association  which, 
at  the  date  of  the  passage  of  the  said  act  of  June  25,  1853,  had 
filed  in  the  office  of  the  Secretary  of  State  the  declaration  provided 


624  hine's  insurance  statutes. 

for  by  the  third  section  of  the  aforesaid  act  of  April  10, 1849.  {Ibid, 
§  28,  as  amended  by  Jaics  of  1853,  chap.  528,  §  1 ;  see  Session  laws  of 
1849,  chap.  308, /or  the  act  o/',1849,  the  provfsions  of  ivhich  are  ap- 
plicable to  the  companies  incorporated  thereunder,  as  provided  in  the 
above  section.) 

55.  Any  persons  who  have  heretofore  filed  a  declaration  or 
commenced  the  publication  of  a  notice  of  their  intentions  to  form 
any  joint  stock  fire  insurance  company,  under  the  act  entitled  ''An 
act  to  i^rovide  for  the  incorporation  of  insurance  companies,"  passed 
April  10,  1849,  may  proceed  to  organize  such  companies  under  the 
act  entitled  "  An  act  to  i)rovide  for  the  incorporation  of  fire  insur- 
ance companies,"  passed  June  25,  1853,  without  filing  any  new 
declaration  of  intention  or  publishing  any  new  notice,  (i  bid,  chap. 
528,  §  2.) 

56.  Any  fire  or  fire  and  marine  insurance  company,  chartered 
by  this  State,  may  have  a  Uen  by  passing  a  by-law  to  that  effect 
upon  the  stock  or  certificate  of  profits  owned  by  any  member  for 
j^ny  debt  hereafter  to  become  due  the  said  company  for  jjremiums, 
by  stating  that  the  said  stock  is  subject  to  any  such  lien  upon  the 
certificate  of  stock  or  profits,  and  such  lien  may  be  waived  in 
writing  by  the  consent  of  the  president  of  said  company  upon  the 
transfer  of  any  such  stock.     (Laws  o/1862,  chap.  367,  §  6.) 

57.  Whenever  it  shall  appear  to  the  Superintendent  of  the  In- 
surance Department,  from  an  examination  made  by  him  in  the  man- 
ner prescribed  by  law,  that  the  capital  stock  of  any  joint  stock  fire 
or  marine  insurance  company  organized  pui'suant  to  law,  is  impaired 
to  an  amount  exceeding  twenty-five  per  cent,  of  such  capital,  and  he 
shall  be  of  the  opinion  that  the  interests  of  the  public  will  not  be 
prejudiced  by  permitting  such  company  to  continue  business  with  a 
reduced  capital,  it  shall  be  lawful  for  such  company,  with  the  per- 
mission of  the  said  Superintendent,  to  reduce  its  capital  stock,  and 
the  par  value  of  the  shares  thereof,  to  such  amount  as  the  said 
Superintendent  may,  under  his  hand  and  official  seal,  certify  to  be 
proper,  and  as  shall,  in  his  opinion,  be  justified  by  the  assets  and 
property  of  such  company ;  Provided,  That,  in  fixing  such  reduced 
caijital,  no  sum  exceeding  twenty-five  thousand  dollars  shall  be  de- 
ducted from  the  assets  and  property  on  hand,  which  shall  be  retained 
as  surplus  assets;  and  Provided,  That  no  part  of  such  assets  and  prop- 
erty shall  be  distributed  to  the  stockholders;  and,  Provided,  further. 
That  the  capital  stock  of  any  such  company  shall  not  be  reduced  to 
an  amount  less  than  the  sum  now  requii^ed  by  law  for  the  organiza- 
tion of  a  new  company,  under  the  general  insurance  laws,  for  the 
transaction  of  business  at  the  place  where  such  company  is  located, 
and  of  the  kind  which  such  company  is  authorized  to  transact. 
{Laws  0/1867,  chap.  91,  §  1.) 

58.  No  reduction  of  the  capital  of  any  such  company  shall  be 
made,  except  upon  a  resolution  of  its  board  of  directors,  approved 
by  at  least  two-thirds  of  the  directors,  and  certified  under  its  cor- 
porate seal,  signed  by  the  i)resident  and  at  least  two-thirds  of  the 
directors,  and  proved  or  acknowledged  in  the  manner  required  by 
law  for  the  proof  or  acknowledgment  of  conveyances,  which  certifi- 
cate shall  be  filed  in  the  office  of  the  said  Superintendent  before  any 
action  shall  be  had  by  him  thereon.     {Ibid,  §  2.) 

59.  The  Superintendent  of  th'fe  Insurance  Department,  in  case 
he  shall  permit  any  such  company  to  reduce  its  capital  in  the  man- 
ner provided  in  this  act,  shall  execute  the  certificate  required  by  the 


NEW  YORK.  625 

first  section,  in  duplicate,  and  deliver  one  of  such  certificates  to  the 
officers  of  such  company,  who  shall  forthwith  file  the  same  with  the 
clerk  of  the  county  in  which  such  comjiany  is  located,  and  the  oth(?r 
of  such  certificates  shall  be  filed  in  the  office  of  said  Superintendent. 
{Ibid,  §  3.) 

60.  Such  company,  upon  filing  the  certificate  with  the  County 
Clerk,  as  required  by  the  third  section  of  this  act,  shall,  with  such 
reduced  capital,  possess  the  same  rights  and  be  subject  to  the  same 
liabilities  that  it  possessed  or  was  subject  to  at  the  time  of  the  re- 
duction of  its  capital,  and  the  charter  of  such  company  shall  be 
deemed  to  be  amended  in  resi)ect  to  the  amount  of  capital  and  the 
par  value  of  the  shares  so  as  to  conform  to  such  reduction.  (Ibid, 
§4.) 

61.  It  shall  be  lawful  for  the  said  company  to  require  the  re- 
turn of  the  original  certificate  of  stock  held  by  each  stockholder, 
and  in  lieu  thereof  to  issue  new  certificates  for  such  number  of  shares 
as  the  said  stockholder  may  be  entitled  to,  in  the  proportion  that 
the  reduced  capital  may  be  found  to  bear  to  the  original  capital  of 
the  company.     (Ibid,  §  5.) 

6'2.  It  shall  be  lawful  for  any  such  comimny,  after  its  capital 
shall  be  so  reduced  as  aforesaid,  to  increase  its  capital  stock,  in  the 
mode  prescribed  by  the  nineteenth  section  of  chapter  four  hundred 
and  sixty-six  of  the  laws  of  eighteen  hundred  and  fifty-three.  {Ibid, 
§  6.) 

63.  It  shall  be  the  duty  of  all  receivers  and  trustees  of  insur- 
ance companies,  diu-ing  the  month  of  January  of  each  year,  and  at 
any  other  time  when  required  by  the  Superintendent  of  the  Insur- 
ance Department,  to  make  and  file  annual  and  other  statements  of 
their  assets  and  liabilities,  and  of  their  income  and  expenditures,  in 
the  same  manner  and  form,  and  under  the  same  penalties,  as  the 
officers  of  such  companies  are  now  required  by  law  to  make  annual 
and  other  statements  to  the  Insurance  Department.  [Ibid,  chap. 
709,  §  2.) 

64.  Xo  person,  association,  or  company  of  persons  residing  in 
any  foreign  country,  and  no  incorporation  established  in  a  foreign 
country,  nor  any  person  in  behalf  of  them,  or  any  of  them,  shall, 
directly  or  indirectly,  make  any  contract  of  insiu'ance,  or  by  way 
of  insurance,  against  loss  or  injury  by  fire,  upon  any  house,  building, 
or  goods  situated  or  being  in  this  State.  {Laws  of  1814,  chap.  49, 
§  1 ;  and  Revised  Statutes,  part  /.,  chaj).  20,  title  21,  §  1.) 

65.  Whoever  shall  offend  against  the  foregoing  provision,  shall 
forfeit  one  thousand  dollars,  for  the  use  of  the  poor  of  the  county 
where  such  illegal  contract  shall  be  made.*     {Ibid,  §  2.) 

66.  No  foreign  insurance  comi)any  shall  make  any  contract  of 
insurance,  of  any  kind  or  description,  against  loss  or  damage  by  fire 
or  inland  navigation  risks,  nor  exi)ose  themselves  to  any  such  loss 
by  any  one  risk  or  hazard  for  any  greater  amount  in  proportion  to 
its  capital,  as  determined  by  the  provisions  of  this  act,  than  com- 
panies organized  under  the  laws  of  this  State  may  do.  {Laws  of 
1871,  chajh  888,  §  1.) 

67.  The  capital  of  such  foreign  insurance  company  doing  fire 
insurance  business  in  this  State,  or  any  such  company  hereafter  ad- 

*  This  law  has  never  been  repealed,  but  has  practically  been  a  dead  letter 
since  the  passage  of  the  first  subsequent  law  admitting  such  companies  to  do 
business  in  the  State. 

40 


626  HINE'S  INSURAIS^CE   STATUTES. 

mitted  to  such  business  iu  tliis  State,  shall,  for  all  the  purposes  of 
this  act  and  of  the  general  insurance  laws  of  this  State,  be  the 
aggregate  value  of  such  sums  or  securities  as  such  company  shall 
have  on  deposit  in  the  insurance  and  other  departments  of  this 
State,  and  of  the  other  States  of  the  United  States,  for  the  benefit 
of  policy-holders  in  any  of  such  States  or  in  the  United  States ;  and 
all  bonds  and  mortgages  for  money  loaned  on  real  estate  in  this 
State  or  any  State  of  the  United  States,  provided  such  loans  have 
been  made  in  conformity  with  the  laws  of  such  State  providing  for 
the  incorporation  of  insiu^ance  companies  therein,  and  the  invest- 
ment of  their  capital,  and  all  other  assets  and  property  in  the  United 
States,  in  which  fire  insurance  companies  organized  under  the  laws 
of  this  State  may,  by  the  laws  thereof,  invest,  provided  such  bonds 
and  mortgages,  assets  and  property,  shall  be  vested  in  and  held  in 
the  United  States  by  trustees  approved  by  the  Superintendent  of 
the  Insurance  Department  of  this  State,  and  citizens  of  the  United 
States,  for  the  general  benefit  and  seciu'ity  of  all  its  policy-holders 
and  creditors  in  the  United  States,  after  taking  from  such  aggre- 
gate value  the  same  deductions  for  losses,  debts  and  liabilities  in 
this  and  the  other  States  of  the  United  States,  and  for  premiums 
upon  risks  therein  not  yet  expired,  as  is  authorized  or  required  by 
the  laws  of  this  State,  or  the  regulations  of  its  Insurance  Depart- 
ment with  respect  to  fire  insurance  companies  organized  under  the 
laws  of  this  State.  The  said  trustees  are  hereby  authorized  to  in- 
vest in  and  hold  and  convey  real  estate  to  the  same  extent,  and 
subject  to  the  same  restrictions,  rules,  and  regidations  to  which 
companies  incorporated  in  this  State  are  subject.     {Ibid,  §  2.) 

68.  To  determine  the  amount  of  such  capital  the  agent  or 
attorney  of  such  foreign  insurance  company  doing  fire  insurance 
business  in  this  State  shall,  \\athin  four  months  after  the  passage  of 
this  act,  and  in  the  month  of  January  of  every  year  thereafter,  ren- 
der to  him  a  detailed  statement  of  the  items  making  up  the  said 
capital,  and  of  the  deductions  to  be  made  therefrom,  subscribed  and 
verified  by  the  oath  of  such  agent  or  attorney,  and  said  Superinten- 
dent shall  have  authority  to  make  such  examinations  in  respect  to 
such  assets  and  liabilities  as  he  shall  deem  proper,  and  upon  com- 
pliance with  the  requirements  of  this  act  it  shall  be  his  duty  there- 
upon, and  from  yenv  to  year  thereafter,  to  issue  to  such  foreign  (i 
insui'ance  company  a  certificate  of  the  amount  of  its  so  determined  i' 
capital,  and  that  the  requirements  of  this  act  have  been  complied  'j 
with,  upon  which  cajiital  it  may  transact  business  in  this  State,  but  ji 
subject  to  all  the  restrictions  and  limitations  of  the  laws  regulating  'j 
fire  insurance  companies  incorporated  under  the  laws  of  this  State.  \. 
{Ihi(l,^3.)  \\ 

6!>.  The  trustees  referred  to  in  the  second  section  of  this  act  1 
shall  be  appointed  directly  by  the  board  of  managers  or  dh-ec-  j; 
tors  of  such  foreign  insurance  company,  and  a  duly  certified  copy  of  i? 
the  vote  or  resolution  by  which  they  were  appointed  shall,  together  '. 
with  a  certified  copy  of  the  trust  deed  or  instrument  under  which  i 
they  are  to  act,  be  filed  in  the  office  of  the  Superintendent  of  the  ;'l 
Insurance  Department ;  and  the  said  Superintendent  shall  have  the  ;  i 
same  power  to  examine  such  trustees,  or  the  agent  or  attorney  of  :■; 
such  company,  under  oath,  and  their  assets,  books  and  accounts,  ,< 
either  in  person  or  by  one  or  more  persons  to  be  appointed  by  him,  id 
as  by  law  he  has  as  to  the  officers,  agents,  assets,  books  and  accounts  .j 
of  any  company  authorized  to  do  the  fire  insurance  business  in  this    I 


NEW  YORK.  627 

State.  And  if  by  such  examination  it  shall  appear  that  the  net 
capital  for  which  the  last  certificate  shall  be  outstanding  has  been 
materially  reduced,  the  Superintendent  may  call  in  such  certificate 
and  issue  another  correspondent  with  such  reduced  capital.  {Ibidy 
§4.)    . 

70,  No  foreign  insurance  company,  or  anj^  agent  or  attorney 
thereof,  shall  be  admitted  to  transact  the  business  of  fire  insurance 
in  this  State,  or  take  risks,  until  in  addition  to  all  other  require- 
ments of  the  laws  now  in  force  in  this  State,  such  company  shall 
comply  with  the  provisions  of  this  act,  and  receive  the  certificate  of 
the  Superintendent  of  the  Insurance  Department  mentioned  in  the 
third  section  of  this  act.     [Ibid,  §  5.) 

71,  It  shall  not  be  lawful  for  any  such  foreign  insurance  com- 
pany, then'  agent  or  attorney,  directly  or  indirectly,  to  contract  for 
or  effect  any  reinsiu-ance  of  any  risk  on  property  in  this  State,  with 
any  insurance  company,  corporation,  association,  partnership  or 
individual,  other  than  such  as  companies  chartered  by  the  State  of 
New  York  may  lawfully  make  reinsurance  in.     {Ibidj  §  6.) 

73,  The  capital  of  any  foreign  insurance  company,  so  deter- 
mined and  certified,  shall  be  subject  to  taxation  the  same  as  the 
capital  of  fire  insurance  companies  organized  under  the  laws  of  this 
State,  to  be  levied,  assessed  and  collected  as  prescribed  by  the  laws 
.of  this  State,  at  such  place  in  this  State  as  such  foreign  insurance 
company  shall  have  its  principal  olfice.     {Ibid,  §  7.) 

7J$,     The  affairs  of  every  foreign  insurance  company  doing  fire 
insurance  business  in  this  State  shall  be  subject  to  the  same  super- 
vision and  examination  by  the  Superintendent  of  the  Insurance 
Department  as  those  of  fire  insurance  companies  organized  under 
the  laws  of  this  State,  as  to  the  examination  of  its  books,  assets, 
accounts  and  general  condition  ;  and  every  foreign  insurance  com- 
pany doing  fire  insurance  business  in  this  State,  and  its  agents  and 
trustees,  shall  at  all  times  be  subject  to  and  be  required  to  make 
the  same  statements,  and  to  answer  the  same  inquiries,  and  be  sub- 
ject to  the  same  examinations,  and  in  case  of  default  therein,  to  the 
same  penalties  and  liabilities  as  fire  insurance  companies  organized 
under  the  laws  of  this  State,  or  any  of  the  ofiQcers  thereof,  are  or 
may  be  liable  to  by  the  laws  of  this  State  or  the  regulations  of  its 
Insurance  Department;    and  the  said   Superintendent  is  hereby 
authorized,  whenever  he  shall  deem  it  necessary,  either  in  person  or 
by  a  proper  person  or  persons  by  him  appointed,  to  repair  to  the 
j  general  office  of  any  such  foreign  insurance  company,  wherever  the 
same  may  be,  and  make  an  investigation  and  examination  of  the 
I  affairs  and  condition  of  such  company.    The  said  Superintendent 
lis  hereby  authorized  to  cancel  and  revoke  the  certificate  of  any 
jforeign  insurance  company  lefusing  or  unreasonably  neglecting  to 
icomply  with  any  of  the  provisions  of  this  act,  or  to  allow  the  exam- 
lination  herein  provided  for  to  be  made,  and  to  prevent  such  com 
|pany  from  doing  business  in  this  State.     {Ibid,  §  8.) 

74.  Any  violation  of  any  of  the  provisions  of  this  act  shall  sub- 
ject the  party  so  violating  to  a  penalty  of  five  hundred  dollars  for  each 
i'^iolation,  which  shaU  be  sued  for  and  recovered  in  the  manner  pro- 
ided  for  in  section  twenty-five  of  "  An  act  to  provide  for  the  incor- 
)oration  of  fire  insurance  companies,"  passed  June  twenty -five, 
eighteen  hundred  and  fifty-three,  and  the  amendments  thereto,  with- 
jthe  same  liability  to  imprisonment  in  case  of  non-payment  as  therein 
)rovided.     {Ibid,  §  9.) 


628  hine's  insurance  statutes. 

75.  The  term  foreign  insurance  company,  as  used  in  this  act, 
includes  any  company,  corporation,  association,  partnership  or  indi- 
vidual of  any  foreign  government  doing  fire  insurance  business  in 
this  State,  whether  incorporated  or  not.      {IMdj  §  10.) 


AN  ACT  TO  PEOYIDE  SECURITY  AGAINST  BXTKAOEDI- 
NARY  CONFLAGRATIONS,  AND  FOR  THE  CREATION 
OF  SAFETY  b^UNDS  BY  FIRE  INSURANCE  COMPANIES. 

76.  Hereafter  it  shall  be  lawful  for  any  fire  insurance  company', 
organized  under  the  laws  of  this  State,  to  create  the  funds  herein 
provided  for,  to  be  known  and  designated  as  the  guaranty  surplus 
fund  and  the  special  reserve  fund,  and  to  avail  itself  of  the  provi- 
sions of  this  act  upon  complying  with  the  requirements  thereof. 
Laws  0/1874,  chap.  189,  §  1.) 

77.  Any  fire  insurance  company  desiring  to  create  such  funds 
shall  be  and  it  is  hereby  authorized  to  do  so,  upon  the  adoption  of  a 
resolution  by  its  hoard  of  directors  at  a  regular  meeting  thereof, 
and  filing  with  the  Superintendent  of  the  Insurance  Department  a 
copy  thereof,  declaring  the  desire  and  intention  of  sucii  company 
to  create  such  funds  and  to  do  business  under  the  provisions  of  this 
act ;  and  as  soon  after  the  filing  of  such  coi)y  of  the  resolution  as 
convenient,  the  Superintendent  shall  make,  or  cause  to  be  made,  au 
examination  of  such  company,  and  he  shall  make  a  certificate  of  the 
result  thereof,  which  shall  particularly  set  forth  the  amount  of  sur- 
plus funds  held  by  such  company  at  the  date  of  such  examination, 
which,  under  the  provisions  of  this  act,  are  to  and  may  be  equally 
divided  between  and  be  set  apart  to  constitute  said  guaranty  sur- 
plus and  special  reserve  funds,  which  certificate  shall  be  recorded  in 
the  Insurance  Department ;  and  from  and  after  the  date  of  the  re- 
cording of  such  certificate,  all  the  policies  and  renewals  of  policies 
issued  by  such  company  shall  have  x>rinted  thereon,  by  such  com- 
pany, a  notice  that  the  same  are  issued  under  and  in  pursuance  of 
this  act,  referring  to  the  same  by  its  chapter,  date  and  title ;  and 
such  policies  and  renewals  shall  be  deemed  to  have  been  issued  and 
received  subject  to  the  provisions  of  this  act.     [Ibid,  §  2.) 

78.  After  the  date  mentioned  in  any  such  resolution  so  passed 
and  filed,  it  shall  not  be  lawful  for  such  company  to  make,  declare 
or  pay,  in  any  form,  any  dividend  upon  its  capital  stock,  exceeding 
seven  i)er  cent,  per  annum,  thereupon  and  upon  the  surplus  funds  to 
he  formed  hereunder,  until  after  its  gTiarauty  surplus  fund  and  its 
special  reserve  fund  shall  have  together  accumulated  to  an  amount 
equal  to  its  said  capital  stock,  and  the  entire  surplus  profits  of  such 
company  above  such  annual  dividend  of  seven  per  cent,  shall  be 
equally  divided  between  and  be  set  apart  to  constitute  the  said 
guaranty  surplus  fund  and  the  said  special  reserve  fund,  which  said 
funds  shall  he  held  and  used  as  hereinafter  provided  and  n<>t  other- 
wise ;  and  any  company  doing  business  under  this  act,  which  shall 
declare  or  pay  any  dividend  contrary  to  the  provisions  herein  con- 
tained, shall  be  liable  to  be  proceeded  against  by  the  Attorney- 
General  for  its  dissolution.     {Ibid,  §  3.) 

79.  Said  guaranty  surplus  fund  shall  be  held  and  invested  by 
such  company  the  same  as  its  capital  stock  and  surplus  accumula- 
tion; and  shall  be  liable  and  applicable  in  the  same  manner  as  the 
caj)ital  stock  and  surplus  accumulation ;  and  shall  be  liable  and  ap- 


( 


I 


NEW   YORK.  629 

plicable  in  the  same  manner  as  the  capital  stock  to  the  payment 
generally  of  the  losses  of  such  company.     {Ibid,  §  4.) 

80.  Said  special  reserve  fund  shall  be  invested  according  to 
existing  laws  relating  to  investments  of  capital  by  fire  insurance 
companies,  and  shall  be  deposited  from  time  to  time  as  the  same 
shall  accumulate  and  be  invested  with  the  Superintendent  of  the 
Insurance  Department,  who  shall  permit  the  company  depositing 
the  same  to  change  such  deposits  by  substituting  for  those  with- 
drawn others  of  equal  amount  and  value,  and  to  collect  and  receive 
the  interests  or  dividends  upon  such  securities  as  the  same  may  ac- 
crue; and  such  special  reserve  fund  shall  be  deemed  a  fund  con- 
tributed by  the  stockholders  to  protect  such  company  and  its  policy- 
holders other  than  claimants  for  losses  already  existing  or  then  in- 
curred, in  case  of  such  extraordinary  conflagration  or  cooflagrationg 
as  hereinafter  mentioned ;  and  said  fund  shall  not  be  regarded  as 
any  part  or  portion  of  the  assets  in  possession  of  said  company,  so 
as  to  be  or  render  the  same  liable  for  any  claim  or  claims  for  losses, 
by  fire  or  otherwise,  except  as  herein  provided.     {Ibid,  §  5.) 

81.  In  estimating  the  profit  of  any  such  company,  for  the  pur- 
pose of  making  a  division  thereof,  between  such  guaranty  surplus 
fund  and  such  special  reserve  fund,  there  shall  be  deducted  from 
the  gross  assets  of  the  company,  including  for  this  purpose  the 
amount  of  the  special  reserve  fund,  the  sum  of  the  following  items  : 
First,  the  amount  of  all  outstanding  claims ;  second,  an  amount 
sufficient  to  meet  the  liability  of  such  company  for  the  unearned 
premiums  upon  its  unexpired  policies,  which  amount  shall  be  at 
least  equal  to  one-half  of  the  premiums  received  on  policies  having 
less  than  one  year  to  run  from  date  of  policy,  and  a  pro  rata  propor- 
tion of  the  premiums  received  on  policies  having  more  than  one 
year  to  run  from  date  of  policy,  and  shall  be  known  as  the  reinsur- 
ance liability ;  third,  the  amount  of  its  guaranty  surplus  fund  and 
of  its  special  reserve  fund ;  fourth,  the  amount  of  the  capital  of  the 
company;  and  fifth,  interest  at  the  rate  of  seven  per  cent,  per  an- 
num upon  the  amount  of  the  capital  and  of  the  said  funds,  for 
whatever  time  shall  have  elapsed  since  the  last  preceding  cash 
dividend ;  and  the  balance  shall  constitute  the  net  surplus  of  the 
company,  subject  to  an  equal  division  between  the  said  funds,  as 
herein  provided.     {Ibid,  §  6.) 

83.  In  the  event  of  any  extensive  conflagration  or  conflagra- 
tions, whereby  the  claims  upon  such  company  shall  exceed  the 
amount  of  the  capital  stock,  and  of  the  guaranty  surplus  fund  pro- 
vided for  by  this  act,  the  said  company  shall  notify  the  Supsrintend- 
ent  of  the  fact,  who  shall  then  make  or  cause  to  be  made  an  exam- 
ination of  said  company,  and  shall  issue  his  certificate  of  the  result, 
showing  the  amounts  of  capital,  of  guaranty  surplus  fund,  of  special 
reserve  fund,  of  reinsurance  liability  and  of  other  assets  ;  and  upon 
his  issuing  such  certificate  in  duplicate,  one  copy  to  be  given  the 
company  and  one  to  be  recorded  in  the  Insurance  Department,  the 
said  special  reserve  fund  shall  be  immediately  held  to  protect  all 
policy-holders  of  such  company  other  than  such  as  are  claimants 
upon  it  at  the  time,  or  such  as  become  such  claimants  in  conse- 
quence of  such  conflagration  or  conflagrations,  and  the  amount  of 
said  special  reserve  fund,  and  an  amount  equal  to  the  unearned 
premiums  of  such  company,  to  be  ascertained  as  hereinbefore  pro- 
vided, shall  constitute  the  capital  and  assets  of  such  company  for 
the  protection  of  policy-hold srs  other  than  such  claimants,  and  for 


630  hine's  insurance  statutes. 

the  further  conduct  of  its  business ;  and  such  official  certificate  of 
the  Superintendent  shall  be  binding  and  conclusive  upon  all  parties 
interested  in  such  company,  whether  as  stockholders,  creditors  or 
policy-holders ;  and  upon  the  payment  to  the  claimants  for  losses  or 
otherwise,  existing  at  the  time  of,  or  caused  by  such  general  con- 
flagration or  conflagrations,  of  the  amount  to  which  they  are  re- 
spectively entitled,  in  proportion  to  their  several  claims,  of  the  full 
sum  of  the  capital  of  such  company  and  of  its  guaranty  surplus 
fund,  and  of  its  assets,  excepting  only  such  special  reserve  fund 
and  an  amount  of  its  assets  equal  to  the  liability  of  the  company  for 
unearned  premiums,  as  so  certified  by  such  Superintendent,  such 
company  shall  be  forever  discharged  from  any  and  all  further  liabil- 
ity to  such  claimants,  and  to  each  of  them.  And  the  said  Superin- 
tendent shall,  after  issuing  his  said  certificate,  upon  the  demand  of 
such  company,  transfer  to  it  all  such  seciirities  as  shall  have  been 
deposited  with  him  by  such  company  as  such  special  reserve  fund ; 
and  if  the  amount  of  such  special  reserve  fund  be  less  than  fifty  per 
cent,  of  the  full  amount  of  the  capital  of  the  company,  a  requisition 
shall  be  issued  by  the  said  Superintendent  upon  the  stockholders, 
to  make  up  such  capital  to  that  proportion  of  its  full  amount,  in  the 
manner  now  provided  by  law,  in  the  case  of  companies  with  im- 
paired capitals  ;  and  Provided^  further,  That  any  capital  so  impau^ed 
shall  be  made  up  to  at  least  the  sum  of  two  hundred  thousand 
dollars.  And  in  case  said  company,  after  such  requisition,  shall 
fail  to  make  up  its  capital  to  at  least  said  amount  of  two  hundred 
thousand  dollars,  as  therein  directed,  said  special  reserve  fund  shall 
still  be  held  as  security,  and  liable  for  any  and  all  losses  occurring 
upon  policies  of  such  company  after  such  conflagration  or  conflagra- 
tions. Such  company  shall,  in  its  annual  statement  to  the  Insur- 
ance Department  of  this  State,  set  forth  the  amount  of  such  special 
reserve  fund,  and  of  its  guaranty  surplus  fund.     {Ibid,  §  7.) 

83.  If,  at  any  time  after  such  special  reserve  fund  shall  have 
been  accumulated  by  any  company,  it  shall  appear,  upon  examina- 
tion by  the  said  Superintendent,  that  the  capital  of  such  company 
has,  in  the  absence  of  any  such  extensive  conflagration,  become  im- 
paired so  as  to  cause  him  to  order  a  call  upon  the  stockholders  to 
make  up  such  impairment,  the  board  of  directors  of  such  company 
may  either  comply  with  such  order  and  require  the  necessary  pay- 
ment by  the  stockholders,  or  at  their  option  they  may  apply  for  that 
purpose  so  much  of  said  special  reserve  fund  as  will  make  such  im- 
pairment good.  No  company  doing  business  under  this  act  shall  in- 
sure any  larger  amount  upon  any  single  risk  than  is  permitted  by 
law  to  a  company  i^ossessingthe  same  amount  of  capital,  irrespective 
of  the  funds  hereby  provided  for.     {Ibid,  §  8.) 


MAEINE  INSURANCE  COMPANIES  AND  AGENCIES. 

84.  Any  number  of  persons,  not  less  than  thirteen  in  number, 
may  associate  and  form  an  incorporated  company  for  the  following 
purposes,  to  wit : 

To  make  insurance  upon  vessels,  freights,  goods,  wares,  mer- 
chandise, specie,  bullion,  jewels,  profits,  commissions,  bank-notes, 
bills  of  exchange,  and  other  evidences  of  debt,  bottomry  and  re- 
spondentia interests,  and  to  make  all  and  every  insurance  apper- 
taining to  or  connected  with  marine  risks  and  risks  of  transporta- 


NEW   YORK.  631 

tion  and  navi^atiou.  {Laics  of  1849,  chap.  308,  §  1,  as  modified  by 
laws  0/1853,  chaj).  463,  §  22,  and  by  laics  of  1853,  cha}).  466,  §  28,  «,s' 
amended  by  laws  of  1853,  chap.  528,  §  1.) 

85.  Auy  company  organized  under  this  act  shall  have  power 
to  make  reinsurance  of  any  risks  taken  by  them  respectively,  and 
may  make  insurance  upon  auy  or  all  of  the  risks  mentioned  in  the 
first  section.  (Ibid,  §  2,  as  modifie'l  by  laics  of  1853,  chap.  463,  §  22, 
hy  latcs  of  1853,  chap.  466,  §  28,  and  by  latcs  of  1853,  cha2).  528,  §  1.) 

86.  Such  persons  shall  file,  in  the  office  of  the  Superintendent 
of  the  Insurance  Department,  a  declaration,  signed  by  all  the  cor- 
})orators,  expressing  their  iutention  to  form  a  company  for  the  pur- 
pose of  transacting  the  business  of  insurance  as  expressed  in  the 
first  section  of  this  act,  which  declaration  shall  also  comprise  a 
copy  of  the  charter  proposed  to  be  adopted  by  them,  and  shall  pub- 
lish a  notice  of  such  their  intention,  once  in  each  w  eek  tor  at  least 
six  weeks,  in  a  public  newspaper  in  the  county  in  which  such  insur- 
ance company  is  proposed  to  be  located.  (Ibid,  §  3,  as  modified  by 
laws  of  1853,  chap.  463,  §  22,  by  laws  of  1853,  chap.  466,  §  28,  by 
latcs  of  1853,  chap.  528,  §  1,  a7id  by  laws  of  1859,  chajy.  366.) 

87.  It  may  and  shall  be  lawful  for  the  individuals  associated 
for  the  purpose  of  organizing  any  company  under  this  act,  after 
having  published  the  notice  and  tiled  their  declaration  and  charter 
as  required  by  the  i^receding  section,  to  open  books  for  subscription 
to  the  capital  stock  of  the  company  so  intended  to  be  organized, 
and  to  keep  the  same  open  until  the  full  amount  specified  in  the 
charter  is  subscribed  ;  or,  in  case  the  business  of  such  company  is 
proposed  to  be  conducted  on  the  plan  of  mutual  insurance,  then  to 
open  books  to  receive  propositions,  and  enter  into  agreements  in 
the  manner  and  to  the  extent  hereinafter  specified.     {Ibid,  §  4.) 

88.  No  joint  stock  company,  organized  for  the  purposes  men- 
tioned in  this  act,  shall  be  organized  in  the  city  and  county  of  New 
York,  nor  in  the  county  of  Kings,  with  a  smaller  capital  than  one 
hundred  and  fifty  thousand  dollars  ;  nor  in  any  other  county  in  this 
State  with  a  smaller  capital  than  fifty  thousand  dollars ;  nor  shall 
any  company,  formed  for  the  purpose  of  doing  the  business  of  ma- 
rine insurance,  on  the  plan  of  mutual  insurance,  commence  business, 
if  located  in  the  city  of  New  York,  or  in  the  county  of  Kings,  until 
agreements  have  been  entered  into  for  insurance  with  at  least  one 
hundred  applicants,  the  premiums  on  which  shall  amount  to  three 
hundred  thousand  dollars,  and  notes  have  been  received  in  advance 
for  the  premiums  on  such  risks  payable  at  the  end  of  or  within 
twelve  mouths  from  the  date  thereof,  which  notes  shall  be  consid- 
ered a  part  of  the  capital  stock,  and  shall  be  deemed  valid,  and 
shall  be  negotiable  and  collectable  for  the  purpose  of  paying  any 
losses  which  may  accrue  or  otherwise ;  nor  shall  any  mutual  marine 
insurance  company,  in  any  other  county  in  the  State,  commence 
business  until  agreements  have  been  entered  into  for  insurance,  the* 
premiums  on  which  shall  amount  to  one  hundred  thousand  dollars, 
and  the  notes  received  therefor,  payable  as  aforesaid,  and  which 
notes  shall  be  liable  for  and  used  as  aforesaid.  {Ibid,  §  5,  as  modi- 
fied by  laics  of  1853,  chap.  463,  §  22,  by  kiws  of  1853,  chap.  466,  §  28, 
and  by  laws  of  1853,  chaj).  528,  §  I.) 

89.  It  shall  not  be  lawful  for  any  company  organized  under 
this  act  to  transact  business  unless  possessed  of  capital  or  securities 
as  hereinbefore  mentioned;  nor  shall  it  be  lawful  for  any  agent  or 
agents  of  insurance  companies  incorporated  by  other  States,  direct- 


632  niNE'S   INSURANCE   STATUTES. 

ly  or  indirectly,  to  take  risks  or  transact  any  business  of  insurance 
in  this  State,  without  procuring  a  certificate  of  authority  from  the 
Superintendent  of  the  Insm-ance  Department  of  this  State,  and  such 
agent  or  agents  having  procured  a  statement  under  the  oath  of  the 
president  or  secretary  of  the  company  for  which  he  or  they  may 
act ;  which  statement  shall  show  the  amount  of  the  capital  of  such 
company,  the  manner  in  which  the  same  is  invested,  and  shall  also 
state  the  fact  whether  its  capital  is  impaired,  and,  if  so,  how  much ; 
such  statement  shall  be  filed  in  the  ofQce  of  the  County  Clerk  of  the 
county  where  such  agent  resides,  and  shall  be  published  in  at  least 
one  newspaper,  if  a  newspaper  be  therein  published,  at  least  six 
successive  weeks  after  the  filing  of  such  statement  as  aforesaid ;  the 
first  statement  shall  be  filed  in  the  month  of  Januarj^  next,  and 
such  statement  shall  be  procured  annually  and  filed  and  published 
in  each  and  every  succeeding  month  of  January  thereafter  as  long 
as  such  agency  continues,  and  no  company  incorporated  by  other 
States  shall  transact  business  in  this  State  unless  possessed  of  the 
amount  of  actual  capital  required  of  companies  formed  under  the 
provisions  of  this  act.  Nor  shall  it  be  lawful  for  any  agent  or 
agents,  hereafter  to  be  appointed,  of  any  company  incorporated  by 
any  foreign  government,  other  than  the  States  of  this  Union,  for  the 
THirpose  of  insurance,  to  transact  the  business  of  insurance  in  this 
State  without  procuring  a  certificate  of  authority  from  the  Super- 
intendent of  the  lusiu'ance  Department ;  such  agent  or  agents  hav- 
ing previously  furnished  evidence,  to  the  satisfaction  of  the  Super- 
intendent of  the  Insurance  Department  of  the  State,  that  such 
company  has  invested  iu  the  stocks  of  this  State,  or  of  the  United 
States,  an  amount  equal  to  the  amount  of  capital  or  security  re- 
quired by  this  act,  and  such  stocks  are  held  in  trust  by  citizens  of 
this  State  for  the  benefit  and  security  of  such  as  may  effect  insur- 
ance with  him  or  them.  And  the  agent  or  agents,  furnishing  satis- 
factory CAidence  as  aforesaid,  shall  be  entitled  to  a  certificate 
thereof  from  the  Superintendent  of  the  Insurance  Department  afore- 
said. The  statements  and  evidences  of  investments  required  by 
this  section  shall  be  renewed  from  year  to  year,  in  the  month  of 
January  in  each  year,  and  the  Superintendent  of  the  Insurance  De- 
partment, on  being  satisfied  that  the  capital  securities  and  invest- 
ments remain  secure  as  at  first,  shall  liirnish  a  renewal  of  certificates 
as  aforesaid;  and  the  agent  or  agents  obtaining  such  certificates 
shall  file  the  same,  together  with  a  copy  of  the  statements  on  which 
it  was  obtained  or  renewed,  in  the  o£8ce  of  the  Clerk  of  the  County 
in  which  such  agency  shall  be  established,  and  shall  cause  the  same 
to  be  published  in  at  least  one  newspaper  published  in  such  coutity. 
Any  violation  of  the  provisions  of  this  section  shall  subject  the  party 
violating  to  a  penalty  of  five  hundred  dollars  for  each  violation, 
which  shall  be  sued  for  and  recovered  in  the  name  of  the  people  by 
the  District  Attorney  of  the  county  in  which  the  agent  or  company 
so  violating  shall  be  situated,  and  the  said  penalty  when  recovered 
shall  be  paid  into  the  treasury  of  said  county.  Provided^  That  all 
companies  incorporated  by  any  government  other  than  the  States 
of  this  Union,  which  may  have  appointed  such  agent  or  agents  be- 
fore the  first  day  of  March,  one  thousand  eight  hundred  and  forty- 
eight,  may  hereafter  appoint  a  new  agent  or  agents  in  the  case 
of  the  death,  resignation  or  removal  of  an  agent  or  agents  pre- 
viously appointed.  The  term  agent  or  agents  used  iu  this  section 
shall  include  an  acknowledged  agent  or  surveyor,  or  any  other 


NEW  YORK.  633 

person  or  persons  who  shall  in  any  manner  aid  in  transacting  the 
insnrance  business  of  an  insurance  company  not  incorporated  by 
the  laws  of  this  State.  {Ibid,  §  7,  as  modified  by  laics  of  1853,  cMp . 
463,  §  22,  and  by  latvs  of  1859,  chap.  366,  §§  3  and  8.) 

90.  All  foreign  insurance  companies,  associations,  corporations, 
partnerships  and  individuals,  transacting  the  business  of  fire,  marine 
or  life  insurance,  or  any  other  kind  of  insurance  in  this  State,  shall 
make  annual  statements  of  their  condition  and  affairs  to  the  Insur- 
ance Department,  in  the  same  manner  and  in  the  same  form  as 
similar  companies  organized  under  the  laws  of  this  State.  {Laws  of 
1861,  chap.  334,  §  1.) 

91.  In  case  of  neglect  or  refusal  to  make  such  anniial  state- 
ment as  aforesaid,  all  persons  acting  in  this  State  as  agents  or  other- 
wise in  transacting  the  business  of  insurance  for  said  companies, 
corporations,  associations,  partnershij)  or  individuals,  shall  be  sub- 
ject to  the  same  penalties  provided  by  law  in  case  of  the  failure  of 
any  insurance  company,  organized  under  the  laws  of  this  State,  to 
make  an  annual  statement  as  now  provided  by  law.     {Ibid,  §  2.) 

92.  Foreign  insurance  companies  shall  hereafter  be  required 
to  make  and  file  their  annual  statements  on  the  first  day  of  June  in 
each  year,  or  within  thirty  days  thereafter,  made  out  for  the  year 
ending  on  the  preceding  thirty-first  day  of  December ;  the  supple- 
mentary annual  statements  of  their  business  and  affairs  in  the  United 
States  shall  continue  to  be  filed  in  the  month  of  January  in  each 
year,  made  out  for  the  year  ending  on  the  thirty-first  day  of  Decem- 
ber, immediately  preceding,  {Laws  of  1865,  chap.  199,  §  2,  as  amended 
by  lares  o/1867,  chap.  709,  §  1.) 

93.  It  shall  be  lawful  for  any  company  organized  under  this 
act  to  invest  its  capital,  or  the  funds  accumulated  by  its  business, 
or  any  part  thereof,  in  bonds  and  mortgages  on  unincumbered  real 
estate  within  the  State  of  "tTew  York  worth  fifty  per  cent,  more  than 
the  sum  loaned  thereon,  and  also  in  the  stocks  of  this  State  or  of  the 
United  States,  and  also  in  any  or  all  stocks  or  bonds  of  either  of  the 
incorporated  cities  of  this  State,  and  which  stocks  or  bonds  shall  be 
at  or  above  par  at  the  time  of  such  investment,  and  to  lend  the  same, 
or  any  part  thereof,  on  the  security  of  such  stock  or  bonds ;  and  any 
company  organized  for  the  purpose  of  marine  insurance  may,  in  ad- 
dition to  the  foregoing,  loan  their  funds  on  bottomry  and  respon- 
dentia, and  change  and  reinvest  the  same  as  occasion  may,  from 
time  to  time,  require ;  but  any  surplus  accumulation  over  and  above 
the  capital  stock  of  any  such  company  may  be  invested  in  or  loaned 
upon  the  pledge  of  the  public  stock  of  any  one  of  the  United  States, 
or  the  stock,  bonds,  or  other  evidence  of  debt  of  any  institution  in- 
corporated under  the  laws  of  this  State,  except  their  own  stock: 
Provided,  That  the  current  market  value  of  such  corporate  stocks, 
bonds,  or  other  evidence  of  debt,  shall  be,  at  the  time  of  the  loan 
thereon,  at  least  ten  per  cent,  more  than  the  sum  so  loaned  thereon : 
Provided,  however.  That  any  permanent  or  reserved  fund,  established 
or  created  by  such  company,  shall  be  invested  in  the  same  manner 
as  capital  stock  is  required  to  be,  except  that  the  restriction  as  to 
the  securities  being  at  par  shall  not  apply  thereto.  {Laws  of  1849, 
chap.  308,  §  8,  as  amended  by  laics  of  1857,  chap.  469,  §  1.) 

94.  Ko  company  organized  by  or  under  the  provisions  of  this 
act  shall  be  permitted  to  purchase,  hold  and  convey  real  estate,  ex- 
cepting for  the  purposes  and  in  the  manner  herein  set  forth,  to 
wit: 


634  hine's  insurance  statutes. 

1.  Such  as  shall  be  requisite  for  its  immediate  accommodation  iu 
the  transaction  of  its  business ;  or, 

2.  Such  as  shall  have  been  mortgaged  to  it  iu  good  faith  by  way 
of  security  for  loans  previously  contracted,  or  for  moneys  due ;  or, 

3.  Such  as  shall  have  been  conveyed  to  it  in  satisfaction  of  debts 
prev  iously  contracted  in  the  course  of  its  dealings ;  or, 

4.  Such  as  shall  have  been  purchased  at  sales  upon  judgments, 
decrees  or  mortgages  obtained  or  made  for  such  debts ;  and  it  shall 
not  be  lawful  for  any  company  incorporated  as  aforesaid  to  j)urchase, 
hold  or  convey  real  estate  in  any  other  case  or  for  any  other  purpose ; 
and  all  such  real  estate  as  may  be  acquired  as  aforesaid,  and  which 
shall  not  be  necessary  for  the  accommodation  of  such  company  in 
the  convenient  transaction  of  its  business,  shall  be  sold  and  disposed 
of  within  five  years  after  such  company  shall  have  acquired  title  to 
the  same,  and  it  shall  not  be  lawful  for  such  company  to  hold  such 
real  estate  for  a  longer  period  than  that  above  mentioned,  unless  the 
said  company  shall  procure  a  certificate  from  the  Superintendent  of 
the  Insurance  Department  that  the  interests  of  the  company  will 
suffer  materially  by  a  forced  sale  of  such  real  estate,  in  which  event 
the  time  for  the  sale  may  be  extended  to  such  time  as  the  Superiu- 
tendent  of  the  Insurance  Department  shall  direct  in  said  certificate. 
{Ibid,  §  9,  as  modified  by  laws  of  1859,  chap.  366,  §§  3  and  8.) 

05.  In  addition  to  the  foregoing  provisions  it  shall  be  the 
duty  of  the  corporators  of  any  and  every  company  organized 
under  this  act,  to  declare  in  the  charter  which  is  herein  required  to 
be  filed,  the  mode  and  manner  in  which  the  corporate  powers  given 
under  and  by  virtue  of  this  act  are  to  be  exercised,  the  mode  and 
manner  of  electing  trustees  or  directors,  a  majority  of  whom  shall 
be  citizens  of  this  State,  and  the  fiJling  of  vacancies,  the  period  for 
the  commencement  and  termination  of  its  fiscal  year,  together  with 
the  amount  of  capital  to  be  employed  in  the  transaction  of  its  busi- 
ness. But  any  mutual  company  that  heretofore  has  been,  or  here- 
after may  be  organized  under  this  act,  may  issue  policies,  providing 
that  the  assured  in  such  policies  shall  not  jiarticipate  in  the  profits 
of  such  company,  and  that  in  lieu  of  scrip,  the  said  company  may 
stipulate  for,  and  take  a  net  iDremium,  or  may  make  a  cash  deduc- 
tion from  the  premiums  paid  on  such  non-participating  policies, 
though  such  mode  and  manner  of  doing  business  may  not  be 
declared  in  the  charter  of  such  company,  {Ibid,  §  10,  as  amended 
by  laws  of  1867,  chap.  574,  §  1.) 

516.  Any  company  organized  under  a  special  charter  may 
avail  itself  of  the  privileges  granted  under  the  preceding  section, 
anything  in  its  charter  contained  to  the  contrary  notwithstanding. 
{Latvs  0/1867,  chap  574,  §  2.) 

97.  The  charter  thus  filed  by  the  corporation  shall  be  exam- 
ined by  the  Attorney-General,  and  if  found  to  be  in  accordance 
with  the  requirements  of  this  act,  and  not  inconsistent  with  the 
Constitution  or  laws  of  this  State,  he  shall  certify  the  same  to  the 
Superintendent  of  the  Insurance  Department  of  this  State,  and  the 
said  Superintendent  shall  thereupon  cause  an  examination  to  be 
made  either  by  himself  or  by  three  disinterested  persons  specially 
appointed  by  him  for  that  purpose,  who  shall  certify  under  oath 
that  an  amount  equal  at  least  to  the  amount  specified  in  the  fifth 
section  of  this  act,  if  it  be  a  stock  company,  has  been  j)aid  in  antl 
is  possessed  by  it  in  money,  or  in  such  stocks  and  bonds  and  mort- 
gages as  are  required  by  the  eighth  section  of  this  act;  or  if  a 


NEW    YORK.  0)35 

mutual  company,  that  it  lias  received  and  is  in  actual  possession  of 
the  capital,  premiums  or  engagements  of  insurance  as  the  case  may 
be,  to  the  full  extent  required  by  the  fifth  section  of  this  act ;  such 
certificates  shall  be  filed  in  the  oflBce  of  the  Superintendent  of  the 
Insurance  Department,  whose  duty  it  shall  then  be  to  furnish  the 
corporation  with  a  certified  copy  of  the  charter  and  certificates 
aforesaid,  which,  upon  being  filed  by  them  in  the  oflBce  of  the  Clerk 
of  the  county  in  which  their  company  is  to  be  located,  shall  be  their 
authority  to  commence  business  and  issue  policies,  and  the  same 
may  be  used  in  evidence  for  or  against  said  corporation.  [Ibid, 
§  11,  as  modified  ly  laics  of  1853,  chap.  463,  §  22,  and  by  laws  of 
1859,  chap.  366.) 

98.  The  corporators  or  the  trustees  or  directors,  as  the  case 
may  be,  of  any  company  organized  under  the  provisions  of  this  act, 
shall  have  power  to  make  such  by-laws,  not  inconsistent  with  the 
constitution  or  laws  of  this  State,  as  may  be  deemed  necessary  for 
the  government  of  its  officers  and  the  conduct  of  its  affairs.  (7  bid, 
§12.) 

99.  It  shall  be  the  duty  of  the  president  or  vice-president  and 
secretary  of  each  marine  insurance  company  incorporated  by  or 
organized  under  any  law  of  this  State,  annually  on  the  first  day  of 
January,  or  within  one  month  thereafter,  to  prepare,  under  their 
own  oath,  and  deposit  in  the  office  of  the  Insurance  Department, 
a  statement  of  the  condition  and  affairs  of  such  company,  for  the 
year  ending  on  the  thirty -first  day  of  December  then  next  preceding, 
exhibiting  the  total  amount  of  i)remiums  received  and  the  total 
amount  of  losses  paid  and  ascertained,  including  expenses  during 
the  year ;  also  the  amount  of  debts  owing  by  the  company  at  the 
date  of  the  statement,  and  the  amount  of  claims  which  then  exist 
against  the  company  for  losses  accrued,  showing  what  amount  of 
such  claims  for  losses  is  payable  on  demand,  what  amount  thereof 
is  considered  fair  or  legal,  the  payment  of  which  has  not  then 
matured  according  to  the  contract,  and  what  amount  thereof  is 
resisted  on  account  of  alleged  fraud,  or  for  which  the  company  do 
not  consider  themselves  legally  liable;  also  a  statement  of  the 
securities  representing  the  capital  stock  and  all  the  funds  of  the 
company,  and  also  whether  any  of  the  securities  held  or  owned  by 
such  company  are  considered  bad  or  doubtful,  and  if  so,  specifying 
the  amount  of  such  securities  and  the  gToss  amount  of  outstanding 
risks  thereon  ;  and  exhibiting  also  the  assets  and  liabilities  of  the 
company,  its  income  and  expenditures  during  the  year,  scrip  issued 
and  redeemed,  and  other  miscellaneous  items,  in  such  form  and 
manner  as  shall,  from  time  to  time,  be  prescribed  by  the  Superin- 
tendent of  the  Insurance  Department.  The  statement  herein  pro- 
vided for  shall  be  in  lieu  of  all  statements  now  required  to  be  made 
or  published,  by  any  existing  law  or  provision.  The  Superintendent 
of  the  Insurance  Department  may,  from  time  to  time,  make  such 
changes  in  the  form  of  said  annual  statements  as  shall  seem  to  him 
best  adapted  to  elicit  from  the  said  companies  a  true  exhibit  of 
their  condition,  situation  and  affairs.  It  shall  be  the  duty  of  the 
Superintendent  of  the  Insurance  Department  to  cause  the  informa- 
tion contained  in  such  annual  statements  to  be  arranged  and  com- 
municated to  the  legislature  with  his  annual  report.  If,  upon  due 
examination,  it  shall  appear  to  the  Superintendent  of  the  Insurance 
Department  that  the  losses  and  expenses  of  any  stock  company 
during  the  year  have  exceeded  the  premiums,  and  in  consequence 


636  hine's  insurance  statutes. 

thereof  the  capital  of  such  company  has  become  deficient,  or  from 
any  other  cause  has  become  impaired  to  the  extent  of  twenty-five 
per  cent.,  it  shall  be  the  duty  of  the  said  Superintendent  of  the 
Insurance  Department  to  direct  the  officers  of  any  such  company, 
within  sixty  days,  to  proceed  to  wind  up  its  business,  unless  within 
that  time  the  stockholders  thereof  shall  pay  in  the  amount  of  such 
deficiency.  Any  company  receiving  such  requisition  from  the 
Superintendent  of  the  Insurance  Department  shall  forthwith  call 
upon  its  stockholders  for  such  amounts  as  will  make  its  capital 
equal  to  the  amount  fixed  by  the  charter  of  the  said  company  ;  and 
in  case  any  stockholder  of  such  company  shall  refuse  or  neglect  to 
pay  such  call,  after  notice  personally  given,  or  by  advertisement  in 
such  time  and  manner  as  the  Superintendent  of  the  Insurance 
Department  shall  approve,  it  shall  be  lawful  for  the  said  company 
to  require  the  return  of  the  original  certificates  of  stock  held  by 
such  stockholder,  and  in  lieu  thereof  to  issue  new  certificates  for 
such  number  of  shares  as  the  said  stockholder  may  be  entitled  to 
in  the  proportion  that  the  ascertained  value  of  the  funds  of  the 
said  company  may  be  found  to  bear  to  the  original  capital  of  the 
said  company  ;  the  value  of  such  shares  for  which  new  certificates 
shall  be  issued  to  be  ascertained  under  the  direction  of  the  Super- 
intendent of  the  Insurance  Department  and  the  company  paying 
for  the  fractional  parts  of  shares;  and  it  shall  be  lawful  for  the 
directors  of  said  company  to  create  new  stock,  and  dispose  of  the 
same,  and  to  issue  new  certificates  therefor  to  an  amount  sufficient 
to  make  up  the  original  capital  of  the  company.  And  it  is  hereby 
declared  that,  in  the  event  of  any  additional  losses  accruing  upon 
new  risks  taken  after  the  Superintendent  of  the  Insurance  Depart- 
ment shall  have  made  the  requisition  aforesaid,  and  before  the  said 
deficiency  shaU  have  been  made  up,  the  directors  shall  be  individ- 
ually liable  to  the  extent  thereof.  And  if,  upon  due  examination, 
it  shall  appear  to  the  Superintendent  of  the  Insurance  Department 
that  the  losses  and  expenses  of  any  company  chartered  on  the  plan 
of  mutual  insurance,  under  this  act,  shall,  during  the  year,  have 
exceeded  the  premiums,  and  in  consequence  thereof  that  the  capi- 
tal of  the  company,  as  required  in  its  organization,  has  become 
deficient,  or  from  any  other  cause  has  become  impaired,  it  shall  be 
the  duty  of  the  Superintendent  of  the  Insurance  Department  to 
direct  the  officers  of  such  mutual  insurance  companies  to  take  the 
same  proceedings  as  herein  required  to  be  taken  in  case  of  joint- 
stock  companies ;  and,  until  such  directions  shall  be  complied  with, 
the  directors  shall  be  personally  liable  to  pay  all  damages  occa- 
sioned by  such  neglect  to  any  person  or  body  corporate  which  may 
be  injured  thereby.  Any  transfer  of  the  stock  of  any  stock  com- 
pany organized  under  this  act  shall  not  release  the  party  making 
the  transfer  from  his  liabilit}'  which  may  have  accrued  previous  to 
the  transfer.     (Ibid,  §  13  ;  as  amended  hy  laws  of  1861,  chap.  425.) 

100.  It  shall  and  may  be  lawful  for  any  marine  insurance 
company  to  be  organized  j^ursuant  to  the  provisions  of  the  said  act 
hereby  amended,  to  establish  and  maintain  one  or  more  agencies 
beyond  the  United  States  for  the  transaction  of  its  lawful  business, 
upon  such  terms  and  conditions  as  the  said  company  may  prescribe. 
{LaiDS  of  1852,  chap.  123,  §  1.) 

101 .  In  case  any  such  agency  or  agencies  shall  be  established 
in  Asia  or  Europe,  the  statement  required  bj^  the  thirteenth  section 
of  the  said  act  hereby  amended  may  be  deferred  for  the  space  of 


NEW  YORK.  637 

five  montlis  from  and  after  the  first  day  of  January  in  each  year, 
and  when  made  it  shall  refer  to  the  fiist  day  of  January  then  next 
preceding-,     {Ibid,  §  2.) 

1 02.  All  fire  marine  and  life  insurance  companies  now  required, 
or  which  may  hereafter  be  required,  to  make  annual  statements  to 
the  Insuiance  Department,  for  the  year  ending  on  the  last  day  of 
December,  are  hereby  authorized  and  empowered  to  change  the 
date  of  the  termination  of  their  fiscal  year  to  the  thirty-first  day  of 
December;  and  all  statements,  reports,  dividends,  and  balances, 
now  required  by  law  to  be  made,  and  all  other  acts  required  to  be 
done  by  said  companies,  at  the  termination  of  their  fiscal  year  or 
years,  or  within  a  limited  time  thereafter,  may  be  made  out  and  done 
on  the  last  day  of  December,  and  wdthin  the  same  period  thereafter, 
in  lieu  of  such  other  days  of  the  year,  or  periods  of  time,  as  are  now 
designated  bj' their  charter  or  otherwise.  {Laws  of  ISQi,  chap.  326, 
§2.) 

1 03.  Any  existing  joint-stock  company  incorporated  by  this 
State  for  the  purposes  mentioned  in  the  first  section  of  this  act, 
may,  at  any  time  after  notice  being  given  for  three  mouths  in  a 
newspaper  published  in  the  county  where  such  company  is  located 
of  such  intention,  and  with  a  written  consent  of  a  majority  of  three- 
fouiths  in  amount  of  its  stockholders,  or  if  a  mutual  company  with 
the  unanimous  consent  of  its  trustees,  extend  its  original  charter  to 
the  time  specified  by  the  provisions  of  this  act  by  altering  or  amend- 
ing the  same,  so  as  to  accord  with  the  provisions  of  this  act,  and 
filing  a  copy  of  the  same  so  altered  or  amended,  together  with  a 
declaration  under  its  corporate  seal,  signed  by  its  president  and  di- 
rectors, of  their  desire  for  such  extension,  and  also  the  written  con- 
sent of  three-fourths  of  its  stockholders,  and  the  unanimous  consent 
of  the  trustees  as  aforesaid  to  such  extension,  in  the  oliice  of  the 
Superintendent  of  the  Insurance  Department,  and  upon  the  filing 
of  such  consent,  declaration  and  charter,  the  same  proceedings  shall 
be  had  as  are  required  by  the  eleventh  section  of  this  act,  and  any 
of  the  mutual  [marine]  insurance  companies  already  chartered  by 
the  Legislature  of  this  State  may,  after  giving  ninety  days'  notice 
in  three  of  the  public  papers  of  the  State,  change  to  joint-stock 
companies  by  proceeding  in  accordance  with  and  conforming  their 
charter  to  the  provisions  of  this  act.  {Laws  of  1849,  chap.  308,  §  14, 
as  modified  by  laws  of  1853,  chap.  463,  §  22,  by  laws  of  1853,  chap.  466, 
§  28,  and  by  laws  of  1853,  chup.  528,  §  1.) 

10-1.  All  charters  formed  or  extended  under  this  act  shall  be 
of  thirty  years'  duration  each,  but  the  Legislature  may  at  any  time 
alter,  amend  or  repeal  this  act,  or  dissolve  or  provide  for  the 
closing  up  the  business  and  affaus  of  any  company  formed  under  it. 
{Ibid,  §  15,  as  modified  by  laics  of  1853,  chap.  463,  §  22.) 

1 05.  Suits  at  law  may  be  maintained  by  any  corporation  formed 
under  this  act,  against  any  of  its  members  or  stockholders,  for  any 
cause  relating  to  the  business  of  such  corporation ;  also  suits  at  law 
may  be  prosecuted  and  maintained  by  any  member  or  stockholder 
against  such  corporation  for  losses  which  may  have  accrued  if  pay- 
ment is  withheld  more  than  two  months  in  all  risks  after  such  losses 
shall  have  become  due.     {Ibid,  §  16.) 

106.  All  companies  formed  under  this  act  shall  be  deemed 
and  taken  to  be  bodies  corporate  and  politic  in  fact  and  in  name, 
and  shall  be  subject  to  all  the  provisions  of  the  Revised  Statutes 


638  niNE'S  INSUKANCE   STATUTES. 

in  relation  to  corporations,   so  far  as  the  same  are  applicable. 
{Ibid,  §  17.) 

14)7.  No  company  formed  under  this  act  shall,  directly  or 
indirectly,  deal  or  trade  in  buying  and  selling  any  goods,  wares, 
merchandise,  or  other  commodities  whatever.     [Ibid,  §  18.) 

108.  The  eighteenth  section  of  the  act  entitled  "An  act  to 
provide  for  the  incorporation  of  insurance  companies,"  passed 
April  tenth,  eighteen  hundred  and  forty-nine,  shall  not  be  con- 
strued to  prevent  an  insurance  company  from  accepting  an  aban- 
donment of  property  insured,  and  selling  the  same,  nor  be  con- 
strued to  prevent  a  purchase  and  resale  of  property  under  judicial 
process  or  otherwise,  in  which,  or  in  the  proceeds  of  the  sale  of 
which,  such  company  may  be  interested,  by  reason  of  having  pre- 
viously become  insurers  of  the  same,  or  of  some  share  or  portion 
thereof.     {Laws  of  18(37,  chap.  442,  §  1.) 

109.  Any  mutual  or  stock  insurance  company  incorporated 
by  tin's  State  prior  to  the  passage  of  said  act  may,  at  any  time, 
have  its  original  charter,  as  amended  by  subsequent  acts,  extended 
to  the  time  for  the  period  mentioned  in  the  fifteenth  section  of  said 
act,  by  filing  in  the  ofiQce  of  the  Superintendent  of  the  Insurance 
Department  a  copy  of  said  charter  as  amended,  and  a  consent  re- 
ferring to  the  original  charter,  and  tbe  acts  amending  the  same, 
signed  by  all  its  trustees,  or  by  two-thirds  of  them,  and  not  less 
than  thirteen  in  number.  But  such  examination  and  proceedings 
shall  be  had  by  the  Superintendent  of  the  Insurance  Department, 
as  are  required  by  the  eleventh  section  of  said  act,  to  be  had  by  the 
Comptroller ;  and  the  Superintendent  shall  further  inquire,  and  if 
so  found,  certify  that  such  consent,  after  due  notice  has  been  regu- 
larly given,  and  that  such  company  is  in  the  active  prosecution  of 
its  business,  and  is  in  a  safe  and  proper  condition  to  continue  the 
same,  and,  on  filing  his  certificate  of  approval,  and  that  of  the 
Attorney-General,  it  shall  be  lawful  for  such  company,  under  and 
in  accordance  with  its  extended  charter,  as  required  by  said 
eleventh  section,  to  continue  upon  the  same  plan  and  without  any 
interruption  of  its  business  or  distribution  of  its  assets,  as  fully  and 
with  like  effect  as  if  the  original  act  incorporating  the  same,  as 
amended  by  subsequent  acts,  had  been  specially  extended  by  act  of 
the  legislature ;  Provided,  That  any  company  whose  existence  or 
privileges  may  be  extended  by  this  act,  shall  at  all  times  be  fully 
under  the  inspection  and  supervision  of  such  Superintendent,  and 
be  subject  to  the  checks  and  safeguards  imposed  by  said  acts,  and 
the  acts  amending  tlie  same,  and  be  also  subject  to  the  right  of  the 
legislature  to  alter,  amend  or  repeal  its  charter,  or  any  part  or  pro- 
vision thereof     {Ibid,  §  2,  as  amended  by  laws  of  1808,  chap.  731,  §  1.) 

no.  The  trustees  and  corporators  of  any  company  organized 
under  this  act,  and  those  entitled  to  a  participation  of  the  profits, 
shall  be  jointly  and  severally  liable  until  the  whole  amount  of  the 
capital  raised  by  the  company  shall  have  been  j^aid  in,  and  a  cer- 
tificate thereof  recorded  as  herein  before  provided.  Notes  taken  in 
advance  of  premiums  under  this  act  are  not  to  be  considered  debts 
of  the  company  in  determining  whether  a  company  is  insolvent, 
but  are  to  be  regarded  as  assets  of  the  company.  {Laws  of  1849, 
chap.  308,  §  19.) 

111.  No  dividends  shall  ever  be  made  by  any  company  incor- 
porated under  this  act  when  its  capital  stock  is  impaired,  or  when 
the  making  of  such  dividend  will  have  the  effect  of  impairing  its 


NEW  YORK,  639 

capital  stock,  and  any  dividend  so  made  shall  subject  each  of  the 
stockholders  recei\iug  the  same  to  an  individual  liability  to  the 
creditors  of  said  company  to  the  extent  of  such  dividend  received 
by  him.     {Ibid,  §  20,  as  amended  by  laws  o/1857,  chap.  38,  §  1.) 

112.  It  shall  be  lawful  for  any  mutual  company  established 
or  to  be  established  in  conformity  with  the  jiro visions  of  the  fourth 
section  of  this  act  for  the  pm-poses  of  marine  insurance,  and  hav- 
ing complied  with  the  provisions  of  the  fifth  and  eleventh  sections 
of  this  act,  to  unite  a  cash  capital  to  any  extent  not  less  than  two 
hundred  thousand  dollars,  as  an  additional  security  to  the  members 
over  and  above  its  premiums  and  stock  notes,  which  additional 
cash  capital  shall  be  loaned  and  invested  as  provided  in  the  eighth 
section  of  this  act,  and  the  company  may  allow  an  interest  on  such 
cash  capital,  and  a  participation  in  its  profits;  but  no  such  interest 
shall  be  iiaid  except  out  of  the  actual  profits  of  such  company,  and 
no  company  shall  avail  itself  of  the  provisions  of  this  section  until 
such  cash  capital,  to  the  extent  of  at  least  one  hundred  thousand 
dollars,  shall  have  been  actually  paid  in,  in  cash ;  and  the  subscrib- 
ers to  such  cash  cai)ital,  whether  payable  in  fuU  or  by  installments, 
shall  each  be  individually  liable  for  the  debts  of  said  company  to 
the  extent  of  his  individual  subscription,  or  such  proportion  thereof 
as  shall  be  required  in  order  to  satisfy  the  debts  of  said  company, 
unless  he  shall  have  paid  his  subscription  in  full,  and  such  cash 
capital  shall  itself  be  liable  as  the  capital  stock  of  the  comijany  in 
the  payment  of  its  debts.  The  holders  of  the  said  cash  capital 
shall  be  entitled  in  the  election  of  trustees  to  one  vote  for  each  one 
hundred  dollars  of  stock  held  by  them  respectively,  and  the  trus- 
tees may  make  such  regulations  in  relation  to  the  certificates  of 
stock  to  be  issued,  and  the  transfer  thereof,  as  they  may  deem 
necessary  for  the  security  of  the  company  and  the  owners  of  the 
cash  capital.     {Ibid,  §  21,  as  amended  by  laws  o/1857,  chap.  oS,  §  2.) 

11«*.  This  act  shall  take  effect  immediately,  and  all  the  pro- 
visions herein  contained  shall  apj)ly  to  all  existing  companies  or- 
ganized for  the  imrposes  of  marine  insurance  under  said  act  passed 
April  tenth,  eighteen  hundred  and  forty -nine,  and  to  all  proceed- 
ings heretofore  had  or  now  pending  and  in  progiess  for  the  i)urpose 
of  uniting  a  cash  capital  to  the  other  funds  thereof.  {Laws  o/1857, 
chap.  38,  §  3.) 

114.  Any  mutual  insurance  company  heretofore  incorporated 
by  the  tState,  and  now  in  operation,  having  power  to  effect  marine 
insurance,  and  having  its  place  of  business  in  the  city  of  New  York, 
may  increase  its  cai>ital  or  fund  on  the  amount  of  accumulated  net 
profits  which  it  is  i)ermitted  to  retain  for  the  benefit  and  security  of 
its  dealers  to  any  amount  which  shall  be  deemed  expedient  by  its 
board  of  trustees ;  Provided,  however,  That  if  there  be  in  the  char- 
ter of  such  mutual  insurance  company  any  limitation  of  its  capital 
or  fund,  or  the  amount  of  net  profits  which  it  has  the  power  to  ac- 
cumulate and  retain,  such  increase  shall  not  take  place  unless  a 
written  consent  thereto,  under  the  corj^orate  seal  of  the  said  com- 
pany affixed  thereto  by  a  resolution  of  the  board  of  trustees  or 
directors,  certified  by  the  secretary,  shall  first  be  filed  in  the  office 
of  the  Superintendent  of  the  Insurance  Department  of  this  State ; 
and  Provided,  That  the  privilege  of  retaining  profits  over  one  mil- 
lion of  dollars  shall  not  be  exercised  by  any  company  availing  itself 
of  the  provisions  of  this  act,  until  a  sufficient  sum  shall  have  been 
applied  by  such  company,  according  to  the  provisions  of  its  charter, 


640  hike's  insurance  statutes. 

toward  the  redemption  of  all  certificates  or  premiums  heretofore 
issued  and  now  outstanding.  (§  22,  as  inserted  and  added  by  laws  of 
1855,  chap.  292.) 

115.  Any  fire  or  fire  and  marine  insurance  company  chartered 
by  this  State,  may  have  a  lien  by  passing  a  by-law  to  that  effect, 
upon  the  stock  or  certificate  of  profits  owned  by  any  member,  for 
any  debt  hereafter  to  become  due  the  said  company  for  premiums, 
by  stating  that  the  said  stock  is  subject  to  any  such  lieu  upon  the 
certificates  of  stocks  or  profits,  and  such  lien  may  be  waived  in  writ- 
ing by  the  consent  of  the  president  of  such  company  upon  the 
transfer  of  any  such  stock.     {Laws  o/18G2,  chap.  367,  §  6.) 

110.  It  shall  be  the  duty  of  the  Superintendent  of  the  Insur- 
ance Department,  whenever  he  shall  deem  it  expedient  so  to 
do,  to  appoint  one  or  more  persons,  not  officers  of  any  insurance  com- 
pany doing  business  in  this  State,  to  examine  into  the  affairs  of 
any  marine  insurance  company  incorporated  in  this  State,  or  doing 
business  by  its  agents  in  this  State  ;  and  it  shall  be  the  duty  of  the 
officers  and  agents  of  any  such  company  doing  business  in  this  State, 
to  cause  their  books  to  be  opened  for  the  inspection  of  the  person  or 
persons  so  appointed,  and  otherwise  to  facilitate  such  examination, 
so  far  as  it  may  be  in  their  power  to  do  ;  and  for  that  purpose  the 
said  Superintendent,  in  case  of  a  personal  examination,  or  the  per- 
son or  persons  so  appointed  by  him,  shall  have  power  to  examine, 
under  oath,  the  oiffcers  and  agents  of  any  company  or  others  rela- 
tive to  the  business  of  said  company ;  and  whenever  the  said  Su- 
perintendent shall  deem  it  for  the  interest  of  the  public  so  to  do,  he 
shall  publish  the  result  of  such  investigation  iu  one  or  more  papers 
in  this  State ;  and  whenever  it  shall  appear  to  the  said  Superinten- 
dent from  such  examination,  that  the  assets  of  any  company  incor- 
porated in  this  State  are  insuflQcient  to  justify  the  continuance  in 
business  of  any  such  comx>any,  or  in  case  of  a  joint-stock  company 
that  its  capital  is  impaired  twenty  per  cent.,  he  may  direct  the  offi- 
cers thereof  to  require  the  stockholders  to  pay  in  the  amount  of 
such  deficiency  within  such  period  as  he  may  designate  in  such  re- 
quisition, or  he  shall  communicate  the  fact  to  the  Attorney-General, 
whose  duty  it  shall  then  become  to  apply  to  the  Supreme  Court  for 
an  order  requiring  them  to  show  cause  why  the  business  of  such 
company  should  not  be  closed,  and  the  court  shall  thereupon  pro- 
ceed to  hear  the  allegations  and  proofs  of  the  respective  parties ; 
and  in  case  it  shall  appear  to  the  satisfaction  of  said  court  that  the 
assets  and  funds  of  said  company  are  not  sufficient,  as  aforesaid,  or 
that  the  interests  of  the  public  so  require,  the  said  court  shall  de- 
cree a  dissolution  of  said  compaii}^  and  a  distribution  of  its  effects. 
The  Supreme  Court  shall  have  power  to  refer  the  application  of  the 
Attorney -General  to  a  referee,  to  inquire  into  and  report  upon  the 
facts  stated  therein.  Any  company  receiving  the  aforesaid  requisi- 
tion from  the  said  Superintendent,  shall  forthwith  call  upon  its 
stockholders  for  such  amounts  as  will  make  its  capital  equal  to  the 
amount  fixed  by  the  charter  of  said  company;  and  in  case  any 
stockholder  of  such  company  shall  refuse  or  neglect  to  pay  the 
amount  so  called  for,  after  notice  personally  given  or  by  advertise- 
ment, in  such  time  and  manner  as  the  said  Superintendent  shall  ap- 
prove, it  shall  be  lawful  for  the  said  company  to  require  the  return 
of  the  original  certificate  of  stock  held  by  such  stockholder,  and  in 
lieu  thereof  to  issue  new  certificates  for  such  number  of  shares  as 
the  said  stockholder  may  be  entitled  to  in  the  proportion  that  the 


NEW  YORK.  641 

ascertained  value  of  the  funds  of  the  said  company  may  be  found  to 
bear  to  the  original  capital  of  the  said  company  ;  the  value  of  such 
shares  for  which  new  certificates  shall  be  issued  shall  be  ascertained 
under  the  direction  of  the  said  Superintendent,  and  the  company 
shall  pay  for  the  fractional  parts  of  shares;  and  it  shall  be  lawful 
for  the  directors  of  such  company  to  create  new  stock  and  dispose  of 
the  same,  and  to  issue  new  certificates  therefor,  to  an  amount  suffi- 
cient to  make  up  the  original  capital  of  the  company.  And  it  is 
hereby-  declared  that  in  the  event  of  ftoy  additional  losses  accruing 
upon  risks  taken  after  the  expiration  of  the  period  limited  by  the 
said  Superintendent,  in  the  aforesaid  requisition  for  the  filling  up  of 
the  deficiency  in  the  capital  of  such  company,  and  before  said  defi- 
ciency shall  have  been  made  up,  the  directors  shall  be  individually 
liable  to  the  extsnt  of  such  loss.  And  if,  upon  such  examination, 
it  shall  appear  to  the  said  Superintendent  that  the  assets  of  any 
company  chartered  on  the  plan  of  mutual  insurance  under  this  act 
and  doing  a  marine  business,  are  insuflBcient  to  justify  the  contin- 
uance of  such  company  in  business,  it  shall  be  his  duty  to  proceed 
in  relation  to  such  company  in  the  same  manner  as  is  herein  required 
in  regard  to  joint-st3ck  companies;  and  the  trustees  or  directors  of 
such  company  are  hereby  made  personally  liable  for  any  losses 
which  may  be  sustained  upon  ^isk^5  taken  after  the  expiration  of  the 
period  limited  by  the  said  Superintendent  for  filling  up  the  de- 
ficiency in  the  capital,  and  before  such  deficiency  shall  have  been 
made  up.  Any  transfer  of  the  stock  of  any  company  organized 
under  this  act,  made  during  the  pending  of  any  such  investigation, 
shall  not  release  the  party  making  the  transfer  from  his  liability  for 
losses  which  may  have  accrued  previous  to  the  transfer.  And  when- 
ever it  shall  appear  to  the  said  Superintendent,  from  the  report  of 
the  person  or  persons  appointed  by  him,  that  the  affairs  of  any  com- 
pany, not  incorporated  by  the  laws  of  this  State,  are  in  an  unsound 
condition,  he  shall  revoke  the  certificates  granted  in  behalf  of  such 
company,  and  shall  cause  a  notification  thereof  to  be  published  in 
the  State  paper  for  four  weeks ;  and  the  agent  or  agents  of  such 
company  shall  not,  after  such  notice,  issue  any  new  policy  and  shall 
not  renew  any  previously  issued.  (§  22,  as  inserted  and  added  by  laws 
o/iHm,  chap,  oil.) 

117.  Any  marine  mutual  insurance  company  heretofore  char- 
tered by  the  Legislature  of  this  State  under  a  special  act,  or  any 
marine  mutual  insurance  company  now  incorporated,  or  which  may 
hereafter  be  incorporated  under  any  general  act  or  law  of  this  State, 
shall  have  power  to  create  or  unite  with  its  existing  cor[)orate  funds, 
if  it  have  any  such  funds,  a  cash  cai)ital  of  not  less  than  three  hun- 
dred thousand  dollars,  to  be  divided  into  shares  of  one  hundred 
dollars  each,  to  be  issued  to  su(^h  persons  as  shall  subscribe  and 
pay  for  the  same  ;  which  shares  shall  be  transferable  only  on  the 
books  of  the  company,  subject  to  such  regulations  as  the  trustees 
shall  from  time  to  time  prescribe.     {Laics  o/1857,  chap.  28,  §  1.) 

118.  The  profits  of  the  business  of  every  coi'poration  which 
shall  avail  itself  of  the  provisions  of  this  act,  after  setting  apart 
therefrom  a  sufficient  sum  to  cover  the  payment  of  seven  per  cent, 
per  annum  upon  the  cash  capital,  and  also  the  intercvst  accruing 
upon  any  outstanding  scrip  or  certificates  of  such  company,  shall  be 
divided  between  the  stockholders  and  others  entitled  by  its  charter 
or  articles  of  association  to  participate  in  its  profits,  in  the  following 
manner,  viz. :   one-third  thereof,  or  such  other  i)roportion  not  ex- 

41 


042  hine's  insukance  statutes. 

ceeding  that  rate  as  may  be  determined  and  ajireed  upon  at  the 
time  when  the  subscriptions  to  the  cash  stock  thereof  are  made,  to 
be  paid  to  the  stockholders  in  casli,  and  the  remainder  thereof  to 
the  i)ersons  entitled  by  its  charter  or  articles  of  association  to  par- 
ticipate in  its  profits,  to  whom  scrip  or  certificates  therefor  shall  be 
issued  as  pro^dded  in  said  charter  or  articles  of  association ;  but  it 
shall  be  competent  for  such  company  to  exclude  from  the  computa- 
tion of  premiums  entitled  to  participate  in  such  profits,  premiums 
or  risks  on  which  loss  shall  have  happened.  The  fund  represented 
by  the  scrip  shall  constitute  a  surplus  or  reserve  ot  such  companj- 
for  the  secui'ity.and  payment  of  losses,  and  be  liable  for  any  excess 
of  losses  and  expenses  above  the  earned  premiums  of  any  year ; 
each  later  annual  issue  of  scrip  always  to  be  first  reduced  or  wholly 
canceled  before  any  previous  annual  issue  is  at  all  reduced,  and 
all  the  issues  of  scrip  to  be  liable  to  reduction  and  cancellation  be- 
fore the  capital  stock  shall  be  encroached  upon.     {Ibid,  §  2.) 

119.  Whenever  the  cash  stock  paid  in  shall  amount  to  three 
hundred  thousand  dollars  or  more,  the  trustees  may,  by  a  vote  of 
three-fourths  of  their  whole  number,  convert  the  certificates  of 
profits,  in  whole  or  in  part,  into  cash  stock,  commencing,  if  in  part, 
with  the  certificates  of  the  year  of  earliest  issue  outstanding,  and  so 
on  in  succession,  upon  application  therefor  being  made  to  the  com- 
pany by  the  holders  thereof  within  such  period  of  time,  and  at  such 
a  price,  not  exceeding  its  jjar  value,  and  under  such  conditions  and 
regulations  as  the  trustees  may  fix  and  establish  for  that  purpose, 
and  whenever  the  cash  stock  shall  amount  to  five  hundred  thousand 
dollars  or  more,  the  trustees  may,  by  a  like  vote,  call  in  and  redeem 
and  cancel  the  outstanding  certiicates  of  profits,  and  make  the  com- 
pany wholly  a  cash  stock  company,  dividing  all  its  profits  to  the 
cash  stockholders ;  and  the  trustees  shall  have  power  to  make  all 
necessary  by-laws  and  regulations  to  conform  to  such  changes  in 
the  business  of  the  company.     [Ibid,  §  3.) 

1 120,  The  holders  of  the  cash  capital  i)aid  in  shall  be  entitled 
to  one  vote  at  all  elections  of  said  company  for  each  share  of  said 
stock  held  by  them  respectively,  such  votes  to  be  given  either  in 
person  or  by  proxy ;  and  no  person  shall  be  entitled  to  vote  at  any 
election  by  reason  of  being  the  holder  of  a  policy  issued  after  such 
cash  capital  is  paid  in,  or  of  being  the  holder  of  any  scrip  or  certifi- 
cate of  profits  of  such  company  issued  after  that  time,  unless  other- 
wise provided  for  in  the  articles  of  subscription  to  the  said  cash 
capital.    (Ibid,  §  4.) 

\*H.  It  shall  not  be  lawful  for  such  company,  except  as  pro- 
vided in  the  third  section  of  this  act,  to  apply  any  of  its  funds  or 
profits  to  the  redemption  or  payment  of  any  certificate  of  profits,  if 
i)y  such  })ayment  the  aggregate  of  its  cash  capital,  and  its  accumu- 
lated profits  together,  shall  be  reduced  below  the  amount  which 
shall  have  been  fixed  by  its  by-laws  or  articles  of  association,  and 
such  aggregate  amount  shall  not  be  fixed  below  the  sum  of  one 
million  of  dollars,  in  addition  to  the  amount  of  the  cash  stock 
thereof.   [Ibid,  §  5.) 

l!22.  Each  subscriber  to  the  cash  capital  aforesaid  shall  be 
individually  liable,  to  the  extent  of  his  subscription,  for  the  dues 
of  the  corporation,  until  the  shares  of  stock  subscribed  for  by  him 
shall  have  been  paid  in  cash  to  the  said  corporation.     {Ibid,  §  6.) 

iJja.  This  act  shall  not  be  so  construed  as  to  extend  or  pro- 
long any  special  charters  beyond  the  period  for  which  the  same 


NEW   YORK.  643 

were  originally  granted,  or  to  apply  to  or  revive  any  charter  under 
whicli  any  company  is  not  now  actually  transacting  business.  {Ibid, 
§7.) 

134.  If  any  marine  insurance  company  organized  under  the 
laws  of  this  State,  having  paid  a  loss,  shall  receive  a  sum  derived 
from  the  Geneva  award,  by  way  of  reimbursement  of  that  loss,  it 
shall  be  lawful  for  such  company  to  divide  the  net  amount  so  re- 
ceived, after  deducting  the  expenses  and  liabilities  relating  thereto, 
among  the  persons  or  parties  who  paid  premiums  and  suffered  by 
the  payment  of  the  original  loss,  or  were  prevented  from  receiving 
so  much  as  they  otherwise  would  have  received  by  occasion  of  that 
loss,  instead  of  dividing  the  same  among  the  more  recent  scrip 
holders  or  dealers  with  such  company;  such  division  to  be  in 
the  form  of  an  extra  dividend,  or  extra  dividends  upon  the  plan 
contemplated  by  the  charter  of  such  company,  subject  to  all  just 
claims  for  debts  and  liabilities,  and  payable  to  the  same  persons  or 
their  representatives,  and  in  like  manner  as  the  money  from  which 
the  loss  w^as  originally  paid  would  have  been  payable  if  the  loss  had 
not  been  borne  by  the  company,  and  the  action  of  the  board  of  di- 
rectors or  trustees  in  ascertaining  the  amount  and  making  such  ex- 
tra dividend  or  dividends  shall  have  the  like  force  and  effect  as  their 
action  in  making  and  declaring  dividends  under  the  charter.  (Laws 
oflS13,chap.6U,  §  1.) 


LIFE,  HEALTH  AND  CASUALTY  INSURANCE  COMPANIES 

AND  AGENCIES. 

135.  Any  number  of  persons,  not  less  than  thirteen  in  num- 
ber, may  associate  and  form  an  incorporation  or  company  for  the 
purposes  specified  in  either  of  the  following  departments : 

First  Department.— To  make  insurance  upon  the  lives  of  individ- 
uals and  every  insurance  a])pertaining  thereto  or  connected  there- 
with, and  to  grant,  purchase  or  dispose  of  annuities. 

Second  Department  — To  make  insurance  upon  the  health  of  in- 
dividuals and  against  personal  injury,  disablement  or  death  result- 
ing from  traveling  or  general  accidents  by  land  or  water,  and  guar- 
anteeing the  fidelity  of  jjersons  holding  places  of  public  or  private 
trust,  and  upon  the  lives  of  horses,  cattle  and  other  live  stock,  and 
also  against  loss,  damage  or  liability  arising  from  any  unknown  or 
contingent  event  whatever,  which  may  be  the  subject  of  legal  insur- 
ance, excei>t  the  perils  and  risks  included  within  the  departmenta 
of  fire,  marine  and  life  insurance. 

Every  comijany  organized  under  this  act  shall  have  authority  to 
reinsure  any  risk  herein  authorized  to  be  undertaken.  {Laws  of 
1853,  cJiap.  463,  §  1 ;  «s  amended  by  laws  of  1865,  chap.  328,  §  1.) 

1 30.  The  amount  of  capital  necessary  for  the  organization  of 
a  company  under  the  second  department  contained  in  the  first  sec- 
tion of  said  act,  and  the  deposit  of  securities  required  to  be  made 
in  the  Insurance  Department  for  the  benefit  of  policy-holders,  shall 
hereafter  be  at  least  one  hundi-ed  thousand  dollars,  in  lieu  of 
twenty-five  thousand  dollars,  as  heretofore  required,  and  such  de- 
posit shall  consist  of  the  same  securities  required  of  life  insurance 
companies.     {Laics  of  1865,  chap.  328,  §  2.) 

127.  No  company  organized  under  this  act  for  the  purposes 
named  in  the  first  department,  shall  undertake  either  of  the  risks 


644  hike's  insurance  statutes. 

mentioned  in  the  second  department ;  nor  shall  any  company  or- 
ganized under  this  act,  for  the  purposes  named  in  the  second  de- 
jiartment,  undertake  any  business  mentioned  in  the  first  department ; 
and  no  company  organized  under  this  act  shall  undertake  any  busi- 
ness or  risks,  except  as  herein  provided.  No  company,  partnership  or 
association,  organized  or  incorporated  by  or  under  the  laws  of  this 
or  any  other  State  of  the  United  States,  or  any  foreign  government 
transacting  the  business  of  life  insurance  in  this  State,  shall  be  per- 
mitted or  allowed  to  take  any  other  kind  of  risks  except  those  con- 
nected with  or  appertaining  to  making  insurance  on  life,  and  the 
granting,  purchasing  and  disi^osing  of  annuities ;  nor  shall  the 
business  of  life  insurance  in  this  State  be  in  any  wise  conducted  or 
transacted  by  any  company,  partnership  or  association,  which  in 
this,  or  any  other  State  or  country,  makes  insurance  on  murine  or 
fire  risks,  excepting  by  such  foreign  companies  and  associations  as 
shall  have  already  made  the  deposit  in  the  Insurance  Department 
required  for  the  transaction  of  life  insurance  business  in  this  State. 
{Laws  of  1853,  chap.  463,  §  2,  as  amended  by  laws  of  1802,  chap.  300,  §  1.) 

128.  The  i)ersons  referred  to  in  the  first  section  of  this  act 
shall  be  designated  as  corporators,  and  they  shall  file  in  the  office  of 
the  Superintendent  of  the  Insurance  Department  a  declaration 
signed  by  each  of  the  corporators,  setting  forth  their  intentions  to 
form  a  company  for  the  purposes  named  in  this  act,  which  declara- 
tion shall  comprise  a  copy  of  the  charter  they  propose  to  adopt ; 
and  the  said  charter  shall  set  forth  the  name  of  the  company,  the 
place  where  it  is  to  be  located,  the  kind  of  business  to  be  under- 
taken, by  referring  to  and  repeating  the  department  of  the  first  sec- 
tion of  this  act  to  which  they  refer;  the  mode  and  manner  in  which 
the  corporate  powers  of  the  company  are  to  be  exercised ;  the  man- 
ner of  electing  the  trustees  or  directors  and  officers,  a  majority  of 
whom  shall  be  citizens  of  this  State,  and  the  time  of  such  election  ; 
the  manner  of  filling  vacancies ;  the  amount  of  capital  to  be  em- 
ployed ;  and  such'  other  particulars  as  may  be  necessary  to  explain 
and  make  manifest  the  objects  and  purposes  of  the  company,  and 
the  manner  in  which  it  is  to  be  conducted.  And  the  Superintend- 
ent of  the  Insurance  Department  shall  have  the  right  to  reject  any 
name  or  title  of  any  company  ap|)lied  for  or  in  ])rocess  of  organiza- 
tion, when  he  shall  deem  the  name  or  title  too  similar  to  one 
already  appropriated,  or  likely  to  mislead  the  jiublic  in  any  respect. 
All  charters  on  file,  or  hereafter  to  be  filed,  in  the  Insurance 
Department,  shall  be  considered  as  abandoned  and  become  inoper- 
ative and  void,  unless  the  corporators  perfect  their  organization 
thereunder,  and  make  the  deposit  of  one  hundred  thousand  dollars 
in  the  Insurance  Department  for  the  protection  of  policy-holders, 
as  required  by  this  act,  within  the  i)eriod  of  two  years  trom  the  date 
of  filing  such  charter,  {Ibid,  §  3,  as  amended  by  Laws  of  1809, 
chap.  404,  §  1.) 

129.  The  provisions  of  the  third  section  of  chapter  four  hun- 
dred and  sixty -three  of  the  laws  of  eighteen  hundred  and  fifty-three, 
requiring  a  majority  of  the  trustees  or  directors  of  life  and  health 
insurance  companies  bo  be  citizens  of  this  State,  are  hereby  de- 
clared to  be  applicable  to  such  companies  incorporated  by  special 
acts  of  the  legislature  ;  and  no  greater  number  than  a  majority,  as 
aforesaid,  shall  hereafter  be  required  to  be  residents  of  this  State. 
{Laws  0/1869,  chap.  634,  §  1.) 

130.  Whenever  the  corporators  shall  file  such  declaration 


NEW   YORK.  645 

with  tlie  Superintendent  of  the  Insurance  Department,  it  shall 
become  his  duty  to  submit  the  same  to  the  Attorney-General  for 
examination  ;  and,  if  found  by  him  to  be  in  accordnuce  with  the 
provisions  of  this  act,  and  not  inconsistent  with  the  Constitution 
and  laws  of  the  United  States  and  of  this  State,  he  shall  certify  to 
the  same  and  deliver  it  back  to  the  said  Superintendent,  who  shall 
cause  the  said  declaration,  with  the  certificate  of  the  Attorney- 
General,  to  be  recorded  in  a  book  to  be  kept  for  that  purpose,  and, 
upon  application  of  the  corporators  to  the  said  Superintendent,  it 
shall  become  his  duty  to  furnish  a  certified  copy  of  such  declaration 
and  certificate  to  the  said  cori)orators.    (Laws  o/ 1853,  chap.  463,  §  4.) 

IJJl.  Whenever  the  corporators  shall  have  received  from  the 
said  Su])3rintendent  the  cortifled  copy  provided  for  in  the  last  sec- 
tion, and  desire  to  proceed  to  organize  such  comyjauy,  they  shall 
publish  their  intentions  in  the  paper  in  which  the  State  notices  are 
directed  to  be  inserted ;  and  when  such  intentions  have  been  pub- 
lished in  said  pa])er  for  six  weeks,  they  may  oi)en  books  to  receive 
subscriptions  to  the  capital  stock,  and  keep  such  books  open  until 
the  amount  required  by  this  act  is  subscribed,  and  may  then  pro- 
ceed to  distribute  the  stock  among  the  subscribers,  if  more  than  the 
necessary  amount  is  subscribed,  and  proceed  to  collect  in  the  said 
capital  and  complete  the  orgajiization  of  the  company.      (Ibid,  §  5.) 

1 J52.  No  company  shall  be  organized  under  this  act,  for  the 
purposes  mentioned  in  the  first  department,  with  a  less  capital  than 
one  hundred  thousand  dollars,  and  no  company  shall  be  organized, 
for  the  purposes  mentioned  in  the  second  department,  with  a  less 
capital  than  one  hundred  thousand  dollars.  The  whole  capital  of 
such  company  shall,  before  proceeding  to  business,  be  paid  in  and 
invested  in  stocks  or  in  treasury  notes  of  the  United  States  or  of 
the  State  of  New  York,  or  in  bonds  and  mortgages  on  improved 
unincumbered  real  estate  within  the  State  of  New  York,  worth 
seventy-five  per  cent,  more  than  the  amount  loaned  thereon,  exclu- 
sive of  farm  buildings  thereon,  or  in  such  stocks  or  securities  as  now 
are  or  may  hereafter  be  receivable  by  the  bank  department.  And 
it  shall  be  lawful  for  any  company  organized  under  this  act,  to 
change  and  reinvest  its  capital  or  any  part  thereof,  at  any  time  they 
may  desire,  in  the  stocks  or  bonds  and  mortgages  or  securities  afore- 
said. No  company  organized  for  the  purposes  mentioned  in  the 
first  department  shall  commence  business  until  they  have  deposited 
"with  the  Superintendent  of  the  Insurance  Department  of  this  State 
the  sum  of  one  hundred  thousand  dollars  in  United  States  or  New 
York  State  stocks,  in  all  cases  to  be,  or  to  be  made  to  be,  equal  to 
stock  producing  six  per  cent,  per  annum,  and  not  to  be  received  at 
a  rate  above  their  par  value,  or  above  their  current  market  value, 
or  in  bonds  and  mortgages  of  the  description  and  character  above 
ifidicated,  and  no  company  organized  for  the  puiposes  named  in  the 
second  department  shall  commence  business  until  they  have  depos- 
ited with  the  Superintendent  of  the  Insurance  Department  of  this 
State  at  least  the  sum  of  one  hundred  thousand  dollars,  invested  as 
hereinbefore  provided  for  the  investment  of  the  capital  of  such 
company.  The  Superintendent  of  the  Insurance  Department  shall 
hold  such  securities  as  security  for  the  policy-holders  in  said  com- 
panies, but,  so  long  as  any  company  so  depositing  shall  continue 
solvent,  may  permit  such  company  to  collect  the  interest  or  divi- 
dends on  its  securities  so  deposited,  and,  from  time  to  time,  to  with- 
draw any  of  such  securities  on  depositing  with  the  said  Superin- 


646  hine's  insurance  statutes. 

tendent  such  other  securities  of  like  vahie  as  those  withdrawn,  and 
of  the  same  character,  and  to  be  received  as  those  above  mentioned. 
{Ibid,  §  6,  as  amended  by  laics  of  1853,  chap.  551,  §  1,  %  laws   of 
1860,   chap.  328,  §  1,  and  by  Imvs  of  1862,  chap.  300,  §  2,  as  modi- 
fied hy  laws  o/1865,  chap.  328,  §  2.) 

13JJ.  Any  life  insurance  company,  or  any  trust  or  loan  com- 
pany, may,  by  the  direction  and  consent  of  two-thirds  of  their 
respective  boards  of  directors,  managers,  or  finance  committee,  pur- 
chase or  invest,  biy'^loan  or  otherwise,  any  of  their  funds  in  the  bonds 
issued  by  any  county,  town,  or  village  of  this  State,  pursuant  to 
any  law  of  this  State,  anything  in  the  charter  of  either  of  said  com- 
]>anies  to  the  contrary  notwithstanding.  {Laws  of  1868,  cJiap. 
482,  §  1.) 

134.  Whenever  the  corporators  shall  have  fully  organized 
such  company,  and  the  said  company  have  deposited  with  the  said 
Superintendent  the  requisite  amount  of  capital,  it  shall  become  his 
dnty  to  furnish  the  corporation  with  a  certificate  of  such  deposit, 
which,  with  a  certified  co])y  of  the  papers  previously  required  imder 
this  act,  shall,  when  filed  in  the  County  Clerk's  ofiice  of  the  county 
where  such  company  is  to  be  located,  be  the  authority  to  commence 
business  and  issue  policies,  and  the  same  may  be  used  in  evidence 
for  and  against  the  corporation  in  all  suits.  (Laws  of  1853,  chap. 
463,  §  7.) 

13o.  It  shall  be  the  duty  of  either  the  president  or  secretary, 
or  actuary,  of  every  insurance  company  having  securities  deposited 
in  the  office  of  the  Superintendent  of  the  Insurance  Department  of 
this  State,  once  or  more  during  each  calendar  year,  and  at  such 
time  or  times  during  the  ordinary  business  hours  as  said  insurance 
company  may  select,  to  examine  and  compare  such  securities  with 
the  books  of  said  department,  and,  if  found  correct,  to  execute  to  the 
Superintendent  of  the  Insurance  Department  a  receipt  or  certificate 
setting  forth  in  the  same  the  different  kinds  and  the  amounts 
thereof,  and  that  the  same  are  in  the  possession  and  custody  of  the 
Superintendent  at  the  date  of  such  receipt.  {Laws  of  1869,  chap. 
902,  §  16.) 

136.  It  shall  be  lawful  for  any  company  organized  under  this 
act,  to  invest  its  funds  or  accumulations  in  bonds  and  mortgages, 
on  unincumbei*ed  real  estate  within  the  State  of  New  York,  and 
also  ou  unincumbered  real  estate  located  outside  of  said  State,  and 
within  fifty  miles  of  the  city  of  New  York,  worth  fifty^  per  cent, 
more  than  the  sum  so  loaned  thereon,  or  in  stocks  of  the  United 
States,  stocks  of  this  State,  or  of  any  incorporated  city  in  this 
State,  if  at  or  above  par,  and  any  stocks  created  under  the  laws  of 
this  State,  that  shall  be,  at  the  time  of  such  investment,  at  a  market 
value  in  the  city  of  New  York,  at  or  above  par.  {Laivs  of  1853, 
chap.  463,  §  8,  as  amended  by  laws  of  1860,  chap.  328,  §  2,  hy  laws 
of  1862,  chap.  300,  §  3,  by  laws  of  1866,  chap.  525,  §  1,  afid  by  laws 
0/1868,  chap.  31S,  §  1.) 

137.  This  act  shall  apply  to  all  life  insurance  companies 
organized  under  any  laws  of  this  State.  {Laws  of  1868,  chap. 
318,  §2.) 

138.  Any  company  organized  under  the  acts  to  which  this  is 
an  amendment,  having  first  obtained  the  consent  of  the  Superin- 
tendent of  the  Insurance  Department  thereto  in  writing,  may, 
by  a  vote  of  a  majority  of  their  directors,  accept  the  provisions  of 


NEW   YORK.  647 

this  act,  or  any  of  tbera,  and  amend  their  charter  to  conform  to  the 
same.     (Laws  of  1860,  chap.  328,  §  3.) 

1 39.  No  company  organized  under  this  act  shall  be  permitted 
to  purchase,  hold  or  convey  real  estate,  except  for  the  purposes  and 
in  the  manner  herein  set  forth,  to  wit : 

1.  Such  as  shall  be  requisite  for  its  accommodation  in  the 
transaction  of  its  business ;  or, 

2.  Such  as  shall  have  been  acquired  for  the  accommodation 
of  its  business  previous  to  the  passage  of  this  act ;  or, 

3.  Such  as  shall  have  been  mortgaged  to  it  in  good  faith,  by 
way  of  security  for  loans  previously  contracted,  or  for  moneys 
due ;  or, 

4.  Such  as  shall  have  been  conveyed  to  it  in  satisfaction  of 
debts  previously  contracted  in  the  course  of  its  dealings ;  or, 

5.  Such  as  shall  have  been  purchased  at  sales  upon  judg- 
ments, decrees  or  mortgages  obtained  or  made  for  such  debts ; 

and  it  shall  not  be  lawful  for  any  company  incorporated  as  afore- 
said to  purchase,  hold  or  convey  real  estate  in  any  other  case,  or 
for  any  other  purpose ;  and  all  such  real  estate  as  may  be  acquired 
as  aforesaid,  and  which  shall  not  be  necessary  for  the  accommoda- 
tion of  such  company  in  the  convenient  transaction  of  its  business, 
or  M  hich  shall  not  have  been  necessary  for  such  purpose  at  the  time 
of  its  acquisition,  shall  be  sold  and  disposed  of  within  five  years 
after  such  company  shall  have  acquired  title  to  the  same ;  and  it 
shall  not  be  lawful  for  such  company  to  hold  such  real  estate  for  a 
longer  period  than  that  above  mentioned,  unless  the  said  company 
should  procure  a  certificate  from  the  Superintendent  of  the  Insur- 
ance Department  that  the  interests  of  the  company  will  suffer  ma- 
terially by  a  forced  sale  of  such  real  estate,  in  which  event  the  time 
for  the  sale  may  be  extended  to  such  time  as  the  said  Superintend- 
ent shall  direct  in  said  certificate.  This  act  shall  apply  to  all  life 
insurance  companies  organized  under  any  laws  of  this  State.  {Laws 
0/1853,  chap.  463,  §  9;  as  amended  by  laws  o/1875,  chap.  170,  §§  1,  2.) 

140.  The  corporators  or  the  tnistees  or  directors,  as  the  case 
may  be,  of  any  company  organized  under  this  act,  shall  have  power 
to  adopt  a  seal,  and  to  make  such  by-laws,  not  inconsistent  with 
this  act  or  the  constitution  and  laws  of  this  State,  as  may  be  deemed 
necessary  for  the  management  of  its  affairs ;  and  suits  at  law  may 
be  maintained  by  any  cor])oration  formed  under  this  act,  against 
any  of  its  members  or  stockholders,  for  any  cause  relating  to  the 
business  of  such  company ;  also,  suits  at  law  may  be  prosecuted 
and  maintained  by  any  member  or  stockholder  of  such  corporation 
for  losses  which  may  have  accrued,  if  payment  is  withheld  more 
than  two  months,  on  all  risks,  after  such  losses  shall  have  been  due. 
(Ibid,  §  10.) 

141.  All  companies  formed  under  this  act  shall  be  deemed 
and  taken  to  be  bodies  corporate  and  politic,  in  fact  and  in  name, 
and  shall  be  subject  to  all  the  provisions  of  the  Revised  Statutes  in 
relation  to  corporations,  so  far  as  the  same  are  api^licable,  except  in 
regard  to  annual  statements  and  other  matters  herein  otherwise 
specially  pro\ided  for.     {Ibid,  §  11.) 

1 42.  It  shall  be  the  duty  of  the  president  or  vice-president 
and  secretary  or  actuary,  or  a  majority  of  the  trustees  of  each  com- 
pany organized  under  the  laws  of  this  State,  annually,  on  the  first 
day  of  January,  or  within  sixty  days  thereafter,  to  prepare,  under 


648  hine's  insurance  statutes. 

oatli,  and  deposit  in  the  office  of  the  Superintendent  of  the  lusuf- 
ance  Department  of  the  State,  a  statement,  showing: 

1.  The  number  of  policies  issued  during  the  year. 

2.  The  amount  of  insurance  effected  thereby. 

3.  Amount  of  premiums  received  during  the  year. 

4.  Amount  of  interest  and  all  other  receipts,  specifying  the 
items. 

5.  Amount  of  losses  i)aid  during  the  year. 

6.  Amount  of  losses  unpaid. 

7.  Amount  of  expenses. 

8.  Whole  number  of  policies  in  force. 
,  9.  Amount  of  liabilities  or  risks  thereon,  and  of  all  other  lia- 
bilities. 

10.  Amount  of  capital  stock. 

11.  Amount  of  accumulation,  specifying  whether  received  up- 
on life  insurance,  annuities,  or  how  otherwise. 

12.  Amount  of  assets  and  manner  in  which  they  are  in- 
vested, specifying  the  amount  in  real  estate,  on  bond  and 
mortgage,  stocks,  loans  on  stocks,  premium  notes,  credits  or 
other  securities. 

13.  Amount  of  dividend  unpaid. 

14.  A  tabular  statement  of  the  policies  in  force  for  the  whole 
term  of  life,  showing  how  many  thereof,  for  each  age  of  life,  and 
for  what  amount  of  risk,  were  issued  or  in  force  during  the 
first  year  of  the  existence  of  the  company,  during  the  second 
year,  and  so  on  up  to  the  time  of  making  such  statement. 

15.  A  tabular  statement  of  the  policies  in  force  for  a  shorter 
period  than  the  whole  term  of  life,  showing  how  many  thereof 
for  each  age  of  life,  and  for  what  amount  of  risk,  were  issued 
or  continued  in  force  during  the  first  year  of  the  company's  exist- 
ence, during  the  second  year,  and  so  on  up  to  the  time  of  mak- 
ing such  statement. 

The  Superintendent  of  the  Insurance  Department  shall  cause  to 
be  prepared,  and  furnished  to  every  company  to  which  this  act  shall 
apply,  printed  forms  of  the  statements  herein  required;  and  he  may 
make  such  changes  from  time  to  time,  in  the  form  of  the  same,  as 
shall  seem  to  him  best  adapted  to  elicit  from  said  companies  a  true 
exhibit  of  their  condition  in  respect  to  the  several  points  herein 
before  enumerated.     (Ibid,  §  12.) 

143.  It  shall  be  the  duty  of  the  Superintendent  of  the  Insur- 
ance Department  to  arrange  the  information  contained  in  the  state- 
ments required  in  the  last  section  in  a  tabular  form,  or  in  abstracts, 
and  to  prepare  the  same  for  printing  in  his  annual  report  to  the 
legislature.  It  shall  also  be  the  duty  of  the  said  Superintendent,  at 
least  once  in  every  five  years,  and  annually  in  his  discretion,  to  make 
valuations  of  all  the  outstanding  policies,  additions  thereto,  unpaid 
dividends  and  all  other  obligations  of  every  American  life  insurance 
company  transacting  business  in  this  State  ;  and  for  the  purposes  of 
such  valuations,  and  for  making  special  examinations  under  the 
seventeenth  section  of  this  act,  and  for  valuing  registered  life  and 
other  policies  under  chapter  708  of  the  laws  of  eighteen  hundred  and 
sixty-seven,  the  rate  of  interest  assumed  shall  be  four  and  a-half 
per  cent,  per  annum,  and  the  rate  of  mortality  shall  be  that  estab- 
lished by  the  American  Experience  Table,  in  which  table  the  expec- 
tation of  life  and  the  numbers  of  living  and  dying  at  each  age  from         li 


NEW   YORK.  649 

ten  to  ninety-five  out  of  one  hundred  thousand  persons  living  at  age 
ten,  are  as  stated  in  the  schedule  hereto  annexed. 

[The  "  Schedule"  is  simply  the  American  Experience  Table  of  Mortality,  with 
which  the  companies  are  fimiliar  and  which  is  easily  acces^sible  elsewhere.  We 
therefore  omit  its  republication  in  this  place —Editor.] 

The  Superintendent  may,  in  his  discretion,  vary  the  above  stand- 
ards of  interest  and  mortality,  in  cases  of  companies  from  foreign 
countries,  and  in  particular  cases  of  invalid  lives  or  other  extra  haz- 
ards. The  Superintendent  may  also,  in  his  discretion,  value  policies 
in  groups,  use  approximate  averages  for  fractions  of  a  year  and 
otherwise,  and  calculate  values  by  the  net,  the  actual  or  the  gross 
premiums  or  otherwise,  deducting,  in  cases  of  gross  valuations,  from 
the  gross  value  of  future  premiums,  one-sixth  thereof,  for  future 
expenses  and  contingencies.  The  Superintendent  may,  in  his  dis- 
cretion, accept  the  valuation  of  the  department  of  insurance  of  any 
other  State  in  place  of  the  valuation  required  in  this  act,  provided 
the  insurance  oflBcer  of  such  State,  does  not  refuse  to  accept,  as  suf- 
ficient and  valid  for  all  purposes,  the  certificate  of  valuation  of  the 
Insurance  Department  of  this  State.  {Ibid,  §  13,  as  amended  by 
laws  of  186G,  chap.  785,  §  1,  6y  laws  of  1868,  chap.  623,  §  1,  and  by 
laws  0/1873,  chap.  849,  §  1.] 

144.  The  Superintendent  of  the  Insurance  Department  is 
hereby  authorized  and  empowered  to  address  any  inquiries  to  any 
life  or  casualty  insurance  (company,  or  the  secretary  thereof,  in  rela- 
tion to  its  doings  or  condition,  or  any  other  matter  connected  with 
its  transactions ;  and  it  shall  be  the  duty  of  any  company  so  ad- 
dressed to  promptly  reply  in  writing  to  any  such  inquiries,  under 
the  same  penalties  proAided  in  similar  cases  for  fire  insurance  com- 
j)anies,  an<l  failing  to  answer,  it  shall  not  be  authorized  to  trans- 
act any  business  in  this  Stale,  and  its  certificates  of  authority  may 
be  revoked  and  canceled-.  {Laws  of  1867,  chap.  708,  §  7,  as  amended 
by  laws  of  1869,  chap.  902,  §  14.) 

149l.  It  shall  not  be  lawful  for  any  i)erson  to  act  within  this 
State,  as  agent  or  otherwise,  in  receiving  or  procuring  applications 
for  insurance,  or  in  any  manner  to  aid  iu  transacting  the  business  of 
insurance,  referred  to  in  the  first  section  of  this  act,  for  any  com- 
pany or  association  incorporated  by  or  organized  under  the  laws  of 
any  other  State  government,  unless  such  company  is  possessed  of 
tlie  amount  of  actual  capital  required  by  the  sixth  section  of  this 
act  for  companies  in  this  State,  and  the  same  is  invested  in  stocks 
or  treasury  notes  of  the  United  States,  or  of  the  State  of  New  York, 
or  of  the  State  in  which  said  company  is  located,  or  on  bonds  and 
mortgages  on  imi)roved  unincumbered  real  estate  within  the  State 
where  such  company  is  located,  or  in  such  stocks  or  securities  as  now 
are,  or  may  hereafter  be,  receivable  by  the  Bank  Department;  but 
all  mortgages  deposited  by  any  company  under  this  section  shall  be 
upon  improved  unincumbered  real  estate,  worth  s^eventy-five  per 
cent,  more  than  the  amount  loaned  thereon,  which  stocks  and  se- 
curities shall  be  deposited  with  the  Auditor,  Comptroller,  or  chief 
financial  oflQcer  of  the  State,  by  whose  laws  said  company  is  incor- 
porated, and  the  Superintendent  of  the  Insurance  Dei)artment  of 
this  State,  furnished  with  the  certificate  of  such  Auditor,  Comptroller, 
or  chief  financial  ofiicer  aforesaid,  under  his  hand  and  official  seal, 
that  he,  as  such  Auditor,  Comptroller,  or  chief  financial  ofiicer  of 
such  State,  holds  in  trust  and  on  deposit,  for  the  benefit  of  all  the 


650  hine's  insurance  statutes. 

policy-holders  of  such  company,  the  security  before  mentioned, 
which  certificate  shall  embrace  the  items  of  the  security  so  held, 
that  he  is  satisfied  that  such  securities  are  worth  one  hundred  thou- 
sand dollars,  if  the  company  proposes  to  transact  the  business  re- 
ferred to  in  the  first  department,  or  that  they  are  worth  one  hundred 
thousand  dollars,  if  the  company  proposes  to  transact  the  business 
referred  to  in  the  second  department.  But  nothing  herein  contained 
shall  be  construed  to  invalidate  the  agency  of  any  company  incor- 
porated by  another  State  by  reason  of  such  company  having,  from 
time  to  time,  exchanged  the  securities  so  deposited  with  the  Auditor, 
Comptroller,  or  chief  financial  ofBcer  of  the  State  in  which  such 
company  is  located,  for  other  stock  or  securities,  authorized  by  this 
act,  or  by  reason  of  such  company  having  drawn  its  interest  and 
dividends,  from  time  to  time,  for  such  stocks  and  securities.  Such 
company  shall  also  appoint  an  attorney  in  this  State,  on  whom  pro- 
cess of  law  can  be  served ;  and  such  attorney  shall  file  with  the 
Superintendent  of  the  Insurance  Department  a  certified  copy  of  the 
charter  of  said  company,  and  also  a  certified  copy  of  the  vote  or 
resolution  of  the  trustees  or  directors  of  the  said  company  appoint- 
ing such  attorney,  which  appointment  shall  continue  until  another 
attorney  be  substituted.  And,  in  case  any  such  insurance  corpora- 
tion shall  cease  to  transact  business  in  this  State  according  to  the 
laws  thereof,  the  agents  last  designated,  or  acting  as  such  for  such 
corporation,  shall  be  deemed  to  continue  agents  for  such  corporation, 
for  the  purpose  of  serving  process  for  commencing  actions  upon  any 
policy  or  liability  issued  or  contracted  while  such  corporation  trans- 
acted business  in  this  State,  and  service  of  such  jirocess,  for  the 
causes  aforesaid,  upon  any  such  agent,  shall  be  deemed  a  valid  per- 
sonal service  upon  such  corporation.  Such  company  shall  also  file  a 
statement  of  its  condition  and  afiairs  in  the  office  of  the  Superin- 
tendent of  the  Insurance  Department,  in  the  same  form  and  manner 
required  for  the  annual  statements  of  similar  companies  organized 
under  the  laws  of  this  State.  It  shall  not  be  lawful  for  any  agent  to 
act  for  any  company  referred  to  in  this  section  directly  or  indirectly, 
in  taking  risks,  collecting  premiums,  or  in  any  manner  transacting 
the  business  of  life  insurance  in  this  State,  without  procui'ing  from 
the  said  Sui)erintendent  a  certificate  of  authority,  stating  that  the 
foregoing  requirements  have  been  complied  with,  and  setting  forth 
the  name  of  the  attorney  for  such  company,  a  certified  copy  of 
which  certificate  shall  be  filed  in  the  County  Clerk's  office  of  the 
county  where  the  agency  is  to  be  established,  and  shall  be  the 
authority  of  such  company  and  agent  to  commence  business  in  this 
State,  and  such  company  or  its  attorney  shall  annually,  in  the  month 
of  January,  file  with  the  Superintendent  of  the  Insurance  Depart- 
ment of  this  State  a  statement  of  its  affairs  for  the  preceding  year. 
in  the  same  manner  and  form  provided  in  the  twelfth  section  of  this 
act  for  similar  companies  in  this  State ;  and  if  the  said  annual 
statement  shall  be  satisfactory  evidence  to  the  Superintendent  of 
the  Insurance  Department  of  the  solvency  and  ability  of  the  said 
comxjany  to  meet  all  its  engagements  at  maturity,  and  that  the  said 
deposit  is  maintained,  as  above  required  and  provided,  he  shall 
issue  renewal  certificates  of  authority  to  the  agents  of  said  com- 
pany, certified  copies  of  which  shall  be  filed  in  the  County  Clerk's 
office  of  the  county  where  the  agency  is  located,  during  the  month 
of  January  in  each  year,  and  which  renewal  certificates  shall  be  the 
authority  of  such  agents  to  issue  new  policies  in  this  State  for  the 


NEW  YORK.  651 

ensuinj]^  year.  {Laws  of  1853,  chap.  463,  §  14,  as  amended  hy  laws  of 
1853j  chnp.  551,  §  2,  and  by  laws  o/18G2,  chap.  300,  §  4,  as  modified  hy 
laws  0/18G5,  chap.  328,  §  2.) 

146.  The  annual  statements  of  life,  health  or  casualty  insur- 
ance companies,  incorporated  by  or  organized  under  the  laws  of  any 
other  State  government,  shall  hereafter  be  made  on  the  first  day  of 
January  of  each  year,  or  within  sixty  days  thereafter,  and  the  re- 
newal certificates  of  authority  issued  and  filed  within  the  same 
period.  The  fees  for  each  certificate  of  authority,  and  certified  copy 
thereof,  shall  be  five  dollars.     {Laics  of  1865,  chup.  328,  §  3.) 

147.  It  shall  not  be  lawful  for  any  person  to  act  in  this  State 
as  agent  or  otherwise,  in  receiving  or  procuring  applications  for  life 
or  health  insurance,  or  in  any  manner  to  aid  in  transacting  the  busi- 
ness of  any  life  or  health  insurance  company,  partnership  or  asso- 
ciation, incorporated  by  or  organized  under  the  laws  of  any  foreign 
government,  until  such  company,  partnership  or  association   shall 
have  deposited  with  Superintendent  of  the  Insurance  Depai-tment 
for  the  benefit  of  the  policy-holders  of  said  company,  partnership  or 
association,  citizens  or  residents  of  the  United  States,  securities  to 
the  amount  of  one  hundred  thousand  dollars  of  the  kind  required,  or 
which  may  hereafter  be  required  for  similar  companies  of  this  State, 
and  shall  have  appointed  an  attorney  in  this  State,  on  whom  process 
of  law  can  be  served,  and  the  said  company,  partnership  or  associa- 
tion shall  have  filed  with  the  Superintendent  of  the  Insurance  De- 
partment a  duly  certified  copy  of  the  charter  or  deed  of  settlement 
of  the  said  company,  partnership  or  association,  and  also  a  duplicate 
original  copy  of  the  letter  or  power  of  attorney  of  such  company  or 
association  appointing  the  attorney  thereof,  which  appointment  shall 
continue  until  another  attorney  be  substituted.  And  in  case  any  such 
insurance  corporation  shall  cease  to  transact  business  in  this  State 
according  to  the  laws  thereof,  the  agents  last  designated  or  a-jting  as 
such  corporation,  shall  be  deemed  to  continue  agents  for  such  cor- 
poration for  the  purpose  of  serving  process  for  commencing  actions 
upon  any  policy  or  liability  issued  or  contracted  while  such  corpora- 
tion transacted  business  in  this  State,  and  service  of  such  process, 
for  the  causes  aforesaid,  upon  any  such  agent,  shall  be  deemed  a 
valid  personal  service  upon  such  corporation.     Such  company,  part- 
nership or  association  shall  also  file  a  statement  of  its  condithm  ana 
afikirs,  in  the  office  of  the  Superintendent  of  the  Insurance  Depart- 
ment, in  the  same  form  and  manner  required  for  the  annual  state- 
ment of  similar  companies  organized  under  the  laws  of  this  State. 
It  shall  not  be  lawful  for  any  agent  or  agents  to  act  for  any  company, 
partnership  or  association  referred  to  in  this  section,  directly  or  in- 
directly, in  taking  risks,   collecting  premiums,  or  in  any  manner 
transacting  the  business  of  life  insurance  in  this  State,  without  pro 
curing  from  the  said  Superintendent  a  certificate  of  authority  (which 
shall  be  renewable  annually)  stating  that  the  foregoing  requirements 
have  been  complied  with,  and  setting  forth  the  name  of  the  attorney 
for  such  company,  a  certified  copy  of  which  certificate  shall  be  filed 
in  the  County  Clerk's  office  of  the  county  where  the  agency  is  to  be 
established,  and  which  shall  be  the  authority  of  such  company  and 
agent  to  commence  business  in  this   State;   and  such  company, 
partnership  or  association,   shall  annually,   on    the  first  day  of 
January,  or  within  thirty  days  thereafter,  file  with  the  Superintend- 
ent of  the  Insurance  Department,  a  statement  of  all  its  affairs,  in 
the  same  manner  and  form  provided  in  the  twelfth  section  of  this 


652  hine's  insurance  statutes. 

act  for  similar  companies  in  this  State ;  which  statement  shall  be 
made  up  for  the  year  ending  on  the  preceding  thirtieth  day  of  June, 
accompanied  also  by  a  supplementary  annual  statement,  duly  veri- 
fied by  the  attorney  or  general  agent  of  the  company  or  association 
in  this  State,  giving  a  detailed  description  of  the  policies  issued, 
and  those  which  have  ceased  to  be  in  force  during  the  year,  the 
amount  of  premiums  received  and  claims  and  taxes  paid  in  this 
State  and  the  United  States,  for  the  year  ending  on  the  j)receding 
thirty-first  day  of  December.  Said  supplementary  statement  shall 
also  contain  a  description  of  the  investments  of  such  company  or 
association,  in  this  country,  and  such  other  information  as  may  be 
required  by  said  Superintendent ;  and  if  the  said  annual  statement 
shall  be  satisfactory  evidence  to  the  said  Superintendent  of  the  solv- 
ency and  ability  of  the  said  company  to  meet  all  its  engagements 
at  maturity,  he  shall  issue  renewal  certificates  of  authority  to  the 
agents  of  said  company,  partnership  or  association,  certified  copies 
of  which  shall  be  filed  by  such  agents  in  the  County  Clerk's  office  of 
the  county  where  the  agency  is  located,  within  sixty  days  after  the 
first  day  of  January  in  each  year,  and  which  renewal  certificates 
shall  be  the  authority  of  such  agents  to  issue  new  j)olicies  in  this 
State  for  the  ensuing  year.  All  such  foreign  insurance  companies, 
partnerships  and  associations,  engaged  in  the  transaction  of  the 
business  of  life  or  health  insurance  in  this  State,  shall,  annually,  on 
or  before  the  first  day  of  March  in  each  year,  i)ay  to  the  Superin- 
tendent of  the  Insurance  Department  a  tax  of  two  per  cent,  on  all 
premiums  received  in  cash  or  otherwise,  by  their  attorneys  or  agents 
in  this  State,  during  the  year  ending  on  the  preceding  thirty-first 
day  of  December,  upon  which  a  tax  on  premiums  has  not  been  paid 
to  any  other  State.  The  avails  of  said  tax  shall  be  paid  into  the 
State  Treasury,  and  shall  be  applicable,  as  far  as  necessary,  toward 
defraying  the  expenses  of  the  Insurance  Department.  In  case  of 
neglect  or  refusal  by  any  such  company  to  pay  said  tax,  the  Super- 
intendent is  hereby  authorized  to  collect  the  same  out  of  the  in- 
terest on  the  stocks  and  securities  deposited  by  such  company  in 
the  Insurance  Department.  {Laws  of  1853,  chap.  463,  §  15,  as 
amended  ly  laics  o/1862,  chap.  300,  §  5.) 

148.  All  foreign  insurance  companies,  associations,  corpora- 
tions, partnerships  and  individuals,  transacting  the  business  of  fire, 
marhie  or  life  insurance,  or  any  other  kind  of  insurance  in  this  State, 
shall  make  annual  statements  of  their  condition  and  affairs  to  the 
Insurance  Department,  in  the  same  manner  and  in  the  same  form  as 
similar  companies  organized  under  the  laws  of  this  State.  {Laws 
of  IHGl,  chap.  33-i,  §  1.) 

149.  In  case  of  neglect  or  refusal  to  make  such  annual  state- 
ments, as  aforesaid,  all  persons  acting  in  this  State,  as  agents  or 
otherwise,  in  transacting  the  business  of  insurance  for  said  com- 
panies, corporations,  associations,  partnerships  or  individuals,  shall 
be  subject  to  the  same  penalties  provided  by  law  in  case  of  the  failure 
of  any  insurance  company  organized  under  the  laws  of  this  State,  to 
make  an  annual  statement,  as  now  provided  by  law.     {Ibid,  §  2.) 

1 50.  Foreign  insurance  companies  shall  hereafter  be  required 
to  make  and  file  their  annual  statements  on  the  first  day  of  June  in 
each  year,  or  within  thirty  days  thereafter,  made  out  for  the  year 
ending  on  the  i)receding  thirty-first  day  of  December ;  the  supple- 
mentary annual  statements  of  their  business  and  affairs  in  the  United 
States  shall  continue  to  be  filed  in  the  month  of  January  in  each 


NEW   YORK.  Co3 

year,  made  out  for  the  year  ending  on  the  thirty-first  day  of  Decem- 
ber immediately  preceding.  {Laics  o/1865,  chap.  199,  §  2,  as  amended 
by  laws  of  1S67,  chap.  709,  §  1.) 

151.  Every  county  clerk  shall  demand  and  receive,  for  every 
paper  tiled  in  his  office  under  this  act,  the  sum  of  ten  cents,  to  be 
accounted  for  and  paid  to  the  County  Treasurer  as  now  provided  with 
regard  to  other  fees.  {Latcs  of  1853,  chap.  4G3,  §  16,  as  modified  by 
laws  of  1859,  chap.  366,  §§  7,  8.) 

1 52.  It  shall  be  the  duty  of  the  Superintendent  of  the  Insur- 
ance Department,  whenever  he  shalF  have  good  reason  to  suspect 
the  correctness  of  any  annual  statement,or  that  the  afifaks  of  any  com- 
pany making  such  statement  are  in  an  unsound  condition,  to  cause 
an  examination  to  be  made  into  the  affairs  of  any  insurance  company 
for  the  pnrj)oses  named  in  this  act,  incorporated  in  this  State,  or 
doing  business  by  its  agencies  in  this  State  ;  and  it  shall  be  the  duty 
of  the  officers  or  agents  of  any  insurance  company  doing  business  in 
this  State,  to  cause  their  books  to  be  opened  for  the  inspection  of 
the  person  or  persons  so  appointed,  and  otherwise  to  facilitate  such 
examination  so  far  as  it  may  be  in  their  power  so  to  do ;  and  for 
that  purpose  the  said  Superintendent,  or  the  person  or  the  persons  so 
appointed  by  him,  shall  have  power  to  examine,  under  oath,  the 
officers  and  agents  of  any  company  relative  to  the  business  of  said 
company  ;  and  whenever  the  said  Superintendent  shall  deem  it  for 
the  interest  of  the  public  so  to  do,  he  shall  publish  the  result  of  such 
investigation  in  the  paper  in  which  the  State  notices  are  directed  to 
be  inserted  ;  and  whenever  it  shall  appear  to  the  said  Superinten- 
dent, from  such  examination,  that  the  assets  of  any  such  company 
be  insufficient  to  re-insure  the  outstanding  risks,  he  shall  communi- 
cate the  fact  to  the  Attorney-General,  whose  duty  it  shall  then 
become  to  apply  to  the  Supreme  Court  for  an  order  requiriug  them 
to  show  cause  why  the  business  of  such  company  should  not  be 
closed,  and  the  court  shall  thereuj)on  proceed  to  hear  the  allegations 
and  proofs  of  the  respective  parties  ;  and,  in  case  it  shall  appear  to 
the  satisfaction  of  the  said  court  that  the  assets  and  funds  of  the  said 
company  are  not  sufficient,  as  aforesaid,  the  said  court  shall  decree 
a  dissolution  of  said  company  and  a  distribution  of  its  effects,  includ- 
ing the  securities  deposited  in  the  hands  of  the  said  Superinten- 
dent. The  Supreme  Court  shall  have  power  to  refer  the  application 
of  the  Attorney-Greneral  to  a  referee,  to  inquire  into  and  rei)ort  upon 
the  facts  stated  therein.  And,  whenever  it  shall  appear  to  the  said 
Superintendent,  from  the  report  of  the  person  or  persons  ap})ointed 
by  him  that  the  affairs  of  any  company  not  incorporated  by  the  laws 
of  this  State  are  in  an  unsound  condition,  he  shall  revoke  the  certifi- 
cates granted  in  behalf  of  such  company,  and  shall  cause  a  notifica- 
tion thereof  to  be  published  in  the  State  paper  for  four  weeks,  and 
the  agent  or  agents  of  such  company  are,  after  such  notice,  required 
to  discontiuue  the  issuing  of  any  new  policies.  The  expense  of  any 
examination  made  under  this  section  shall  be  borne  by  the  company 
so  examined.     {Ibid,  §  17.) 

15;j.  It  shall  be  the  duty  of  the  Superintendent  of  the  Insur- 
ance Department  to  make,  or  cause  to  be  made,  an  examination  of 
the  condition  and  atfairs  of  any  life  or  casualty  insurance  company, 
as  provided  for  in  the  seventeenth  section  of  chapter  four  hundred 
and  sixty -three  of  the  laws  of  eighteen  hundred  and  fifty-three, 
whenever  he  shall  deem  it  expedient  so  to  do,  and  also  whenever  he 
shall  have  good  reason  to  suspect  the  correctness  of  any  annual 


634  HINE^S  INSUEANCE   STATUTES. 

statement,  or  that  the  affairs  of  any  company  making  such  statement 
are  in  an  unsound  condition.  [Laws  of  1867,  chap,  708,  §  8,  as 
amended  hy  lairs  o/lS69,  chap.  902,  §  15.) 

lo4.  Every  violation  of  this  act  shall  subject  the  party  violat- 
ing to  a  penalty  of  live  hundred  dollars  for  each  violation,  which 
shall  be  sued  for  and  recovered  in  the  name  of  the  people,  by  the 
Distiict  Attorney  of  the  county  in  which  the  company  or  agent  or 
agents  so  violating  shall  be  situated,  and  one-half  of  such  penalty, 
when  recovered,  shall  be  paid  into  the  treasury  of  such  county,  and 
the  other  half  to  the  informer  of  such  violation  ;  and,  in  case  of  the 
non-payment  of  such  penalty,  the  party  so  offending  shall  be  liable 
to  imprisonment  for  a  period  not  exceeding  six  months,  in  the  discre- 
tion of  any  coui't  having  cognizance  thereof.  {Laws  of  ISo'S,  chap. 
463,  §  18.) 

1 55.  When  any  company,  transacting  the  business  of  insurance 
under  either  of  the  departments  specified  in  the  first  section  of  this 
act,  within  the  State  of  New  York,  shall  desire  to  relinquish  its 
business,  the  Suiierintendent  of  the  Insurance  Department  shall,  on 
application  of  such  company  or  association,  under  the  oath  of  the 
president  or  principal  officer  and  secretary  or  actuary,  give  notice  of 
such  intention  in  the  i)aper  in  which  the  State  notices  are  directed 
to  be  inserted,  at  least  twice  a  week  for  six  months ;  and  after  such 
publication  he  shall  deliver  up  to  such  com^jany  or  association  the 
securities  held  byhim,  belonging  to  them,  on  being  satisfied  by  the  ex- 
hibition of  the  books  and  papers  of  such  company  or  association,  and 
on  examination  to  be  made  by  himself  or  some  competent  person,  not 
an  officer  of  any  life  insurance  company  in  this  State,  to  be  appoint- 
ed by  him,  and  upon  the  oath  of  the  president  or  principal  officer 
and  the  secretary  or  actuary  of  the  same,  thai  all  debts  and  liabili- 
ties of  every  kind  are  paid  and  extinguished  that  are  due  or  may 
become  due  upon  any  contract  or  agreement  made  with  any  citizens 
of  the  United  States.  And  the  said  Superintendent  may  also  from 
time  to  time  deliver  up  to  such  company  or  association  or  its  assigns, 
any  portion  of  said  securities,  on  being  satisfied  in  maimer  and  form 
aforesaid,  or  by  any  other  competent  proof,  that  all  the  debts  and 
liabihties  of  every  kind  that  are  due  or  may  become  due  upon  any 
contract  or  agreement  made  with  any  citizen  of  this  State  by  said 
company  or  association  are  less  than  one-half  of  the  amount  of  the 
portion  of  said  securities  he  shall  still  retain.  Any  foreign  life  insur- 
ance company  desiring  to  discontinue  business  in  this  country,  and 
having  made  the  aforesaid  i)ublication,  may,  in  the  discretion  of  the 
Superintendent  of  the  Insurance  Department,  withdraw  one  half  of 
its  deposits  of  one  hundred  thousand  dollars,  on  registering,  accord- 
ing to  the  provisions  of  law  for  registered  i^olicies,  all  its  outstand- 
ing policies,  issued  to  citizens  or  residents  of  the  United  States,  and 
covenanting  to  maintain  unimpau-ed  the,  reinsurance  deposit  for  such 
registered  policies  at  all  future  times,  and  specially  pledging  for  their 
secimty  all  future  premiums  payable  on  American  policies.  {Ibid, 
§  19,  o«  amended  hy  laws  of  1859,  chap.  263,  §  1,  and  laws  of  1869, 
chaj).  829,  §  1.) 

150.  Every  charter  created  by  or  under  the  laws  of  this  State 
for  the  purposes  aforesaid,  shall  continue  until  repealed.    {1  bid,  §  20.) 

157.  Any  existing  company  incorporated  by  or  authorized 
under  the  laws  of  this  State,  for  the  i)urposes  mentioned  in  this  act, 
may  avail  themselves  of  the  provisions  of  this  act,  after  publishing 
their  intentions  for  six  weeks  in  the  State  paper,  and  obtaining  the 


NEW   YORK.  655 

consent  of  the  majority  of  the  trustees  or  directors,  and  complying 
with  the  third  section  of  this  act  in  relation  to  the  filing  and  con- 
tents of  the  declaration  therein  referred  to.     {Ibid,  §  21.) 

158.  So  much  of  the  act  of  April  tenth,  eighteen  hundred  and 
forty-nine,  and  of  April  eighth,  eighteen  hundred  and  fifty-one,  as 
relate  to  life  insurance,  is  hereby  repealed,  but  this  section  shall  not 
affect  any  company  incorporated  under  such  acts.     {Ibid,  §  22.) 

1 59.  Any  mutual  life  insui-ance  company  in  this  State,  incor- 
porated previously  to  the  passage  of  the  general  insurance  law,  on 
the  tenth  day  of  April,  eighteen  hundred  and  forty-nine,  shall  be 
subject  to  taxation  in  the  same  manner  as  if  it  were  incorporated 
under  said  general  law,  with  a  capital  of  one  hundred  thousand  dol- 
lars, as  required  by  the  sixth  section  of  the  said  general  law.  {Ibid, 
chap,  469.) 

160.  Any  mutual  life  insurance  company  incorporated  in  this 
State  previous  to  the  passage  of  the  general  insurance  law,  on  the 
tenth  day  of  April,  eighteen  hundred  and  forty -nine,  shall  be  sub- 
ject to  taxation  on  the  sum  of  one  hundred  thousand  dollars  for  per- 
sonal property  and  no  more;  and  it  is  hereby  declared  that  such 
was  the  intention  and  it  is  the  true  construction  of  said  act  of  June 
twenty-nine,  eighteen  hundred  and  fifty-three,  in  regard  to  any 
taxes  imposed  on  said  companies  after  said  act  took  eliecr.  {Laws 
o/185a,  chap.  83.) 

161.  It  shall  be  the  duty  of  every  life  insurance  company  or- 
ganized under  the  laws  of  this  State,  within  sixty  days  after  the 
passage  of  this  act,  to  prepare  and  deposit  in  the  offlce  of  the  Su- 
perintendent of  the  Insurance  Department  of  the  State,  a  report 
giving  a  detailed  statement  of  the  annual  dividends  heretofore  made 
to  the  stockholders  of  such  company.     {Laics  of  1866,  chap.  843,  §  1.) 

1 6tJ.  Such  report  shall  be  under  oath,  and  be  duly  sworn  to 
by  the  president,  actuary  and  secretary  of  such  company ;  and  a 
like  report  shall  hereafter  be  annually  made  in  like  form  and  man- 
ner to  said  Superintendent,  at  the  same  time  that  the  annual  report 
is  now  required  by  law  to  be  made  by  such  companies.     {Ibid,  §  2.) 

163.  Any  life  insurance  company,  chartered  by  or  organized 
under  the  laws  of  this  State,  which,  by  its  charter  or  articles  of  as- 
sociation, is  restricted  to  the  making  a  dividend  only  once  in  two  or 
more  years,  may  hereafter,  any  thing  in  said  charters  or  articles  of 
association  contained  to  the  contrary  notAvithstanding,  make  and 
l)ay  over  or  credit,  annual  dividends  in  the  manner  and  proportions, 
and  among  the  parties  j)rovided  for  in  said  charter  or  articles  of  as- 
sociation.    {Laws  ofl'Sii^,  chap.  118,  §  1.) 

164.  No  transfer  of  stocks,  bonds  and  mortgages  or  other 
securities,  now  held  or  hereafter  received  by  the  Superintendent  of 
the  Insurance  Department  under  the  i)rovisions  of  any  act  authoriz- 
ing deposits  in  the  said  Department,  shall  be  deemed  valid  or  of 
binding  force  or  effect  unless  the  same  be  countersigned  by  the 
Treasurer  of  the  State,  or  in  his  absence  from  his  office  or  inability 
to  perform  the  duties  of  his  office,  by  his  deputy.  It  shall  be  the 
duty  of  the  Treasurer  aforesaid,  to  keep  in  his  office,  or  in  the  office 
of  the  Superintendent  of  the  Insurance  Department,  a  book  in  which 
shall  be  entered  the  name  of  the  company,  from  whose  account  such 
transfer  of  securities  is  made  by  the  Superintendent  and  the  name 
of  the  party  to  whom  such  transfer  is  made,  unless  such  transfer 
shall  be  made  in  blank,  and  the  par  value  of  any  stock  so  transferred 
shall  be  entered  therein,  and  the  amount  for  which  every  mortgage, 


656  hike's  insurance  statutes. 

transferred  is  held  by  the  Superintendent,  and  the  name  of  the  party 
to  whom  assigned  shall  also  be  therein  entered ;  and  it  shall  be  the 
duty  of  the  Treasurer,  immediately  upon  countersigning  and  enter- 
ing the  same,  to  advise  by  mail,  the  company  from  whose  account 
such  transfer  is  made,  of  the  kind  of  security  and  the  amount  of  the 
same  thus  transferred.     {Laws  0/I868,  chap.  732,  §  1.) 

1 65.  The  Treasurer  shall  present  in  his  annual  report  to  the 
legislature,  the  total  amount  of  such  transfers  or  assignments 
countersigned  by  him.     {Ibid,  §  2.) 

1  <>6.  It  shall  be  the  duty  of  the  Treasurer,  or  in  his  absence 
from  his  office,  or  in  case  of  his  inability  to  perform  the  duties  of  his 
office,  of  his  deputy,  to  countersign  and  enter  upon  the  book,  in  the 
manner  aforesaid,  every  transfer  or  assignment  of  any  securities 
held  by  the  said  Suj)erintendent  presented  for  his  signature ;  and 
the  Treasurer  shall  have  at  all  times  during  office  hours,  access  to 
the  books  of  the  Superintendent  of  the  Insurance  Department,  for 
the  purpose  of  ascertaining  the  correctness  of  the  transfer  or  assign- 
ment presented  to  him  to  countersign ;  and  the  Superintendent  shall 
have  access  to  the  book  above  mentioned,  kept  by  the  Treasurer, 
during  office  hours,  to  ascertain  the  correctness  of  the  entries  upon 
the  same.     {Ibid,  §  3.) 

1©T.  The  Treasurer  shall,  for  the  services  required  by  this  act, 
receive  the  annual  salary  of  two  hundred  and  fifty  dollars,  to  be 
paid  in  the  same  manner  as  the  salary  of  the  Superintendent,  and 
the  same  shall  be  audited  and  allowed  "by  the  said  Superintendent, 
and  charged  in  the  general  expenses  of  the  Insurance  Department. 
{Ibid,  §  4.) 

108.  It  shall  be  lawful  for  any  life  insurance  company,  organ- 
ized under  the  laws  of  this  State,  to  ascertain  at  any  given  time,  and 
from  time  to  time,  the  proportion  of  surplus  accruing  to  each  policy 
from  tne  date  of  the  last  to  the  date  of  the  next  succeeding  premium 
payment,  and  to  distribute  the  proportion  found  to  be  equitable, 
either  in  cash,  in  reduction  of  premium,  or  in  reversionary  insurance, 
payable  with  the  policy,  and  upon  the  same  conditions  as  therein 
expressed,  at  the  next  succeeding  date  of  such  payment ;  any  thing 
in  the  charter  of  any  such  company  to  the  contrary  notwithstanding. 
{Laws  of  1872,  chap.  100,  §  1.) 


REGISTRATION    OF    LIFE    POLICIES    AND    SPECIAL 
DEPOSITS  OF  SECURITIES. 

169.  Any  life  insurance  company,  now  or  hereafter  authorized 
under  and  by  the  laws  of  this  State  to  make  insurance  on  lives, 
may  deposit  in  the  Insurance  Department  securities  of  the  kind  and 
in  addition  to  the  amount  now  required  and  authorized  by  law  to  be 
deposited  by  life  insurance  companies  in  that  department,  to  any 
amount  not  less  than  twenty -five  thousand  dollars,  in  the  manner 
and  for  the  purposes  hereinafter  mentioned.  {Laws  of  1867,  chaji. 
708,  §  1,  as  amended  ly  laics  ofl&GQ,  chap.  902,  §  1.) 

170.  The  securities  deposited  by  any  company  under  the  pro- 
visions of  this  act  shall  be  legally  transferred  by  it  to  the  Superin- 
tendent of  the  Insurance  Department,  for  the  common  benefit  of  all 
the  holders  of  its  registered  i)olicies  and  annuity  bonds  issued  under 
the  provisions  of  this  act,  and  he  shall  hold  the  same  in  trust  for 
the  purposes  and  objects  specified  in  this  act.     Said  securities  shall 


NEW  YORK.  657 

not  be  alienated  from  the  purposes  of  said  trust,  nor  transferred, 
except  in  the  manner  hereinafter  provided,  and  such  transfer  shali 
only  be  made  by  said  Superintendent  under  his  seal  of  office,  u])on 
the  written  application,  under  its  corporate  seal,  of  the  company 
making  such  deposit,  or  of  the  receiver  of  said  company  appointed 
as  herein  provided,  and  in  compliance  with  the  laws  of  this  State 
relating  to  such  transfers ;  Provided.,  That  any  company  hereafter 
electing  to  make  special  deposits,  as  authorized  by  this  act,  shall  do 
so  in  respect  to  all  policies  thereafter  issued,  and  not  a  portion  of 
them  only;  but  any  company  which  has  already  made  such  election 
shall  not  be  required  to  make  special  deposits  for  all  its  policies 
until  after  the  first  day  of  January,  eighteen  hundred  and  seventy. 
{Laws  0/1869,  chap.  902,  §  2.) 

171.  Whenever  any  such  company  shall  legally  transfer  to  the 
Superintendent  of  the  Insurance  Department  any  amount  of  said 
securities,  not  less  than  twenty-five  thousand  dollars,  said  Super- 
intendent shall  issue  to  said  company  registered  policies  of  insur- 
ance or  annuity  bonds,  of  such  denominations  or  amounts  as  the 
said  company  may  require.  Such  policies  and  annuity  bonds  shall 
bear  upon  their  face  the  words  "  secured  by  pledge  of  public  stock 
or  bonds  and  mortgages,"  with  the  seal  of  the  said  department,  and 
shall  be  countersigned  by  the  Superintendent  or  his  authorized 
deputy.  (Laics  of  1867,  chap.  708,  §  2,  as  amended  by  laws  of  1869, 
chap.  902,  §  3.) 

1 7*2.  The  said  Superintendent  shall,  on  delivering  said  policies 
or  annuity  bonds  to  any  of  said  life  insurance  companies,  charge  to 
said  companies  respectively  the  amount  of  the  net  present  value  of 
such  policies  or  annuity  bonds,  valued  by  the  tables  authorized  by 
law  in  relation  to  life  insurance  companies,  according  to  the  amount 
and  number  of  premiums  paid  annually,  semi-annually,  or  quarterly, 
thereon,  and  the  terms  thereof ;  but  in  no  case  shall  the  amount  of 
8uch  value  exceed  in  the  aggregate  the  amount  of  the  securities  de- 
posited under  the  provisions  of  this  act.  On  the  first  day  of  July 
of  each  and  every  year,  or  within  sixty  days  thereafter,  the  said 
companies  shall  make  a  return  to  the  Superintendent  of  the  Insur- 
ance Department,  under  oath  of  the  i)resident  and  actuary,  of  the 
exact  condition  of  the  registered  policies  received  from  the  said 
department,  and  of  the  premium  account  of  the  said  policies,  and 
shall  deposit  with  the  said  Superintendent  additional  and  similar 
securities,  to  an  amount  equal  to  any  increase  of  value  of  the  policies 
heretofore  issued,  and  which  shall  remain  in  force,  valued  by  the 
same  rule  as  upon  the  issue  thereof;  and  the  secuiities  thus  from 
time  to  time  deposited,  or  so  large  an  amount  thereof  as  may  be 
necessary  to  equal  at  all  times  the  net  value  of  all  the  outstanding 
registered  policies  and  annuity  bonds  of  said  companies,  shall  be 
held  by  said  Sujierintendent,  in  trust  as  aforesaid,  until  the  obliga- 
tions of  said  companies  under  the  said  registered  policies  and  annu- 
ity bonds  shall,  to  the  satisfaction  of  the  said  Superintendent,  be 
fully  liquidated,  canceled,  or  annulled ;  but  nothing  in  this  act  shall 
be  construed  as  implying  any  obligation  on  the  part  of  the  State  to 
pay  the  policies  and  annuity  bonds  issued  under  this  act,  beyond  a 
proper  application  of  the  securities  so  deposited  toward  their  liqui- 
dation as  hereinafter  provided.  The  Treasurer  of  the  State,  and 
£Hiy  person  duly  authorized  by  the  depositing  or  reinsuring  com- 
pany, shall,  at  all  times  in  the  usual  office  hours,  have  access  to  the 
books  and  other  documents  in  the  Insurance  Department,  relating 
42 


658  bine's  insueance  statutes. 

to  tLe  deposits  made,  and  policies  and  annuity  bonds  issued  under 
the  provisions  of  this  act;  and  they  shall  also,  at  all  such  times, 
have  such  access  to  such  securities  as  may  be  necessary  for  the 
examination  thereof.  The  Treasurer  shall,  tor  the  services  required 
by  this  act,  receive  the  annual  salary  of  two  hundred  and  fllty  dol- 
lars, to  be  paid  by  the  companies  availing  themselves  of  the  pro- 
visions of  this  act.  {Ibid,  §  3,  as  amended  ly  lawsqflSQ^,  chap.  Ii02, 
§4.) 

173.  The  said  depositing'  companies  may  at  anytime  with- 
draw any  excess  of  securities  above  the  net  present  value  hereinbe- 
fore specified,  upon  satisfying  the  said  Superintendent,  by  written 
proof  to  be  filed  in  the  said  Department,  that  such  excess  exists, 
and  shall  be  allowed  to  receive  the  interest  on  all  securities  de- 
posited, and  to  exchange  such  securities  by  substituting  other 
securities,  as  now  provided  by  the  acts  in  relation  to  life  and  health 
insurance  companies  and  the  amendments  thereto.  {Ibid,  §  4,  as 
amended  by  laws  of  1869,  chap.  902,  §  5.) 

174.  The  said  companies  shall  deliver  to  the  Superintendent 
of  the  Insurance  Department  the  policy  and  annuity  bonds,  en- 
graved and  luinted  or  printed  and  written,  in  such  manner  as  the 
said  Superintendent  shall  direct,  with  duplicate  originals  of  the  same 
duly  signed.  On  their  receipt  by  the  Superintendent  he  shall  cause 
them  to  be  duly  registered  in  proper  books  kept  for  that  purpose, 
in  consecutive  numbers  corresponding  to  the  numbers  on  said  poli- 
cies and  bonds;  shall  cause  his  name  or  the  name  of  his  deputy  to 
be  inscribed  on  the  policies  and  bonds,  and  affix  the  seal  ot  the  de- 
partment to  the  same,  and  shall  return  the  original  policies  to  the 
said  depositing  companies  respectively.  The  expense  necessarily  in- 
curred in  registering,  countersigning  and  sealing  the  said  policies 
and  annuity  bonds,  and  in  otherwise  executing  the  provisions  of 
this  act,  including  the  salary  of  the  Treasurer,  shall  be  audited  and 
paid  out  of  any  moneys  in  the  treasury  not  otherwise  aj)propriated ; 
and,  for  the  purpose  of  reimbursing  the  same,  the  said  Superintend- 
ent is  hereby  authorized  to  charge  against  the  said  depositing  com- 
panies respectively  an  amount  sufficient  for  such  purpose,  and  as 
may  be  just  and  reasonable.  It  shall  be  the  duty  of  the  said  Su- 
perintendent to  receive  mutilated  policies  and  annuity  bonds  issued 
to  the  said  comi)anies,  and  deliver  in  lieu  thereof  other  policies  and 
bonds  of  like  tenor  and  date,  and,  in  case  of  lost  policies  or  bonds,  to 
furnish  certified  copies  of  the  duj)licates  on  file  in  his  office.  {Ibid, 
§  5,  as  amended  by  laivs  of  1S69,  chap.  902,  §  6.) 

1 75.  If  at  any  time  the  affairs  of  any  life  insurance  company, 
which  has  deposited  securities  under  this  act  or  the  act  hereby 
amended,  shall,  in  the  opinion  of  the  Superintendent  of  the  Insurance 
Department,  appear  in  such  a  condition  as  to  render  the  issuing  of 
additional  policy  and  annuity  bonds  by  said  company  injurious  to 
the  public  interest,  the  said  Superintendent  shall  report  that  fact  to 
the  Attorney-General,  whose  duty  it  shall  then  be  to  apjily  to  the 
Supreme  Court  for  an  order  requiring  said  company  to  show  cause 
why  its  business  should  not  be  closed.  The  court  shall  thereupon 
proceed  to  hear  the  allegations  and  proofs  of  the  respective  parties, 
and  in  case  it  shall  appear  to  the  satisfaction  of  the  said  court  that 
the  assets  and  funds  of  said  company  are  not  sufficient  to  justify 
the  further  continuance  of  the  business  of  insuring  lives,  granting 
annuities  and  incurring  new  obligations,  as  authorized  by  its  charter, 
then  the  said  court  shall  issue  an  order  enjoining  and  restraining 


NEW   YORK.  659 

said  company  from  the  further  prosecution  of  its  business,  and  shall 
also  appoint  a  receiver  of  all  the  assets  and  credits  of  said  company. 
The  said  receiver,  upon  hliug  his  bond  to  the  people  of  the  State  of 
Kew  York  in  an  amount  and  with  sureties  approved  by  said  court, 
conditioned  for  the  faithful  performance  of  his  duties,  shall  take 
possession  of  all  the  assets  and  credits  of  said  company,  except  the 
securities  deposited  in  the  Insurance  Dei^artment  under  the  pro- 
^^sions  of  this  act  and  the  act  hereby  amended,  which  said  securi- 
ties shall  remain  in  said  department  to  be  disposed  of  as  hereinafter 
provided.     {Laws  of  18Gi),  chaj).  902,  §  7.) 

176.  The  said  receiver  shall,  immediately  on  entering  upon 
the  duties  of  his  office,  appoint  a  competent  actuary,  approved  by 
the  Superintendent  of  the  Insurance  Department,  who  shall  make  a 
careful  investigation,  according  to  the  standard  fixed  by  the  laws 
of  this  State,  into  the  condition  of  said  company,  and  report  thereon 
in  writing,  under  oath,  to  said  court  and  receiver,  and  if  it  shall,  by 
said  report  be  found  that  the  securities  deposited  by  said  company 
in  the  Insurance  Department,  and  the  assets  and  credits,  including 
the  future  premiums  that  will  mature  on  the  outstanding  policies 
and  other  obligations  of  said  company,  are  sufficient,  under  the  laws 
of  this  State,  to  pay  all  the  policies,  annuities  and  other  obligations 
of  said  comiiany  as  they  may  mature  by  the  terms  thereof,  and  the 
legal  costs  and  expenses  incident  to  the  business,  and  if  said 
actuary's  report  shall  be  confirmed  by  the  court,  the  said  receiver 
shall  notify  all  the  holders  of  said  policies,  annuities  and  other 
obligations,  requiring  them  to  pay  to  him,  as  such  receiver,  all 
premiums  or  other  payments  due  or  to  become  due  to  said  company 
from  time  to  time,  on  their  respective  policies,  annuities  or  other 
obligations.  Such  notice  shall  be  given  by  depositing  the  same  in. 
the  post-office,  at  the  place  where  said  company  has  its  principal 
business  office,  addressed  to  said  parties  respectively  at  their 
several  residences,  so  far  as  the  same  can  be  ascertained  by  said, 
receiver,  and  also  by  the  publication  thereof  in  the  State  newspaper,, 
published  in  the  city  of  Albany,  once  a  week,  for  six  successive 
weeks,  or  on  the  confirmation  of  the  report  of  said  actuary,  the 
court  may,  in  its  discretion,  direct  the  receiver  to  reinsure  all  re- 
gistered policies  in  some  solvent  company,  on  the  execution  b}'  said 
receiver  of  an  assignment  to  said  reinsuring  company,  of  all  securi- 
ties on  deposit  in  trust  for  registered  policy-holders.  And  in  case 
the  said  report  of  the  said  actuary  shall  show  that  the  said  securi- 
ties, assets,  credits  and  premiums  are  not  sufficient  under  the  laws 
of  this  State,  to  pay  all  the  policies,  annuities  and  other  obligations 
of  said  company  as  they  may  mature  by  the  terms  thereof,  and  the 
legal  costs  and  expenses  of  said  receivership,  the  said  receiver  shall 
notify  the  said  Suj)erinten dent  thereof,  and  the  Superintendent  shall, 
with  the  consent  and  advice  of  the  Treasurer  of  the  State,  and  in 
such  manner  as  the  said  receiver.  Superintendent  and  Treasurer  or 
a  majority  of  them,  shall  determine,  to  sell  and  convert  said  securi- 
ties into  money  ;  and  the  proceeds  of  such  sale  or  sales  shall  be 
paid  to  the  said  receiver,  on  his  giving  his  receipt  to  said  Superin- 
tendent, and  shall  be  applied  by  said  receiver  as  follows:  to  the 
payment  of  the  registered  policy-holders  of  said  company,  in  pro- 
portion to  the  net  value  of  their  policies  respectively,  and  to  the  re- 
gistered annuities  of  said  company  in  proportion  to  the  then  present 
value  of  their  respective  annuities,  as  estimated  by  the  legal  stand- 
ard for  valuing  life  insurance  and  annuity  obligations  within  this 


660  hine's  insuranc^e  statutes. 

state.  The  surplus  derived  from  such  sale  or  sales,  if  any  there  be 
after  the  payment  last  above-mentioned,  with  all  the  other  assets  of 
the  said  company,  shall  be  then  api)]ied  to  the  payment  of  all  the 
just  debts  of  said  company  incurred  in  the  conductmg  and  carrying 
on  its  lawful  business.     {Ibid,  §  8.) 

177.  Whenever  the  business  of  any  company  shall  be  con- 
tinued under  the  provisions  of  the  next  preceding  section,  in  case 
the  receipts  for  premiums  and  from  all  other  sources  shall  at  any 
time  be  in  excess  of  the  sums  required  to  meet  the  policy  and  all 
other  obligations  of  said  company,  said  receiver,  whenever  such 
excess  shall  amount  to  twenty-five  thousand  dollars,  shall  invest 
said  excess  in  such  secui'ities  as  are  authorized  to  be  deposited  in 
the  Insurance  Department,  and  shall  deposit  said  securities  with  the 
Superintendent  of  said  Department  in  the  manner  lierein  provided. 
If,  at  any  time,  the  funds  in  the  hands  of  said  receiver  are  not  suffi- 
cient to  meet  such  obligations  of  said  company  as  they  mature,  he 
shall  notify  the  said  Superintendent  of  the  amount  required  to  meet 
the  deficiency  in  respect  thereto,  and  it  shall  become  the  duty  of 
the  Superintendent  to  sell,  with  the  consent  and  advice  of  the 
Treasurer  of  the  State,  and  in  such  manner  as  the  receiver.  Superin- 
tendent and  Treasurer,  or  a  majority  of  them  shall  determine,  such 
portion  of  said  securities  as  may  be  required  to  meet  the  said  ma- 
tured obligations,  and  the  proceeds  of  such  sale  or  sales  shall  be 
paid  to  said  receiver,  on  his  giving  his  receipt  therefor  to  the  said 
Superintendent,  to  be  used  as  required  for  said  matured  obligations. 
{Ibid,  §  9.) 

178.  On  the  first  day  of  January,  in  every  year,  or  within 
thirty  days  thereafter,  an  investigation  shall  be  made  by  a  com- 
petent actuary,  approved  by  the  Superintendent  of  the  Insurance 
Department,  into  the  affairs  of  said  company,  and  if,  upon  such  in- 
vestigation, it  shall  be  found  that  a  surplus  of  its  assets,  not  less  in 
amount  than  ten  thousand  dollars,  exists,  after  making  adequate 
provision  for  meeting  at  maturity  all  the  obligations  of  said  com- 
pany and  all  the  legal  expenses  of  said  receivership,  and  in  case  of 
a  joint-stock  company,  over  and  above  the  amount  of  its  capital, 
such  i^ortion  of  said  surplus  as  may,  under  the  charter  of  said  com- 
pany, if  a  stock  company,  belong  to  its  stockholders,  shall  be  set 
aside  and  invested  by  said  receiver  in  such  securities  as  are  author- 
ized to  be  deposited  by  life  insurance  companies  in  the  Insurance 
Department,  as  a  contingent  fund,  and  scrip  therefor  shall  be  issued 
by  said  receiver  to  said  stockholders,  respectively,  in  proportion  to 
their  respective  shares,  bearing  six  per  cent,  interest  and  payable 
on  the  final  settlement  of  the  affairs  of  said  company  as  herein  pro- 
vided. The  remainder  of  such  surplus,  if  the  company  be  a  stock 
company,  and  the  whole  of  said  surplus,  if  it  be  a  mutual  company, 
shall  be  disposed  of  as  follows :  One-quarter  of  such  remainder  shall 
be  reserved  by  said  receiver  and  invested  by  him  in  such  securities 
as  are  authorized  to  be  deposited  by  life  insurance  companies  in  the 
Insurance  Department  as  a  contingent  fund,  for  which  scrip  shall  be 
issued  by  said  receiver  to  all  policy-holders  entitled  under  their 
policies  to  share  in  the  surplus  of  said  company.  Said  scrip  shall 
bear  interest  at  the  rate  of  six  per  cent,  per  annum,  payable  an- 
nually, and  shall  be  redeemable  on  the  maturity  of  the  respective 
policies  to  which  said  scrip  may  be  related.  The  remaining  three- 
quarters  of  said  surplus  shall  be  paid  by  said  receiver  within  one 
year  from  said  first  day  of  January  to  said  policy-holders,  respect- 


NEW   YORK.  661 

iv^ely,  in  lawful  mouey  of  the  United  States.  But  no  scrip  shall  be 
issued  for  any  fractional  part  of  a  dollar,  and  any  scrip  so  issued 
may,  at  any  time,  be  called  in  and  canceled  by  said  receiver,  with- 
out payment,  if  necessary,  to  better  secure  the  remaining  obligations 
of  said  company ;  and  all  scrip  so  issued  shall  have  printed  thereon 
a  clause  to  this  effect.  If,  on  the  final  accounting  of  said  receiver, 
after  the  liquidation  of  all  the  obligations  of  said  company,  as  herein 
provided,  and  in  case  of  a  Joint-stock  company,  the  return  to  the  re- 
spective stockholders  of  their  respective  amounts  of  stock  and  the 
scrip  issued  to  them  under  this  act,  there  shall  remain  a  surplus  in 
the  hands  of  said  receiver,  it  shall  be  divided  by  him  among  said 
stockholders,  if  a  stock  company,  proportionately  to  their  respective 
shares,  as  provided  by  the  charter  of  said  company,  and  the  balance 
of  said  surplus  among  the  last  ten  policy-holders  of  said  company, 
or  their  legal  representatives,  in  proportion  to  the  amounts  of  their 
said  respective  i^olicies,  and,  if  not  a  stock  company,  among  the 
holders  of  the  last  ten  policies  issued  by  said  company,  or  their 
legal  representatives,  in  proportion  to  the  amount  of  their  said  re- 
spective policies.     {Ibid,  §  10.) 

179.  Any  life  insurance  company  which,  by  virtue  of  any 
law,  is  making  deposit  of  securities  and  receiving  registered  policies, 
shall,  after  the  passage  of  this  act,  make  such  deposit  and  receive 
snch  policies  in  accordance  with  this  act,  and  not  otherwise ;  and 
such  company  shall  be  authorized  to  issue  policies  and  annuity 
bonds  only  such  as  shall  be  registered  under  this  act,  except  such 
other  as  in  this  section  provided,  and  shall,  whenever  required  by 
the  holders  of  its  unregistered  policies  and  annuity  bonds,  issued 
previous  to  the  passage  of  this  act,  upon  their  compliance  with  the 
terms  and  conditions  of  such  company  for  registered  policies  and 
annuity  bonds,  issue  to  them,  respectively,  registered  policies  and 
annuity  bonds,  in  exchange  for  and  in  value  equal  to  those  previ- 
ously issued  to  them  ;  Provided,  That  any  company  availing  itself  of 
the  provisions  of  this  act  may  issue  unregistered  policies  and  annuity 
bonds,  as  heretofore  authorized  by  its  charter,  but  subject  to  the 
provisions  of  section  eight  of  this  act,  in  relation  to  the  distribution 
of  its  assets.  {Laws  of  1852,  chap.  106,  §  6,  as  amended  by  laws  of 
1809,  cJuip.  902,  §  11.) 

180.  The  receiver  of  any  company  under  this  act  shall  have 
all  the  powers  incident  to  the  successful  management  of  its  affairs; 
and,  to  that  end,  authority  to  purchase  policies  issued  by  said  com- 
pany, to  make  any  other  compromise  in  the  settlement  of  its  out- 
standing obligations,  and  to  use  the  corporate  seal  of  said  company, 
whenever  necessarv,  in  the  transaction  of  the  business  of  his  receiv- 
ershii).   {Laics  of  18G9,  chap.  902,  §  12.) 

181.  The  compensation  of  the  receiver  under  this  act  shall  be 
fixed  by  the  Superintendent  of  the  Insurance  Department,  and  shall 
not  exceed  the  sum  of  five  per  cent,  on  the  amount  of  the  assets  of 
such  company,  as  shall  come  into  his  possession.  The  receiver  may 
employ  such  clerks  and  actuaries  as  he  may  deem  necessary  for  the 
proper  conducting  of  his  business  as  such  receiv^er,  and  the  said 
clerks  and  actuaries  shall  be  i)aid  such  reasonable  compensation  as 
he  may  determine,  subject,  however,  to  the  approval  of  the  Super- 
intendent of  the  Insurance  Department,  all  of  which  compensation 
to  said  receiver,  clerks  and  actuaries,  shall  be  a  charge  on  the 
funds  of  such  comi)any,  and  paid  out  of  the  said  funds.  {Ibid, 
§13.) 


C62  hine's  insurance  statutes. 


LIFE  insura:n^ce  for  the  benefit  of  married 

WOMEN  AND   CHILDREN. 

1 8S.  It  shall  be  lawful  for  any  married  woman,  by  berself, 
and  in  her  name,  or  in  the  name  of  any  third  person,  witb  his  as- 
sent, as  her  trustee,  to  cause  to  be  insured  for  her  sole  use  the  life 
of  her  husband,  for  any  definite  period,  or  for  the  term  of  bis 
natural  life  5  and  in  case  of  her  surviving  such  period  or  term,  the 
sum  or  net  amount  of  the  insurance  becoming  due  and  payable,  by 
the  terms  of  the  insurance,  shall  be  payable  to  her  to  and  for  her 
own  use,  free  from  the  claims  of  the  representatives  of  the  husband, 
or  of  any  of  his  creditors,  or  any  party  or  parties  claiming  by, 
through  or  under  him.  But  when  the  premium  paid  in  any  year 
out  of  the  property  or  funds  of  the  husband  shall  exceed  five  hun- 
dred dollars,  such  exemption  from  such  claims  shall  not  apply  to  so 
much  of  said  premium  so  paid  as  shall  be  in  excess  of  five  hundred 
dollars,  but  such  excess,  with  the  interest  thereon,  shall  inure  to 
the  benefit  of  his  creditors.  {Laws  of  1840,  cliap.  80,  §  1,  as  amended 
by  laws  q/1858,  chap.  187,  §  1,  by  laws  q/1866,  chaj).  656,  §  1,  and  by 
laws  of  1870,  chap.  277,  §  1.) 

l^iS.  The  amount  of  the  insurance  may  be  made  payable,  in 
case  of  the  death  of  the  wife  before  the  period  at  which  it  becomes 
due  to  her  husband,  or  to  his,  her  or  their  children,  for  their  use,  as 
shall  be  provided  in  the  policy  of  insurance,  and  to  their  guardian, 
if  under  age.  {Ibid,  §  2,  as  amended  by  laics  of  1858,  chap.  187,  §  2, 
by  laws  o/1862,  chap.  70,  §  1,  and  by  laics  0/I866,  chap.  656,  §  2.) 

1  84.  Any  policy  in  favor  of  a  married  woman,  or  of  her  and 
her  children,  or  assigned  in  her,  or  in  her  and  their  favor,  on 
written  request  of  said  married  woman,  duly  acknowledged  before 
a  commissioner  of  deeds,  or  other  officer  authorized  to  take  ac- 
knowledgments of  deeds,  in  the  same  manner  as  required  by  law, 
to  pass  her  dower  right  in  lands  of  her  husband,  and  on  the  written 
request  of  the  policy-holder  may  be  surrendered  to  and  purchased 
by  the  company  issuing  the  same  in  the  same  manner  as  any  other 
policy.  And  such  married  woman  may,  in  case  she  have  no  child 
or  children  born  of  her  body,  or  any  issue  of  any  child  or  children 
born  of  her  body,  dispose  of  such  policy  in  and  by  a  last  will  and 
testament,  or  any  instrument  in  the  nature  of  a  last  will  and  testa- 
ment, or  by  a  deed  duly  executed  and  acknowledged  before  an 
ofiicer  authorized  to  take  acknowledgments  of  deeds,  in  the  same 
manner  as  required  by  law  to  pass  her  dower  right  in  lands  of  her 
husband,  which  disposition  lawfully  made  shall  invest  the  person 
or  persons  to  whom  such  policy  shall  have  been  so  bequeathed, 
or  granted  and  conveyed,  with  the  same  rights  in  respect  thereto 
as  such  married  woman  would  have  had  in  case  she  survived  the 
person  on  whose  life  such  policy  was  issued,  and  such  legatee  or 
grantee  shall  have  the  same  right  to  dispose  of  such  policy  as 
herein  conferred  on  such  married  woman,  {Laws  of  1873,  chap.  821, 
§1.) 

TAXATION  OF  FOREIGN  INSURANCE  COMPANIES   AND 

AGENTS. 

1 85.  There  shall  be  paid  into  the  treasury  of  this  State,  on 
the  first  day  of  February  in  each  year,  by  every  person  who  shall       !  li 


NEW   YORK.  6G3 

act  as  agent  for  any  individuals,  or  associations  of  individuals,  not 
incorporated  and  authorized  by  the  laws  of  this  State,  to  elfect 
insurances  against  marine  losses  and  risks,  although  such  individu- 
als or  associations  may  be  incorporated  for  that  purpose  by  any 
other  State  or  country,  the  sum  of  two  dollars  upon  the  hundred 
dollars,  and  at  that  rate  upon  the  amount  of  all  premiums  which, 
during  the  year  ending  on  the  preceding  first  day  of  September, 
shall  have  been  received  by  such  agent  or  any  other  person  for  him, 
or  shall  have  been  agreed  to  be  paid  for  any  insurance  effected  or 
agreed  to  be  effected  or  procured  by  him  as  such  agent,  or  against 
marine  losses  or  risks.  {Laws  of  1824,  chap.  277  ;  and  Revised  Stat- 
utes, part  J.,  chap.  20,  title  21,  §  3,  as  amended  hy  the  laws  of  1837, 
chap.  30  §  2,  and  by  the  laics  o/1849,  chap.-llS,  §  6.) 

186.  Ko  person  shall,  as  agent  for  any  individuals  or  associ- 
ation, effect  or  agree  to  effect  any  insurances,  upon  which  tlie  duty 
above  mentioned  is  required  to  be  paid,  or  as  agent  or  otherwise 
procure  such  insurance  to  be  effected  until  he  shall  have  executed 
and  delivered  to  the  Comptroller  a  bond  to  the  people  of  this  State, 
in  the  penal  sum  of  one  thousand  dollars,  with  such  sureties  as  the 
Comi)troller  shall  apx^rove,  with  a  condition  that  he  will  annually 
render  to  the  Comptroller  on  the  first  day  of  February  in  each  year, 
a  just  and  true  account  of  all  premiums  which,  during  the  year 
ending  on  the  first  day  of  September  preceding  such  report,  shall 
have  been  received  by  him  or  by  any  other  person  for  him,  or  agreed 
to  be  paid  for  any  insurance  against  (marine)  losses  which  shall 
have  been  effected  by  him  or  agreed  to  be  effected  as  such  agent,  or 
which  shall  have  been  procured  by  him  from  any  individuals  or 
association  not  authorized  as  aforesaid  ;  and  that  he  will  annually, 
on  the  first  day  of  February  in  each  year,  pay  into  the  treasury  of 
this  State  two  dollars  upon  the  hundred  dollars,  and  at  that  rate 
upon  the  amount  of  such  premiums.  {Ibid',  Revised  Statutes,  part  L, 
chap.  20,  title  21,  §  4,  as  amended  by  the  laics  of  1837,  chap.  30,  §  2, 
and  by  the  laws  of  1849,  chap.  178,  §  6.) 

1 87.  Every  person  who  shall  effect,  agree  to  effect,  or  procure 
any  insurance  specified  in  the  preceding  third  section  of  this  title, 
without  having  executed  and  delivered  such  bond,  shall  forfeit  five 
hundred  dollars,  for  the  use  of  the  poor  of  the  county  where  the 
offense  shall  be  committed.  {Ibid,  and  Revised  Statutes,  part  I, 
chap.  20,  title  21,  §  5.) 

188.  The  penalties  imposed  in  this  title  shall  be  collected,  in 
the  name  of  the  people  of  this  State,  by  the  District  Attorney  of  the 
county  where  the  offense  shall  be  committed,  for  the  use  of  the  poor 
thereof.     {Revised  Statutes,  part  I.,  chap.  20,  title  til,  §  6.) 

1  89.  All  the  provisions  of  title  twenty-first  of  chapter  twenty 
of  the  first  part  of  the  Revised  Statutes,  resi)ecting  insurance  on 
property  in  this  State,  made  in  foreign  countries  and  by  individuals 
and  associations  unauthorized  by  law,  and  all  the  prohibitions, 
requirements  and  penalties  therein  contained  are  hereby  extended 
and  ai)plied  to  contracts  of  insurance,  or  by  way  of  insurance  against 
marine  losses  and  risks,  or  by  lending  money  on  respondentia  or 
bottomry,  and  to  all  persons,  associations  or  companies,  and  agents 
of  the  same,  making,  effecting  or  procuring  any  such  in.surance  or 
contracts,  by  way  of  insurance  or  loan,  or  any  other  business  which 
marine  insurance  companies,  incorporated  by  the  laws  of  this  State, 
may  or  do  transact  by  virtue  of  their  respective  acts  of  incorpora- 
tion,    {Laws  of  1829,  chap.  330,  §  1.) 


664  hine's  insurance  statutes. 

190.  There  shall  be  paid  to  the  Treasurer  of  the  Fire  Depart- 
ment of  every  city  or  incorporated  village  of  this  State,  for  the  use 
and  benefit  of  such  Fire  Department,  and  when  no  treasurer  of  a  fire 
department  exists,  then  to  the  treasurer  of  such  city  or  village,  who, 
for  the  purposes  of  this  act,  shall  have  the  same  powers  as  the  treas- 
urers of  fire  departments,  on  the  first  day  of  February  in  each  year, 
by  every  person  who  shall  act  as  agent  for  or  on  behalf  of  any  indi- 
vidual or  association  of  individuals,  not  incorporated  by  or  under 
the  laws  of  this  State,  to  effect  insurance  against  loss  or  injury  by 
fire  upon  property  in  this  State,  although  such  individual  or  associa- 
tion may  be  incorporated  for  that  purpose  by  any  other  State  or 
country,  the  sum  of  two  dollars  upon  the  hundred  dollars,  and  at 
that  rate  upon  the  amount  of  all  premiums  which  during  the  year  or 
part  of  a  year,  ending  on  the  last  preceding  first  day  of  September, 
shall  have  been  received  by  such  agent  or  person,  or  received  by 
any  other  person  for  him,  or  shall  have  been  agreed  to  be  paid  for 
any  insurance  effected  or  agreed  to  be  effected,  or  promised  by  him 
as  such  agent  or  otherwise,  to  be  effected  against  loss  or  injury  by 
fire  upon  property,  situate  within  the  corporate  limits  of  such  city 
or  village.     [Laics  of  1875,  chap.  465,  §  1.) 

191.  No  person  shall,  as  agent  or  otherwise  for  any  individual, 
individuals  or  association,  effect  or  agree  to  effect  any  insurance 
upon  any  property  situate  in  any  city  or  incorporated  village  of  this 
State,  upon  which  the  above  duty  is  required  to  be  paid,  or  as  agent 
or  otherwise  procure  such  insurance  to  be  effected  until  he  shall  have 
executed  and  delivered  to  the  Treasurer  of  the  Fire  Department  of 
the  city  or  village  in  which  the  property  insured  is  situated,  or  if  no 
treasurer  of  a  fire  department  exists  then  to  the  Treasurer  of  such 
city  or  village,  a  bond  to  such  Fire  Department  in  the  penal  sum  of 
five  hundred  dollars,  with  such  sureties  as  such  Treasurer  shall  ap- 
prove, with  a  condition  that  he  will  annually  render  to  said  Treas- 
urer on  the  first  day  of  February  in  each  year,  a  just  and  true  ac- 
count verified  by  his  oath  that  the  same  is  true  of  all  premiums 
which,  during  the  year  ending  on  the  first  day  of  September  preced- 
ing such  report,  shall  have  been  received  by  him  or  by  any  other 
person  for  him,  or  agreed  to  be  paid  for  any  insurance  against  loss 
or  injury  by  fire  upon  property  situate  in  such  city  or  village,  which 
shall  have  been  effected  or  procured  by  him,  to  be  effected  for  any 
individual,  individuals  or  association  not  incorporated  by  the  laws 
of  this  State  as  aforesaid,  and  that  he  will  annually  on  the  first  day 
of  February  in  each  year  pay  to  said  Treasurer  two  dollars  upon 
every  hundred  dollars,  and  at  that  rate  upon  the  amount  of  such 
premiums.     (Ibid,  §  2.) 

1 92.  Every  person  who  shall  effect,  agree  to  effect,  promise  or 
procure  any  insurance  specified  in  the  preceding  sections  of  this  act 
without  ha\ing  executed  and  delivered  the  bond  required  by  the 
preceding  section  shall,  for  each  offense,  forfeit  two  hundred  dollars 
for  the  use  and  benefit  of  the  Fire  Department  of  such  city  or  village, 
such  penalty  of  two  hundred  dollars  shall  be  collected  by  and  in  the 
name  of  the  Fire  Department  of  the  city  or  village  in  which  the  prop- 
erty insured  or  agreed  to  be  insured  is  situate.  (Ibid,  §  3.)  None 
of  the  provisions  of  this  act  shall  apply  to  the  city  of  New  York 
{Ibid,  §  4.) 

193.  There  shall  be  paid  to  the  Treasurer  of  the  Fire  Depart- 
ment of  the  city  of  New  York,  for  the  use  and  benefit  of  said  Fire 
Department,  on  the  first  day  of  February  in  each  year,  by  every  per- 


NEW   YORK.  665 

son  who  shall  act  in  the  city  and  county  of  New  York,  as  agent  for 
or  on  behalf  of  any  individual,  or  association  of  individuals,  not  in- 
corporated by  the  laws  of  this  State,  to  effect  insurances  against 
losses  or  injiu-y  by  fire  in  the  city  and  county  of  New  York,  although 
such  individuals  or  associations  may  be  incorporated  for  that  pur- 
pose by  any  other  State  or  country,  the  sum  of  two  dollars  upon  the 
hundred  dollars,  and  at  that  rate,  upon  the  amount  of  all  premiums 
which  during  the  year  or  part  of  a  year,  ending  on  the  next  preced- 
ing first  day  of  September,  shall  have  been  received  by  such  agent 
or  person,  or  leceived  by  any  other  person  for  him,  or  shall  have 
been  agreed  to  be  paid  for  any  insurance  effected  or  agreed  to  be 
effected  or  promised  by  him,  as  such  agent  or  otherwise,  against  loss 
or  injury  by  fire  in  the  city  and  county  of  'New  York.  {Laws  of  1849, 
chap.  178,  §  1.) 

194.  No  ijerson  shall,  in  the  city  and  county  of  New  York,  as 
agent  or  otherwise,  for  any  individual,  individuals,  or  association, 
effect  or  agree  to  effect  any  insurance,  upon  which  the  duty  above 
mentioned  is  required  to  be  paid,  or  as  agent  or  otherwise  procure 
such  insurance  to  be  effected,  until  he  shall  have  executed  and  de- 
livered to  the  said  Treasurer  a  bond  to  the  Fire  Department  of  the 
city  of  New  York,  in  the  penal  sum  of  one  thousand  dollars,  with  such 
sureties  as  the  said  Treasurer  shall  approve,  with  a  condition  that 
he  will  annually  render  to  the  said  Treasurer  on  the  first  day  of 
February  in  each  year,  a  just  and  true  account,  verified  by  his  oath, 
that  the  same  is  just  and  true,  of  all  premiums,  which  during  the 
year  ending  on  the  first  day  of  September  preceding  such  report, 
shall  have  been  received  by  him  or  by  any  other  person  for  him,  or 
agreed  to  be  paid  for  any  insurance  against  loss  or  injury  by  fire  in 
the  city  and  county  of  New  York,  which  shall  have  been  effected  or 
promised  by  him,  or  agreed  to  be  effected  or  promised  by  him  to  be 
effected,  from  any  individual  or  individuals,  or  association  not  in- 
corporated by  the  laws  of  this  State  as  aforesaid ;  and  that  he  will 
annually,  on  the  first  day  of  February  in  each  year,  pay  to  the  said 
Treasurer  two  dollars  upon  every  hundred,  and  at  that  rate,  upon  the 
amount  of  such  premiums.     {Ibid,  §  2.) 

193.  Everj^  person  who  shall  effect,  agree  to  effect,  promise, 
or  procure  any  insurance  specified  in  the  preceding  sections  of  this 
act,  without  having  executed  and  delivered  the  bond  required  by 
the  preceding  section,  shall  for  each  such  offense  forfeit  one  thousand 
dollars  for  the  use  of  the  said  Fire  Deijartment ;  such  penalty  of  one 
thousand  dollars  shall  be  collected  in  the  name  of  the  Fire  Depart- 
ment of  the  city  of  New  York.     {Ibid,  §  3.) 

190.  Sections  one,  two,  three  and  four  of  an  act  entitled  "  An 
act  further  to  amend  the  acts  in  relation  to  insurances  on  property 
in  this  State,  made  by  individuals  and  associations  unauthorized  by 
law,"  passed  March  thirty,  eighteen  hundred  and  forty-nine,  so  far 
as  the  said  sections  are  applicable  to  the  city  and  county  of  New 
York,  but  no  further,  are  hereby  repealed,  and  the  following  ten 
sections  are  substituted  therefor ;  Provided,  however,  That  any  corpo- 
ration or  association  created  by  or  organized  under  the  laws  of  any 
government  other  than  the  States  of  this  Union,  and  having  assets, 
funds  or  capital,  not  less  in  amount  than  one  hundred  and  fifty 
thousand  dollars,  invested  in  this  State,  shall  be  liable  to  taxation 
upon  such  assets,  funds  or  invested  capital,  as  the  same  is  levied 
or  assessed  yearly  by  law,  which  tax  shall  be  paid  as  follows: 
Such  an  amount  thereof  as  would  be  equal  to  two  per  cent,  upon 


666  hine's  insurance  statutes. 

its  gross  premmms  received  for  insurances  upon  property  in  the 
city  of  New  York,  shall  be  paid  annually,  as  herein  before  pro- 
vided, to  the  Treasurer  of  the  Fire  Department  of  the  city  of  New 
York,  and  the  residue  of  said  tax  requisite  to  make  up  the  full 
amount  of  taxation  upon  its  capital  as  herein  before  provided,  shall 
be  paid  to  the  Mayor,  Aldermen  and  Commonalty  of  the  city  of  New 
York,  as  in  the  case  of  ordinal y  taxation;  and  the  payments  so 
made  as  aforesaid  shall  exempt  such  corporation  or  association  mak- 
ing the  same  from  any  and  all  further  taxation  upon  its  premiums, 
capital  or  assets ;  and  whenever  such  capital  shall  be  reduced  below 
said  sum  of  one  hundred  and  fifty  thousand  dollars,  or  withdrawn 
entirely,  then  and  in  either  event  such  corporation  or  association 
shall  be  liable  to  pay  the  tax  upon  its  premiums  as  heretofore  pro- 
vided in  this  act.  {Laws  o/1857,  chap.  548,  §  1,  as  amended  by  laws 
0/1858,  chap.  255,  §  1.) 

197.  There  shall  be  paid  to  the  Treasurer  of  the  Fire  Department 
of  the  city  of  New  York,  for  the  use  and  benefit  of  said  Fire  Department 
on  the  first  day  of  February  in  each  year,  by  every  person  who  shall 
act  in  the  city  and  county  of  New  York  as  agent  for  or  on  behalf  of 
any  individual  or  association  of  individuals,  not  incorporated  by  the 
laws  of  this  State,  to  effect  insurances  against  losses  or  injury  by  fire 
in  the  city  and  county  of  New  York,  although  such  individuals  or  as- 
sociation may  be  incorporated  for  that  pui'pose  by  any  other  State 
or  country,  the  sum  of  two  dollars  ui^on  the  hundred  dollars,  and  at 
that  rate  upon  the  amount  of  all  premiums  which  during  the  year 
ending  on  the  next  preceding  first  day  of  September,  shall  have 
been  received  by  such  agent  or  person,  or  received  by  any  other 
person  for  him,  or  shall  have  been  agreed  to  be  paid  for  anj^  insur- 
ance against  loss  or  injury  by  fire  in  the  city  and  county  of  New 
York,  effected  or  agreed  to  be  effected  or  promised  by  him  as  such 
agent.     {IMd,  §  1,  sub.  1.) 

198.  Every  person  who  shall  act  in  the  city  and  county  of 
New  York  as  agent  as  aforesaid,  shall,  on  the  first  day  of  February, 
in  each  year,  render  to  the  said  Treasurer  of  the  Fire  Department  a 
just  and  true  account,  verified  by  his  oath,  of  all  such  premiums 
which,  during  the  year  ending  on  the  first  day  of  September  pre- 
ceding, shall  have  been  received  by  him,  or  by  any  person  for  him, 
or  which  shall  have  been  agreed  to  be  paid,  for  any  such  insurance 
effected  or  agreed  to  be  efl:ected,  or  promised  by  him.  {Ibid^  §  1, 
sub.  2.) 

1 99.  No  person  shall,  as  agent  or  otherwise,  effect  or  agree  to 
effect,  or  procure  to  be  effected,  any  insiu^ance  uj)on  which  the  duty 
above  mentioned  is  required  to  be  paid,  until  he  shall  have  executed 
and  delivered  to  the  said  Treasurer  an  undertaking,  under  seal,  to  the 
Fire  Department  of  the  city  of  New  York,  with  such  sureties  as  the 
said  Treasurer  shall  approve,  that  he  will  annually  render  to  the 
said  Treasurer,  on  the  first  day  of  February,  in  each  year,  a  just  and 
true  account,  verified  by  his  oath,  of  all  such  premiums,  which,  dur- 
ing the  year  ending  on  the  first  day  of  September  preceding,  shall 
have  been  received  by  him  or  by  any  person  for  him,  or  which  shall 
have  been  agreed  to  be  i)aid  for  any  such  insurance  effected  or 
agreed  to  be  effected,  or  promised  by  him,  and  that  he  will  annually, 
on  the  first  day  of  February  in  each  year,  pay  to  the  said  Treasurer 
two  dollars  upon  every  hundred  dollars,  and  at  that  rate  upon  the 
amount  of  such  premiums.     {Ibid,  §  1,  sub.  3.) 

300.     Whenever,  by  reason  of  failure  of  the  sureties,  or  either 


NEW   YOEK.  667 

of  them,  or  for  any  other  cause,  an  undertaking  given  under  the 
last  preceding  section,  shall  or  may  be  deemed  insufficient  by  the 
said  Treasurer  to  secure  a  return  of  the  account  and  the  payment 
of  the  duty  aforesaid,  or  either  of  them,  the  said  Treasurer,  at  his 
election,  but  not  oftener  than  once  in  each  year,  may  require  such 
undertaking  to  be  renewed.     {Ibid,  sub.  4.) 

"SOI.  Every  person  who  shall  effect,  agree  to  effect,  promise 
or  procure  any  insurance  mentioned  in  the  first  four  sections  of  the 
said  act  as  hereby  amended,  without  having  executed  and  delivered 
the  undertaking  required  by  the  third  section  of  said  act  as  hereby 
amended,  shall  for  each  offense  forfeit  one  thousand  dollars,  for  the 
use  of  the  said  Fire  Department ',  ahd  every  person  who  shall  have 
been  required  by  the  said  Treasurer  to  renew  his  undertaking  pur- 
suant to  the  fourth  section  of  said  act,  as  hereby  amended,  who 
shall  effect,  agree  to  effect,  promise  or  procure  any  such  insurance, 
without  ha\dng  executed  and  delivered  the  renewed  undertaking 
required  by  said  last  mentioned  fourth  section,  shall  for  each 
offense  forfeit  one  thousand  dollars,  for  the  use  of  the  said  Fire  De- 
partment.    {Ibid,  sub.  5.) 

202.  It  shall  be  lawful  for  the  said  Treasurer  of  the  Fire  De- 
partment, on  or  after  the  first  day  of  February  in  each  year,  by 
written  or  printed  demand  signed  by  him,  to  require  from  every 
person  who  shall  act  in  the  city  and  county  of  New  York,  as  agent 
as  aforesaid,  the  account  provided  for  in  the  second  section  of  said 
act  as  hereby  amended,  and  pa.^Tuent  of  the  duty  provided  for  in 
the  first  section  thereof;  such  demand  may  be  delivered  personally 
to  such  agent,  or  at  his  office  or  place  of  business  to  any  person 
having  charge  thereof,  or  at  his  residence  to  any  person  of  suitable 
age.  And  every  such  agent  who  shall  for  ten  days  after  such  de- 
mand, neglect  to  render  the  account  or  to  pay  the  duty  demanded, 
or  either  of  them,  shall  forfeit  fifty  dollars  for  the  use  of  the  said 
Fire  Department ;  and  he  shall  also  forfeit  for  their  use  twenty-five 
dollars  in  addition  for  every  day  that  he  shall  so  neglect,  after  the 
expiration  of  said  ten  days,  and  such  additional  penalty  may  be 
computed  and  recovered  up  to  the  time  of  the  trial  of  any  suit  for 
the  recovery  thereof.     {Ibid,  sub.  6.) 

203.  Every  person  who  shall  act  in  the  city  and  county  of 
NcAV  York  as  agent  as  aforesaid,  shall,  on  the  first  day  of  February 
in  each  year,  or  within  ten  days  thereafter,  and  as  often  in  each 
year  as  he  shall  change  his  i^lace  of  business  in  the  said  city,  report 
in  writing  under  his  proper  signature  to  the  Comptroller  of  the 
State  and  also  to  the  Treasurer  of  the  said  Fire  Department,  the 
street  and  the  number  thereof  in  the  said  city  of  his  place  of  busi- 
ness as  such  agent,  designating  in  such  report  the  individual  or  in- 
dividuals and  association  or  associations  for  which  he  shall  be  such 
agent.  And  in  case  of  default  in  any  of  these  particulars,  such 
person  shall  forfeit  for  every  offense  the  sum  of  one  thousand  dol- 
lars, for  the  use  of  the  said  Fire  Department.  {Laics  of  1849,  chap. 
178,  §  4,  as  amended  by  laws  of  1857,  chap.  548,  §  1,  sub.  7.) 

204.  The  duty  provided  to  be  paid  by  the  first  section  of  said 
act  as  hereby  amended,  the  damages  for  any  breach  of  the  under- 
takings, or  either  of  them,  provided  for  in  the  third  and  fourth  sec- 
tions thereof,  and  the  pecuniar^'  penalties  imposed  by  said  act  as 
hereby  amended,  or  any  or  either  of  them,  may  be  sued  for  and  re- 
covered, with  costs  of  suit,  in  any  court  of  record  within  this  State 


668  hine's  insurance  statutes. 

by  the  Fire  Department  of  the  city  of  New  York  iu  their  own  name 
and  for  their  own  use.     {Laws  of  1857,  chap.  548,  §  1,  sub.  8.) 

^05.  The  defendant  in  any  action  to  be  brought  for  the  re- 
covery of  any  penalty  incurred  or  any  duty  or  sum  of  money  pay- 
able under  said  act  as  hereby  amended,  may  be  arrested,  if  he  is 
not  a  resident  of  this  State,  or  is  about  to  remove  therefrom.  An 
order  for  the  arrest  of  the  defendant  must  be  obtained  fi'om  a  judge 
of  the  court  in  which  the  action  is  brought,  or  from  a  county  judge. 
The  order  shall  be  made  when  it  shall  appear  to  the  judge  by  affi- 
davit that  a  sufficient  cause  of  action  exists  under  said  act  as  hereby 
amended,  and  that  the  defendant  is  not  a  resident  of  this  State,  or 
is  about  to  remove  therefrom.     [Laws  of  1857,  chaj).  548,  §  1,  sub.  9.) 

3i>®.  The  ijro visions  of  chapter  one  of  title  seven  of  an  act  en- 
titled ''  An  act  to  amend  the  act  entitled  '  An  act  entitled  to  simplify 
and  abridge  the  practice,  pleadings  and  proceedings  of  the  courts  of 
this  State,'  passed  A])ril  twelfth,  eighteen  hundred  and  forty-eight," 
passed  April  eleventh,  eighteen  hundred  and  forty-nine,  and  which 
chapter  is  entitled  "  Arrest  and  bail,"  from  and  including  section 
one  hundred  and  eighty-two  to  the  end  of  said  chapter,  shall  apply 
to  any  arrest  under  the  ninth  section  of  said  act  as  hereby  amended 
and  to  the  proceedings  thereupon.     {Ibid,  sub.  10.) 

2i>7.  The  repeal  by  the  first  section  of  this  act  shall  not  aflfect 
any  prosecution  or  action  commenced,  or  penalty,  duty  or  liability 
incurred,  or  cause  of  action  accrued  prior  to  the  passage  of  this  act, 
but  every  such  action  or  prosecution  may  lawfully  proceed,  and 
every  such  penalty,  duty  or  liability  may  be  demanded  and  recovered 
as  if  the  sections  one,  two,  three  and  four  repealed  as  aforesaid  had 
remained  in  full  force.     {Ibid,  §  2.) 

MISCELLANEOUS  PROVISIONS  RELATING  TO  INSURANCE 

COMPANIES. 

908.  The  directors  of  any  corporation  organized  under  any 
general  act  for  the  formation  of  companies,  in  whose  original  certifi- 
cate of  incorporation  any  informality  may  exist,  by  reason  of  an 
omission  of  any  matter  required  td  be  therein  stated,  are  hereby 
authorized  to  make  and  file  an  amended  certificate  or  certificates  of 
incorporation,  to  conform  to  the  general  act  under  which  said  cor- 
poration may  be  organized ;  and  upon  the  making  and  filing  of  such 
amended  certificate,  the  said  corporation  shall,  for  all  purposes,  be 
deemed  and  taken  to  be  a  corporation  from  the  time  of  filing  such 
original  certificate.     {Laws  of  1810,  chap.  lo5,  §  1.) 

209.  Nothing  in  this  act  contained  shall  in  any  manner  aflfect 
any  suit  or  proceeding  at  the  time  of  filing  such  amended  certificate 
pending  against  said  cori^oration,  or  impair  any  rights  already  ac- 
crued.    {Ibid,  §  2.) 

iJlO.  Whenever  any  insurance  company,  organized  under  any 
of  the  laws  of  this  State,  shall  have  invested  any  of  its  funds  iu  the 
stock  of  other  incorporated  companies,  under  and  in  pursuance  of 
the  laws  of  this  State,  and  the  Superintendent  of  the  Insurance  De- 
partment shall  have  reason  to  believe  that  such  stock  is  below  par, 
he  may  direct  any  such  company  to  report  to  him  under  oath  the 
amount  of  such  stock  so  held  by  any  such  company,  and  the  market 
value  thereof  is  below  par,  he  may  direct  the  sale  (under  such 
regulations  as  he  may  establish),  of  such  stock  by  such  insurance 
companies.     {Laws  o/1875,  chap.  423,  §  1.) 


NEW   YORK.  669 

211.  It  shall  be  lawful  for  any  life,  fire  or  marine  insurance 
company  organized  under  any  of  the  laws  of  this  State,  and  transact- 
ing business  in  other  States  of  the  United  States,  to  invest  the 
funds  required  to  meet  its  obligations  incurred  in  such  other  States, 
respectively,  in  the  same  class  of  securities,  in  those  States  that  such 
corporations  are  by  law  allowed  to  invest  in,  in  this  State,  but  this 
act  shall  not  be  construed  as  authorizing,  nor  does  it  permit  any 
such  corporation  to  loan  moneys  on  mortgage  upon  real  estate  with- 
out the  limits  of  this  State  and  States  adjacent  thereto.     {Ibid,  §  2.) 

212.  Every  person  becoming  a  member  of  any  mutual  insur- 
ance company  now  incorporated  under  any  law  of  this  State  in  any 
of  the  counties  of  this  State,  by  effecting  insurance  therein,  shall, 
before  he  receives  his  policy,  deposit  his  promissory  note  for  such  a 
sum  of  money  as  shall  be  determined  by  the  directors  of  said  com- 
pany ;  such  part  of  said  note,  not  exceeding  twenty  per  cent,  as 
shall  be  required  by  the  by-laws  of  the  corporation,  shall  be  immedi- 
ately paid,  and  the  remainder  of  the  said  deposit  note  shall  be  pay- 
able, in  whole  or  in  part,  as  the  exigencies  of  the  company  shall  re- 
quire, for  the  payment  of  losses  by  fire  and  the  incidental  expenses  of 
the  company.  At  the  expiration  of  the  term  of  insurance,  the  said 
note  or  such  part  of  the  same  as  shall  remain  unpaid  after  receiving 
thereon  from  the  maker  a  proportionate  share  for  all  losses  and  ex- 
penses occurring  during  said  term,  shall  be  relinquished  by  the  com- 
pany to  the  maker,  and  it  shall  be  lawful  for  the  comj)any  to  loan 
such  portion  of  the  money  as  may  not  be  immediately  wanted  for 
the  use  of  the  corporation,  provided  the  same  shall  be  secured  by  a 
bond  and  a  mortgage  on  unincumbered  real  estate,  of  double  the 
value  of  the  sum  loaned.     {Laics  o/1848,  chap  205,  §  1.) 

213.  Any  mutual  insurance  company  heretofore  incorporated 
in  this  State,  whose  charter  limits  the  amount  to  be  paid  down  upon 
premium  notes  to  a  sum  not  exceeding  five  per  cent.,  may  loan  such 
portion  of  the  said  five  per  cent,  as  may  not  be  immediately  wanted 
for  the  purposes  of  the  corporation,  upon  good  and  ample  security 
by  bond  or  promissory  notes.     {Laws  of  1840,  chap.  287,  §  1.) 

214.  All  bonds  and  promissory  notes  heretofore  taken  by  any 
such  mutual  insurance  company  for  money  loaned,  shall  be  valid, 
and  may  be  collected  by  such  company.     {Ibid,  §  2.) 

21*1,  Every  insurance  company  or  association  for  fire,  marine, 
or  life  risks,  conducted  on  the  mutual  principle  or  otherwise,  now  or 
hereafter  incorporated  or  organized,  or  doing  business  under  any 
general  or  special  law  of  this  State,  on  or  before  the  first  day  of 
September  next,  and  annually  thereafter  shall  cause  to  be  published 
for  six  successive  weeks,  in  one  public  newspaper  printed  in  the 
county  in  which  such  company  or  association  may  be  located,  and 
in  the  State  paper,  a  true  and  accurate  statement,  verified  by  the 
oath  of  the  treasurer  or  presiding  officer,  of  all  dividends  and  inter- 
ests declared  and  payable  upon  any  of  the  stock,  bonds,  or  other 
evidence  of  indebtedness  of  said  company  or  association,  which,  at 
the  date  of  such  statement,  shall  have  remained  unclaimed  by  any 
person  or  persons  authorized  to  receive  the  same,  for  two  years  then 
next  preceding ;  and  the  word  "dividend"  shall  include  all  scrip 
issued  or  declared  due  for  unpaid  earnings  or  profits.  {Laics  o/ 
1855,  chap.  75,  §  2.) 

216.  In  case  the  corporation  in  regard  to  which  a  receiver  has 
been  or  shall  hereafter  be  appointed  is  or  shall  be  a  mutual  insur- 
ance company,  such  receiver  shall  have  full  power,  under  the  author- 


670  hine's  insueance  statutes. 

ity  and  sanction  of  the  court  appointing  him,  to  make  all  such 
assessments  on  the  premium  notes  belonging  to  such  corporation  as 
may  be  necessary  to  pay  the  debts  of  such  corporation,  as  by  the 
charter  thereof  the  directors  of  such  corporation  have  authority  to 
make  ;  and  the  notice  of  such  assessment  may  be  given  in  the  same 
manner  as  is  provided  in  the  charter  of  said  company  for  the  direc- 
tors of  said  company  to  give ;  and  the  said  receiver  shall  have  the 
like  rights  and  remedies  upon  and  in  consequence  of  the  non-pay- 
ment of  sucb  assessments  as  are  given  to  the  corporation  or  the 
directors  thereof  by  the  charter  of  such  corporation.  {Laws  of 
1852,  chap.  71,  §  2.) 

5217.  Such  receiver  is  authorized  to  receive  a  voluntary  sur- 
render of  all  policies  issued  by  such  corporation,  or  to  cancel  the 
policies  issued  by  such  corporation,  in  all  cases  where,  by  the  char- 
ter of  such  corporation,  the  directors  thereof  are  authorized  to  re- 
ceive the  surrender  of  or  cancel  the  policies  issued  bv  such  corpora- 
tion.    {Hid,  §  3.) 

521 8.  The  court  by  which  any  such  receiver  may  have  been  or 
shall  be  appointed  is  authorized,  upon  a  proper  action  instituted  for 
that  purpose  by  such  receiver,  to  examine  by  a  reference  or  other- 
wise as  it  may  deem  proper  into  the  proceedings  and  acts  of  such 
corporation  ;  and  if  it  shall  appear  upon  such  examination  that  the 
directors  or  officers  of  such  corporation,  or  either  or  any  of  them, 
have  in  any  manner  misapplied  or  improperly  disposed  of  the  funds, 
property,  or  effects  of  such  corjioratiou,  it  shall  he  lawful  for  such 
court  to  decree  that  such  directors  or  ofQoers  of  such  corporation  as 
shall  have  been  guilty  of  such  niisapplioation  or  imi)roi)er  disposi- 
tion of  such  funds,  property,  or  effects,  to  jiay  the  same  to  such  re- 
ceiver, and  to  enforce  such  decree  by  such  process  as  may  be  neces- 
sary to  accomplish  that  object.     {Ibid,  §  4.) 

^19.  Whenever  any  insurance  company  or  corporation  shall 
have  made  an  assignment  of  its  proj)erty  and  effects  to  any  person 
or  persons  in  trust  for  the  benefit  of  all  its  creditors,  and  such  trust 
shall,  from  any  cause,  have  become  vested  in  the  Supreme  Court,  the 
person  or  persons  appointed  by  the  said  court  for  the  purpose  of 
executing  such  trust  shall  have  and  possess  all  the  powers  and 
authority  conferred,  and  be  subject  to  all  the  obligations  and  duties 
imposed,  in  article  thii-d,  title  four,  part  third,  and  chapter  eight  of 
the  Eevised  Statutes,  upon  receivers  appointed  in  case  of  the  volun- 
tary dissolution  of  a  corporation ;  and  shall,  in  addition  thereto, 
have  and  possess  the  same  power  and  authority  conferred,  and.be 
subject  to  the  same  duties  and  obligations  imposed,  upon  receivers  in 
certain  cases  by  the  act  entitled  "  An  act  to  facilitate  the  collection 
of  debts  against  corporations,"  passed  March  nineteenth,  eighteen 
hundred  and  fifty-two,  and  shall  in  all  respects  be  subject  to  the 
control  and  direction  of  the  said  court.     (Laws  of  1854^,  chap.  224, 

§!•) 

5520.  No  member  of  any  mutual  fire  insurance  company,  organ- 
ized under  the  laws  of  this  State,  shall  be  allowed  to  vote  by  proxy 
for  a  director  or  directors  of  any  such  company.  {Laws  of  1851, 
chap.  188,  §  1.) 

2S 1 .  Limited  partnerships  for  the  transaction  of  any  mercan- 
tile, mechanical  or  manufacturing  business,  within  this  State,  may 
be  formed  by  two  or  more  persons,  upon  the  terms,  with  the  rights 
and  powers,  and  subject  to  the  conditions  and  liabilities,  herein  pre- 
scribed ;  but  the  provisions  of  this  title  shall  not  be  construed  to 


NEW   YOKK.  671 

authorize  any  such  partnership  for  the  purpose  of  banking  or  mak- 
ing insurance.  [Laws  of  1822,  chap.  244,  §  2,  and  Revised  Statutes, 
part.  II.,  chap.  IV.,  title  1,  §  1.) 

29*25.  All  fire,  marine,  and  life  insurance  companies  now  re- 
quired, or  which  may  hereafter  be  required,  to  make  annual  state- 
ments to  the  Insurance  Dei)artment,  for  the  year  ending  on  the  last 
day  of  December,  are  hereby  authorized  and  empowered  to  change 
the  date  of  the  termination  of  their  fiscal  year  to  the  thirty-first  daj-- 
of  December ;  and  all  statements,  reports,  dividends,  and  balances, 
now  required  by  law  to  be  made,  and  all  other  acts  required  to  be 
done  by  said  companies,  at  the  termination  of  their  fiscal  year  or 
years,  or  within  a  limited  time  thereafter,  may  be  made  out  and  done 
on  the  last  day  of  December,  and  within  the  same  period  thereafter, 
in  lieu  of  such  other  days  of  the  year,  or  ])eriods  of  time,  as  are  now 
designated  by  their  charter  or  otherwise.  {Laics  of  1861,  chap. 
326,  §  2.) 

■  !d2«{.  The  public  ofiScers  having  by  law  the  care  and  custody 
of  town,  village,  city  or  county  buildings,  are  hereby  authorized  to 
insure  the  same  at  the  expense  and  for  the  benefit  of  the  town, 
village,  city,  or  county  owning  the  same.     [Laics  of  1847,  chap.  294.) 

SS4.  The  trustee  or  trustees  of  any  school-district  in  this 
State  are  hereby  authorized,  if  a  majority  of  the  legal  voters  present 
shall,  at  any  regxilarly  called  school-district  meeting,  so  direct,  to 
insure  the  school-house  or  school-houses  belonging  to  said  district, 
in  any  insurance  company  organized  and  established  under  the  laws 
of  this  State ;  and  they  are  hereby  emi)owered  to  comjily  with  all 
the  conditions  of  insurance  of  any  such  company.  {Laics  of  1860, 
chap.  314.) 

"ii^S.  It  shall  be  lawful  for  any  married  woman,  being  a  stock- 
holder or  member  of  any  bank,  insurance  company  (other  than 
mutual  fire  insurance  companies),  manufacturing  company,  or  other 
institution  incorporated  under  the  laws  of  this  State,  to  vote  at  any 
election  for  directors  or  trustees  by  proxy  or  otherwise  in  such  com- 
panv  of  which  she  may  be  a  stockholder  or  member.  {Laws  of  1851, 
chap.  321.) 


SERVICE    OF    PROCESS    ON    INSURANCE    AND     OTHER 

CORPORATIONS. 

326.  Every  insurance  and  other  corporation  created  by  the 
laws  of  any  other  State,  doing  business  in  this  State,  shall,  within 
thirty  days  after  the  passage  of  this  act,  designate  some  person  re- 
siding in  each  county  where  such  corporation  transacts  business,  on 
whom  process  issued  by  authority  of,  or  under  any  law  of  this  State 
may  be  served,  and  within  the  time  aforesaid  shall  file  such  desig- 
nation in  the  ofUce  of  the  Secretary  of  State ;  and  a  copy  of  such 
designation,  duly  certified  by  said  of&cer,  shall  be  evidence  of  such 
appointment ;  and  it  shall  be  lawful  to  serve  on  such  person  so  de- 
signated any  process  issued  as  aforesaid;  such  service  shall  be  made 
on  such  person  in  such  manner  as  shall  be  prescribed  in  case  of 
service  required  to  be  made  on  any  resident  of  this  State,  and  such 
service  shall  be  deemed  a  valid  service  thereof.  {Laws  of  1855, 
chap.  279,  §  1.) 

2S7.  In  all  cases  where  such  designation  shall  not  be  made  as 
aforesaid,  and  such  foreign  corporation  can  not  be  served  with  such 


672  niNE'S  INSURANCE   STATUTES. 

process  according  to  the  present  provisions  of  law,  it  shall  be  lawful 
to  serve  such  process  on  any  person  who  shall  be  found  within  this 
State  acting  as  the  agent  of  said  corporation,  or  doing  business  for 
them.     {Ibid,  §  2.) 

228.  Service  made  in  accordance  with  any  provision  of  this 
act  shall  be  as  effectual  as  if  made  in  the  form  and  manner  required 
by  law,  and  shall  be  deemed  a  full  comi)liance  with  any  statute  re- 
quiring personal  or  other  service  to  be  made.     {Ibid,  §  3.) 

2*29.  The  term  process  in  this  act,  shall  be  held  and  deemed 
to  include  any  writ,  summons,  or  order,  whereby  any  action,  suit  or 
proceeding  shall  be  commenced  or  which  shall  be  issued  in  or  upon 
any  action,  suit  or  proceeding,  by  any  court,  officer  or  magistrate. 
{Ibid,  §  4.) 

DEPOSIT  OF  SECURITIES  BY  PLATE-GLASS  INSUEANCE 

COMPANIES. 

230.  Any  company  heretofore  or  hereafter  organized  under 
the  laws  of  this  State  to  make  insurance  against  loss  or  damage  to 
plate-glass,  exclusively,  shall  be  required  to  deposit  with  the  Super- 
intendent of  the  Insurance  Department,  for  the  benefit  of  all  their 
policy-holders,  securities  amounting  to  at  least  fifty  thousand  dol- 
lars ;  and  no  company  created  by  the  laws  of  any  other  State  of  the 
United  States,  with  authority  to  insure  against  loss  or  damage  to 
plate-glass,  shall  be  permitted  to  transact  business  in  this  State 
without  having  previously  deposited,  for  the  benefit  of  their  policy- 
holders, securities  amounting  to  at  least  fifty  thousand  dollars,  with 
the  Auditor,  Comptroller,  Treasurer  or  chief  financial  officer  of  the 
State  by  whose  laws  said  company  is  incorporated.  Such  deposits 
shall  consist  of  the  same  securities  in  character  and  description  as 
are  required  to  be  made  by  companies  under  the  act  providing  for 
the  formation  of  life  and  health  insurance  companies,  and  in  relation 
to  agencies  of  such  companies,  passed  June  twenty-fourth,  one  thou- 
sand eight  hundred  and  fifty-three,  and  the  amendments  and  addi- 
tions thereto.     {Laws  of  1873,  chap.  617,  §  1.) 


STEAM  BOILER  INSPECTION  AND  INSURANCE. 

231.  All  steam  users,  manufacturers,  or  corporations  possess- 
ing the  guaranteed  certificates,  unrevoked  and  in  full  life,  of  any  fire 
insurance  company  now  incorporated,  or  hereafter  incorporated,  or 
of  any  company  organized  or  hereafter  organized  for  the  purpose  of 
making  guaranteed  steam  boiler  inspections,  and  which  have  com- 
plied with  the  insurance  laws  of  the  State  of  New  York,  having  duly 
filed  a  statement  with  the  Su{)erintendent  of  Insurance  or  other 
authorized  ofiicer,  of  its  conditions,  and  duly  paid  license  fees  and 
taxes,  shall  be  exempt  from  any  farther  inspections  and  from  the 
pains  and  penalties  of  the  above-named  acts.  {Laws  of  1874,  chap. 
614,  §  1.) 

232.  Any  company  authorized  by  the  first  section  of  this  act 
for  the  puri)ose  of  making  guaranteed  steam  boiler  inspections,  and 
which  have  complied  with  the  law  set  forth  in  the  first  section  of 
this  amended  act,  shall,  at  least  once  in  each  month,  make  and  tile 
returns  under  oath  with  the  luspector-in-chief,  except  in  the  city 
and  county  of  New  York,  and  for  said  city  and  county  with  the 


NEW  YORK.  673 

B9ard  of  Commissioners  of  Police,  of  all  inspections  made  by  them  of 
steam  boilers  and  of  all  certificates  issued  by  them,  and  tiiose  at  the 
time  of  making  said  return  either  in  full  force,  unrevdked  or  can- 
celed. Each  and  every  company  so  authorized  and  making  insur- 
ance under  the  provisions  of  this  act,  and  failing  to  make  said 
returns  as  aforesaid,  shall  pay  the  penal  sum  of  fifty  dollars  for  each 
and  every  failure  or  neglect  to  make  and  file  said  returns,  the  same 
to  be  recovered  by  suit  to  be  brought  by  said  Inspector-in-chief, 
except  in  the  city  and  county  of  New  York,  and  in  said  city  and 
county  by  said  Commissioners  of  Police.     {Ibid,  §  2.) 


COMPANIES  FOR  THE  EECOVERY  OF  STOLEN  HORSES, 
CATTLE  AND  SHEEP,  AND  TO  INSURE  AGAINST 
THEIR  LOSS. 

S33.  It  shall  be  lawful  for  any  number  of  persons,  not  less 
than  twenty,  residing  in  this  State,  to  form  themselves  into  an 
incorporated  company  for  the  purpose  of  mutual  insurance  against 
loss  or  damage,  by  having  had  stolen  any  horse  or  horses,  cattle  or 
sheep,  or  any  loss  or  expense  incurred  in  recovering  such  animals  as 
may  have  been  so  stolen,  or  in  the  apprehension  of  the  thief  or 
thieves,  which  corporation  shall  possess  the  usual  powers  and  be 
subject  to  the  usual  duties  of  cor[)orations,  as  defined  in  title  three, 
chapter  eighteen,  part  first  of  Revised  Statutes,  and  the  corporate 
name  whereof  shall  embrace  the  name  of  the  town  in  which  the 
business  office  of  said  company  shall  be  located.  {Laws  of  1859, 
chap.  168,  §  1.) 

!^34.  Every  company  so  formed  shall  choose  of  their  number 
not  less  than  five  nor  more  than  nine  directors,  to  manage  the 
affairs  of  such  company,  who  shall  hold  their  office  for  one  year,  and 
until  others  are  elected,  and  such  directors  shall  choose  one  of  their 
number  President  and  one  as  Secretary.     {Ibidj  §  2.) 

S«S5.  The  directors  of  such  company  shall  tile  their  articles  of 
association,  together  with  a  copy  of  their  by-laws  and  the  names  of 
the  officers  of  such  company,  in  the  Town  Clerk's  office  of  the  town  in 
which  the  office  of  such  company  is  located,  and  which  town  shall 
be  the  residence  of  the  Secretary  of  said  company,  and  said  Secre- 
tary shall  keep  a  record  of  their  proceedings  in  a  book  to  be  kept 
for  that  purpose,  together  with  the  names  of  the  persons  insui'ed, 
and  the  amount  each  person  is  insured,  which  record  shall  be  open 
for  the  inspection  of  all  the  members  of  such  company  from  nine 
o'clock  A.  M.  to  four  o'clock  p.  m.  of  each  secular  day,  the  established 
holidays  excepted.     {Ibid,  §  3.) 

S«<6.  The  company  may  issue  policies  signed  by  their  Presi- 
dent and  Secretary,  agreeing  in  the  name  of  such  company  to  pay 
all  damages  which  may  be  sustained  from  the  stealing  of  such  ani- 
mals, and  the  recovery  thereof,  and  the  apprehension  of  the  thief  or 
thieves,  for  a  term  not  exceeding  five  years,  by  the  holders  of  such 
policies,  not  exceeding  the  sum  named  in  said  policy,  and  which 
shall  not  exceed  the  sum  of  five  hundred  dollars.     {Ibid,  §  4.) 

237.  Every  person  so  insured  shall  give  his  undertaking  to 
said  company,  bearing  even  date  with  said  policy  so  issued  to  him, 
binding  himself,  his  heirs  and  assigns,  to  pay  his  j^ro  rata  share  to 
the  company,  of  all  losses  by  the  stealing  and  recovery  of  such  ani- 
mals, and  the  apprehension  of  the  thiet  or  thieves,  which  mav  bo 
43 


674  HINE^S  INSUEANCE   STATUTES. 

sustained  by  any  member  thereof,  and  every  such  undertaking  stall 
within  five  days  after  the  execution  thereof,  be  filed  by  the  secretary 
of  such  company,  in  the  Town  Clerk's  office  of  the  town  in  which  the 
office  of  said  company  is  located,  and  shall  remain  permanently  on 
file  in  such  office,  except  when  required  to  be  produced  in  evidence 
in  court,  and  when  so  used  shall  be  immediately  returned  to  said 
office  ot  said  Town  Clerk.  He  shall  also,  at  the  time  of  eflecting  such 
insurance,  pay  such  per  centage  in  cash,  and  such  reasonable  sum 
for  a  policy,  as  may  be  required  by  the  rules  or  by-laws  of  said  com- 
pany.    {Ibid,  §  5.) 

238.  Every  member  of  such  company  who  may  sustain  dam- 
ages or  loss  by  the  stealing  of  such  animals,  the  expense  of  the  re- 
covery thereof,  and  necessary  expense  of  the  apprehension  of  the 
thief  therein,  shall  immediately  notify  the  president  or  secretary  of 
said  company,  who  shall  forthwith  convene  the  dii^ectors,  whose 
duty  it  shall  he  when  so  convened,  to  appoint  a  committee  of  not 
less  than  three  nor  more  than  five  members  of  such  company,  to  as- 
certain the  amount  of  such  loss  or  damage;  and  in  case  of  the  ina- 
bility of  the  parties  to  agree  upon  the  amount  of  such  loss  or  dam- 
age, the  claimant  may  appeal  to  the  county  judge  of  the  county, 
whose  duty  it  shall  be  to  appoint,  by  a  writing  signed  by  him,  three 
disinterested  persons,  as  a  committee  of  reference,  who  shall  have 
full  authority  to  examine  witnesses  and  to  determine  all  matters  of 
dispute,  who  shall  make  their  award  in  writing  to  the  president  or 
secretary  of  such  company  within  twenty  days  alter  the  hearing, 
which  award  so  made  shall  be  final.  The  said  committee  of  refer- 
ence shall  each  be  allowed  two  dollars  per  day  for  each  day's  ser- 
vice so  rendered,  and  which  shall  be  paid  by  the  claimant,  unless 
the  said  award  of  said  committee  shall  exceed  the  sum  ofiered  to  be 
paid  by  the  company  in  liquidation  of  such  loss  or  damage,  in  which 
ease  said  expenses  shall  be  paid  by  the  company.     {Ibid,  §  6.) 

i239.  Whenever  the  amount  of  any  loss  or  damages  shall  have 
been  ascertained  which  exceeds  in  amount  the  cash  funds  of  the 
company  then  on  hand,  the  president  shall  convene  the  directors  of 
said  company,  who  shall  make  an  assessment  upon  each  member  of 
the  company  in  proportion  to  the  amount  insured  by  him,  sufficient 
to  pay  such  loss  and  damages,  and  a  sum  not  exceeding  ten  per  cent* 
in  addition  thereto,  to  be  determined  by  said  directors.     {Ibid,  §  7.) 

S40.  It  shall  be  the  duty  of  the  secretary,  whenever  such  as- 
sessment shall  have  been  completed,  to  immediately  notify  every 
person  composing  such  company,  by  letter  sent  to  him  post-paid  at 
his  usual  post-office  address,  of  the  amount  of  such  loss  and  dam- 
ages, and  of  the  sum  due  from  him  as  his  share  thereof,  and  of  the 
time  when  and  to  whom  payment  is  to  be  made,  but  such  time  shall 
not  be  less  than  thirty  nor  more  than  ninety  days  from  the  date  of 
such  notice,  and  every  such  person  so  designated  to  receive  such 
money,  may  demand  and  receive  two  per  cent,  in  addition  to  the 
amount  due  on  such  assessment,  for  his  fees  in  receiving  and  paying 
over  such  money.     {Ibid,  §  8.) 

5S41.  Actions  at  law  may  be  brought  against  any  member  of 
such  company,  who  shall  neglect  or  refuse  to  pay  any  such  assess- 
ment made  upon  him  or  them,  under  the  provisions  of  this  act,  and 
the  directors  of  any  such  company  so  formed  who  shall  willfully  re- 
fuse or  neglect  to  perform  the  duties  imposed  upon  them  by  this  act, 
shall  be  liable  in  their  individual  capacity,  to  the  person  or  persons 
sustaining  such  loss  or  damage.    {Ibid,  §  9.) 


NEW   YORK.  675 

34Q.  The  directors  of  such  company  shall  be  chosen  by  ballot 
at  the  annual  meetmg  of  the  members  of  the  company,  which  shall 
be  held  on  the  second  Tuesday  of  January  in  each  year,  at  the  busi- 
ness ofiice  of  said  company,  and  every  person  insured  shall  have 
one  vote,  but  no  person  shall  be  allowed  to  vote  by  proxy  at  such 
elections.     {Ibid,  §  10.) 

343.  It  shall  be  the  duty  of  the  secretary  of  every  such  com- 
pany to  prepare  a  statement  showing  the  condition  of  such  com})any 
on  the  day  preceding-  their  annual  meeting,  verified  by  the  affidavit 
of  said  secretary  attached  thereto ;  which  statement  shall  contain 
the  number  of  policies  issued,  and  all  other  matters  pertaining  to 
the  interests  of  such  company ;  which  statement  shall  be  filed  in  the 
office  of  the  Clerk  of  the  town  in  which  such  company  is  located,  on 
or  before  the  twenty-fifth  day  of  January  in  each  year,  and  which 
statement  shall  also  be  read  to  the  members  of  such  company  when 
assembled  at  their  annual  meeting.     (Ibid,  §  11.) 

!!244:.  Any  member  of  such  company  may  withdraw  therefrom 
at  any  time,  by  giving  notice  in  writing  to  the  president  or  secretary 
of  such  company  twenty  days  prior  to  such  withdrawal,  and  paying 
his  share  of  all  claims  then  existing  against  said  company ;  and  the 
directors,  or  a  majorit}^  thereof,  shall  have  power  to  annul  any  policy, 
by  giving  twenty  days'  notice,  in  writing,  of  their  intention  to  do  so, 
to  the  holder  of  such  policy,  and  when  so  annulled  said  policy  shall 
be  void,  and  the  undertaking  given  on  issuing  said  policy  shall  also 
be  void.     {Ibid,  §  12.) 

@4«>.  The  company  so  formed  may  adopt  such  by-laws  for  its 
regulation  as  are  not  inconsistent  with  the  provisions  of  this  act, 
and  may  therein  prescribe  the  compensation  of  its  officers.  {Ibid. 
§13.) 

240,  No  company  formed  under  this  act  shall  continue  for  a 
longer  period  than  thirty  years.     {Ibid,  §  14.) 

247.  If  any  controversy  or  disagreement  shall  arise  between 
the  receiver  of  an  insolvent  or  dissolved  mutual  insurance  company, 
in  the  settlement  of  any  demand  or  claim  against  any  member  or 
stockholder  of  the  company  of  which  he  is  a  receiver,  or  any  other 
person,  or  if  after  personal  demand  for  payment  of  such  demand  or 
claim  shall  have  been  made,  and  the  payment  of  the  sum 
claimed  be  neglected  or  refused,  the  same  may  be  referred  to  a  sole 
referee  who  may  be  agreed  upon  by  the  receiver  and  the  person 
against  whom  such  demand  or  claim  is  made,  by  a  writing  to  that 
effect  signed  by  them,  or  upon  apjilication  to  any  justice  of  the 
Supreme  Court  residing  in  the  district  where  such  receiver  keeps 
his  office  as  herein  stated,  and  all  controversies  relating  to  such  re- 
ceiver's business  may  be  referred  to  one  referee  in  the  discretion  of 
the  court.  Such  referee  shall  be  appointed  upon  ten  days'  notice  to 
the  adverse  party.     {Laws  of  18G2,  cluq).  412,  §  1.) 

248.  The  referee  so  appointed  shall  proceed  in  a  summary 
manner  to  hear  the  proofs  and  allegations  of  the  parties,  upon 
written  or  oral  j)leadings,  and  shall  have  the  same  powers  and  be 
subject  to  the  same  duties  and  obligations,  and  shall  receive  the 
same  compensation  as  referees  appointed  by  the  Supreme  Court  in 
personal  actions  pending  therein,  and  upon  his  report  a  judgment 
may  be  entered  in  said  court,  and  be  the  judgment  of  said  court,  in 
the  same  manner  ;  and  the  Sui)reme  Court,  may,  on  appeal  from  said 
judgment  to  the  General  Term,  set  aside  the  report  of  the  said 
referee  j  but  no  appeal  from  such  judgment  shall  suspend  or  delay 


676  niNE's  INSURANCE  STATUTES. 

the  execution  thereon,  unless  there  shall  be  filed  with  the  notice  of 
appeal  to  the  Clerk  of  the  Court  a  certificate  of  a  justice  of  the 
Supreme  Court,  to  the  effect  that  there  is  probable  error  in  the  said 
judgment,  nor  unless  security  be  given  to  the  satisfaction  of  said 
justice  for  the  payment  of  said  judgment  and  the  costs  of  the  appeal, 
if  said  judgment  be  affirmed.     {Ibid,  §  2.) 

349.  All  controversies  before  said  referee  shall  be  brought  to 
a  hearing  upon  notice  to  the  adverse  party,  the  same  as  now  re- 
quired by  the  rules  and  practice  of  the  Supreme  Court.    {Ibid,  3.) 

3^0.  The  referee  so  appointed,  at  any  time  after  his  appoint- 
ment, and  without  an  issue  of  fact  joined,  shall  have  the  same 
power  and  authoritj'  to  issue  a  commission  to  examine  witnesses  re- 
lating to  any  controversy  before  him  as  a  justice  of  the  peace  now 
has.     {Ibid,  §  4.) 

S51.  The  Supreme  Court  shall  have  power  to  refer  all  actions 
now  pending  therein,  wherein  any  such  receiver  is  a  party,  and 
where  any  controversy  arises  as  mentioned  in  the  first  section  of 
this  act,  such  reference  shall  in  no  way  j)rejudice  the  proceedings 
already  had.     {Ibid,  §  5.) 

^5'^.  The  prevailing  party  shall  recover  the  disbursements  to 
the  controversy  only.  This  act  shall  not  affect  the  costs  already 
made  and  actions  x'ending,  and  the  costs  now  incurred  in  actions 
pending  shall  abide  the  event  of  the  action,  not  to  exceed  twenty 
dollars  in  cases  where  no  judgment  has  been  entered.  Costs  on 
appeal  may  be  allowed  in  the  discretion  of  the  court,  and  may  be 
absolute  or  directed  to  abide  the  event  ot  the  action.     {Ibid,  §  6.) 


NEW  YOSK  BOARD  OF  FIKE  UNDERWRITERS. 

25?S.  The  president  of  the  Home  Insurance  Company,  the 
president  of  the  Continental  Insurance  Company,  the  president  of 
the  Security  Insurance  Company,  the  president  of  the  Interna- 
tional Insurance  Company,  the  president  of  the  Howard  Insurance 
Company,  the  president  of  the  Star  Fire  Insurance  Company,  the 
I)resident  of  the  Knickerbocker  Insurance  Company,  the  president 
of  the  Germania  Fire  Insurance  Company,  the  president  of  the  im- 
porters and  Traders'  Insurance  Company,  the  president  of  the  Jitna 
Insurance  Company,  the  president  of  the  ('ommerce  Fire  Insurance 
Company,  the  president  of  the  Astor  Fire  Insurance  Ct)mpaiiy,  the 
president  of  the  City  Fire  Insurance  Company,  the  [)resident  of  the 
Relief  Fire  Insurance  Company,  the  president  of  the  Niagara  Fire 
Insurance  Company,  the  president  of  the  Hamilton  Fire  Insurance 
Company,  the  president  of  the  Arctic  Fire  Insurance  Company,  the 
president  of  the  Emi)ire  Fire  Insurance  Company,  the  president  of 
the  American  Exchange  Fire  Insurance  Company,  the  j)resident  of 
the  Firemen's  Insurance  Company,  the  president  of  the  Greenwich 
Insurance  Company,  the  president  of  the  Excelsior  Fire  Insurance 
Company,  the  president  of  the  Atlantic  Fire  Insurance  Company, 
the  president  of  the  Lenox  Fire  Insurance  Company,  the  president 
of  the  Long  Island  Insurance  Company,  the  agent  of  the  Royal  In- 
surance Company,  the  president  of  the  New  York  Equitable  Insur- 
ance Company,  the  president  of  the  Manhattan  Insurance  Company, 
the  president  of  the  New  York  Fire  Insurance  Company,  the  presi- 
dent of  the  Citizens'  Insurance  Company,  the  president  of  the 
Broadway  Insurance  Company,  the  president  of  the  Phenix  Fire 


NEW  YORK.  677 

Insurance  Company,  Brooklyn,  New  York,  the  president  of  the 
Metropolitan  Insurance  Company,  the  president  of  the  Columbia 
Fire  Insurance  Company,  tlie  president  of  the  Guardian  Fire  Insur- 
ance Company,  the  president  of  the  Humboldt  Fire  Insurance  Com- 
pany, the  president  of  the  Commercial  Fii-e  Insurance  Company, 
the  president  of  the  Union  Mutual  Insurance  Company,  the  presi- 
dent of  the  Kings  County  Fire  Insurance  Company,  the  president  of 
the  Gebhard  Fire  Insurance  Comi)any,  the  president  of  the  Hoffman 
Fire  Insurance  Company,  the  president  of  the  Peter  Cooper  Fire 
Insurance  Company,  the  president  of  the  Kutgers  Fire  Insurance 
Company,  the  president  of  the  Stuyvesant  Insurance  Company,  the 
president  of  the  Park  Fire  Insurance  Company,  the  president  of  the 
Globe  Fire  Insurance  Company,  the  president  of  the  Firemen's 
Fund  Insurance  Company,  the  president  of  the  Williamsburgh  City 
Fire  Insurance  Company,  the  president  of  the  Yonkers  and  New 
York  Fire  Insurance  Company,  the  president  of  the  Brooklyn  Fire  In- 
surance Company,  the  president  of  tlie  American  Fire  Insurance  Com- 
pany, the  president  of  the  Pacific  Fire  Insurance  Company,  the  presi- 
dent of  the  People's  Fire  Insurance  Company,  the  president  of  the 
Washington  Insurance  Company,  the  president  of  the  La  Fayette 
Fire  Insurance  Company,  for  the  time  being,  and  all  other  persons,  the 
presidents  or  other  officers  for  the  time  being,  of  any  incorporated 
company  or  associations,  and  any  agent  doing  the  business  of  fire 
insurance  in  the  city  of  New  York,  who  may  become  associated  with 
them,  are  hereby  created  a  body  corporate,  by  the  name  ot "  The  New 
York  Board  of  Fire  Underwriters,"  with  perpetual  succession,  and 
power  to  use  a  common  seal,  and  to  alter  the  same  at  pleasure,  to 
sue  and  be  sued,  to  take  and  hold  by  grant,  purchase  and  devise 
real  and  personal  property,  to  an  amount  not  exceeding  one  hun- 
dred thousand  dollars  in  value,  for  the  purposes  of  said  corporation, 
and  to  sell,  convey,  lease  and  mortgage  the  same,  or  any  part 
thereof,  subject,  however,  to  the  laws  of  this  State  in  relation  to  de- 
vises.    (Laws  of  1867,  chap.  846,  §  1.) 

^54.  The  purposes  of  this  corporation  shall  be  to  inculcate 
just  and  equitable  principles  in  the  business  of  insurance;  to  estab- 
lish and  maintain  uniformity  among  its  members  in  policies  or  con- 
tracts of  insurance,  and  to  acquire,  preserve  and  disseminate  valu- 
able information  relative  to  the  business  in  which  they  are  engaged. 
{Ibid,  §  2.) 

5255.  Thirty  members  of  the  Board  shall  constitute  a  quorum 
for  the  transaction  of  business.     {Ibid,  §  3.) 

356.  The  officers  of  this  corporation  shall  be  a  president,  vice- 
president,  a  secretary,  a  treasurer,  and  such  others  as  may  be  pro- 
vided for  in  the  by-laws.  They  shall  hold  their  respective  offices  for 
one  year,  and  until  others  may  be  regularly  chosen  in  their  places. 
The  first  election  for  officers  shall  be  held  on  the  third  Monday  of 
May,  eighteen  hundred  and  sixty-seven,  and  future  elections  shall 
be  held  annually,  at  such  time  and  place  as  may  be  provided  for  in 
the  by-laws.  To  enable  a  i^erson  to  vote  at  the  first  election,  he 
shall  present  authority  from  the  company  which  he  represents  to 
join  this  corporation  and  to  vote  for  its  officers.  Such  election  shaU 
be  made  by  ballot  under  the  inspectors,  who  shall  be  members  of 
this  corporation,  and  appointed  thereby;  and  the  persons  having  a 
majority  of  the  votes  of  all  members  j^resent  and  voting  shall  be 
elected  to  the  several  offices  designated  on  the  ballots.  If  it  shall 
happen  that  an  election  of  officers  shall  not  be  held  on  the  day  when 


678  hike's  insueance  statutes. 

it  should  have  been  made,  it  shall  be  lawful,  on  any  subsequent  day, 
to  hold  such  election,  in  such  manner  as  shall  be  prescribed  in  the 
by-laws.     {Ibid,  §  4.) 

257.  The  said  corporations  shall  have  power  to  make  all 
needful  by-laws,  not  contrary  to  the  provisions  of  this  act  or  to 
the  constitution  and  laws  of  this  State  or  of  the  United  States. 
{Ibid,  §  6.) 

25  §.  The  said  corporation  shall  have  power  to  provide  suit- 
able rooms  for  the  transaction  of  its  business,  and  also  to  provide  a 
patrol  of  men  and  a  competent  person  to  act  as  superintendent, 
to  discover  and  prevent  fires,  \vith  suitable  apparatus  to  save  and 
preserve  property  or  life  at  and  after  a  fire ;  and  the  better  to 
enable  them  so  to  act  with  promptness  and  efiiciency,  full  power  is 
given  to  such  superintendent  and  to  such  i^atrol  to  enter  any  build- 
ing on  fire,  or  which  may  be  exposed  to  or  in  danger  of  taking  fire 
from  other  burning  buildings,  and  at  once  proceed  to  protect  and 
endeavor  to  save  the  property  therein,  and  to  remove  such  prop- 
erty, or  any  i^art  thereof,  from  the  ruins  after  a  fire.  Nothing  in 
this  act,  however,  shall  warrant  any  interference  with  the  action  of 
the  firemen  in  their  duties  in  extinguishing  a  fire,  and  the  said 
superintendent  and  the  members  of  said  patrol,  while  on  duty 
at  a  fire,  shall,  in  all  respects,  be  subordinate  to  and  under  the 
control  of  the  Board  of  Metropolitan  Fire  Commissioners.  {Ibid, 
§7.) 

259.  In  the  month  of  June,  eighteen  hundred  and  sixty- 
seven,  and  in  the  month  of  June  of  every  second  year  thereafter, 
there  shall  be  held  a  meeting  of  the  corporation  hereby  created,  of 
which  ten  days'  previous  notice  shall  be  inserted  in  at  least  two 
newspapers  published  in  the  city  of  New  York,  at  which  meeting 
each  incorporated  insurance  comi)any  or  association  doing  business 
in  the  city  of  New  York,  whether  its  officers  or  its  agents  be  mem- 
bers of  this  corporation  or  not,  shall  have  the  right  to  be  represented 
by  one  of  such  officers  or  ))y  its  agent ;  and  each  organization  repre- 
sented at  such  meeting  shall  be  entitled  to  one  vote.  A  majority 
of  the  whole  number  so  represented  shall  have  power  to  decide 
upon  the  question  of  sustaining  the  fire  patrol  hereinbefore  men- 
tioned, and  of  fixing  the  maximum  amount  of  expenses  which  shall 
be  incurred  therefor  during  the  two  fiscal  years  next  to  ensue, 
which  amount  shall  in  no  case  exceed  two  per  centum  on  the  aggre- 
gate of  premiums  returned,  as  received,  as  provided  in  section  eight 
of  this  act ;  and  the  whole  of  such  amount,  or  so  much  thereof  as 
may  be  necessary,  may  be  assessed  upon  the  organizations  belonging 
to  this  corporation,  and  upon  all  other  organizations  and  agencies 
as  hereinbefore  mentioned,  in  projiortion  to  the  several  amounts  of 
I)remiums  returned  as  received  by  each,  as  hereinafter  provided, 
and  such  assessment  shall  be  collectable  by  this  corporation  in  any 
court  of  law  in  the  city  or  State  of  New  York  having  jurisdiction. 
{Ibid,  §  8.) 

260.  To  pro\ide  for  the  payment  of  persons  employed  under 
the  provisions  of  this  act,  and  to  maintain  the  apparatus  for  saving 
life  and  property  contemplated,  this  corporation  is  empowered  to 
require  a  statement  to  be  furnished  semi-annually,  by  all  corpora- 
tions, associations,  underwriters,  agents  or  persons,  of  the  aggre- 
gate amount  of  premiums  received  for  insuring  property  in  the  city 
of  New  York,  for  and  during  the  six  months  next  preceding  the 
thirtieth  day  of  June,  and  the  thirty-first  day  of  December  of  each 


NEW   YORK.  679 

year,  which  statement  shall  be  sworn  to  by  the  president  and 
secretary  of  the  corporation  or  association,  or  by  the  agent  or  per- 
son so  acting  and  affecting  such  insurances  in  said  city,  and  shall 
be  handed  to  the  Treasurer  of  this  corporation  within  thirty  days 
after  the  time  to  which  such  returns  are  to  be  made.     [Ibid,  §  9.) 

261.  It  shall  be  lawful  for  the  Treasurer,  or  other  appointed 
officer,  of  this  corporation,  within  ten  days  after  the  first  day 
of  January  and  the  first  day  of  July  in  each  year,  by  written  or. 
printed  demand,  signed  by  him,  to  require  from  every  corporation, 
association,  underwriter,  agent  or  person  engaged  in  the  business 
of  fire  insurance  in  the  city  and  county  of  New  Tork,  the  statement 
provided  for  in  the  last  preceding  section  of  this  act.  Such  demand 
may  be  delivered,  personally,  at  the  office  of  such  corporation,  asso- 
ciation, agent  or  person,  or  at  the  residence  of  the  proper  officer  of 
such  corporation,  association,  agent  or  person ;  and  every  officer  of 
such  corporation  or  association,  and  every  individunl  agent  or 
underwriter,  who  shall,  for  thirty  days  after  such  demand,  neglect 
to  render  the  account,  shall  forfeit  fifty  dollars  for  the  use  of  the 
corporation  created  by  this  act,  and  he  shall,  also,  forfeit  for  their 
use  twenty-five  dollars,  in  addition,  for  every  day  he  shall  so  neg- 
lect after  the  expiration  of  said  thirty  days ;  and  such  additional 
penalty  may  be  computed  and  recovered  up  to  the  time  of  the  trial 
of  any  suit  for  the  recovery  thereof,  which  penalties  may  be  sued 
for  and  recovered,  with  costs  of  suit,  in  any  court  of  record  within 
this  State,  having  jurisdiction  by  and  in  the  name  of  the  cori^ora- 
tion  hereby  created.   {Ibid,  §  10.) 

'2G'^.  The  corporation  created  by  this  act  shall  possess  the 
general  powers,  and  be  subject  to  the  restrictions  and  liabilities 
prescribed  in  the  third  title  of  the  eighteenth  chapter  of  the  first 
part  of  the  Revised  Statutes.     {Ibid,  §  11.) 


NEW  YORK  UNDERWRITERS'  GUILD. 

S63.  It  shall  and  may  be  lawful  for  any  number  of  fire  insur- 
ance companies,  not  less  than  five,  that  now  are  or  may  hereafter 
be  incorporated  b}^  or  under  the  laws  of  the  State  of  New  York,  to 
associate  together  for  the  purpose  of  guaranteeing  the  contracts  of 
insurance,  which  either  of  them  may  lawfully  make  as  hereinafter 
provided,  and  such  association  shall  be  known  as  the  "  New  York 
Underwriters'  Guild."     {Lmcs  of  1867,  c%9.  847,  §  1.) 

3CI:.  The  office  of  the  corporation  created  by  this  act  shall  be 
kept  in  the  city  of  New  York,  and  the  business  of  the  said  associa- 
tion shall  be  managed  by  a  iDoard  of  directors,  to  consist  of  the 
presidents  and  secretaries  of  the  several  companies  belonging  to 
and  composing  said  Guild.     {Ibid,  §  2.) 

^&5,  Whenever  five  or  more  of  such  fire  companies  shall  have, 
by  a  vote  of  their  board  of  directors,  declared  their  intent  to  avail 
themselves  of  the  privileges  of  this  act,  and  to  associate  themselves 
thereunder ;  such  intent  and  vote  being  certified  to  by  the  officers, 
president  and  secretary,  and  attested  by  the  corj)orate  seal  of  each 
comjjany,  and  filed  in  the  office  of  the  insurance  Department,  at 
Albany,  the  presidents  and  secretaries  of  such  five  or  more  comj^a- 
nies  shall  organize  under  this  act,  and  they  shall  constitute  the 
board  of  directors  of  the  New  York  Underwriters'  Guild.  They 
shall  elect  annually  one  of  their  number  president,  and  they  shall 


680  hine's  insurance  statutes. 

appoint  a  secretary  and  such  other  ofiBcers  as  they  may  deem  re- 
quisite.    {Ibid,  §  3.) 

HGii.  Those  companies  which  join  the  said  Guild  shall  contri- 
bute to  a  common  guaranty  fund,  on  entering  the  same,  the  sum  of 
live  thousand  dollars  each,  and  such  further  sums  as  may  be  voted 
by  a  majority  of  the  directors  of  the  Guild,  which  shall  be  not  less 
than  one,  and  not  more  than  three  per  cent,  on  the  capital  stock  of 
the  respective  companies  belonging  thereto  in  each  and  every  year 
after  its  organization  under  this  act.  Companies  desiring  to  be  ad- 
mitted thereafter  shall  signify  and  file  their  intent  as  aforesaid. 
The  board  of  directors  of  said  Guild  shall,  annually,  from  the  date 
of  its  organization,  assess  upon  the  several  companies  belonging 
thereto,  proportionate  sums,  to  be  paid  into  said  guaranty  fund, 
and  any  company  not  paying  up  its  assessment  within  two  months 
from  the  date  of  the  assessment  shall  be  liable  to  expulsion  from 
said  Guild.     {IMcl,  4.) 

267.  The  funds  of  this  corporation  shall  be  invested  by  the 
board  of  directors,  in  such  loans  and  securities  as  are  designated  for 
investments  in  the  act  for  the  incorporation  of  fire  insurance  com- 
panies, passed  April  fifteenth,  eighteen  hundred  and  fifty-nine,  and 
in  any  amendment  thereof.     [Ibid,  §  5.) 

268.  Separate  accounts  shall  be  kept  of  the  money  paid  in  by 
each  company,  and  there  shall  be  an  annual  dividend  made  of  the 
income  and  interest  on  investments — less  proper  and  necessary  ex- 
l>enses — which  dividend,  on  the  first  day  of  January  of  each  year, 
shall  be  divided  among  the  companies  jjro  rata  of  the  amounts  paid 
in  and  standing  to  the  credit  of  each.     {Ibid,  §  6.) 

2S9.  There  shall,  on  the  first  day  of  December  in  each  year, 
be  made  a  statement  of  the  funds  of  this  corporation,  and  how  they 
are  then  invested,  verified  by  the  oaths  of  the  president  and  secre- 
tary, and  filed  with  the  Superintendent  of  the  Insurance  Depart- 
ment, and  the  said  Superintendent  is  hereby  empowered  to  examine 
at  any  time  into  the  state  of  said  fund,  and  the  securities  thereof, 
and  he  shall  embody  such  annual  statement  and  examination,  if 
any  shall  have  been  made,  in  his  annual  report  to  the  legislature. 
{Ibid,  §  7.) 

270.  The  insured  in  each  and  every  company  belonging  to 
this  Guild,  with  which  a  contract  for  insurance  has  been  effected 
while  such  company  is  a  member  thereof  -  provided  the  property 
insured  is  within  the  limits  of  the  State  of  New  York,  and  not  other- 
wise— shall  have  recourse  for  indemnity  for  loss  and  damage,  first, 
against  the  capital  and  effects  of  the  com])auy  contracting,  and 
with  whom  the  amount  of  the  loss  shall  be  adjusted  ;  second,  against 
the  contributed  fund  of  that  company,  in  the  custody  of  this  corpo- 
rate Guild ;  and  third,  against  the  entire  guaranty  fund  held  b^^  this 
corporate  Guild ;  and  fourth,  if  the  entire  guaranty  fund  shall  be 
exhausted,  and  be  inadequate  to  meet  the  claim  or  claims  that  shall 
lawfully  be  made  against  it,  the  deficiency  shall  be  assessed  upon 
and  paid  by  the  several  insurance  companies  belonging  to  the  (^uild 
pro  rata  the  amount  of  their  capitals.  But  nothing  in  this  act  con- 
tained shall  release  or  discharge  the  personal  liability  of  any  stock- 
holder. And  all  the  policies  issued  by  each  company  in  member- 
ship shall  express  the  fact  of  their  connection  with  the  Guild,  and 
their  liability  created  by  this  act.     {Ibid,  §  8.) 

271.  The  directors  of  this  corporation  may  make  all  needful 
rules  and  regulations  for  the  government  and  conduct  of  the  Guild, 


NEW   YORK.  681 

and  maj'  prescribe  the  terms  for  admissiou  of  other  insurance  con^- 
panies,  provided  that  such  rules  and  regulations  are  not  in  contra- 
vention of  the  laws  of  this  State.  They  shall  also  hold  the  power  to 
expel  any  company  from  membership  when,  in  their  judgment,  the 
general  interest  of  the  Guild  demands  it,  but  such  expulsion  shall 
require  a  vote  of  two-thirds  of  the  whole  board  of  directors,  at  one 
of  the  regular  meetings  of  the  board,  or  at  a  meeting  specially  called 
for  that  purjjose,  on  due  notice.  On  the  retirement  of  any  company 
by  voluntary  withdrawal,  expulsion  or  otherwise,  notice  of  such  re- 
tirement shall  be  published  in  the  State  paper,  and  in  a  paper  pub- 
lished in  the  city  of  New  York,  once  in  each  week  for  six  Avoeks  suc- 
cessively, proof  of  which  publication  shall  be  made  and  filed  in  the 
oflSce  -of  the  Insurance  Department,  at  the  city  of  Albany.  [Ibidj 
§9.) 

5J73.  Upon  the  expulsion  or  voluntary  withdrawal  of  any  com- 
pany, the  companies  remaining  in  the  Guild,  their  capitals,  and  their 
proportion  of  the  reserve  or  guaranty  fund,  shall  not  be  responsible 
for  the  liabilities  of  such  retiring  or  expelled  company  on  policies  or 
contracts  of  insurance  made  after  the  termination  of  its  member- 
ship ;  but,  upon  such  withdrawal  or  termination  of  membership,  the 
comjjany  may  demand  and  receive  from  the  Guild  its  proportion  of 
the  guaranty  fund  whenever  all  claims  upon  said  fund  (if  any  there 
shall  then  be)  shall  be  liquidated  and  paid,  and  upon  due  jiroof  that 
all  policies  which  have  been  issued  by  such  retiring  company,  and 
which  might  have  a  claim  for  indemnity  against  said  fund,  have 
been  terminated.     {Ibid,  §  10.) 

273.  George  W.  Savage,  Richard  A.  Reading,  William  D. 
Waddington,  James  H.  Pinckney,  and  Robert  D.  Hart,  or  a  majority 
of  them  shall  be  commissioners  to  organize  the  company  created  by 
this  act ;  and  whenever  five  or  more  comjianies  shall  have  signified 
their  intention  of  becoming  members  of  the  Guild,  in  the  manner 
specified  in  the  third  section  of  this  act,  the  powers  of  the  said  com- 
missioners shall  cease.     {Ibid,  §  11.) 

274.  The  said  corporation  shall  possess  the  general  powers, 
and  be  subject  to  the  restrictions  and  liabilities  prescribed  in  the 
third  title  of  the  eighteenth  chapter  of  the  first  part  of  the  Revised 
Statutes.     {Ibid,  §  12.) 

275.  Nothing  contained  in  this  act  shall  be  construed  to  affect 
the  restrictions  contained  in  anj'  existing  laws  of  this  State  respect- 
ing the  limitation  of  the  amount  of  risk  which  can  be  assumed  by 
any  company,  or  to  impair  or  infringe  upon  the  rights,  privileges, 
and  duties  of  the  Superintendent  of  the  Insurance  Department,  as 
they  now  are,  or  may  hereafter  be  declared  by  law.     {Ibid,  §  13.) 

271*.  There  shall  be  an  officer  of  and  for  the  Metropolitan 
Police  district,  to  be  known  as  the  "  xMetropolitan  Fire  Marshal." 
The  Board  of  Metropolitan  Police  shall  a])paint  a  proper  persou  to 
be  the  "  Metropolitan  Fire  Marshal,"  and  one  assistant,  who  shall 
reside  in  Brooklyn,  who  shall  take  the  constitutional  oath  of  ofl&ce, 
and  hold  such  office  during  the  pleasure  of  said  Board,  and  until  a 
successor  shall  be  appointed  and  duly  qualified,  by  taking  the  con- 
stitutional oath  of  office.  The  Board  shall  also  have  power  to  ap- 
point not  more  than  two  clerks,  whose  salaries  shall  be  fixed  by  said 
Board,  to  be  known  as  the  chief  clerk  and  assistant  clerk,  respective- 
ly, to  the  Fire  Marshal.  Appointments  to  such  office  and  clerkships 
shaU  be  by  such  resolution  of  such  Board ;  in  the  adoption  of 
such  resolution  the  votes  of  three-fourths  of  aU  the  members,  taken 


682  niNE'S  INSURANCE   STATUTES. 

by  ayes  and  noes,  to  be  entered  in  the  minutes  of  the  proceedings 
thereof  shall  be  required.  The  business  office  of  the  "  Metropolitan 
Fire  Marshal "  shall  be  in  the  central  department  of  Metropolitan 
Police.     {Laws  0/I868,  chap.  563,  §  1.) 

277.  It  shall  be  the  duty  of  the  "  Metropolitan  Fire  Marshal" 
to  examine  into  the  cause,  circumstances  and  origin  of  fires  (occur- 
ring in  those  portions  of  the  Metropolitan  Police  district  in  which 
regular  patrolmen  of  Metropolitan  Police  are  authorized  and  ap- 
pointed), by  which  any  building,  vessels,  vehicles,  or  any  valuable 
personal  property  shall  be  accidentally  or  unlawfully  burned,  de- 
stroyed, lost  or  damaged,  wholly  or  partially  5  and  to  especially  in- 
quire and  examine  whether  the  fire  was  the  result  of  carelessness  or 
the  act  of  an  incendiary.  The  "  Metropolitan  Fire  Marshal "  shall 
take  the  testimony  on  oath  of  all  persons  supposed  to  be  cognizant 
of  any  facts,  or  to  have  means  of  knowledge  in  relation  to  the  mat- 
ters herein  required  to  be  examined  and  inquired  into,  and  cause 
the  same  to  be  reduced  to  writing,  verified  and  transmitted  to  the 
Board  of  Metropolitan  Police,  with  his  report  in  writing,  embodying 
his  opinion  and  conclusions  in  relation  to  the  matter  investigated. 
The  "  Metropolitan  Fire  Marshal "  shall  rei^ort  in  writing  to  the 
Metroix)litan  Fire  Department,  the  Board  of  Metropolitan  Police, 
the  Unsafe  Building  Commission,  to  the  District  Attorney,  to  the 
New  York  Board  of  Fire  Underwriters,  to  the  owners  of  property, 
or  other  persons  interested  in  the  subject-matter  of  investigation, 
any  facts  and  circumstances  which  he  may  have  ascertained  by  such 
inquiries  and  investigations,  which  shall,  in  his  opinion,  require  at- 
tention from  or  by  either  of  said  boards,  officers  or  persons ;  and  it 
shall  be  the  duty  of  the  "  Metropolitan  Fire  Marshal,"  whenever  he 
shall  be  of  opinion  that  there  is  e\idence  sufficient  to  charge  any 
person  with  the  crime  of  arson,  to  cause  such  ])erson  to  be  arrested 
and  charged  with  such  offense,  and  furnish  to  the  District  Attorney 
all  the  evidences  of  guilt,  with  the  names  of  witnesses,  and  all  the 
information  obtained  by  him,  including  a  copy  of  all  pertinent  and 
material  testimony  taken  in  the  case ;  and  he  shall  specially  report 
to  the  Board  of  Metropolitan  Police,  as  often  as  such  Board  shall  re- 
quire, his  proceedings,  and  the  j)rogress  made  in  all  prosecutions  for 
arson,  and  the  result  of  all  cases  which  are  finally  disposed  of. 
{Ibid,  §  2.) 

278.  The  "  Metropolitan  Fire  Marshal"  shall  have  power  to 
issue  a  notice,  in  the  nature  of  a  subpoena,  in  such  form,  and  sub- 
scribed in  such  manner  as  the  Board  of  Metropolitan  Police  shall 
prescribe,  to  compel  the  attendance  of  any  person  as  a  witness  be- 
fore him,  to  testify  in  relation  to  any  matter  which  is,  by  the  jjrovi- 
sions  of  this  act,  a  subject  of  inquiry  and  investigation  by  the  said 
Marshal.  The  said  Marshal  shall  be,  and  is  hereby  authorized  to 
administer  and  verify  oaths  and  affirmations  to  persons  appearing 
as  witnesses  before  him;  and  false  swearing  in  any  matter  or  pro- 
ceeding aforesaid  shall  be  deemed  perjury,  and  shall  be  punishable 
as  such.  Upon  the  presentation  of  satisfactory  proof  of  due  service 
of  any  such  notice,  in  the  nature  of  a  subpoena,  upon  any  such  wit- 
ness, and  of  a  failure  by  such  witness  to  obey  the  same,  it  shall  be 
the  d  uty  of  the  Board  of  Metropolitan  Police  to  make  an  order  that 
the  s  aid  witness  be  arrested  and  brought  before  the  said  Marshal 
to  te  stify  what  such  witness  may  know  in  relation  to  the  subject- 
mat  ter  of  inquiry.  Such  order  may  be  executed  by  any  member  of 
the   Metropolitan  Police  force,  by  arresting  and  bringing  such  wit- 


NEW  YORK.  G83 

ness  before  the  said  Marshal,  but  such  witness  shall  not  be  detained 
longer  than  is  necessary  to  take  such  testimony.  The  "  Metropoli- 
tan Fire  Marshal''  shall  have  authority,  at  all  times  of  the  day  or 
night  — in  performance  of  the  duties  imposed  b^- the  provisions  of 
this  act — to  enter  upon  and  examine  any  building  or  premises,  when 
any  fire  shall  have  occurred,  and  the  buildings  and  ])remises  adjoin- 
ing and  near  to  that  in  which  the  fire  occurred.     {Ibid,  §  3.) 

S79.  The  compensation  of  the  "  Metropolitan  Fire  Marshal " 
shall  be  a  salary  of  five  thousand  dollars  per  year,  and  that  of  the 
Assistant  Marshal  twenty-five  hundred  dollars.  The  compensation 
of  the  clerk  shall  be  fixed  b}'  said  Board,  but  shall  not  exceed  twenty- 
five  hundred  dollars  per  annum  for  the  chief  clerk,  and  eighteen 
hundred  dollars  for  the  assistant.  Such  salaries  shall  be  paid 
monthly  by  the  Treasurer  of  the  Board  of  the  Metropolitan  Police. 
The  Board  of  Metropolitan  Police  shall  estimate  and  cause  to  be 
raised,  as  a  part  of  the  general  expenses  of  the  police,  and  in  the 
same  manner  as  the  Metropolitan  Police  Fund  is  estimated  and 
raised,  all  sums  necessary  to  carry  out  the  provisions  of  this  act. 
{Ibid,  §  4.) 

980.  Whenever  the  words  Marshal  or  said  Marshal  are  used 
in  this  act,  they  shall  be  deemed  and  taken  to  mean  and  refer  to  the 
"  Metropolitan  Fire  Marshal,"  unless  otherwise  expressly  provided. 
{Ibid,  §  5.) 

98  lo  It  shall  be  the  duty  of  the  Board  of  Metropolitan  Police 
to  supervise  and  direct,  whenever  it  shall  be  of  opinion  that  the 
public  interest  will  be  subserved  thereby,  the  investigation,  exami- 
nations and  proceedings  of  said  Marshal,  and  make  all  needful  and 
proper  rules  and  regulations  in  relation  to  the  duties  of  the  ofQce, 
and  the  manner  of  performing  the  same,  and  shall  detail  any  mem- 
bers of  the  ijolice  force  to  aid  and  assist  in  the  performance  of  such 
duties ;  and  they  shall,  with  their  annual  report  to  the  Legislature, 
submit  a  summary  of  the  transactions,  proceedings  and  official  ac- 
tion of  said  Marshal.     {Ibid,  §  6.) 

989,  All  provisions  of  law  creating,  authorizing  or  recogniz- 
ing Fire  Marshals  in  any  portion  of  said  district,  except  as  herein 
provided,  are  hereby  rei)ealed.     {Ibid,  §  7.) 


INVESTIGATION  INTO  THE  ORIGIN  OF  FIRES. 

2851.  Whenever  it  shall  be  made  to  appear  by  the  affidavit  of  a 
credible  witness  that  there  is  ground  to  believe  that  any  building 
has  been  maliciously  set  on  fire  or  attempted  to  be,  any  coroner, 
Sheriff  or  Deputy-Sheriff  of  the  county  in  which  such  crime  is  sup- 
posed to  have  been  committed,  to  whom  such  aflidavit  shall  be 
delivered,  and  who  shall  be  requested,  in  writing,  by  the  president, 
secretary  or  agent  of  any  insurance  company,  or  by  two  or  more 
reputable  freeholders,  to  investigate  the  truth  of  such  belief,  shall 
do  so  without  delay.     {Laws  of  1857,  chap.  504,  §  1.) 

984.  For  this  purpose  he  shall  possess  all  the  powers  conferred 
upon  coroners  for  the  purpose  of  holding  inquests  by  the  first  four 
sections  of  article  first  of  title  seventh  of  chapter  second  of  part 
fourth  of  the  Revised  Statutes.     {Ibid,  §  2.) 

985.  The  jury,  after  inspecting  the  place  where  the  fire  was  or 
was  attempted,  and  after  hearing  the  testimony,  shall  deliver  to  the 
officer  holding  such  inquest  their  inquisition  in  writing,  to  be  signed 


684  hine's  insurance  statutes. 

by  tliem,  in  which  they  shall  find  and  certify  how  and  in  what 
manner  such  fire  happened  or  was  attempted,  and  all  the  circum- 
staDces  attending  the  same  and  who  were  guilty  thereof,  either  as 
principal  or  accessory,  and  in  what  manner.  But  if  such  jury  shall 
be  unable  to  ascertain  the  origin  and  circumstances  of  such  fire, 
they  shall  find  and  certify  accordingly.     {Ibid,  §  3.) 

286.  If  the  jury  find  that  any  building  laas  been  designedly  set 
on  fire  or  has  been  attempted  so  to  be,  the  officer  holding  such  in- 
quest shall  bind  over  the  witnesses  to  appear  and  testify  at  the  next 
criminal  court,  at  which  an  indictment  for  such  offense  can  be 
found  that  shall  be  held  in  the  county.  And  in  such  case,  if  the 
party  charged  with  any  such  offense  be  not  in  custody,  the  officer 
holding  such  inquest  shall  have  power  to  issue  process  for  his 
arrest  in  the  same  manner  as  justices  of  the  peace.     {Ibid,  §  4.) 

287,  The  officer  issuing  such  process  shall  have  the  same 
power  to  examine  the  party  arrested  as  is  possessed  by  a  justice  of 
the  peace,  and  shall  in  all  respects  proceed  in  like  manner.  (Ibid, 
§5.) 

988.  The  testimony  of  all  witnesses  examined  before  the  jury 
under  this  law,  shall  be  reduced  to  writing  by  the  officer  holding  the 
inquest,  and  shall  be  returned  by  him  together  with  the  inquisition 
of  the  jury,  and  all  recognizances  and  examinations  taken  by  such 
officer,  to  the  next  criminal  court  of  record  that  shall  be  held  in 
such  county.     {Ibid,  §  6.) 

*28®.  The  compensation  of  the  officers  holding  such  inquest, 
and  their  actual  and  necessary  expenses  under  this  act,  shall  be 
fixed,  audited  and  paid  in  the  same  manner  as  the  compensation 
and  actual  and  necessary  expenses  of  coroners  are  now  provided  for 
by  law.     {Ibid,  §  7. ; 

99C^.  This  act  shall  not  extend  to  the  cities  of  New  York,  Brook- 
lyn and  Buffalo.     {Ibid,  §  8.). 


AKSON  AND  INCENDIAEISM. 

29 1 .  Arson  in  the  first  degree,  the  punishment  of  which  is 
described  in  this  title,  consists  in  willfully  setting  fire  to,  or  burning 
in  the  night-time,  a  dwelling-house  in  which  there  shall  be,  at  the 
time,  some  human  being;  and  every  house,  prison,  jail,  or  other 
edifice,  which  shall  have  been  usually  occupied  by  i)ersons  lodging 
therein  at  night,  shall  be  deemed  a  dwelling-house  by  any  person  so 
lodging  therein.     {Eevisecl  Statutes,  1803,  vol.  2,  p.  678,  §  9.) 

292.  But  no  warehouse,  barn,  shed,  or  other  out-house,  shall 
be  deemed  a  dwelling-house,  or  part  of  a  dwelling-house,  within  the 
meaning  of  the  last  section,  unless  the  same  be  joined  to,  imme- 
diately connected  with,  and  part  of  a  dwelling-house.     {Ibid,  §  10.) 

2JP3.     Every  person  who  shall  be  convicted  of  murder  in  the 
second  degree,  or  of  arson  in  the  first  degree,  as  herein  defined, 
shall  be  punished  by  imprisonment  in  a  State  prison  during  the 
period  of  his  natural  life.     {Ibid,  p.  679,  §  28,  as  amended  by  laws  of 
1873,  chap.  644,  §  2.) 

294.  Every  person  who  shall  willfully  set  fire  to,  or  burn  any 
inhabited  dwelling-house,  in  the  day-time,  which,  if  committed  in 
the  night  time  would  be  arson  in  the  first  degree,  shall,  upon  con- 
viction, be  adjudged  guilty  of  arson  in  the  second  degree.  {Ibid, 
p.  686,  §  1.) 


NEW  YORK.  685 

S95.  Every  person  who  shall  willfully  set  fire  to,  or  burn  in 
the  night-time,  any  shop,  warehouse,  or  other  building,  not  being 
the  subject  of  arson  in  the  first  degree,  but  adjoining  to,  or  within 
the  curtilage  of  any  inhabited  dwelling-house,  so  that  such  house 
shall  be  endangered  by  such  firing,  shall,  ui)on  conviction,  be  ad- 
judged guilty  of  arson  in  the  second  degree.     {Ibid.  p.  686,  §  2.) 

^9G,  Every  person  who  shall  willfully  set  fire  to,  or  burn  in 
the  day-time,  any  shop,  warehouse,  or  other  building,  which,  if  com- 
mitted in  the  night  time  would  be  arson  in  the  second  degree,  shall, 
upon  conviction,  be  adjudged  guilty  of  arson  in  the  third  degree. 
{Ibid,  §  3.) 

2'il7.  Every  person  who  shall  willfully  set  fire  to,  or  burn  in 
the  night-time,  the  house  of  another,  not  the  subject  of  arson  in  the 
first  or  second  degree  ;  any  house  of  public  worship,  or  any  school- 
house  ;  any  public  building  belonging  to  the  people  of  this  State,  or 
to  any  county,  city,  to^vn,  or  village,  or  any  building  in  which  shall 
be  deposited  the  papers  of  any  public  officer;  or  any  barn  or  grist- 
mill ;  or  any  building  erected  for  the  manufactory  of  cotton  or  wool- 
len goods,  or  both,  or  paper,"  iron,  or  any  other  fabric;  or  any  fulling- 
mill,  or  any  ship  or  vessel,  shall,  upon  conviction,  be  adjudged 
guilty  of  arson  in  the  third  degree.     {Ibid,  §  4.) 

398.  Every  person  who  shall  willfully  burn  any  building, 
ship,  or  vessel,  or  any  goods,  wares,  merchandise,  or  other  chattel, 
which  shall  be  at  the  time  insured  against  loss  or  damage  by  fire, 
with  intent  to  prejudice  such  insurer,  whether  the  same  be  the 
property  of  such  jjerson  or  of  any  other,  shall,  upon  conviction,  be 
adjudged  guilty  of  arson  in  the  third  degree.     {Ibid,  p.  687,  §  5.) 

399.  Every  person  who  shall  in  the  day-time  willfully  set  tire 
to  or  burn  any  dwelling-house  or  building,  ship  or  vessel,  which,  if 
committed  in  the  night-time  would  be  arson  in  the  third  degree, 
shall,  on  conviction,  be  adjudged  guilty  of  arson  in  the  fourth  de- 
gree.    {Ibid,  §  6.) 

300.  Every  person  who  shall,  in  the  day  or  night  time,  will- 
fully set  tire  to  or  burn  any  saw-mill,  any  cardmg-machine  or  build- 
ing containing  the  same,  or  any  building  of  the  character  in  this 
title  mentioned  in  the  process  of  erection  or  construction,  or  any 
stack  of  grain  of  any  kind,  or  auy  stack  of  hay,  or  any  wood,  boards, 
timber,  or  other  lumber,  piled  or  yarded  for  sale,  not  bemg  the 
property  of  such  person,  any  toll-bridge  or  any  other  public  bridge, 
shall,  upon  conviction,  be  adjudged  guilty  of  arson  in  the  fourth 
degree.     {Ibid,  §  7,  as  amended  by  laws  of  1869,  chap.  873,  §  1.) 

•SOI.  Every  person  who  shall  be  convicted  of  any  degree  of  ar- 
son herein  specified,  shall  be  punished  by  imprisonment  in  a  State 
prison,  as  follows : 

1.  Of  arson  in  the  second  degree,  for  a  term  not  more  than  tea 
years,  nor  less  than  seven  years. 

2.  Of  arson  in  the  third  degree,  for  any  term  not  more  than 
seven  years,  and  not  less  than  four  years. 

3.  Of  arson  in  the  fourth  degree,  fur  any  term  not  more  than  four 
years,  and  not  less  than  one  year;  or  by  imprisonment  in  a  county 
jail  not  exceeding  a  year.     {Ibid.) 


FRAUDS   ON   INSURANCE   COMPANIES. 
303.    If  any  person  or  persons  shall  willfully  or  corruptly  cast 


686  HINE'S   mSUEANCE  STATUTES. 

away,  burn,  sink,  scuttle,  or  otherwise  destroy  any  vessel,  canal 
boat,  or  other  craft,  upon  any  of  the  lakes  or  other  navigable  inland 
waters  of  this  State,  or  upon  any  canal  of  this  State,  with  intent  to 
injure  or  defraud  any  owner  of  such  vessel,  canal  boat,  or  other 
craft,  or  with  intent  to  injure  or  defraud  the  owner  or  owners  of  any 
property  shipi)ed  or  laden  on  board  the  same  for  transportion,  or 
with  intent  to  injure  or  defraud  any  insurer  of  such  vesseT,  canal 
boat,  or  other  craft,  or  of  any  property  so  shipped  or  laden  thereon, 
or  of  any  part  thereof,  the  person  or  persons  so  oifending  shall,  upon 
conviction  thereof,  be  deemed  and  adjudged  guilty  of  a  felony,  and 
shall  be  jjunished  by  imprisonment  in  a  State  prison  for  a  term  not 
less  than  two  years.     {Laivs  of  1870,  chai).  299,  §  1.) 

3^!l.  Any  owner  or  owners  of  any  vessel,  canal  boat,  or  other 
craft,  or  any  other  person  who  shall,  upon  any  of  the  lakes  or  other 
inland  navigable  waters  of  this  State,  or  upon  any  canal  of  this 
State,  willfully  or  corruptly  cast  away,  burn,  sink,  scuttle,  or  other- 
wise destroy  or  injure  any  such  vessel,  canal  boat,  or  other  craft,  or 
in  any  manner  direct,  procure,  or  cause  the  same  to  be  done,  with 
intent  to  injure  or  defraud  any  owner  or  owners  of  any  property 
shipped  or  laden  on  board  the  same,  or  any  insurer  of  such  property, 
or  of  any  part  thereof,  shall,  upon  conviction  thereof,  be  deemed 
and  adjudged  gnilty  of  a  felony,  and  shall  be  punished  by  impris- 
onment in  a  State  prison  for  a  term  not  less  than  two  years.  {Ibid, 
§2.) 

304.  Any  person  or  persons  who  shall  willfully  or  corruptly 
attempt  to  cast  away,  burn,  sink,  scuttle,  or  otherwise  destroy  any 
vessel,  canal  boat,  or  other  craft,  upon  any  of  the  lakes  or  other 
navigable  inland  waters  of  this  State,  or  upon  any  canal  of  this 
State,  with  intent  or  design  to  injure  or  defraud  the  owner  or  own- 
ers of  such  vessel,  canal  boat,  or  other  craft,  or  the  owner  or  owners 
of  any  property  shipped  or  laden  on  board  the  same,  or  any  insurer 
of  any  such  vessel,  canal  boat,  or  other  craft,  or  property,  or  any 
part  thereof,  shall,  upon  conviction  thereof,  be  adjudged  guilty  of  a 
felony,  and  shall  be  punished  by  imprisonment  in  a  State  prison  for 
a  term  not  less  than  one  year.     {Ibid,  §  3.) 


EMBEZZLEMENT. 

30*1.  Any  person  who  shall  be  appointed,  or  who  shall  act  as 
agent  for  any  insurance  company  within  this  State,  or  who  shall  as 
such  agent  solicit  applications,  issue  policies  or  renewals,  and  collect 
premiums,  either  for  original  insurances  or  renewals,  or  who  shall 
receive  or  collect  moneys  from  any  source  or  any  account  whatso- 
ever, as  such  agent,  for  any  insurance  company  doing  business  in 
this  State,  whether  such  company  be  organized  under  the  laws  of 
this  State  or  any  other  State  of  the  Union,  such  person  shall  be 
held  responsible,  in  a  trust  or  fiduciary  capacity,  to  such  company 
for  any  moneys  received  by  him  for  such  company.  {Laws  of  1873, 
chap.  688,  §  1.) 

306.  Any  such  agent  or  person  who  shall  embezzle  or  convert 
to  his  own  use,  or  shall  take  or  secrete  or  otherwise  dispose  of,  with 
intent  to  embezzle  or  use,  or  who  shall  fraudulently  withhold  or  ap- 
propriate, invest,  loan  or  otherwise  fraudulently  apply  or  make  use 
of,  without  the  consent  of  such  company,  or  contrary  to  its  instruc- 
tions, any  money  belonging  to  such  company  which  shall  have  come 


NEW   YORK.  687 

into  his  possession,  or  shall  be  under  his  care,  by  reason  of  such 
agency,  he  shall  be  deemed  by  so  doing  to  have  committed  the 
crime  of  larceny,  and  upon  conviction  shall  be  punished  for  such 
crime.   {Ibidj  §  2.) 


GE:tirERAL   PROVISIONS   RELATING  TO  CORPORATIONS. 

307,  Prevention  of  Insolvency  of  Moneyed  Corporations  see 
Revised  Statutes,  vol.  1,  pp.  547-552,  Edmonds'  edition ;  Election 
of  Directors  of  Moneyed  Corporations,  see  Revised  Statutes,  vol.  1, 
pp.  552-556,  Edmonds'  edition ;  General  Powers,  Privileges,  and 
Liabilities  of  Corporations,  see  Revised  Statutes,  vol.  1,  pp.  556-558, 
Edmonds'  edition  ;  Special  Provisions  relating  to  certain  Corpora- 
tions, see  Revised  Statutes,  vol.  1,  pp.  558-562,  Edmonds'  edition  ; 
Proceedings  against  Corporations  in  Equity  see  Revised  Statutes, 
vol.  2,  pp.  482-487,  Edmonds'  edition;  Voluntary  Dissolution  of 
Corporations  see  Revised  Statutes,  vol.  2,  pp.  488-494,  Edmonds' 
edition;  Taxation  of  Incorporated  Companies  see  Revised  Statutes, 
vol.  1,  pp.  374-378,  Edmonds'  edition.  For  other  General  Pro- 
visions, see  laws  of  186^^,  chap.  20  > ;  laws  of  1867,  chap.  937 ;  laws 
of  1870,  chapters  135  and  151 ;  laws  of  1873,  chap.  151 ;  and  laws 
of  1875,  chapters  119,  428,  and  508. 


INDEX   TO   NORTH  CAROLINA. 


PAOR 

AoEXTa— 

To  Report  Premiums  (8) 691 

Liable  for  Taxes  (8) 691 

To  Make  Semi- Annual  Report  (8) 691 

Appointment  of  General  (8) 691 

Report  of  General  (8) ,  -  691 

Embezzlement  by  (16) 693 

Annual  Statements  (4) 689 

Arson,  Crime  aad  Penalty  of  (12-15) 693 

Certificate  of  Authority— (6) 690 

Under  Reciprocal  Laws  (9) 692 

Corporations — 

Constitutional    Provisions   Concerning 

(1-3) 689 

Dues  From  (2) 689 

Terms  Defined  (3) 689 

Rights  of  (3) 689 

General  Provisions  Relating  to  (17;  -  -  694 

Deposits  under  Reciprocal  Laws  (9) 692 

Embezzlement,  CrimeandPenaltyof  (16)  .   693 

Fbbs— 

Paid  to  Secretary  of  State  (6) 690 

Paid  to  Clerks  of  Courts  (7) 691 

For  Licenses  (8) 691 

Under  Reciprocal  Laws  (9) 692 

Fire  Insurance  Companies — 

Annual  Statements  of  (4) 689 

Special  Examinations  (5) 689 

Examination  of  (6) 690 

Reserve  of  (6) 690 

•    Assets  of  (6; 690 

Tax  on  Promiiims  of  (8) 691 

To  Appoint  General  Agent  (8) 691 

iNCEMriARiSM,  Crime  and  Penalty  of  (12- 

16) 693 

Licenses— 

Fees  for  (8) 691 

Under  Reciprocal  La ws  (9) 692 

Life  Insurance  for  the  BeneSt  of  Married 

"Women  and  Children  (11)  692 


PAGE 

Life  Insurance  Companies— 

Annual  Statements  (4) 689 

Special  Examination  of  (5) 689 

Examination  of  (6) 690 

Reinsurance  Ref  erve  of  Mutual  (6) 690 

Assets  of  (6) 690 

Tax  on  Premiums  of  (8) 691 

To  Appoint  General  Agent  (8) 691 

Marine  Insurance  Companies — 

Annual  Statements  of  (4) 689 

Special  Examination  of  (5) 689 

Examination  of  (6) 690 

Reserve  of  (6) 690 

Assets  of  (6) 690 

Tax  on  Premiums  of  (7) 691 

To  Appoint  General  Agent  (8) 691 

Pevalties— 

For  doing    Business   without  License 

(6,  8)  690,691 

For  Making  False  Statements  (7) 691 

If  Clerks  of  Courts  fail  to  Comply  with 

Law  (7) 691 

For  Violation  of  Law  (10) 692 

For  Arson  and  Incendiarism  (12-16)    693 
For  Embezzlement  (16)  693 

Premiums,  Tax  on  (8) 691 

Reciprocal  Laws  (9) 692 

Repeal  of  Laws  fl) 689 

Secretary  of  State- 
To  Examine  Companies  (5,  6) 689,  690 

To  Approve  Statements  (6) 690 

Fees  Paid  to  (6) 690 

To  Pay  Fees  into  Treasury  (6) 690 

To  Advertise  Companies  (6) "  690 

To  Issue  Certificate  of  Authority  (6). .  690 

To  Report  to  Clerks  of  Courts  (7) 691 

To  Report  Amount  of  Taxes  (8) 691 

Taxes — 

On  Premiums  (7 ) 691 

County  and  Municipal  (8) 691 

Under  Reciprocal  Laws  (9) 692 

"Wives' Policy  (11) 693 


INSURANCE  STATUTES  OF  NORTH  CAROLINA. 


CONSTITUTIONAL    PROVISIONS    CONCERNING    COR- 
PORATIONS. 

1.  Corporations  maybe  formed  under  general  laws,  but  shall 
not  be  created  by  special  act,  except  for  municipal  purposes,  and  in 
cases  where,  in  the  judgment  of  the  legislature,  the  object  of  the 
corporations  cannot  be  attained  under  general  laws.  All  general 
laws  and  special  acts  passed,  pursuant  to  this  section,  may  be  altered 
from  time  to  time  or  repealed.     {Article  8,  §  1.) 

2.  Dues  from  corporations  shall  be  secured  by  such  individual 
liabilities  of  the  corporations  and  other  means,  as  may  be  prescribed 
by  law.     {Ibid,  §  2.) 

3.  The  term  corporation,  as  used  in  this  article,  shall  be  con- 
strued to  include  all  associations  and  joint  stock  companies,  having 
any  of  the  powers  and  privileges  of  corporations,  not  possessed  by 
individuals  or  partnerships.  And  all  corporations  shall  have  the 
right  to  sue,  and  shall  be  subject  to  be  sued  in  all  courts,  in  like 
cases  as  natural  persons.     {Ibid,  §  3.) 


INSURANCE  COMPANIES  AND  AGENCIES. 

4.  Every  corporation  doing  the  business  of  maritime,  fire  or 
life  insurance,  and  any  and  all  other  corporations,  companies  and 
associations  whatever,  engaged  in  the  business  of  insurance  of  any 
kind,  or  which  grants  annuities,  or  holds  property  in  trust,  or  re- 
ceives money  on  deposit,  sball  make  to  the  Secretary  of  State,  in 
such  form  as  shall  be  prescribed  by  him  once  in  each  year,  a  report 
of  its  financial  and  business  condition,  which  shall  be  sworn  to  by 
the  chief  officer  of  the  company,  or  by  some  other  officer  appointed 
for  the  purpose,  before  the  said  Secretary  of  State,  which  report 
shall  set  forth  the  liabilities  and  assets  of  said  corporation,  company 
or  association,  how  and  in  what  manner  their  assets  are  invested, 
and  shall  give  the  "reserve,"  if  any,  of  said  company,  corporation  or 
association,  as  calculated  by  an  expert  actuary,  and  the  number  of 
judgments,  if  any,  not  fully  paid  and  satisfied  against  the  said  com- 
pany, corporation  or  association  in  this  State,  in  what  Court  and  at 
what  time  they  were  obtained,  the  amounts  due  on  the  samej  and  to 
whom  due,  and  whether  or  not  an  appeal  has  been  craved  by  the 
said  company,  corporation  or  association,  and  granted  by  the  Court 
from  the  said  judgment  or  judgments.     {Laws  of  1874-75,  p.  275,  §  1.) 

o.  And  if  at  any  time  during  the  said  year  the  said  Secretary 
of  State  shall  have  cause  to  believe  that  any  of  the  said  companies, 
corporations  and  associations  that  have  reported  to  him  as  aforesaid, 
and  have  passed  an  approved  examination  as  hereinafter  provided, 
could  not  at  that  time  pass  the  said  examination,  the  said  Secretary 
of  State  shall  order  the  said  company,  corporation  or  association  to 
make  to  him  a  new  report.  {Ibid,  p.  276,  §  2.) 
44 


690  niNE'S  INSURANCE   STATUTES. 

6.  It  shall  be  the  duty  of  the  Secretary  of  State  to  receive  and 
thoroughly  examine  all  such  reports  as  may  be  made  in  pursuance 
of  the  preceding  section,  and  fully  investigate  the  business  affairs 
and  finances  of  such  company,  corporation  or  association  making  the 
same,  and  if  upon  such  examination  and  investigation  such  comjjany, 
corporation  or  association  shall  appear  to  be  doing  business  upon 
sound  principles,  and  within  the  provisions  of  its  charter,  and  in 
compliance  with  the  laws  of  the  State  of  North  Carolina,  then  the 
Secretary  of  State  shall  approve  the  report  made  as  aforesaid ;  Pro- 
vided, That  the  said  Secretary  of  State  shall  not  approve  the  report 
as  aforesaid  of  any  fire  and  marine  companies  doing  business  in  the 
State,  unless  they  show  by  the  said  report  a  reserve  of  at  least  fifty 
per  cent,  of  premiums ;  of  any  mutual  life  companies  unless  they 
show  by  the  said  report  a  reinsurance  reserve  calculated  on  a  basis 
of  4|  per  cent. ;  of  any  stock  companies  unless  they  show  by  their 
report  a  reinsurance  reserve  calculated  oi!  a  basis  of  at  least  5  per 
cent. ;  and  the  said  Secretarj^  of  State  shall  not  approve  the  report 
of  any  of  the  said  companies,  corporations  or  associations,  that  do 
not  possess  at  least  one  hundred  thousand  dollars  in  available  assets, 
or  that  have  a  judgment  against  them  in  any  of  the  Courts  of  this 
State,  from  which  no  appeal  has  been  granted,  for  which  examina- 
tion and  investigation  he  shall  be  paid  by  such  company,  corpora- 
tion or  association,  the  sum  of  twenty-five  dollars;  Provided,  That 
the  amount  received  as  fees  as  aforesaid  in  excess  of  one  thousand 
five  hundred  dollars,  shall  be  paid  into  the  treasury  and  accounted 
for  as  other  public  money,  and  that  the  said  Secretary  of  State,  and 
those  appointed  by  him  to  assist  in  carrying  out  the  provisions  of 
this  act  shall  not  be  connected,  directly  or  indirectly,  with  the  said 
associations,  corporations  or  companies.  When  the  report  as  here- 
inbefore provided  for  shall  have  been  approved  as  aforesaid,  the 
Secretary  of  State  shall  cause  the  same  to  be  published  in  one  of  the 
two  newspapers  in  the  city  of  Raleigh,  which  have  the  larger  circu- 
lation, at  the  expense  of  the  company,  corporation  or  association, 
making  the  same,  and  it  shall  be  the  duty  of  the  Secretary  of  State 
at  his  own  expense,  to  publish  in  the  said  newspapers  in  the  city  of 
Raleigli,  the  names  of  all  the  companies,  corporations  or  associations 
that  retuse  to  send  in  their  reports  as  required  by  this  act,  and  also 
the  names  of  such  corporations,  companies  or  associations  as  have 
failed  in  business,  and  the  names  of  all  corporations,  associations 
and  companies  that  have  passed  an  approved  examination,  and  the 
names  of  all  the  corporations,  associations  and  companies  that  failed 
to  pass  an  approved  examination,  and  the  Secretary  of  State  is 
hereby  required  to  give  to  all  such  companies,  corporations  and  as- 
sociations, designated  in  the  next  preceding  section  of  this  act,  as 
shall  comply  with  the  provisions  of  this  act,  a  certificate  that  they 
have  complied  with  the  provisions  thereof,  and  such  company,  cor- 
poration or  association  is  hereby  forbidden  to  do  business  without 
such  certificate,  and  any  agent  or  manager  of  such  company,  corpora- 
tion or  association  who  shall  attempt  to  transact  the  business  of  the 
same,  without  having  first  obtained  a  certificate  as  aforesaid,  shall 
be  deemed  giiilty  of  a  misdemeanor,  and  upon  conviction  thereof, 
shall  be  fined  not  less  than  five  hundred  dollars  nor  more  than  one 
thousand  dollars,  and  imprisoned  at  the  discretion  of  the  Court. 
The  various  prosecuting  ofiicers  of  the  State  are  hereby  empowered 
to  enforce  the  provisions  of  this  section  upon  information  furnished 
by  the  Secretary  of  State.    It  shall  be  the  duty  of  any  officer  having 


NORTH   CAROLINA.  691 

in  his  possession  or  control  any  books,  accounts  or  papers  of  any 
company,  corporation  or  association  of  whicli  he  is  an  officer,  to  ex- 
hibit the  same  to  the  Secretary  of  State  on  demand,  and  to  give  him 
all  necessary  information  to  enable  him  to  make  a  full  and  correct 
report.  And  any  such  officers  failing  or  refusing  so  to  do  or  who  shall 
knowingly  or  willfully  make  any  false  statement  respecting  the 
affiiirs  of  the  company,  corporation  or  association  of  which  he  is  an 
officer,  shall  be  deemed  guilty  of  a  misdemeanor,  and,  upon  convic- 
tion thereof,  shall  be  fined  or  imprisoned,  or  both,  at  the  discretion 
of  the  Court.     {Ibid,  §  3.) 

7,  It  shall  be  the  duty  of  the  Secretary  of  State  to  keep  on  file 
in  his  office  for  the  inspection  of  the  public  a  copy  of  all  reports  re- 
ceived by  him  as  aforesaid,  and  the  Secretary  of  State  shall  be  re- 
quired to  forward  to  the  Clerks  of  the  Superior  Courts  of  each  and 
every  county  a  statement  certified  under  the  seal  of  his  office,  of 
each  company,  corporation  or  association  that  shall  have  passed  an 
approved  examination,  and  he  shall  also  furnish  to  the  said  clerks  a 
certified  list  of  all  such  companies,  corporations  or  associations  as 
may  have  failed  in  business,  and  the  names  of  all  corporations,  as- 
sociations and  companies  that  have  failed  to  pass  an  approved  ex- 
amination, and  the  names  of  all  corporations,  associations  and  com- 
panies that  have  failed  to  send  in  their  reports  as  required  by  this 
act.  It  shall  be  the  duty  of  the  Clerks  aforesaid  upon  their  receipt 
of  such  certified  statement,  to  cause  to  be  copied  the  same  in  a  book 
kept  for  the  purpose,  furnished  by  the  Secretary  of  State,  which 
book  shaO  be  open  to  the  inspection  of  the  public,  and  for  which 
service  each  Clerk  shall  be  entitled  to  a  fee  of  two  dollars,  to  be  paid 
by  the  said  Secretary  of  State,  and  any  Clerk  failing  to  comply  with 
the  provisions  of  this  act,  shall  be  deemed  guilty  of  a  misdemeanor, 
and,  upon  conviction  thereof,  shall  be  fined  one  hundred  dollars; 
Provided,  That  this  act  shall  not  apply  to  Building  and  Loan  Asso- 
ciations.    {Ibid,  p.  278,  §  4.) 

8.  Every  insurance  or  assurance  company  not  incorporated  in 
this  State,  doing  business  therein  shall  pay  an  annual  tax  of  two 
per  centum  to  the  Secretary  of  State  upon  the  gross  receipts  de- 
rived from  the  premiums  charged  for  insurance  obtained  therein, 
unless  the  company  shall  exhibit  to  the  Governor,  Auditor,  and 
Secretary  of  State,  a  sworn  statement  of  investments  in  real  prop- 
erty situate  in  this  State,  or  loans  secured  by  mortgage  to  citizens 
of  this  State  of  an  amount  equal  to  one  half  of  such  gross  receipts, 
when  the  tax  shall  be  one  per  centum,  said  tax  to  be  paid  semi- 
annually within  thirty  days  after  the  first  days  of  July  and  January 
of  each  year.  Each  general  agent  shall  be  required,  on  the  above 
named  days,  to  make  a  statement  to  the  Secretary  of  State  under 
oath,  that  the  amount  by  him  returned  is  a  full  and  correct  state- 
ment of  such  six  months.  On  failure  to  comply  with  the  provisions 
of  this  section,  every  such  company  shall  pay  as  a  tax  two  thousand 
dollars,  and  the  principal  agent  shall  be  liable  therefor.  Every 
such  comi)any  shall  be  required  to  appoint  a  general  agent,  who 
shall  obtain  a  license  from  the  Secretary  of  State  before  transact- 
ing any  busiuess  therein,  and  before  such  license  is  granted,  the 
applicant  shall  show  to  the  Secretary  of  State  his  appointment  as 
general  agent,  under  seal  of  the  company,  furnishing  satisfactory 
evidence  of  the  solvency  of  the  company,  and  thereupon  the  license 
shall  be  granted  by  the  payment  of  one  hundred  dollars,  and  such 
license  shall  be  renewed  annually  by  the  payment  of  said  sum. 


692  hine's  insurance  statutes. 

And  it  sball  be  the  duty  of  said  general  agent  to  famish  each  of 
his  sub-agents  with  a  commission  authorizing  him  to  do  business. 
And  any  one  found  soliciting  insurance  without  such  commission 
shall  be  deemed  guilty  of  a  misdemeanor,  and  be  fined  not  less  than 
one  thousand  dollars,  and  imprisoned  not  less  than  ninety  days.  The 
agent  effecting  insurance  shall,  on  the  first  days  of  July  and  Jan- 
uary, make  return  to  the  Register  of  Deeds  of  the  county  in  which 
the  insurance  is  efiected  of  all  the  business  done  by  him  during  the 
preceding  six  months  in  said  county,  and  shall  pay  to  the  Sheriff 
the  county  tax  assessed  on  such  business.  The  general  agent  shall 
also,  within  thirty  days  after  the  first  days  of  July  and  January, 
make  return  to  the  Register  of  Deeds  of  each  county  of  the  amount 
of  gross  receipts  for  the  premiums  received  from  such  county  for 
such  six  months.  It  shall  further  be  required  ot  the  general  agent, 
or  his  local  agent,  to  pay  the  Sheriff  of  each  county  the  county  tax 
assessed  upon  the  gross  receipts  of  premiums  collected  in  such 
county,  at  the  time  and  in  the  manner  as  required  by  the  State ; 
and  no  municipal  corporation  shall  be  allowed  to  add  any  addi- 
tional tax ;  and  on  failure  to  make  returns  or  to  pay  as  aforesaid, 
said  agent  shaU  pay  twenty-five  dollars  for  each  policy  effected  or 
negotiated  by  him  in  such  county ;  Provided^  That  no  county  or 
corjioration  shall  be  allowed  to  tax  insurance  agents  for  license. 
The  Secretary  of  State  shall  furnish  to  the  Auditor  of  the  State,  on 
the  fipst  of  each  month,  a  statement  iu  detail,  of  the  taxes  received 
by  him,  under  this  section  during  the  previous  month,  and  pay  to 
the  Treasuier  of  the  State  the  amount  of  such  taxes.  {Laws  of 
1874-75,  p.  248,  §  24,  as  amended  hyp.  256,  §  1.) 

9.  Whenever  the  existing  or  future  laws  of  any  other  State  of 
the  United  States  shall  require  of  insurance  companies  incorporated 
by  this  State,  or  of  the  agents  thereof,  any  deposits  of  securities  in 
such  State  for  the  protection  of  policy-holders  or  otherwise,  or  any 
payment  for  taxes,  penalties,  certificates  of  authority,  license  fees  or 
otherwise,  greater  than  the  amount  required  for  such  purposes  from 
similar  companies  of  other  states  by  the  then  existing  laws  of  this 
State,  then  and  in  every  such  case,  all  companies  of  such  States, 
establishing  or  having  heretofore  established,  an  agency  or  agencies 
in  this  State,  shall  be  and  are  hereby,  required  to  make  the  same 
deposits  for  a  like  purpose  with  the  Treasurer  of  this  State,  and  to 
pay  to  said  Treasurer  for  taxes,  fines,  penalties,  certificates  of  au- 
thority, license  fees  and  otherwise,  an  amount  equal  to  the  amount 
of  such  charges  and  payments  imposed  by  the  laws  of  such  State 
upon  companies  of  this  State  and  agents  thereof.  {Laws  of  1873- 
74,  jo.  31,  §  1,  as  amended  by  p.  262,  §  1.) 

10,  All  persons  violating  the  provisions  of  this  act  shall  be 
liable  to  indictment,  and,  on  conviction  shall  be  fined  not  less  than 
five  hundred  dollars  nor  more  than  one  thousand  dollars,  at  the 
discretion  of  the  Court.     {Ibid,  §  2.) 


LIFE    INSURANCE    FOR    THE    BENEFIT    OF    MARRIED 
WOMEN   AND   CHILDREN. 

1 1 ,  Any  feme  covert,  in  her  own  name,  or  in  the  name  of  a 
trustee  with  his  assent,  may  cause  to  be  insured  for  any  definite 
time  the  life  of  her  husband,  for  her  sole  and  separate  use ;  and  she 
may  dispose  of  the  interest  in  the  same  by  will,  notwithstanding 


NORTH  CAROLINA.  693 

her  coverture ',  Provide'l,  hoicever,  That  when  the  annual  premium 
for  insurance  shall  exceed  three  hundred  dollars,  and  shall  not  be 
paid  altogether  out  of  her  own  separate  estate,  or  by  some  friend 
for  her,  the  sum  due  on  the  insurance  on  the  death  of  her  husband, 
she  surviving,  shall,  in  case  of  the  insolvency  of  the  estate,  be  ap- 
plied to  the  discharge  of  his  obligations,  contracts,  and  liabilities. 
{Battle's  Eevisaly  1873,  p.  593,  §  34.) 


AESON  AND  mCENDIARISM. 

1 2.  Whosoever  shall  unlawfully  and  maliciously  set  fire  to  any 
church,  chapel,  or  meeting-house,  or  shall  unlawfully,  or  maliciously 
set  fire  to  any  house,  stable,  coach-house,  out-house,  warehouse, 
office,  shop,  mill,  barn  or  granary,  or  to  any  building  or  erection 
used  in  carrying  on  any  trade  or  manufacture,  or  any  branch  there- 
of, whether  the  same  or  any  of  them  respectively  shall  then  be  in 
the  possession  of  the  offender,  or  in  the  possession  of  any  other  per- 
son, with  intent  thereby  to  injure  or  defraud  any  person  or  persons, 
body  politic  or  corporation,  shall  be  guilty  of  felony,  and  being  con- 
victed thereof  shall  be  imprisoned  in  the  State's  prison  for  not  less 
than  five  nor  more  than  forty  years.     {Laics  of  1875,  p.  310,  §  1.) 

13.  Every  person  convicted  of  any  willful  burning  of  any  gin- 
house,  or  tobacco-house,  or  any  part  thereof,  or  in  the  night-time, 
any  stable  containing  a  horse  or  horses,  or  a  mule  or  mules,  shall 
be  imprisoned  in  the  State's  prison  not  less  than  five,  nor  more  than 
ten  years.     {Battle's  Bevisal,  1873,  p.  294,  §  6.) 

14.  If  any  })ersou  shall  willfully  or  maliciously  burn  the  State 
House,  or  any  of  the  public  offices  of  the  State,  or  any  court-house, 
jail,  arsenal,  clerk's  office,  register's  office,  or  any  house  belonging 
to  any  incorporated  town  in  the  State,  or  to  any  incorporated  com- 
pany whatever,  in  which  are  kept  the  archives,  documents,  or  pub- 
lic papers  of  such  town  or  corporation,  he  shall  suffer  imprisonment 
in  the  State's  prison  for  not  less  than  five,  nor  more  than  sixty 
years.     {Ibid,  7^. 295,  §§  11, 13.) 

15.  If  any  person,  with  intent  to  destroy  the  same,  shall  will- 
fully and  maliciously  set  fire  to  and  burn  any  public  bridge  or  pri- 
vate toll-bridge,  or  the  bridge  of  any  incorporated  company,  or  any 
fire-engine  house,  or  any  house  belonging  to  any  incorporated  town, 
used  for  public  purposes  other  than  the  keeping  of  archives,  docu- 
ments, and  public  papers,  or  any  house  belonging  to  an  incorpo- 
rated compauv  and  used  in  the  business  of  such  company ;  or  if  any 
person  shall  willfully  and  maliciously  attempt  to  burn  any  of  the 
said  houses  or  bridges,  or  any  of  the  houses  or  buildings  mentioned 
in  the  previous  sections  of  this  chapter,  the  person  so  oftending 
shall  be  deemed  guilty  of  a  misdemeanor,  and  being  convicted  there- 
of, shall  suffer  imi)risonmeut  in  the  State's  prison  (or  county  jail), 
for  not  less  than  four  months,  nor  more  than  ten  years.  {I  bid, 
p.  298,  §§  28,  29.) 

EMBEZZLEMENT. 

10,  If  any  officer,  agent,  clerk  or  servant,  of  any  corporation, 
or  any  clerk,  agent  or  servant  of  any  person  or  copartnership  (ex- 
cept apprentices  and  other  persons  under  the  age  of  sixteen  yfiars), 
shall  embezzle  or  fraudulently  convert  to  his  own  use,  or  shall  take, 


694  hike's  insurance  statutes. 

make  way  with  or  secrete,  with  intent  to  embezzle  or  fraudulently 
convert  to  his  own  use  any  money,  goods  or  other  chattels,  bank 
note,  check  or  order  for  the  payment  of  mouey  issued  by  or  drawn 
on  any  bank  or  other  corporation,  or  any  treasury  warrant,  treasury 
note,  bond  or  obligation  for  the  payment  of  money  issued  by  the 
United  States  or  by  any  State,  or  any  other  valuable  security  what- 
soever belonging  to  any  other  person  or  corporation  which  shall 
have  come  into  his  possession  or  under  his  care  by  virtue  of  such 
oflBce  or  employment,  he  shall  be  deemed  guilty  of  felony,  and  upon 
conviction  thereof,  shall  be  punished  as  in  case  of  larceny.  (J  bid, 
p.  319,  §  136.) 

17.    For  General  Provisions  relating  to  Corporations  see  Bat- 
tle's Eevisal,  1873,  pp.  260-270. 


INDEX   TO   OHIO. 


PAGB 

AcciDBNT  Insurance  Companies  (37,  62)  "08, 

717 

Advertising  Statement*  (23) TO3 

Agents- 
Licenses  of  (21,  49,  77,  78,  86)...  703, 

713,  721,  724 

Illegal  Business  of  (22) 703 

Appointment  of  (24) "04 

Service  of  Process  on  (49,  77,  78, 

81,82) 713,721-24 

To  Report  Gross  Receipts  (92) 726 

Embezzlement  by  (98) 728 

Annual  Statements— (47,  51,76,79,83, 

84) 711,  712,715,720,723,724 

Blanks  for  (19) 702 

Arson.  Ciime  and  Penalty  of  (94-97).  727,  728 
Aisessments   of    Mutual   Insurance   Com- 
panies (45) 710 

Assets  of  Life  Cos.,  Investment  of  (70) ...  -  719 

Capital— 

Of  Insurance  Companies  (32) 706 

Impairment  of  (1  3,  1  6 ) 700,  701 

Subscriptions  to  (33,65) 706,  718 

Investment  of  (35,  49,  66,  67,  77)  707, 

713,  718,  721.  722 

Increase  of  (42,  52,65) 709,715,718 

Of  Foreign  Insurance  Companies  (49)    713 
Of  Consolidated  Companies  (56-58) . .  716, 

717 
Of  Life  Insurance  Cos.  (65,  66) 718 

Certificate  of  Authority— (16,  49,   77, 

80,85,  86) 701,713,721-24 

When  Revoked  (16) 701 

Charter- 
To  be  Filed  (49) 713 

Forfeiture  of  (52) 715 

Of  Life  Insurance  Companies  (63) 717 

Corporations — 

Constitutional  Provisions   Concerning 

(1-4) 698 

To  be  Formed  under  General  Laws  (2)  698 

Liability  of  Stockholders  (3) 698 

Subject  to  Taxation(4) 698 

General  Provisions  Relating  to  (99) ...  728 

Deposits— 

Of  Insurance  Companies  (20,  26)  703,  704 
Of  Foreign  Insurance  Cos.  (50,  81)  . .  714. 

723 
Of  Life  Insurance  Companies  (67,  68)  718 

Directors- 
Election  of  (34,  38) 706,709 

Majority  of  to  be  Citizens  (63) 717 


FAQ  a 
Dividends — 

Of  Fire  Insurance  Companies  (43) 709 

Applied  to  Increase  Capital  (52) 715 

Of  Life  Insurance  Companies  (75) 720 

Embezzlement,  Crime  and  Penalty  of  (98) . .  727 

Fidelity  Insurance  Companies  (37) 708 

Fire  and  Marine  Insurance  Companies — 

Examination  of  (11 ,  1 2) 700 

Impairment  of  Capital  of  (1 3) 700 

Dissolution  of  (14,  15) 701 

Certificate  of  Authority  of  Foreign  (1 6)  701 

Illegal  Business  of  (22) 703 

Advertising  Statements  of  (23) 703 

Appointment    of   Agents   by    Foreign 

(24) 704 

Organization  of  (30,  31) 705 

Capital  of  (32) 706 

Subscription  to  Capital  of  ( 3  3 ) 706 

Directors  of  (34,  38,  39) 706,709 

Investment  of  Capital  of  (3  5) 707 

Loans  of  (35) 707 

May  Commence  Business,  when  (36)..  708 

May  Insure  what  (37) 708 

Annual  Meeting  of  (3 8) 709 

Policies  of  (40) 709 

Transfers  of  Stock  of  (4 1 ) 709 

Increase  of  Capital  of  (42,  52)  .  - .  .709,  715 

Dividendsof  (43) 709 

Real  Estate  of  (44) 710 

Stock  and  Mutual  to  be  ao  Designated 

(46) 711 

Annual  Statements  of  (47) 711,712 

May  Apply  Dividends  to  Increase  of 

Capital(52) 715 

Consolidation  of  (5  5-59) 716,  717 

Taxation  of  (92) 726 

Foreign  Insurance  Companies- 
Certificate  of  Authority  of  (16,  49, 

77,80,  85,86) 701,713,721-24 

Capital  of  (49,  77) 713,721,723 

Service  of  Process  on    (49,  77,  78, 

81,  82) 713,721-24 

Removal  of  Suits  to  TJ.  S.  Cour's  by 

(49,  77) 713,721,722 

To  File  Charter  (49,  77) 713,  721,  722 

Deposits  of  (50,  81) 714,  723 

Annual  Statements  of  (51,  79,  83, 

g  4) 715,  723,  724 

Not  to  do  Banking  Business  (54) 716 

Restrictio'-s  upon  Business  of  (62) 717 

Assets  of  Mutual  Life  (7  7) 721.  723 


696 


INDEX  TO  OHIO. 


PAGR 

Foreign  Insurance  Companies  (Continued) — 
Lif'-,  Discontinuanc-  of  Businpss  byCTS, 

82) 723,  724 

Taxation  of  (92) 726 

Fees- 
Paid  by  Tnsarance  Companies  (21) 703 

For  Valuation  of  Life  Policies  (21) 703 

Under  Reciprocal  Laws  (21) 703 

For  Filinpr  Papers  (25) 704 

Frauds  upon  Life  Insurance  Cos.  (77,  89) 

721,  722,  725 

Health  Insurance  Companies  (37.) 708 

Impairment  of  Capital  (13,16) 701 

Incendiarism,  Crime  and  Penalty  of  (94- 

99) 727,728 

Insolvency,  Proceedings  in  Case  of  (14, 

15) 701 

Insurance  Companies — 

Organized  un-'er  U.  S.  Laws  (27) 704 

To  Comply  with  Provisions  of  Act  (29)  705 

Other  than  Life  (30-59) 705-17 

Restrictions  upon  Business  of  ( 3 1 ) 705 

Stock  and  Mutual  to  be  so  Designated 

(46) 711 

Taxation  of  (92 ) 726 

Insurance  Department- 
Established  (5)  698 

Expenses  of  ( 8) 699 

JoiKT  Stock  Insurance  Companies- 
Capital  of  (32,  65,  66) 706,  718 

To  be  so  Designated  (46) 711 

Laws  Repealed  (91) 725 

Licenses — 

Fees  for  (2 1) 703 

Under  Reciprocal  Laws  (21) 703 

Of  Agents  (49,  77,  78)  713,721-23 

Life  and  Accident  Insurance  Co.  (62) 717 

Lite  Insurance  for  Married  Women    and 

ChUdren  (93) 726 

Life  Insurance  Companies — 

Examination  of  (1 1-1  3) 700 

Impairment  of  ( 1 3) 700 

Dissolution  of  (14,  15) 701 

Certificate    of    Authority    of   Foreign 

(16) 701 

Valuation  of  Policies  of  (1  8,  21).  702,  703 

Illegal  Business  of  (22) 703 

Advertising  Statements  of  (23) 703 

Agents  of  Foreign  (24,  7  7)...  704,  721.  722 
DiBOon'inuance  of  Business  by  (26)...  704 

Organized  Under  U.  S.  Laws  (27) 704 

Orgsjiization  of  (60-65) 717,  718 

Reinsurance  of  Risks  by  (61) 717 

May  Insure,  what  (60) 717 

Restrictions  Upon  Business  of  (62) 717 

Chajter of  (63) 717 

Capital  of  (65,  66) 718 

Increase  of  Capital  of  (65) 718 

Investment  of  Capital  and  Assets  of 
<66,  67,  70) 718,719 


PAOB 

Life  Insurance  Companies  (Continued)— 

Deposits  of  (67)  718 

May  Commence  Business,  when  (69)..  719 

Loans  on  Policies  of  (70) 719 

Real  Estateof  (71,  72) 719,720 

Seal  and  By-Laws  of  (73) 720 

Suits  By  and  Against  (74) 720 

Dividends  of  (7 5 ) 720 

Annual  Statements  of  (76,  79). . .  .720,  723 

Frauds  upon  (77,  89) 721,  722,725 

Service  of  Process  on  Foreign  (77,  78) 

721-23 

Subject  to  Provisions  of  Act  (8  8) 725 

Defense  against  Claims  (90)  725 

(See  Foreign  Insurance  Companies.) 

Mutual  Fire  Insurance  Companies- 
Dissolution  of  (15) 701 

Premium  Notes  of  (16,  32) 701,  706 

Assets  of  (32) 706 

Subscriptions  to  (33) 706 

Directors  of  (3 4) 706 

Investment  of  Capital  of  (3  5) 707 

Loans  of  (35) 707 

Policies  of  (40) 709 

Members  of  (45) 710 

Assessments  of  (4 5) 710 

To  be  so  Designated  (46) 711 

Certain,  May  do  Business  on  Stock  or 

Mutual  Plan  (46) 711 

Annual  Statements  of  (47,  48) 711-13 

Liens  upon  Property  Insured  (53) 715 

Penalties— 

Under  Reciprocal  Laws  (21) 703 

For  Violating  Law  (28) 705 

For  not  Making  Statements  (48,  87) 

713,  725 
For  Frauds  upon  Life  Ins.  Cos.  (89).  -  -  725 
For  Arson  and  Incendiarism  (94-99) 

727,728 
For  Embezzlement  (96) 727 

Policies — 

Valuation  of  Life  (18,21) 702,  703 

Of  Ins.  Cos.  Other  than  Life  (40) 709 

Loans  on  Life  (70) 719 

Frauds  in  Obtaining  Life  (77,  89). ..  721 

722,  725 

Premium  Notes— (1 5,  32) 701,  706 

Assessments  on  (45) 710 

Real  Estate  of  Ins.  Cos.  (44,  71,  72)  710,719, 

720 

Reciprocal  Laws  (21) 7C3 

Reinsurance  of  Risks  (61) 717 

Repeal  of  Laws  (2,  91) 698,  725 

Safe  Deposit  Companies  (37) 708 

Service  of  Process  (49,  77,  78,  81,  82) 

713,  721-24 

Stock,  Transfer  of  (41) 709 

Stockholders,  Liability  of  (3) 698 

Superintendent  of  Insurance — 

Appointment  and  Term  of  Office  of  (6) .  698 


INDEX  TO  OHIO. 


697 


PAGE 

Superintendent  of  Insnranoe  (Continued)— 

Salary  of(6' 698 

Removal  of  (6) 698 

Oath  and  Bond  of  (7) 699 

General  Powers  and  Duties  of  (7,  8)..  699 

Chief  Clerk  and  Assistants  of  (8) 699 

OflScoof  (8) 699 

Expenses  of  (8) 699 

Seal  of  Office  (9) 699 

Papers  Certified  by,  to  be  Evidence  (9)  699 
To  have  Custody  of  Books  and  Papers 

(10) 700 

To  Examine  Companies  (11,12) 700 

To  Keep  Records  (17) 702 

Keportof(17) 702 

To  Value  Life  PoUoies  (18) ., 702 

May  Accept  Valuation  of  Other  States 

(18) : 702 

To  Furnish  Blanks  for  Statements  (19)  702 
To  Deposit  Securities  with  Treasurer 

(20) 703 

Fees  Collected  by  (21) 703 

To  Pay  Fees  into  Treasury  (21) 703 


PAOB 

Superintendent  of  Insurance  (Continued) — 

To  Enforce  Reciprocal  LawB  (21) 703 

Duties    when    Life    Companies    Ceaie 

Business  (26) 704 

To  Examine  Capital  and  Assets  of  New 

Companies  (36,42) 708,  709 

May  Extend  Time  for  Holding  Real 

Estate  (44,  72) 710,  720 

To  Certify  Charter  (64) 717 

To  Hold  Deposits  of  Life  Ins.  Cos.  (68)  718 
To  Furnish  Certificate  of  Deposit  (69)  719 
To  Issue  Certificate  of  Authority  (48, 

80,  85) 713,  723,  724 

Taxation— 

Of  Corporations  (4) 698 

Under  Reciprocal  Laws  (21) 703 

Of  Insurance  Companies  (92) 726 

Valuation  of  Life  Policies— ( 18) 702 

Fees  for  (21 ) 703 

Wives' PoUoy  (93) 726 


INSURANCE  STATUTES  OF  OHIO. 


CONSTITUTIONAL   PEO VISIONS   CONCERNING   CORPOR- 
ATIONS. 

1 .  The  general  assembly  shall  pass  no  special  act  conferring 
corporate  powers.     {Art.  13,  §  1.) 

2.  Corporations  may  be  formed  under  general  laws ;  but  all 
such  laws  may,  from  time  to  time,  be  altered  or  repealed.    {Ihid^  §  2.) 

3.  Dues  from  from  corporatioDS  shall  be  secured  by  such  indi- 
vidual liability  of  the  stockholders,  and  other  means  as  may  be  pre- 
scribed by  law  ;  but  in  all  cases  each  stockholder  shall  be  liable  over 
and  above  the  stock  by  him  or  her  owned,  and  any  amount  unpaid 
thereon  to  a  further  sum  at  least  equal  in  amount  to  such  stock. 
{lUd^  §  3.) 

4.  The  property  of  corporations  now  existing  or  hereafter  creat- 
ed shall  forever  be  subject  to  taxation,  the  same  as  the  property  of 
individuals.     {Ihid^  §  4.) 

INSURANCE  DEPARTMENT. 

5.  There  is  hereby  established  a  separate  and  distinct  depart- 
ment, to  be  known  as  the  Insurance  Department,  which  shall  be 
charged  with  the  execution  of  all  laws  now  in  force,  or  which  shall 
hereafter  be  passed,  in  relation  to  insuiance  and  insurance  compa- 
nies.    {Laws  of  1872,  p.  32,  §  1.) 

6.  There  shall  be  appointed  by  the  Governor,  by  and  with  the 
advice  and  consent  of  the  Senate,  if  in  session,  within  thirty  days 
after  the  passage  of  this  act,  a  chief  officer  of  said  department,  who 
shall  be  styled  the  Superintendent  of  Insurance,  and  shall  hold  his 
office  for  the  term  of  three  years,  and  until  his  successor  is  duly  ap- 
pointed and  qualified,  and  shall  receive  for  his  services  the  sum  of 
three  thousand  dollars  per  annum  ;  Provided,  however,  That  the  per- 
son first  appointed  Superintendent  under  this  act  shall  enter  upon 
the  duties  of  his  office  on  the  first  Monday  of  June,  A.D.  1872.  The 
person  so  appointed  shall  be  an  elector  of  this  State,  and  shall,  dur- 
ing his  term  of  office,  have  no  official  connection  with  any  insurance 
company,  nor  own  or  be  interested  in  the  business,  bonds,  stock,  or 
other  property  of,  or  be  employed  by,  any  such  company,  and  shall 
be  ineligible  to  or  hold  any  other  office  during  the  term  of  his  said 
office.  In  case  of  a  vacancy  in  said  office  by  death,  resignation,  re- 
moval, suspension,  or  otherwise,  the  Governor  shall  fill  the  vacancy 
and  report  the  name  of  such  appointee  to  the  Senate,  if  in  session, 
and  if  not,  within  ten  days  after  the  commencement  of  the  next  regu- 
lar or  adjourned  session  thereafter;  and  such  appointee,  by  and 
with  the  advice  and  consent  of  the  Senate,  shall  hold  his  office  for 
the  unexi^ired  term,  and  until  his  successor  is  duly  appointed  and 
qualified.  If  at  any  time  the  Governor  shall  become  satisfied  that 
the  Superintendent  is  inefficient,  incompetent,  or  derelict  in  the  dis- 


OHIO.  G99 

charge  of  his  duties,  he  is  hereby  authorized  and  required,  by  and 
with  the  advice  and  consent  of  the  Senate,  if  it  be  in  session,  to  re- 
move said  Superintendent  from  ofSce,  and  if  the  Senate  be  not  in 
session,  to  suspend  him  from  the  discharge  of  his  duties,  tempora- 
rily tilling  the  vacancy,  as  hereinbefore  provided,  and  reporting  the 
fact  to  the  Senate  at  its  next  meeting  thereafter,  for  its  ac^tion  there- 
on.    {Ibid,  §  2.) 

7.  Before  entering  upon  the  discharge  of  his  duties,  the  said 
Superintendent  shall  take  an  oath  or  affirmation  to  support  the  con- 
stitution of  the  United  States,  and  the  constitution  of  this  State, 
and  to  faithfully  and  honestly  discharge  the  duties  of  his  said  oflBce, 
and  that  he  is  not  an  ofiScer,  employe  or  stockholder  in  any  insur- 
ance company,  or  otherwise  interested  therein,  directly  or  in  directly, 
except  as  a  policy-holder ;  and  shall  also  give  bond  to  the  State  of 
Ohio,  in  the  sum  of  twenty  thousand  dollars,  with  not  less  than  two 
sureties,  to  be  approved  by  the  Governor,  and  filed  and  recorded 
with  the  Secretary  of  State,  conditioned  for  the  faithful  discharge  of 
the  duties  of  his  ofi&ce.  The  said  Superintendent  shall  possess  all  the 
powers,  perform  all  the  duties,  and  be  subject  to  all  the  obligations 
and  requirements  now  invested  in  or  appertaining  to  the  Auditor  of 
State  by  the  laws  relating  to  insurance  and  insurance  companies, 
and  from  the  date  of  entering  his  office  shall  take  the  place  of  said 
Auditor,  under  all  the  provisions  of  said  laws,  and  have  the  sole  and 
exclusive  charge  and  control  over  said  insurance  department,  under 
the  laws  relating  thereto.     {Ibid,  p.  33,  §  3.) 

8.  Said  Sui)erintendent  may  appoint  a  chief  clerk,  who  shall  in 
no  way  be  interested  in  any  insurance  company,  except  as  a  policy- 
holder, whose  appointment  shall  be  evidenced  by  a  certificate  thereof, 
under  the  official  seal  of  the  Superintendent,  and  who  shall  continue 
in  office  during  the  pleasure  of  the  Superintendent ;  and  before  en- 
tering upon  his  duties  shall  take  the  oath  of  office  herein  above  pre- 
scribed, and  give  bond,  with  two  or  more  sureties,  in  the  sum  of 
ten  thousand  dollars,  to  the  acceptance  of  the  Superintendent,  con- 
ditioned for  the  faithful  performance  of  his  official  duties ;  and  in  case 
of  the  absence  or  inability  of  trie  Superintendent,  the  said  chief  clerk 
shall  act  as  his  deputy,  and  shall  possess  the  powers  and  perform 
the  duties  of  the  Superintendent.  The  Superintendent  shall  also 
have  power  to  employ  such  other  clerks,  from  time  to  time,  as  may 
be  necessary  to  carry  on  the  business  of  his  office  with  promptness 
and  accuracy ;  and,  whenever  necessary  for  the  examination  into 
the  business  and  afiairs  of  any  insurance  company,  may  employ  one 
or  more  skilled  and  competent  persons  to  make  such  examination 
and  report  thereon.  The  Superintendent  shall  be  furnished  with 
suitable  rooms  in  the  State-house,  which  shall  be  furnished  from 
time  to  time  with  the  necessary  office  furniture,  stationery,  and  other 
conveniences  for  the  transaction  of  the  business  of  his  office ;  and 
all  the  salaries,  payments,  and  expenditures  for  said  insurance  de- 
partment, authorized  by  this  act,  shall  be  paid  out  of  the  treasury, 
upon  the  certificate  of  the  Superintendent,  in  the  same  manner  as 
other  like  expenses ;  Provided,  The  amount  so  paid  out  shall  at  no 
time  exceed  that  collected  from  the  insurance  companies,  as  pro- 
vided for  in  this  act.     {Ibid,  §  4.) 

9.  The  seal  of  the  Superintendent  of  Insurance  shall  be  one 
inch  and  three-fourths  in  diameter,  surrounded  by  the  words 
"  Superintendent  of  Insurance  of  Ohio,"  with  the  device  prescribed 
for  the  seal  of  the  Auditor  of  State  and  other  officers,  by  the  act 


700  HINE'S  mSUEANCE  STATUTES. 

passed  May  9,  1868,  to  be  furnished  by  the  Secretary  of  State  •  and 
every  certificate,  assignment,  or  conveyance  executed  by  said  Super- 
intendent in  pursuance  of  any  authority  conferred  by  hiw,  and  sealed 
with  his  seal  of  ofBce,  shall  be  received  as  evidence,  and  may  be 
recorded  in  the  proper  recording  office  in  the  same  manner  and  with 
like  effect  as  a  deed  regularly  acknowledged  before  an  officer  author- 
ized by  law  to  take  the  acknowledgment  of  deeds  ;  and  all  copies 
of  papers  in  the  office  of  said  Superintendent,  certified  by  him  and 
authenticated  by  the  said  seal,  shall  in  all  cases  be  evidence  equally 
and  in  like  manner  as  the  original.     {Ibid,  p.  34,  §  5.) 

1  ©.  All  books  and  documents,  and  all  other  papers  whatever, 
in  the  (tffice  of  the  Auditor  of  State,  relating  to  insurance,  shall,  on 
demand,  be  delivered  and  transferred  to  the  Superintendent  of  In- 
surance, who  shall  give  to  the  said  Auditor  of  State  a  receipt  for 
the  same,  which  shall  be  to  the  Auditor  a  full  release  from  all  re- 
sponsibility in  connection  with  such  documents,  etc. ;  and  thereafter 
such  books,  papers,  and  documents  shall  be  and  remain  in  the 
charge  and  keeping  of  the  said  Superintendent  in  his  said  office. 
{Ibifl,  §  6.) 

11.  It  shall  be  the  duty  of  the  Superintendent  of  Insurance, 
whenever  he  shall  have  good  reason  to  suspect  the  correctness  of 
any  annual  statement,  or  that  the  affiiirs  of  any  company  are  in  an 
unsound  condition,  to  make,  or  cause  to  be  be  made,  an  examination 
into  the  affairs  of  any  such  insurance  company,  for  the  purposes 
named  in  this  act,  incorporated  in  this  State,  or  doing  business  by 
its  agencies  in  this  State ;  and  it  shall  be  the  duty  of  the  officers 
or  agents  of  any  insurance  company  doing  business  in  this  State 
to  cause  their  books  to  be  opened  for  the  inspection  of  snid  Super- 
intendent, or  the  person  or  persons  so  appointed,  and  otherwise  to 
facilitate  such  examination,  so  far  as  it  may  be  in  their  power  so  to 
do.     {Ibid  §  7.) 

12.  For  that  purpose  the  Superintendent,  or  the  person  or 
persons  so  appointed  by  him,  shall  have  power  to  examine,  under 
oath — which  he  or  they  are  hereby  empowered  to  administer -the 
officers  and  agents  of  any  company  relative  to  the  business  of  said 
company ;  and  whenever  the  Superintendent  shall  deem  it  for  the 
interest  of  the  public,  he  shall  publish  the  result  of  such  investiga- 
tion in  some  newspaper  printed  in  Columbus,  and  of  general  circular 
tion  in  the  State,  and  in  a  newspaper  printed  in  the  county  where 
the  principal  office  of  the  company  is  located.     {Ibid,  p.  35,  §  8.) 

1 3.  Whenever  it  shall  appear  to  the  said  Superintendent,  from 
such  examination,  that  the  assets  of  any  life  insurance  company, 
organized  under  the  laws  of  this  State,  are  insufficient  to  reinsure 
its  outstanding  risks,  as  provided  by  this  act,  or  that  the  assets  of 
any  joint  stock  insurance  company  other  than  life,  organized  under 
the  laws  of  this  State,  after  deducting  therefrom  all  actual  liabili- 
ties, and  a  reinsurauce  fund  equal  to  fifty  per  cent,  of  the  whole 
amount  of  premiums  on  all  unexpired  risks  and  policies,  are  reduced 
twenty  per  cent,  or  more  below  the  capital  stock  required  by  law, 
he  shall  require  the  officers  thereof  to  direct  the  stockholders  to  pay 
in  the  amount  of  such  deficiency,  within  such  period  as  he  shall 
designate  in  such  requisition.  After  the  Superintendent  shall  issue 
his  requisition,  calling  for  a  sum  to  be  paid  by  the  stockholders  of 
any  company  amounting  to  or  exceeding  forty  per  cent,  of  the  cap- 
ital, it  shall  be  unlawful  for  said  company  to  issue  any  new  policies 
or  transact  any  new  business  until  the  Superintendent  of  Insurance 


OHIO.  701 

shall  issue  to  such  company  a  license,  authorizing  it  to  resume  bus- 
iness, or  until  the  court  shall  have  renaered  its  decision  on  the 
case,  as  hereiuatter  provided.  But  in  case  said  requisition  shall  call 
for  a  less  amount  than  forty  per  cent,  of  said  capital,  and  the  offi- 
cers of  the  company  shall,  in  accordance  with  said  requisition,  direct 
the  stockholders  to  pay  the  amount  required  for  making  up  the 
capital,  and  so  signify  to  the  Superintendent,  then  it  shall  be  lawful 
for  said  company  to  continue  business,  as  before  the  issuing  of  said 
requisition,  for  the  term  of  thirty  days  from  the  date  thereof.  At 
the  expiration  of  said  thirty  days,  any  portion  of  the  requisition  of 
the  Superintendent  remaining  unpaid,  it  shall  be  unlawful  for  said 
company  to  issue  any  new  policies  or  transact  any  new  business 
until  authorized  by  the  Superintendent  as  aforesaid.  {Ibid,  §  9,  as 
amended  by  laws  of  1873,  p.  1G5.) 

1 4.  In  case  of  default  on  the  part  of  said  company  to  comjjly 
with  such  requisition,  the  Superintendent  shall  communicate  the 
fact  to  the  Attorney-General,  who  shall  apply  to  the  Court  of  Com- 
mon Pleas  of  the  county  in  which  the  principal  office  of  said  com- 
pany is  located,  for  an  order  requiring  such  company  to  show  cause 
why  the  business  of  such  company  should  not  be  closed,  and  shall 
give  to  said  company  such  notice  of  the  pending  of  such  application 
as  said  court  shall  direct,  and  the  court  shall  thereupon  proceed  to 
hear  the  allegations  and  proof  of  the  respective  parties ;  or,  the 
court  shall  have  power  to  refer  the  application  of  the  Attorney- 
General  to  a  referee,  to  inquire  into  and  report  upon  the  facts  stated 
therein.  In  case  it  shall  appear  to  the  satisfaction  of  said  court 
that  the  assets  of  said  company  are  not  sufficient  as  aforesaid,  or 
that  the  interests  of  the  public  so  require,  the  said  court  shall  decree 
a  dissolution  of  said  company  and  a  distribution  of  its  effects.  Any 
transfer  of  the  stock  of  any  company  made  duriug  the  pendency  of 
any  such  investigation  shall  not  release  the  party  making  the  trans- 
fer from  his  liability  for  losses  which  have  accrued  jirevious  to  the 
transfer.     {Ibid,  §  10,  as  amended  by  laivs  of  1873,  p.  106.) 

1 5.  If,  upon  examination,  it  shall  appear  to  tlie  Superintendent 
that  the  assets  of  any  company  organized  on  the  plan  of  mutual 
insurance,  after  deducting  therefrom  all  actual  liabilities  and  rein- 
surance fund  equal  to  fifty  per  cent,  of  the  advanced  cash  premiums 
received  on  all  unexpired  risks  and  policies,  are  insufficient  to  justify 
the  continuance  of  such  company  in  business,  it  shall  be  his  duty 
to  proceed,  in  relation  to  such  comj)any,  in  the  same  manner  as  is 
herein  required  in  regard  to  joint-stock  companies  ;  and  the  trustees 
or  directors  of  such  company  are  hereby  made  personally  liable  for 
any  losses  which  may  be  sustained  upon  risks  taken  after  the  Su- 
perintendent of  Insurance  shall  have  issued  his  requisition  for  filling 
up  the  deficiency  in  the  assets,  and  before  such  deficiency  shall  have 
been  made  up  ;  Provided,  That  nothing  herein  shall  be  so  construed 
as  to  require  any  mutual  fire  insurance  company  to  keep  on  hand 
any  cash  reinsurance  reserve  or  funds  invested  in  securities,  other 
than  their  premium  notes,  when  said  premium  notes  amount  in 
gross  to  three  per  centum  of  the  amount  at  risk  by  said  company. 
{Ibid,  §  11,  as  amended  by  laics  of  1<S73,  p.  160.  j 

1 6.  Whenever  it  shall  appear  t j  the  Superintendent  of  Insur- 
ance, from  the  rei)ort  of  the  i)erson  ai)i)ointed  by  him,  or  other  sat- 
isfactory evidence,  that  the  afiairs  of  any  company,  partnership,  or 
association,  not  organized  under  the  laws  of  this  State,  are  in  an 
unsound  condition,  he  shall  revoke  the  authority  granted  to  such 


702  niNE'S  INSURANCE   STATUTES. 

company  to  do  business  in  this  State,  and  cause  a  notice  thereof  to  be 
published  in  at  least  one  newspaper  published  in  the  city  of  Colum- 
bus, and  in  the  county  where  the  general  agency  is  located  within 
this  State ;  and  after  the  publication  of  such  notice,  it  shall  not  be 
lawful  for  the  agents  of  such  company  to  procure  any  new  applica- 
tions for  insurance,  or  to  issue  any  new  policies.  The  expenses  of 
any  examination  made  under  this  act  shall  be  paid  by  the  company 
examined.     {Ibid.,  p.  36,  §  12.) 

1 7.  The  Superintendent  shall  keep  and  preserve^  in  a  perma- 
nent form,  a  full  record  of  his  proceedings,  including  a  concise  state- 
ment of  the  condition  of  each  company  reported,  visited  or  examined 
by  him.  The  said  Superintendent  shall,  annually,  at  the  earliest 
practicable  date  after  the  returns  are  received  from  the  several  com- 
panies, make  a  report  to  the  legislature  of  the  general  conduct  and 
condition  of  the  insurance  companies  doing  business  in  this  State, 
with  such  suggestions  as  he  deems  expedient,  including  also  the 
information  contained  in  the  statements  required  of  the  said  com- 
panies, and  the  result  of  the  official  valuations  of  life  policies,  to  be 
arranged  in  tabular  form,  and  prepare  the  same  for  printing  in  two 
separate  reports,  one  pertaining  to  life  insurance  companies  and  the 
other  to  all  insurance  companies  other  than  life;  three  hundred 
copies  of  each  of  said  reports  shall  be  printed  for  the  use  of  the  Gene- 
ral Assembly  ;  two  thousand  five  hundred  copies  of  each  for  the  use  of 
the  Superintendent,  of  which  five  hundred  volumes  containing  both 
reports  shall  be  bound  in  cloth.  He  shall  also  report  the  names  and 
comi^ensation  of  the  clerks  employed  by  him,  the  whole  amount  of 
income,  the  source  whence  derived,  and  the  expenses  in  detail  dur- 
ing the  year  ending  upon  the  thirty-first  day  of  the  preceding 
December.     {Ibid,  §  13.j 

18.  It  shall  be  the  duty  of  the  Superintendent,  annually,  to 
make  or  cause  to  be  made  net  valuations  of  all  outstanding  policies, 
additions  thereto,  unpaid  dividends,  and  all  other  obligations  of 
every  life  insurance  company  transacting  business  in  this  State ; 
and  for  the  purpose  of  such  valuations,  and  for  making  special 
examinations  of  the  condition  of  life  insurance  companies,  as  pro- 
vided in  the  laws  of  this  State  relating  to  life  insurance  companies, 
and  for  valuing  all  policies  of  whatever  description,  and  for  any 
purpose  whatever,  the  rate  of  interest  shall  be  four  and  one-half  per 
cent,  per  annum,  and  the  rate  of  mortality  shall  be  established  by 
the  tables  known  as  the  American  Experience  Tables;  Provided^ 
That  whenever  the  laws  of  any  other  State  of  the  United  States  shall 
authorize  a  valuation  of  life  insurance  policies  by  some  designated 
State  officer,  according  to  the  standard  herein  provided,  or  accord- 
ing to  any  other  standard  which  shall  make  the  value  of  the  policy 
not  less  than  that  of  the  standard  herein  provided,  the  valuation 
made  according  to  the  said  standard,  by  such  officer,  of  the  i)olicies 
and  other  obligations  of  any  life  insurance  company  not  organized 
under  the  laws  of  this  State,  and  certified  by  said  officer,  may  be 
received  as  true  and  correct,  and  no  further  valuation  of  the  same 
shall  be  required  of  such  company  by  the  Superintendent  of  Insur- 
ance.    {Ibid,  §  14,  as  amended  by  laws  of  1873,  p.  1G6.) 

19.  The  Superintendent  shall  annually,  in  September,  fur- 
nish to  the  insurance  companies  doing  business  in  this  State,  two 
or  more  printed  copies  of  the  forms  of  statements  required  by 
this  act  to  be  made  by  them ;  and  he  may  make  such  changes,  from 
time  to  time,  in  the  form  of  the  same,  and  such  additions  thereto, 


OHIO.  703 

as  shall  seem  to  him  best  adapted  to  elicit  fr<  m  said  companies  a 
true  exhibit  of  their  condition.     {Ibid,  p.  37,  §  15.) 

!20,  All  secm-ities  deposited  with  the  Superintendent  of  Insur- 
ance, pursuant  to  the  provisions  of  any  law  of  this  State,  shall  be 
deposited  by  said  Superintendent  of  Insurance  with  the  Treasurer 
of  State,  who,  with  his  sureties,  shall  be  responsible  for  the  safe 
kee[)ing  thereof;  and  said  Treasurer  shall  only  deliver  such  securi- 
ties, or  coupons  attached  thereto,  upon  the  written  order  of  the  Su- 
perintendent of  Insurance.  [Ibid,  §  16,  as  amended  by  laics  0/1873, 
p.  167.) 

2 1 .  There  shall  be  paid  by  every  insurance  company  doing 
business  in  this  State,  to  the  Superintendent  of  Insurance,  the  fol- 
lowing fees,  to  wit :  For  the  iiling  and  examination  of  the  lirst  ap- 
plication of  any  company,  and  issuing  the  license  thereupon,  the 
sum  of  twenty-live  dollars  ;  for  filing  the  annual  statement  required, 
twenty  dollars ;  for  each  certificate  of  authority,  or  license,  and  cer- 
tified copy  thereof,  two  dollars ;  for  every  copy  of  a  paper  filed  in 
this  office,  the  sum  of  twenty  cents  per  folio ;  and  for  affixing  the 
seal  of  office,  and  certifying  any  paper,  one  dollar ;  Provided,  That 
any  company  may  pay  to  said  Superintendent  the  sum  of  two 
hundred  and  fifty  dollars  for  licenses  to  its  ageuts  for  the  year,  and 
by  so  doing  shall  be  entitled,  without  further  charge,  to  licenses  for 
as  many  agents  as  it  may  choose  to  ai)point.  There  shall  be  paid, 
also,  by  every  life  insurance  company  doing  business  in  this  State, 
annually,  by  way  of  compensation  for  the  valuation  of  its  policies, 
in  case  no  certified  valuation  of  the  same  has  been  furnished  to  the 
Superintendent  of  Insurance,  as  i^rovifled  in  section  fourteen  of  this 
act,  one  cent  on  every  thousand  dollars  insured  by  it  on  lives ;  all 
of  which  fees  shall  be  paid  by  the  Superintendent  into  the  State 
treasury.  When,  by  the  laws  of  any  other  State  or  nation,  any 
taxes,  fines,  penalties,  license  fees,  deposits  of  money  or  of  securi- 
ties, or  other  obligations  or  jirohibitions,  are  imposed  on  insurance 
companies  of  this  State  doing  business  in  such  State  or  nation,  or 
upon  their  agents  therein,  so  long  as  such  laws  continue  in  force, 
the  same  obligations  and  prohibitions  of  whatever  kind  shall  be  im- 
posed upon  all  insurance  companies  of  such  other  State  or  nation 
doing  business  within  this  State,  and  upon  their  agents  here. 
{Ibid,  §  17.) 

an.  It  shall  be  unlawful  for  any  person,  company,  or  corpora- 
tion, in  this  State,  either  to  procure,  receive,  or  forward  applica- 
tions for  insurance  in  any  company  or  companies  not  organized 
under  the  laws  of  this  State,  or  in  any  manner  to  aid  in  the  trans- 
action of  the  business  of  insurance  with  any  such  company,  unless 
duly  authorized  by  such  company  and  licensed  by  the  Superintend- 
ent of  Insurance,  in  conformity  to  the  provisions  of  this  act.  {Ibid, 
p.  38,  §  18.) 

23.  It  shall  be  the  duty  of  every  insurance  company  doing 
business  in  this  State  to  publish,  at  least  once  a  year,  in  some  news- 
paper of  general  circulation,  in  every  county  where  such  company 
has  an  agent,  a  certificate  from  the  Superintendent  of  Insurance 
that  such  company  has,  in  all  respects,  complied  with  the  laws  of  the 
State  relating  to  insurance.  Said  certificate  shall  also  contain  a 
statement,  under  the  oath  of  the  president  or  secretary  of  such  in- 
surance company,  of  the  actual  amount  of  paid-up  capital,  the  ag- 
gregate amount  of  assets  and  liabilities,  together  with  the  aggregate 
income  and  expenditures  of  such  comi^any  for  the  year  preceding 


704  hene's  insurance  statutes. 

the  date  of  such  certificate,  a  copy  of  which  certificate  shall  be  filed 
in  the  office  of  the  Eecorder  in  each  coimtj^  in  which  the  company 
has  an  agent.  !No  other  publication  than  as  above  provided  for 
shall  be  required  of  such  companies.     {Ibid,  §  19.) 

24.  Any  insurance  company  not  organized  under  the  laws  of 
this  State  may  appoint  one  or  more  general  agents  in  this  State,  by 
resolution  of  their  board  of  directors  or  managers,  with  authority  to 
appoint  other  agents  of  said  company  in  this  State,  a  certified  copy 
of  which  resolutions  shall  be  filed  with  the  Superintendent  of  Insur- 
ance; and  agents  of  such  company,  appointed  by  such  general 
agent,  shall  be  held  to  be  the  agents  of  such  company  as  luUy,  to 
all  intents  and  purposes,  as  if  they  were  ai)pointed  directly  by  the 
company.  Agents  for  any  such  company  in  this  State  may  be  ap- 
pointed by  the  i)resident,  vice-president,  chief-manager,  or  secre- 
tary thereof,  in  writing,  with  or  without  the  seal  of  the  company, 
and  when  so  appointed  shall  be  held  to  be  the  agents  of  such  com- 
pany as  fully  as  if  appointed  by  the  board  of  directors  or  managers 
in  the  most  formal  mode.     {Ibidy  §  20.) 

55.  Every  county  Eecorder  shall  be  authorized  to  demand  and 
receive  for  every  paper  filed  in  his  office  under  this  act  the  sum  of 
ten  cents.     {Ibid,  §  21.) 

56.  When  any  life  insurance  company,  transacting  the  business 
of  insurance  within  the  State  of  Ohio,  shall  desire  to  discontinue  its 
business,  the  Superintendent  shall,  upon  ajjplication  of  such  com- 
pany, or  association,  give  notice  of  such  intention  in  a  paper  pub- 
lished and  having  general  circulation  in  the  county  in  which  said 
company  or  its  general  agency  is  located,  at  least  once  a  week  for 
six  weeks,  the  expenses  of  publication  to  be  paid  by  such  company. 
After  such  publication,  said  Superintenaent  shall  deliver  up  to  such 
company,  or  association,  the  securities  held  by  him  belonging  to 
them,  on  being  satisfied,  by  the  exhibition  of  the  books  and  papers 
of  such  company,  or  association,  and  on  examination  to  be  made  by 
himself  or  some  competent  disinterested  person  or  persons  to  be  ap- 
pointed by  him,  and  upon  the  oath  of  the  president  or  principal 
officer  and  the  secretary  or  actuary  of  the  same,  that  all  debts  and 
liabilities  of  every  kind  are  paid  and  extinguished,  that  are  due,  or 
may  become  due,  upon  any  contract  or  agreement  made  with  any 
citizen  or  resident  of  the  United  States.  And  the  said  Superinten- 
dent may  also,  from  time  to  time,  deliver  up  to  said  company,  or  as- 
sociation, or  its  assigns,  any  portion  of  said  securities,  on  being  sat- 
isfied that  an  equal  proportion  of  the  debts  and  liabilities  of  every 
kind  that  are  due,  or  may  become  due,  upon  any  contract  or  agree- 
ment made  with  any  citizen  or  resident  of  the  United  States  by  said 
company,  or  association,  has  been  satisfied ;  Provided,  The  amount 
of  securities  retained  by  him  shall  not  be  less  than  twice  the  amount 
of  remaining  liabilities.     {Ibid,  §  22.) 

S7.  All  the  provisions  of  this  act  relating  to  insurance  compa- 
nies organized  under  the  laws  of  any  other  State  of  the  United 
States,  shall  apply  to  any  company  organized  under  the  laws  of  the 
United  States,  for  any  of  the  purposes  specified  in  this  act ;  and  all 
the  provisions  of  this  act  relating  to  agents  of  companies  organized 
tinder  the  laws  of  any  State,  shall  apply  to  the  agents  of  such  com- 
panies, organized  under  the  laws  of  tne  United  States ;  and  any  vio- 
lation of  the  provisions  of  this  act  by  an^^  person,  or  agent,  in  the 
employment  of  any  such  company  organized  under  the  laws  of  the 
United  States,  shall  subject  the  offender  to  the  same  penalties  pro- 


OHIO.  705 

vided  by  this  act  for  any  violation  of  its  provisions  by  persons  act- 
io g  for  similar  companies  organized  under  the  laws  of  any  other 
State  of  the  United  States.     {Ibid,  p.  39,  §  23.) 

28.  Every  person  who  shall  knowingly  and  willfully  violate 
any  of  the  provisions  of  this  act,  shall  be  deemed  guilty  of  a  misde- 
meanor, and  shall  be  liable  to  prosecution  therefor,  as  in  cases  of 
other  misdemeanors,  and  on  conviction  thereof,  shall  be  fined  in 
any  sum  not  exceeding  five  hundred  dollars  ;  and  any  corporation, 
or  any  officer  or  agent  thereof,  willfully  violating  any  of  the  ])ro- 
visions  of  this  act,  shall  be  liable  to  prosecution,  and  on  conviction 
thereof  shall  be  fined  in  any  sum  not  exceeding  one  thousand 
dollars ;  which  fines  shall,  when  collected,  be  paid  into  the 
treasury  of  the  proper  county  for  the  benefit  of  the  common  school 
fund ;  and,  moreover,  such  person  or  corporation  shall  be  liable  in 
damages  to  the  party  injured  by  reason  of  such  violations.  {Ibid, 
§  -^4.) 

2S9.  The  provisions  of  this  act  shall  apply  to  individuals  and 
parties,  and  to  all  companies  and  associations,  whether  incorporated 
or  not,  now  or  hereafter  engaged  in  the  business  of  insurance.  It  shall 
be  unlawful  for  any  company,  corporation,  or  association,  whether 
organized  in  this  State  or  elsewhere,  either  directly  or  indirectly,  to 
engage  in  the  business  of  insurance,  or  to  enter  into  any  contracts 
substantially  amounting  to  insurance,  or  in  any  manner  to  aid 
therein,  in  this  State,  without  having  first  complied  with  all  the 
provisions  of  this  act.     {Ibid,  §  25.) 


INSUEANCE  COMPANIES  OTHER  THAN  LIFE. 

30.  Hereafter,  when  any  number  of  persons,  as  required  by  the 
first  section  of  the  act  entitled  ''  An  act  to  provide  for  the  creation 
and  regulation  of  incorporated  companies  in  the  State  of  Ohio," 
passed  May  1,  1852,  and  the  acts  amendatory  thereto,  shall  associate 
to  form  an  insurance  company  for  any  other  purpose  than  life  insur- 
ance, they  shall,  under  their  hands  and  seals,  make  a  certificate, 
specifying  the  name  assumed  by  such  company,  and  by  which  it 
shall  be  known,  the  object  for  which  said  company  shall  be  formed, 
the  amount  of  its  capital  stock,  and  the  place  where  the  principal 
oflSce  of  said  company  shall  be  located ;  which  certificate  shall  be 
acknowledged,  certified,  and  forwarded  to  the  Secretary  of  State, 
who  shall  submit  the  same  to  the  Attorney-General  for  exam- 
ination, and  if  found  by  him  to  be  in  accordance  with  the  provisions 
of  this  act,  and  not  inconsistent  with  the  constitution  and  laws  of 
this  State  and  of  the  United  States,  he  shall  certify  the  same  and 
deliver  it  back  to  the  said  Secretary,  who  shall  have  the  right  to  re- 
ject any  name  or  title  of  any  company  applied  for,  when  he  shall 
deem  the  name  similar  to  one  already  appropriated,  or  likely  to  mis- 
lead the  public.     {Laics  of  IS12,  p.  140,  §  1.) 

31.  Upon  the  approval  of  said  certificate  by  the  Attorney- 
General  and  the  Secretary  of  State,  the  said  Secretary  of  State  shall 
cause  it  to  be  recorded  and  copied  in  the  same  manner  as  is  pro- 
vided in  the  second  section  of  said  act,  and  a  copy  thereof  de- 
posited with  the  Superintendent  of  Insurance,  and  said  persons, 
when  incorporated,  and  having  in  all  respects  complied  with  the 
provisions  of  this  act,  are  hereby  authorized  to  carry  on  the  busi- 
ness of  insurance,  as  named  in  such  certificate  of  incorporation, 

45 


706  hike's  insukancie  statutes. 

and  by  the  uame  and  style  provided  therein,  shall  be  deemed  a 
body  corporate,  with  succession  ;  they  and  their  associates,  succes- 
sors and  assigns,  shall  have  the  same  general  corporate  powers,  and 
be  subject  to  all  the  obligations  and  restrictions  of  said  act,  and  of 
the  acts  amendatory  and  supplementary  thereto,  except  as  herein 
provided.     {Ibid,  §  2.) 

32.  No  joint  stock  company  shall  be  incorporated  under  this 
chapter  with  a  smaller  capital  than  one  hundred  thousand  dollars, 
which  stock  shall  be  divided  into  shares  of  one  hundred  dollars 
each ;  nor  shall  any  company  on  the  plan  of  mutual  insurance  be 
organized  in  this  State  until  agreements  shall  have  been  entered  into 
for  insurance  with  at  least  two  hundred  applicants,  the  premiums  on 
which  shall  amount  to  not  less  than  fifty  thousand  dollars,  of  which 
at  least  ten  thousand  dollars  shall  have  been  paid  in  cash,  and  notes 
of  solvent  parties,  founded  on  actual  and  bona  fide  applications  for 
insurance,  shall  have  been  received  for  the  remainder.  No  one  of 
the  notes  received  as  aforesaid  shall  amount  to  more  than  five  hun- 
dred dollars,  and  no  two  shall  be  given  for  the  same  risk,  or  be 
made  by  the  same  person  or  firm,  except  when  the  whole  amount  of 
such  notes  shall  not  exceed  five  hundred  dollars  ;  nor  shall  any  note 
be  represented  as  capital  stock  unless  a  policy  be  issued  upon  the 
same  within  thirty  days  after  the  organization  of  the  company, 
upon  a  risk  which  shall  be  for  no  shorter  period  than  twelve 
months.  Each  of  said  notes  shall  be  payable,  in  part  or  in  whole, 
at  any  time  when  the  directors  shall  deem  the  same  requisite  for 
the  payment  of  losses  by  fire  or  inland  navigation,  and  such  inci- 
dental expenses  as  may  be  necessary  for  transacting  the  business  of 
said  company.  And  no  note  shall  be  accei)ted  as  part  of  such  capi- 
tal stock,  unless  the  same  shall  be  accompanied  by  a  certificate  of  a 
justice  of  the  peace  of  the  town  or  city  where  the  person  making 
such  note  shall  reside,  that  the  person  making  the  same  is,  in  his 
opinion,  pecuniarily'  good  and  responsible  for  the  same ;  and  no  such 
note  shall  be  surrendered  during  the  life  of  the  policy  for  which  it 
was  given.     {Ibid,  p.  141,  §  3,  as  amended  by  laws  o/ 1873, 2).  147.) 

33.  The  persons  named  in  the  certificate  of  incorporation,  or 
a  majority  of  them,  shall  be  commissioners  to  open  books  for  the 
subscription  of  stock  in  the  company,  at  such  times  and  places 
as  they  shall  deem  convenient  and  proper,  and  shall  keep  the 
same  open  until  the  full  amount  specified  in  the  certificate  is  sub- 
scribed.    {Ibid,  §  4.) 

34.  The  affairs  of  any  company  organized  under  this  act,  or 
organized  under  any  of  the  laws  or  charters  of  this  State,  shall  be 
managed  by  not  more  than  twenty-one  nor  less  than  five  directors, 
all  of  whom  shall  be  members  or  stockholders.  Within  one  month 
after  the  subscription  book  shall  have  been  filled  and  the  certificate 
of  incorporation  shall  have  been  filed  with  the  Secretary  of  State, 
as  the  first  and  second  sections  of  the  act  to  which  this  is  an  amend- 
ment provide,  a  majority  of  subscribers  shall  hold  a  meeting  for  the 
election  of  directors.  The  number  of  votes  to  which  each  sub- 
scriber is  entitled  shall  be,  in  mutual  companies,  one  vote  each,  and 
in  joint  stock  companies,  one  vote  for  each  share  such  subscriber 
may  hold.  The  directors  then  elected  shall  continue  in  office  until 
such  time  in  the  month  of  January  thereafter  as  the  by-laws  of  the 
company  shall  direct,  and  until  others  shall  have  been  elected  and 
qualified  to  succeed  them  in  the  trust,  and  shall  have  accepted  the 
same.    Mutual  insurance  companies,  if  they  provide  for  it  in  their 


OHIO.     ■  707 

by-laws,  ma-y  elect  said  directors  for  three  years,  one-third  of  such 
directors'  term  of  office  to  expire  annually ;  those  receiving  the 
highest  number  of  votes  at  the  first  election  to  be  elected  respec- 
tively for  the  longest  term.  {Ibid,  §  5,  as  amended  by  laws  of  1873, 
p.  180.) 

im.  It  shall  be  unlawful  for  any  insurance  company  organized 
under  this  chapter,  or  incorporated  under  any  law  of  this  State,  for 
the  purposes  provided  in  the  first  section  of  this  chapter,  to  invest 
its  capital,  or  any  part  thereof,  otherwise  than  in — 

First. — United  States  bonds. 

ISecond. — Ohio  State  bonds. 

Third. — Bonds  of  any  county,  township,  or  municipal  corporation 
in  the  State,  issued  in  conformity  with  law. 

Fourth. — Bonds  and  mortgages  on  unincumbered  real  estate 
within  tbe  State  of  Ohio  worth  fifty  per  cent,  more  than  the  sum 
loaned  thereon,  exclusive  of  buildings. 

Fifth. — The  stock  of  any  national  bank  located  in  this  State,  or- 
ganized under  the  provisions  of  an  act  of  Congress  entitled  "An  act 
to  i^rovide  a  national  currency,  secured  by  the  pledge  of  United 
States  stocks,  and  to  provide  for  the  circulation  and  redemption 
thereof,"  approved  on  the  twenty-fifth  day  of  February,  in  the  year 
eighteen  hundred  and  sixty-three,  and  acts  amendatory  of  and  sup- 
plementary to  said  act ;  or, 

8ixth. — First  mortgage  bonds  of  railroads  within  this  State,  upon 
which  default  in  the  payment  of  the  interest  coujjons  has  not  been 
made  within  three  years  previous  to  the  purchase  thereof.  But  any 
funds  accumulated  in  the  course  of  business,  or  surplus  money  over 
and  above  the  capital  stock  of  any  insurance  company,  may  be 
loaned  on,  or  invested  in  the  above-named  securities ;  or, 

First. — Bonds  and  mortgages  on  unincumbered  real  estate  within 
the  State  of  Ohio  worth  fifty  \}&v  cent,  more  than  the  sum  loaned 
thereon,  exclusive  of  buildings,  unless  such  buildings  are  insured 
in  some  insurance  company  authorized  to  do  business  in  this  State, 
and  the  policy  transferred  to  said  company  making  the  investment. 

Second. — Bonds  of  any  State  of  the  United  States. 

Third. — Stocks,  bonds,  or  other  evidences  of  indebtedness  of  any 
solvent  dividend-paying  institution  incorporated  under  the  laws  of 
this  or  any  other  State,  or  of  the  United  States,  except  their  own 
stock;  or, 

JF\)wri/i.— Negotiable  promissory,  notes  maturing  in  not  more  than 
six  months  from  the  date  thereof,  secured  by  collateral  security, 
through  the  transfer  of  any  of  the  classes  of  securities  above  de- 
scribed in  this  section,  with  absolute  power  of  sale  within  twenty 
days  after  default  in  payment  at  maturity  ;  Provided.,  always.,  That 
no  insurance  company  shall  own  more  than  one  fourth  of  the  capi- 
tal stock  of  any  one  national  bank,  nor  invest  in,  nor  loan  on,  the 
stocks  and  bonds,  both  included,  of  any  one  railroad  company  to 
an  extent  exceeding  one-tenth  of  its  own  capital,  nor  in  the  aggre- 
gate shall  the  investment  in,  and  loan  on,  all  railroad  property  ex- 
ceed one-fourth  of  its  capital.  Not  more  than  one-half  of  its  capi- 
tal shall  be  loaned  on  mortgage  of  real  estate,  as  above  provided 
for  the  investment  of  capital,  and  not  more  than  one-tenth  of  the 
capital  actually  existing  of  any  company  shall  be  invested  in  a  sin- 
gle mortgage  ;  and  Provided  further,  That  the  cui-rent  market  value 
of  all  such  stocks,  bonds,  or  other  evidences  of  indebtedness,  as 
above  mentioned,  in  which  the  accumulations  or  surplus  money 


708  HINE^S  INSURANCE  STATUTES. 

over  and  above  the  capital  stock  of  any  insurance  company  may  be 
loaned  or  invested,  shall  be  at  all  times  during  the  continuance  of 
such  loans  at  least  twenty  per  cent,  more  than  the  sum  loaned 
thereon.  If  any  investment  or  loan  shall  be  made  in  a  manner  not 
authorized  by  this  chapter,  the  directors  making  or  authorizing  the 
same  shall  be  personally  liable  to  the  stockholders  for  any  loss  oc- 
casioned thereby  ;  but  insurance  companies  organized  under  the 
laws  of  this  State,  now  doing  business,  shall  not  be  compelled  to 
change  any  investment  made  in  accordance  with  the  acts  heretofore 
passed  regulating  said  companies.  {Ibid  §  6,  as  amended  by  laws  of 
1873,  p.  147.) 

36.  Upon  receiving  notification  that  the  proceedings  required 
by  the  sections  foregoing  have  been  had,  the  Superintendent  of  In- 
surance shall  cause  an  examination  to  be  made,  either  by  himself  or 
6ome  disinterested  person  specially  appointed  by  him  for  that  pur- 
pose, who  shall  certify  under  oath  that  the  capital  herein  required 
of  the  company  named  has  been  paid  in,  and  is  possessed  by  it  in 
money,  or  in  such  stocks  and  bonds  and  mortgages  as  are  required 
by  the  sixth  section  of  this  chapter ;  and  the  corporators  or  officers 
of  such  company  shall  be  required  to  certify,  under  oath,  that  the 
capital  exhibited  is  bona  fide  the  property  of  the  company.  Such 
certificates  shall  be  filed  in  the  office  of  the  said  Suj^erintendent, 
who  shall  thereupon  deliver  to  such  company  a  certified  copy  of 
said  certificates,  which,  on  being  placed  on  record  in  the  office  of  the 
Recorder  of  the  county  where  the  company  is  to  be  located,  in  a  book 
provided  for  that  purpose  by  him,  shall  be  their  authority  to  com- 
mence business  and  issue  policies ;  and  such  certified  copy  of  said 
certificates  may  be  used  in  evidence  for  or  against  said  company, 
with  the  same  efiect  as  the  original.     {Ibid,  p.  142,  §  7.) 

37.  It  shall  be  lawful  for  any  company  organized  under  this 
chapter — 

First. — To  insure  houses,  buildings,  and  all  other  kinds  of  prop- 
erty, against  loss  or  damage  by  fire  and  lightning,  in  and  out  of  the 
State ;  and  to  make  all  kinds  of  insurance  on  goods,  merchandise, 
and  other  property  in  the  course  of  transportation,  whether  on  land 
or  water,  or  on  any  vessel  or  boat,  whatever  the  same  may  be. 

Second. — To  make  insurance  on  the  health  of  individuals,  and 
against  personal  injury,  disablement,  or  death,  resulting  from  travel- 
ing or  general  accidents  by  land  or  water. 

Third. — To  insure  the  fidelity  of  persons  holding  places  of  public 
or  private  trust. 

Fourth. — To  receive  on  deposit  and  insure  the  safe  keeping  of 
books,  papers,  moneys,  stocks,  bonds,  and  all  kinds  of  personal 
property  ;  to  lend  money  on  bottomry  or  respondentia,  and  to  cause 
itself  to  be  insured  against  any  loss  or  risk  it  may  have  incurred 
in  the  course  of  its  business,  and  upon  the  interest  which  it  may 
have  in  any  property  by  means  of  any  loan  or  loans  which  it  may 
have  made  on  mortgage,  bottomry,  or  respondentia,  and  generally 
to  do  and  perform  all  other  matters  and  things  proper  to  promote 
these  objects  ; 

Provided,  That  no  company  shall  be  organized  to  issue  policies 
of  insurance  for  more  than  one  of  the  above  four  mentioned  pur- 
poses, and  no  company  that  shall  have  been  organized  for  either  one 
of  said  purposes  shall  issue  policies  of  insurance  for  any  other. 
{Ibid,  §  8,  as  amended  by  laws  of  1874,  p.  65.) 

38.  The  annual  meeting  for  the  election  of  directors  shall  be 


I 


OHIO.  709 

held  at  such  time  iu  the  month  of  January  as  the  by-laws  of  the 
company  may  direct;  Provided^  however,  That  if  for  any  cause  the 
stockholders  or  members  shall  fail  to  elect  directors  at  their  annual 
meetino",  they  may  bold  a  special  meeting  on  some  subsequent  day 
for  that  purpose,  by  giving  thirty  days'  notice  previous  thereof  in 
some  newspaper  of  general  circulation  in  the  county  where  the 
principal  office  of  the  company  shall  be  kept ;  and  the  directors 
chosen  at  any  such  annual  or  special  meeting  shall  continue  in  office, 
as  provided  in  section  five  of  this  act,  and  until  their  successors 
shall  have  been  duly  elected  and  qualified.  (iiifZ,  2>.  143,  §  9,  as 
amended  by  laics  of  1873,  j?.  181.) 

39.  The  directors  shall  choose,  by  ballot,  a  president  from  their 
own  number,  and  shall  fill  all  vacancies  that  may  arise  in  the  board 
or  in  the  presidency  thereof ;  and  the  board  of  directors,  or  a  major- 
ity of  them,  when  convened  at  the  office  of  the  company,  shall  be 
competent  to  exercise  all  the  powers  vested  in  them  by  this  chapter. 
They  shall  also  have  power  to  appoint  a  secretary,  and  any  other 
officers  or  agents  necessary  for  transacting  the  business  of  the  com- 
pany, jiaying  such  salaries  and  taking  such  securities  as  they  may 
judge  reasonable  ;  they  may  ordain  and  establish  by-laws  and  regu- 
lations, not  inconsistent  with  this  chapter,  or  with  the  constitution 
and  laws  of  this  State  and  of  the  United  States,  as  shall  appear  to 
them  necessary  for  regulating  and  conducting  the  business  of  the 
company  ;  and  it  shall  be  their  duty  to  keep  full  and  correct  records 
of  their  transactions,  which  shall  at  all  times  be  open  to  the  inspec- 
tion of  the  stockholders.     {Ibid,  §  10.) 

40.  All  policies  or  contracts  of  insurance  made  or  entered  into 
by  the  company,  may  be  made  either  with  or  without  the  seal 
thereof;  they  shall  be  subscribed  by  the  president  or  such  other 
officer  as  may  be  designated  by  the  directors  for  that  purpose,  and 
shall  be  attested  by  the  secretary,  and,  being  so  subscribed  and 
attested,  they  shall  be  obligatory  on  the  company.     {Ibid,  §  11.) 

41 .  Transfers  of  stock  may  be  made  by  any  shareholder,  or  his 
legal  representative,  on  the  books  of  the  company,  subject  to  such 
reasonable  restrictions  as  the  directors  may  from  time  to  time  make 
in  their  by-laws,  and  subject,  also,  to  any  provisions  of  the  laws  of 
this  State  relating  to  such  transfers.     {Ibid,  §  12.) 

4S.  Whenever  any  company  organized  under  this  chapter  shall, 
in  the  opinion  of  the  directors  thereof,  require  an  increased  amount 
of  capital,  they  shall,  if  authorized  by  the  holders  of  two-thirds  of 
the  stock,  file  with  the  Secretary  of  State  a  certificate  setting  forth 
the  amount  of  such  desired  increase,  and  thereafter  such  company 
shall  be  entitled  to  have  the  increased  amount  of  capital  fixed  by 
said  certificate ;  and  the  examination  of  securities  composing  the 
capital  stock  thus  increased  shall  be  made  in  the  same  manner  as  is 
provided  in  section  seven  of  this  chapter  for  capital  stock  originally 
paid  in.     {Ibid,  §  13.) 

43.  No  fire  insurance  company  organized  under  any  law  of  this 
State  shall  make  any  dividend,  except  from  the  surplus  profits 
arising  from  its  business.  In  estimating  such  profits,  there  shall  be 
reserved  therefrom— 

First. — A  sum  equal  to  fifty  per  cent,  of  the  whole  amount  of 
premiums  on  unexpired  risks  and  policies,  which  are  hereby  declared 
to  be  unearned  premiums. 

Second. — All  sums  due  the  company  on  bonds  and  mortgages, 
bonds,  stocks,  and  book  accounts,  of  which  no  part  of  the  principal 


710  hine's  insueance  statutes. 

nor  the  interest  thereon  has  been  paid  during  the  preceding  year, 
and  for  which  foreclosure  or  suit  has  not  been  commenced,  or 
which,  after  judgment  obtained  thereon,  shall  have  remained  more 
than  two  years  unsatisfied,  and  on  which  interest  shall  have  been 
paid ;  and, 

Third. — All  interest  due  or  accrued  and  remaining  unpaid  for 
which  the  company  does  not  hold  securities  as  hereinbefore  pro- 
vided. 

Any  di\idend  made  contrary  to  provisions  of  this  section 
shall  subject  the  company  making  the  same  to  a  forfeiture  of  its 
charter,  and  each  stockholder  receiving  it  to  a  liability  to  the  credi- 
tors of  such  company  to  the  extent  of  the  dividend  received,  besides 
the  other  penalties  and  punishments  prescribed  by  law.  This  sec- 
tion shall  not  apply  to  the  declaration  of  scrip  dividends  by  partici- 
pating companies;  but  no  such  scrip  dividend  shall  be  paid,  except 
from  surplus  profits,  after  reserving  all  sums  above  provided,  includ- 
ing the  whole  amount  of  premiums  on  unexpired  risks.  The  word 
"  year,"  wherever  used  in  this  section,  shall  be  construed  to  mean 
the  calendar  year.  {Ibid, p.  144,  §  14,  as  amended  by  laics  of  1873, 
i).  149.) 

44.  No  company  organized  under  this  chapter  shall  purchase, 
hold,  or  conv^ey  real  estate,  except  for  the  purposes  and  in  the  man- 
ner herein  set  forth,  to  wit : 

First. — Such  as  shall  be  requisite  for  its  convenient  accommoda- 
tion in  the  transaction  of  its  business  ;  or. 

Second. — Such  as  shall  have  been  mortgaged  to  it  in  good  faith, 
by  way  of  security  for  loans  previously  contracted,  or  for  money 
due ;  or, 

Third. — Such  as  shall  have  been  conveyed  to  it  in  satisfaction  of 
debt  previously  contracted  in  its  legitimate  business,  or  for  money 
due ;  or, 

Fourth. — Such  as  shall  have  been  purchased  at  sales  upon  judg- 
ment, decrees,  or  mortgages  obtained  or  made  for  such  debts. 

And  it  shall  not  be  lawful  for  any  such  company  to  purchase, 
hold,  or  convey  real  estate  in  any  other  case,  or  for  any  other  pur- 
pose ;  and  all  such  real  estate  as  may  be  acquired  as  aforesaid,  and 
which  shall  not  be  necessary  for  the  accommodation  of  such  com- 
pany in  the  transaction  of  its  business,  shall  be  sold  and  disposed 
of  within  two  years  after  such  company  shall  have  acquired  title 
thereto,  unless  the  company  shall  iirocure  a  certificate  from  the 
Superintendent  of  Insurance  that  the  interests  of  the  company  will 
suffer  materially  by  a  forced  sale  thereof,  in  which  event  the  sale 
may  be  postponed  for  such  i^eriod  as  the  said  Sui)eriutendent  shall 
direct  in  such  certificate.     {Ibid,  §  15.) 

45.  Every  person  effecting  insurance  in  any  mutual  company, 
and  also  tbeir  heirs,  executors,  administrators,  and  assigns,  con- 
tinuing to  be  so  insured,  shall  thereby  become  members  of  said  cor- 
poration during  the  period  of  insurance,  and  shall  be  bound  to  pay 
for  losses  and  such  necessary  expenses,  as  aforesaid,  accruing  in  and 
to  said  company,  in  proportion  to  the  amount  of  his  deposit  note  or 
notes.  The  directors  shall,  as  often  as  they  deem  necessary,  after 
receiving  notice  of  any  loss  or  damage  by  fire  sustained  by  any 
member,  and  ascertaining  the  same,  or  after  the  rendition  of  any 
judgment  against  said  company  for  loss  or  damage,  settle  and  de- 
termine the  sums  to  be  paid  by  the  several  members  thereof  as  their 
respective  portion  of  such  loss,  and  publish  the  same  in  such  man- 


OHIO.  711 

ner  as  they  shall  se3  fit,  or  as  the  by-laws  shall  have  prescribed ; 
and  the  sum  to  be  paid  by  each  member  shall  always  be  in  propor- 
tion to  the  original  amount  of  his  deposit  note  or  notes,  and  shall 
be  paid  to  the  officers  of  the  company  within  thirty  days  next  m^iter 
the  publication  of  said  notice.  And  if  any  member  shall,  for  the 
space  of  thirty  days  after  the  publication  of  said  notice,  and  after 
personal  demand  for  payment  shall  have  been  made,  neglect  or 
refuse  to  pay  the  sum  assessed  upon  him  as  his  proportion  of  any 
loss  as  aforesaid,  in  such  cases  the  directors  may  sue  for  and 
recover  the  whole  amount  of  his  deposit  note  or  notes,  with  c*bsts  of 
suit ;  but  execution  shall  only  issue  for  assessments  and  costs  as 
they  accrue,  and  every  such  execution  shall  be  accompanied  by  a 
list  of  losses  for  which  the  assessment  is  made.  If  the  whole 
amount  of  deposit  notes  shall  be  insufficient  to  pay  the  loss 
occasioned  by  any  fire  or  fires,  in  such  case  the  sufferers  insured  by 
the  said  company  shall  receive,  towards  making  good  their  respec- 
tive losses,  a  proportional  share  of  the  whole  amount  of  said  notes, 
according  to  the  sums  by  them  respectively  insured  ;  but  no  mem- 
ber shall  ever  be  required  to  pay,  for  any  loss  occasioned  by  fire  or 
inland  navigation,  more  than  the  whole  amount  of  his  deposit  note. 
(Ibid,  p.  145,  §  16.) 

46.  Every  mutual  insurance  company  shall  embody  the  word 
"  mutual "  in  its  title,  which  shall  appear  upon  the  first  page  of 
every  policy  and  renewal  receipt ;  and  every  stock  company  shall, 
upon  the  face  of  every  policy  and  renewal  receipt,  in  some  suitable 
manner,  express  that  such  policy  or  receipt  is  a  stock  policy  or 
receipt,  and  neither  class  of  companies  doing  business  in  this  State 
shall  issue  any  i:>olicy  other  than  that  appropriate  to  its  class ;  Pro- 
vided, That  any  mutual  insurance  company  now  doing  business  in 
this  State,  having  net  assets  not  less  than  two  hundred  thousand 
dollars,  invested  as  provided  in  section  six  of  this  chapter,* for  the 
capital  stock,  may  issue  policies  either  upon  the  mutual  or  stock 
plan,  and  may  continue  to  do  such  kind  of  business  as  above,  as 
long  as  their  assets  shall  continue  invested  as  above ;  and  Provided, 
further,  That  any  mutual  insurance  company  having  assets  so  in- 
vested, shall  have  the  right  to  expose  itself  to  loss  on  any  one 
risk  or  hazard,  either  by  one  or  more  policies,  to  an  amount  not  ex- 
ceeding five  per  cent,  thereof.     {Ibid,  §  17.) 

47.  It  shall  be  the  duty  of  the  president  or  vice-president 
and  secretary  of  each  insurance  company  organized  under  this 
chapter,  or  incorporated  under  any  law  of  this  State,  as  enumerated 
in  the  eighth  section  of  this  act,  other  than  marine  insurance  com- 
panies, annually,  on  the  first  day  of  January,  or  within  thirty  days 
thereafter,  and  of  each  marine  insurance  company  within  sixty  days 
thereafter,  to  prepare,  under  oath,  and  deposit  in  the  office  of  the 
Su])erintendent  of  Insurance,  a  statement  of  the  condition  of  such 
company  on  the  thirty-first  day  of  December  then  next  preceding, 
exhibiting  the  following  facts  and  items,  in  the  following  form, 
namely : 

First. — The  amount  of  the  capital  stock  of  the  company,  specify- 
ing the  amount  paid  and  unpaid. 

Second. — The  property  or  assets  held   by  the  company,  speci 
fying : 

1.  The  value,  or  as  nearly  as  may  be,  of  the  real  estate  owned 
by  such  comi)any,  where  situate,  and  value  of  buildings.*' 

2.  The  amount  of  cash  on  hand  and  deposited  in  banks  to  the 


712  hine's  insurance  statutes. 

credit  of  the  company,  specifying  in  what  banks  the  same  is  de- 
posited. 

3.  The  amount  of  cash  in  the  hands  of  agents  and  in  course  of 
transmission. 

4.  The  amount  of  loans  secured  by  bonds  and  mortgages,  con- 
stituting the  first  lien  on  real  estate,  on  which  there  shall  be  less 
than  one  year's  interest  due  or  owing. 

5.  The  amount  of  loans  on  which  interest  shall  not  have  been 
paid  within  one  year. 

6.  The  amount  due  the  company  on  which  judgments  have 
been  obtained,  and  the  cash  value  thereof. 

7.  The  amount  of  stocks  of  this  State,  the  United  States,  of 
any  incorporated  city  of  this  State,  and  of  any  other  stocks 
owned  by  the  company,  specifyiug  the  amount,  number  of 
shares,  and  par  and  market  value  of  each  kind  of  stock. 

8.  The  amount  of  stock  held  as  collateral  security  for  loans, 
with  the  amount  loaned  on  each  kind  of  stock,  its  par  value,  and 
market  value. 

9.  The  amount  of  assessments  on  stock  or  premium  notes  un- 
paid. 

10.  The  amount  of  interest  actually  due  and  unpaid,  and  the 
amount  of  interest  accrued  but  not  due. 

11.  The  amount  of  i)remium  notes  on  which  policies  are 
issued. 

12.  The  number  of  policies  in  force. 

13.  The  amount  insured  under  all  policies  in  force. 

14.  The  amount  of  premiums  received  thereon. 

15.  The  amount  of  all  other  assets,  specifying  what. 
Third.  -The  liabilities  of  such  company,  specifying: 

1.  The  amount  of  losses  due  and  unpaid. 

2.  The  amount  of  claims  for  losses  resisted  by  the  company. 

3.  The  amount  of  losses  incurred  during  the  year,  including 
those  claimed  and  not  due,  and  those  reported  to  the  company 
upon  which  no  action  has  been  taken. 

4.  The  amount  of  dividends  declared  and  due  and  remaining 
unpaid. 

5.  The  amount  of  dividends,  either  cash  or  scrip,  declared  but 
not  due. 

6.  The  amount  of  money  borrowed  and  security  given  for  the 
payment  thereof. 

7.  The  amount  required  for  reinsurance,  being  in  joint-stock 
companies  a  sum  eqaal  to  fifty  per  cent,  of  the  whole  amount  of 
premiums  on  unexpired  risks  and  polices,  and  in  mutual  insur- 
ance companies  a  sum  equal  to  fifty  per  centum  of  the  cash  pre- 
miums received  on  unexpired  risks  and  policies. 

8.  The  amount  of  all  other  existing  claims  against  the  com- 
pany. 

Fourth. — The  income  of  the  company  during  the  preceding  year, 
specifying : 

1.  The  amount  of  cash  premiums  received. 

2.  The  amount  of  notes  received  for  premiums. 

3.  The  amount  of  interest  money  received. 

4.  The  amount  of  income  received  from  other  sources. 
Fifth. — The  expenditure  during  the  preceding  year,  specifying  : 

1.  The  amount  of  losses  paid  during  the  year,  stating  how 
much  of  the  same  accrued  prior,  and  how  much  subsequent  to 


OHIO.  713 

the  date  of  the  preceding  statement,  and  the  amount  at  which 
losses  were  estimated  in  such  i)receding  statement. 

2.  The  amount  of  dividends  paid  during  the  year. 

3.  The  amount  of  expenses  paid  during  the  year,  including 
commissions  and  fees  to  agents  and  officers  of  the  company. 

4.  The  amount  paid  in  taxes. 

5.  The  amount  of    all  other    payments    and    expenditures. 
(Ibid,  p.  146,  §  18,  as  amended  by  laws  of  1873,  p.  149.) 

48.  The  statement  of  any  such  company,  the  capital  of  which 
is  composed  in  whole  or  in  part  of  notes,  shall,  in  addition  to  the 
foregoing,  exhibit  the  amount  of  notes  originally  forming  the 
capital,  and  also  what  proportion  of  said  notes  is  still  held  by  such 
company  and  considered  capital.  Every  insurance  company  organ- 
ized under  any  law  of  this  State  failing  to  make  and  deposit  such 
statement,  or  to  reply  to  any  inquiry  of  the  said  Superintendent, 
shall  be  subject  to  a  penalty  of  five  hundred  dollars,  and  an  addi- 
tional five  hundred  dollars  for  every  month  that  such  company 
shall  continue  thereafter  to  transact  any  business  of  insurance. 
[Ibid,  p.  147,  §  19.) 

49,  It  shall  not  be  lawful  for  any  insurance  company,  associa- 
tion or  partnership,  incorporated,  organized  or  associated  under  the 
laws  of  any  other  State  of  the  United  States,  or  any  foreign  govern- 
ment, for  any  of  the  purposes  mentioned  in  this  chapter,  directly  or 
indirectly,  to  transact  any  business  of  insurance  in  this  State,  with- 
out first  procuring  from  the  Superintendent  a  certificate  of  authority 
so  to  do ;  nor  shall  it  be  lawful  for  any  person  or  corporation,  di- 
rectly or  indirectly,  to  act  as  agents  in  this  State  for  any  such  com- 
pany or  association,  either  in  i^rocuring  ai^plications  for  insurance, 
taking  risks  or  in  any  manner  transacting  the  business  of  insur- 
ance, without  first  procuring  from  the  Superintendent  a  license  so 
to  do,  stating  also  that  said  company  has  complied  with  all  the 
requisitions  of  this  act  applicable  to  such  company,  and  depositing 
a  certified  copy  of  such  license  in  the  office  of  the  Eecorder  of  the 
county  in  which  the  office  or  place  of  business  of  such  agent  or 
agents  may  be  established ;  nor  shall  it  be  lawful  for  any  insurance 
company,  association  or  partnership,  organized  under  the  laws  of 
any  other  State,  directly  or  indirectly,  to  take  risks  or  transact  bus- 
iness of  insurance  in  this  State,  unless  possessed  of  the  amount  of 
actual  capital  required  of  similar  companies  formed  under  the  pro- 
visions-of  this  chapter,  nor  unless  the  entire  capital  stock  of  said 
company  be  fully  paid  up  and  invested  as  required  by  laws  of  the 
State  where  organized ;  and  any  company  desiring  to  transact  any 
business  as  aforesaid,  by  any  agent  or  agents,  in  this  State,  shall 
file  with  the  Superintendent  a  written  instrument,  duly  signed  and 
sealed,  authorizing  any  agent  or  agents  of  such  company  in  this 
State  to  acknowledge  service  of  process  for  and  in  behalf  of  such 
company  in  this  State,  consenting  that  service  of  process,  mesne  or 
final,  upon  any  such  agent  or  agents,  shall  be  taken  and  held  to  be 
as  valid  as  if  served  upon  the  company  according  to  the  laws  of  this 
or  any  other  State  or  country,  and  waiving  all  claim  or  right  of 
error  by  reason  of  such  acknowledgment  of  service ;  also  waiving 
all  claim  or  right  to  transfer  or  remove  any  cause  then  or  thereafter 
pending  in  any  of  the  courts  of  this  State,  wherein  such  company 
may  be  a  party,  to  any  of  the  courts  of  the  United  States  ;  and  con- 
senting that  suit  may  be  brought  thereon  in  the  county  where  the 
property  insured  was  situate,  or  where  the  same  was  insured,  and 


714  heste's  insurance  statutes. 

that  service  of  process  made  therein  by  the  sheriff  of  such  county, 
by  sending  a  copy  thereof  by  mail,  addressed  to  the  company  at 
the  place  of  its  principal  office,  located  in  the  State  where  such 
company  was  organized,  in  case  of  a  company  organized  under  the 
laws  of  any  other  State  of  the  United  States,  and  in  case  of  a 
foreign  insurance  company,  then  such  copy  of  summons  or  other 
process  shall  be  mailed,  postage  prepaid,  to  such  company,  at  the 
place  of  its  principal  office  in  the  United  States,  at  least  thirty 
days  prior  to  taking  judgment  in  said  suit,  shall  be  as  valid  as  if 
personally  made  upon  said  company  according  to  the  laws  of  this 
State  or  any  other  State  or  government ;  and  in  case  suit  shall  be 
brought  against  any  company  which  has  ceased  to  do  business  in 
the  State  as  aforesaid,  service  upon  such  company  shall  be  had  by 
the  sheriff  mailing  a  copy  of  the  summons  or  other  process,  postage 
prepaid,  addressed  to  such  company  at  the  place  of  its  principal 
office  when  it  ceased  to  do  business  in  this  State  as  aforesaid,  at 
least  thirty  days  prior  to  the  date  of  taking  judgment  in  said  suit; 
Provided,  That  the  sheriff's  return  shall  show  the  time  and  manner 
of  such  service.  They  shall  also  file  with  the  Superintendent, 
a  certified  copy  of  their  charter  or  deed  of  settlement,  together  with 
a  statement,  under  the  oath  of  the  president  or  vice-president,  or 
other  chief  officer,  and  the  secretary  of  the  company  for  which  he 
or  they  may  act,  stating  the  name  of  the  company  and  place  where 
located,  the  amount  of  its  capital,  with  a  detailed  statement  of  the 
facts  and  items  required  from  the  companies  organized  under  the 
laws  of  this  State,  as  per  section  eighteen  and  nineteen  of  this 
chapter ;  also,  a  copy  of  the  last  annual  report,  if  any  was  made, 
under  any  law  of  the  State  by  which  such  company  was  incorpora- 
ted.    {Ibid,  §  20,  as  amended  by  laws  oflS13,p.  151.) 

50.  Any  company  incorporated  by  or  organized  under  the 
laws  of  any  foreign  government,  shall  deposit  with  the  Superinten- 
dent of  Insurance,  for  the  benefit  and  secuiity  of  the  policy-holders 
residing  in  this  State,  a  sum  not  less  than  one  hundred  thousand  dol- 
lars, in  stocks  of  the  United  States  or  the  State  of  Ohio,  said  stocks 
not  to  be  received  by  said  Superintendent  at  a  rate  above  their  par 
value ;  the  stocks  and  securities  so  deposited  may  be  exchanged 
from  time  to  time  for  other  like  securities.  So  long  as  the  company 
so  depositing  shall  continue  solvent  and  comply  with  the  laws  of 
this  State,  it  shall  be  permitted  by  such  Superintendent  to  collect 
the  interest  or  dividends  on  said  deposit.  For  the  purpose  of  this 
act,  the  capital  of  any  foreign  insurance  company  doing  fire  insur- 
ance business  in  this  State  shall  be  deemed  to  be  the  aggregate 
value  of  its  deposits  with  the  insm^ance  or  other  departments  of  this 
State,  and  of  the  other  States  of  the  United  States,  for  the  benefit 
of  ])ol icy-holders  in  this  State  or  in  the  United  States,  and  its 
assets  and  investments  certified  according  to  the  pro\isions  of  this 
act  in  the  United  States;  Provided,  That  such  assets  and  invest- 
ments be  vested  in  and  held  within  the  United  States  by  trustees, 
citizens  of  the  United  States,  appointed  by  the  board  of  directors 
of  the  conqjany,  and  approved  by  the  Insiu-ance  Commissioner  of 
the  State  where  invested,  for  the  benefit  of  the  policy-holders  and 
creditors  in  the  United  States.  The  trustees  so  chosen  are  hereby 
empowered  to  take,  hold  and  convey  real  and  personal  property 
for  the  purpose  of  the  trust,  subject  to  the  same  restrictions  as  in- 
surance companies  of  this  State.  [Ibid,  p.  149,  §  21,  as  amended  by 
laws  of  1873,  p.  152.) 


OHIO.  716 

51.  Every  insurance  company  other  than  life,  organized  by 
the  act  of  Congress  or  under  the  laws  of  any  other  State  or  govern- 
ment, shall  annually,  at  the  same  time  and  in  the  same  form  and 
manner  as  required  of  similar  companies  organized  under  the  laws 
of  this  State,  file  a  statement  of  its  condition  and  affairs  in  the 
office  of  the  Superintendent  of  Insurance.  Any  company  organized 
under  or  incorporated  by  any  foreign  government,  shall  also  furnish 
a  supplementary  statement  for  the  year  ending  on  the  preceding 
thirty-first  day  of  December,  verified  by  the  oath  of  the  manager  of 
such  company  residing  in  the  United  States ;  such  supi)lementary 
statement  shall  comprise  a  report  of  their  business  and  affairs  in  the 
United  States,  as  required  from  companies  organized  in  this  State, 
together  with  any  other  information  that  may  be  required  by  the 
Superintendent  of  Insurance.  If  the  said  annual  statement  shall  be 
satisfactory  evidence  to  the  Superintendent  of  Insurance  of  the 
solvency  and  ability  of  such  company  to  meet  all  its  engagements 
at  maturity,  and  that  the  said  deposit  is  maintained  as  hereinbefore 
provided,  he  shall  issue  renewal  certificates  of  authority  to  the 
agents  of  said  company,  certified  copies  of  which  shall  be  filed  in  the 
County  Recorder's  office  of  the  county  where  the  agency  is  located, 
during  the  month  of  January  in  each  year,  or  within  sixty  days  there- 
after, which  certificate  shall  be  the  authority  of  such  agents  to  issue 
new  policies  in  this  State  for  the  ensuing  year.     {Ibid,  §  22.) 

5!2.  Every  company  heretofore  organized  under  any  law  of  this 
State  for  any  of  the  purposes  mentioned  in  this  chapter,  which  has 
not  called  in  the  whole  amount  of  its  subscribed  capital  stock, 
whether  the  unj^aid  balance  of  such  capital  be  secured  by  indorsed 
notes  or  otherwise,  shall  retain  from  each  and  every  dividend  de- 
clared to  its  stockholders,  their  heirs  or  assigns,  fifty  per  cent,  of 
such  dividend,  and  shall  apply  the  amount  so  withheld  as  a  credit 
upon  the  balance  remaining  unpaid  on  the  shares  of  such  stock- 
holders until  such  balance  shall  be  fully  paid ;  and  the  dividends 
from  time  to  time  so  credited,  with  the  capital  previously  paid  in, 
shall  be  invested  by  the  comi)any  in  the  manner  required  by  the 
sixth  section  of  this  chapter ;  Provided,  however,  That  if  the  divi- 
dends credited  as  aforesaid  shall  not,  within  five  years  from  the  first 
day  of  January,  1873,  be  equal  to  said  balance  in  full,  such  company 
shall  thereafter  retain  the  whole  amount  of  any  and  every  dividend 
declared  to  its  stockholders,  their  heirs  or  assigns,  and  shall  credit 
and  invest  the  same  as  aforesaid,  until  the  whole  subscribed  capital 
shall  be  paid  up  and  invested,  not  less  in  any  case  than  one  hundred 
thousand  dollars  ;  and  any  company  violating  any  of  the  provisions 
of  this  section  shall  thereby  forfeit  its  charter,  (i  bid,  p.  150,  §  23, 
as  amendnd  by  laics  of  1873,  ^>.  153.) 

53.  All  buildings  heretofore  or  hereafter  insured  by  any  mu- 
tual insurance  company,  shall  be  pledged  to  such  company,  together 
with  the  right  and  title  of  the  insured  in  the  lands  upon  which 
they  are  situate,  to  the  amount  of  the  premium  note  to  be  insured; 
and  the  company  shall  have  a  lien  thereon  to  the  amount  of  such  note, 
but  the  lien  of  the  company  shall  not  take  effect  until  the  company 
shall  file  with  the  Recorder  of  the  county  in  which  the  property  in- 
sured is  situate,  a  certificate  stating  the  date,  number  and  amount  of 
such  premium  note,  and  such  a  description  of  the  property  insured 
as  will  enable  any  one  readily  to  identify  the  same.  The  Recorder 
shall  record  and  index  said  certificate  in  his  book  of  liens,  for  which 
he  shall  receive  the  sum  of  fifty  cents;  and  all  liens  heretofore 


716  hine's  insurance  statutes. 

acquired  by  any  such  insurance  company  sliall  continue  in  force 
under  this  act.     {Ibid,  ^  2i.) 

54.  No  company  or  corporation  organized  under  the  laws  of 
any  other  State,  or  of  the  United  States  or  of  any  foreign  govern- 
ment, doing  a  banking  or  any  other  kind  of  business  in  connection 
with  insurance,  shall  do  business  in  this  State.  {Laics  of  1873, 
p.  153,  §  2,  as  amended  by  laics  ofl874:,p.  12.) 

55.  Whenever  any  joint  stock  fire  and  marine  insurance  com- 
pany of  this  State  heretofore  organized,  or  that  may  hereafter  be 
organized,  shall  determine  by  a  vote  of  two-thirds  of  its  stock,  to 
consolidate  and  make  joint  stock  with  any  other  like  company  or 
companies,  engaged  in  or  incorporated  for  like  business,  and  each 
of  such  companies  agreeing  by  the  vote  aforesaid  to  such  consolida- 
tion, shall,  by  a  vote  of  a  majority  of  the  stock  so  consolidated, 
choose  and  determine  under  which  corporate  organization,  or  ar- 
ticles of  association  of  either  of  the  consolidating  companies,  and 
under  what  name  their  future  business  shall  be  conducted,  and  upon 
filing  with  the  Superintendent  of  Insurance  of  this  State  a  certificate 
of  such  consolidation,  said  company  shall  from  thenceforth  become, 
and  be  consolidated  under  the  corporate  organization  or  articles  of 
association  and  corporate  name  thus  chosen ;  and  thereupon  all  fran- 
chises, rights,  equities,  property  and  estate  of  whatever  name  or  na- 
ture belonging  to  or  vested  in  either  of  the  consolidating  companies, 
shall  immediately  upon  and  by  the  act  of  such  consolidation  become 
the  property  and  estate  of  and  be  vested  in  such  consolidated  com- 
pany, and  the  corporate  existence  of  the  consolidating  companies,  fr'om 
thenceforth  shall  cease  and  be  merged  in  said  consolidation ;  and 
such  consolidated  company  shall  have  the  exclusive  right  and  power 
to  demand,  sue  for,  collect,  convey  and  dispose  of  the  rights,  equi- 
ties, property  and  estate  aforesaid,  or  any  part  thereof,  under  its 
own  name  chosen  as  aforesaid,  and  all  debts,  liabilities  and  obliga- 
tions of  the  consolidating  comijanies  shall  be  assumed  and  paid  by 
the  company  thus  consolidated.     {Laws  of  1873,  p.  19,  §  1.) 

56.  Upon  the  consolidation  of  any  two  or  more  companies  as 
aforesaid,  the  just  and  true  value  of  each  outstanding  share  of  the 
capital  stock  of  each  of  the  consolidating  companies  shall,  by  their 
respective  directors,  be  ascertained  through  a  suitable  valuation  of 
all  the  assets  and  liabilities  thereof,  at  the  time  of  the  consolida- 
tion, and  new  shares  of  the  consolidated  company  shall  be  appor- 
tioned to  each  stockholder,  equal  to  the  sum  ascertained  as  afore- 
said to  be  the  just  and  true  value  of  his  shares  in  each  or  either  of 
the  consolidating  companies,  and  the  shares  thus  apportioned  shall 
be  substituted  for  his  original  shares,  and  all  certificates  of  shares 
in  said  consolidating  companies  shall  be  surrendered  upon  the  is- 
suing of  new  certificates  of  the  shares  apportioned  as  aforesaid ; 
Provided,  That  any  stockholders  in  either  of  the  companies  so  con- 
solidating, who  shall  refuse  to  agree  to  such  consolidation,  shall  be 
entitled  to  receive  for  the  stock  by  him  owned,  the  just  market  value 
of  the  same  at  the  time  of  such  consolidation,  to  be  paid  to  him 
previous  to  such  consolidation.     {Ibid,  p.  20,  §  2.) 

57.  Immediately  upon  the  consolidation  of  such  companies, 
the  directors  of  the  several  companies  thus  consolidating  shall  pro- 
ceed to  elect  from  their  members  the  directors  for  the  consolidated 
company,  who  shall  serve  until  their  successors  are  elected  and 
qualified.     {Ibid,  §  3.) 

58.  The  capital  stock  of  such  consolidated  company  maybe 


OHIO.  717 

equal  to,  but  shall  not,  by  virtue  of  such  consolidation,  exceed  the 
aggregate  authorized  capital  of  the  consolidating  companies. 
{Ibid,  §  4.) 

59.  Within  thirty  days  after  such  consolidation  a  certificate  of 
the  fact  thereof,  and  setting  forth  the  name  and  organization  adopt- 
ed thereby,  shall  be  filed  in  the  office  of  the  Secretary  of  JState. 
{Ibid,  p.  21,  §  5.) 


LIFE  INSCTEANCE  COMPANIES. 

60.  Any  number  of  persons,  not  less  than  thirteen,  may  asso- 
ciate and  form  a  corporation  or  company,  to  make  insurance  upon 
the  lives  of  individuals,  and  every  insurance  ajipertaining  thereto 
or  connected  therewith,  on  the  mutual  or  stock  plan,  and  to  grant, 
purchase  or  dispose  of  annuities.     {Laws  of  1872,  p.  150,  §  1.) 

61.  Every  life  insurance  company  organized  under  the  laws 
of  this  State  shall  have  authority  to  reinsure  any  risk  herein  au- 
thorized to  be  undertaken.     {Ibid,  §  2.) 

62.  No  life  insui*ance  company  organized  under  the  laws  of 
this  State  shall  undertake  any  business  or  risk,  except  as  herein 
provided,  and  no  company,  partnership,  or  association,  organized  or 
incorporated  by  act  of  Congress,  or  under  the  laws  ot  this  or  any 
other  State  of  the  United  States,  or  by  any  foreign  government, 
transacting  the  business  of  life  insurance  in  this  State,  shall  be  per- 
mitted or  allowed  to  take  any  other  kind  of  risks  except  those 
connected  with  or  appertaining  to  making  insurance  on  life,  and 
granting,  purchasing  and  disposing  of  annuities;  nor  shall  the  busi- 
ness of  life  insurance  in  this  State  be  in  any  wise  conducted  or 
transacted  by  any  company,  partnershii),  or  association,  which  in 
this,  or  any  other  State  or  country,  makes  insurance  on  marine,  fire, 
inland  or  any  other  risk  ;  Provided,  That  insurance  companies  now 
doing  a  life  and  accident,  or  accident  insurance  business  within  this 
State,  shall  not  be  prohibited  by  the  i)rovisions  of  this  act  from  the 
continuance  of  the  same.     {Ibid,  §  3.) 

G3.  The  persons  referred  to  in  the  first  section  of  this  chapter 
shall  be  designated  as  corporators,  and  they  shall  file  in  the  ofi&ce 
of  the  Secretary  of  State  a  declaration  signed  by  each  of  the  cor- 
porators, setting  forth  their  intentions  to  form  a  company  for  the 
purposes  named  in  this  chapter,  which  declaration  shall  comprise  a 
copy  of  the  charter  they  propose  to  adopt,  and  the  said  charter 
shall  set  forth  the  name  of  the  company,  the  place  where  it  is  to  be 
located,  the  kind  of  business  to  be  undertaken,  the  manner  in  which 
the  corporate  powers  of  the  company  are  to  be  exercised,  the  man- 
ner of  electing  the  trustees  or  directors,  and  the  number  thereof, 
and  officers,  a  majority  of  whom  shall  be  citizens  of  this  State,  and 
the  time  of  such  election,  the  manner  of  filling  vacancies,  the  amount 
of  capital  to  be  employed,  and  such  other  particulars  as  may  be 
necessary  to  exj^lain  and  make  manifest  the  objects  and  purposes  of 
the  company,  and  the  manner  in  which  it  is  to  be  conducted.  [Ibid, 
p.  151,  §  4.) 

64.  Whenever  the  corporators  shall  file  such  declaration  with 
the  Secretary  of  State,  it  shall  become  his  duty  to  submit  the  same 
to  the  Attorney -General  for  examination,  and  if  found  by  him  to  bo 
in  accordance  with  the  provisions  of  this  act,  and  not  inconsistent 
with  the  constitution  and  laws  of  the  United  States,  and  of  this 


718  hine's  insuhance  statutes. 

State,  lie  shall  certify  to  the  same,  and  deliver  it  back  to  the  said 
secretary,  who  shall  cause  the  said  declaration,  with  the  certificate 
of  the  Attorney-General,  to  be  recorded  in  a  book  to  be  kejit  for 
that  purpose ;  and  upon  ai)plication  of  the  corporators  to  the  said 
secretary,  it  shall  become  his  duty  to  furnish  a  certified  copy  of  such 
declaration  and  certificate  to  the  said  corporators.     [Ihid,  §  5.) 

65.  Whenever  the  corporators  shall  have  received  from  the 
secretary  the. certified  coj)y  provided  for  in  section  five  (5)  of  this 
chapter,  and  desire  to  proceed  to  organize  such  company,  they  shall 
publish  their  intention  in  a  paper  published  and  having-  general  cir- 
culation in  the  county  in  which  said  company  is  to  be  organized; 
and  when  such  intention  shall  have  been  published  in  said  news- 
paper for  six  weeks,  they  may  opeu  books  to  receive  subscriptions 
to  the  capital  stock,  and  keep  such  books  open  until  the  amount  re- 
quired by  this  act  is  subscribed,  and  may  then  proceed  to  distribute 
the  stock  among  tlie  subscribers,  if  more  than  the  necessary  amount 
is  subscribed,  and  proceed  to  collect  in  the  said  capital,  and  com- 
plete the  organization  of  the  company.  When  any  life  insurance 
company  organized  under  this  chapter,  or  any  law  of  this  State, 
shaU,  in  the  opinion  of  the  Board  of  Directors  thereof,  require  a 
larger  amount  of  cajutal  than  that  fixed  by  its  charter  or  certificate 
of  incorporation,  they  shall,  if  authorized  by  the  holders  of  two- 
thii^ds  of  the  stock,  file  with  the  Secretary  of  State  a  certificate 
setting  forth  the  amount  of  such  desired  increase,  and  thereafter 
such  company  shall  be  entitled  to  have  the  increased  amount  of 
capital  fixed  by  said  certificate,  and  the  same  shall  be  invested  as 
required  by  section  seven  (7)  of  this  chapter.     {Ibid,  §  6.) 

66.  No  life  insurance  company  shall  be  organized  under  this 
chapter  with  a  less  capital  than  one  hundred  thousand  dollars. 
The  whole  capital  of  such  company  shall,  before  proceeding  to  busi- 
ness, be  paid  in  and  invested  in  treasury  notes,  or  in  stocks  of  the 
United  States,  or  in  stocks  of  the  State  of  Ohio,  or  in  mortgages  on 
unincumbered  real  estate  within  the  State  of  Ohio,  worth  double 
the  amount  loaned  thereon,  exclusive  of  buildings.  {Ibid,  p.  152, 
§  7,  as  amended  ly  laics  of  1873,  p.  118.) 

67.  Any  life  insurance  company  organized  under  this  chapter, 
or  any  other  law  of  this  State,  may  invest  its  capital  in  stocks, 
bonds  and  mortgages,  or  securities  mentioned  in  the  preceding  sec- 
tion, and  change  and  invest  the  same,  or  any  i)art  thereof,  in  like 
manner,  at  pleasure ;  but  no  comi3any  shall  commence  business  un- 
til it  has  deposited  with  the  Superintendent  of  Insurance  at  least 
one  hundred  thousand  dollars  in  the  stocks,  bonds  and  mortgages 
aforesaid,  or  one  or  more  of  them,  duly  made  or  assigned  to  said 
Superintendent  in  trust  for  the  purposes  mentioned  in  this  act. 
And  when  any  mortgage  of  real  estate  has  been  or  shall  hereafter 
be  assigned  to  said  Superintendent,  said  assignment  shall  be  imme- 
diately entered  in  the  records  of  the  county  in  which  such  real  es- 
tate is  situate ;  the  fee  for  the  recording  of  which  shall  be  paid  by 
the  company.     {Ibid,  §  8.) 

68.  The  Superintendent  of  Insurance  shall  hold  such  securities 
as  security  for  policy-holders  in  said  companies  ;  but  as  long  as  any 
company  so  depositing  shall  continue  solvent,  he  shall  permit  such 
company  to  collect  the  interest  or  dividends  on  its  securities  so  de- 
posited, and  from  time  to  time  to  withdraw  such  securities,  or  any 
part  thereof,  on  depositing  with  said  Superintendent  other  securities 


OHIO.  719 

of  the  kinds  heretofore  named,  and  of  equal  value  with  those  with- 
drawn.    {Ibid,  §  9.) 

6i>.  Whenever  the  corporators  shall  have  fully  organized  such 
company,  and  shall  have  deposited  with  the  tSuperiuteudent  the 
requisite  amount  of  capital,  said  (Superintendent  shall  furnish  the 
company  with  a  certificate  of  such  deposit,  which,  with  a  certified 
copy  of  the  papers  required  by  this  chapter,  when  filed  in  the 
County  Recorder's  office  of  the  county  wherein  such  company  is  lo- 
cated, shall  be  the  authority  to  commence  business  and  issue  poli- 
cies, and  the  same  may  be  used  in  evidence  for  and  against  the  com- 
pany in  all  suits.     [Ibid,  §  10.) 

to.  It  shall  be  lawful  for  any  life  insurance  company  organ- 
ized under  the  laws  of  this  State  to  invest  its  accumulations  of 
bonds  and  mortgages  on  unincumbered  real  estate,  worth  fifty  per 
cent,  more  than  the  amount  loaned  thereon,  exclusive  of  buildings, 
unless  such  buildings  shall  be  insured  in  some  insurance  company 
authorized  to  do  business  in  this  IState,  and  the  policy  or  policies  of 
insurance  be  assigned  as  collateral  security  for  the  loan  so  made, 
when,  in  addition  to  the  amount  authorized  to  be  loaned  on  real  es- 
tate exclusive  of  buildings,  there  may  be  added  thereto  not  exceed- 
ing fifty  per  cent,  on  the  amount  of  the  policy  or  policies  so  as- 
signed; or  in  stock  or  treasury  notes  of  the  United  States;  or  in 
stock  or  bonds  of  the  State  of  Ohio;  or  in  bonds  of  any  county  or 
incorporated  city  in  this  State,  authorized  by  law ;  or  in  first  mort- 
gage railroad  bonds ;  or  to  invest  not  to  exceed  ten  per  cent,  of  its 
accumulations  in  the  stock  of  any  dividend-paying  railroad  com- 
pany ;  and  they  may  lend  the  same,  or  any  part  thereof,  upon  the 
pledge  of  such  stocks,  bonds  or  treasury  notes ;  Provided,  That  the 
current  market  value  of  said  stocks,  bonds  or  treasury  notes  of  the 
United  States,  or  of  the  State  of  Ohio,  shall  be  at  least  ten  (10)  per 
cent,  more  than  the  amount  loaned  thereon,  or  that  the  cui-rent 
market  value  of  the  said  bonds  or  stocks  of  any  county,  city,  or 
railroad,  shall  be  at  least  twenty-five  per  cent,  more  than  the  amount 
loaned  thereon ;  or  they  may  loan  upon  the  stocks  of  the  national 
banks  incorporated  within  the  State  of  Ohio,  but  the  current  market 
value  of  such  stocks  shall  be  at  least  fifty  per  cent,  more  than  the 
amount  loaned  thereon.  Loans  may  also  be  made  upon  any  policy 
in  force  in  said  company,  but  not  to  exceed  the  value  of  the  same, 
according  to  the  basis  hereinafter  provided.     {Ibid,  p.  153,  §  11.) 

71.  No  life  insurance  company  organized  under  the  laws  of 
this  State  shall  be  permitted  to  purchase,  hold  or  convey  real 
estate,  except  for  the  purposes  and  in  the  manner  herein  set  forth, 
to  wit: 

First. — Such  as  shall  be  requisite  for  its  immediate  accommoda- 
tion in  the  transaction  of  its  business  ;  or, 

Second. — Such  as  shall  have  been  mortgaged  to  it  in  good  faith, 
by  way  of  security,  for  loans  previously  contracted,  or  for  moneys 
due;  or, 

Third. — Such  as  shall  have  been  conveyed  to  it  in  satisfaction  of 
debts  previously  contracted  in  the  course  of  its  dealings;  or, 

Fourth. — Such  as  shall  have  been  purchased  at  sales  upon  judg- 
ments, decrees  or  mortgages  obtained  or  made  for  such  debts, 
and  it  shall  not  be  lawful  for  any  company  incorporated  as  afore- 
said to  purchase,  hold  or  convey  real  estate  in  any  other  case  or 
for  any  other  purpose.     {Ibid,  §  12.) 

73.    All  such  real  estate  as  may  be  acquired  as  aforesaid,  and 


720  hine's  insxtrance  statutes. 

which  shall  not  be  necessary  for  the  accommodation  of  such  com- 
pany in  the  convenient  transactions  of  its  business,  shall  be  sold  and 
disposed  of  within  two  years  after  such  company  shall  have  acquired 
title  to  the  same ;  aud  it  shall  not  be  lawful  for  such  company  to 
hold  such  real  estate  for  a  longer  period  than  that  above  mentioned, 
unless  the  said  company  shall  procure  a  certificate  from  the  Super- 
intendent of  Insurance  that  the  interests  of  the  company  will  sufifer 
materially  by  a  forced  sale  of  such  real  estate,  in  which  event  the 
time  for  the  sale  may  be  extended  to  such  time  as  the  said  Superin- 
tendent shill  direct  in  said  certificate.     {Ibid,  §  13.) 

73.  The  corporators,  or  the  trustees  or  directors,  as  the  case 
may  be,  of  any  life  insurance  company  organized  under  the  laws  of 
this  State,  shall  have  power  to  adopt  a  seal,  and  to  make  such  by- 
laws, not  inconsistent  with  this  act  or  the  constitution  and  laws  of 
this  State,  as  may  be  deemed  necessary  for  the  management  of  its 
affairs.     {Ibid,  p.  154,  §  14.) 

74.  Suits  at  law  may  be  maintained  by  any  life  insurance  com- 
pany formed  under  the  laws  of  this  State  against  any  of  its  members, 
officers,  policy-holders  or  stockholders,  for  any  cause  relating  to  the 
business  of  such  company  ;  also,  suit  at  law  may  be  prosecuted  and 
maintained  by  any  member,  stockholder  or  policy-holder,  or  the 
heirs  or  legal  representative  of  either,  against  such  company  for 
losses  which  may  have  accrued,  if  payment  is  withheld  more  than 
two  months,  on  all  risks,  after  such  losses  shall  have  been  due. 
{Ibid,  §  15.) 

75.  It  shall  not  be  lawful  for  the  directors,  trustees,  managers, 
or  officers  of  any  life  insurance  company  organized  under  the  laws 
of  this  State,  directly  or  indirectly,  to  make  or  pay  any  dividend, 
or  pay  any  interest,  bonus  or  other  allowances  in  lieu  of  dividend, 
to  its  stockholders,  except  from  the  suiplus  funds,  after  reserving 
therefrom  an  amount  sufficient  to  reinsure  all  its  outstanding  risks 
and  policies,  estimating  the  value  thereof  by  the  table  known  as  the 
American  Experience  Table,  with  interest  at  four  and  one-half  per 
cent,  per  annum.     {Ibid,  §  16.) 

76.  It  shall  be  the  duty  of  the  president  or  vice-president  and 
secretary  or  actuary,  or  a  majority  of  the  trustees  or  directors  of 
each  lite  insurance  company  organized  under  the  laws  of  this  State, 
annually,  on  the  first  day  of  January,  or  within  sixty  days  there- 
after, to  prepare,  under  oath,  and  deposit  in  the  office  of  the  Super- 
intendent of  Insurance,  a  statement  showing  the  condition  of  the 
company  on  the  thirty-first  day  of  December  then  next  preceding, 
exhibiting  the  following  facts  and  items,  in  the  following  form,  to  wit : 

First. — The  number  of  policies  issued  during  the  year. 

Second. — The  amount  of  insurance  effected  thereby. 

Third. — Amount  of  i)remium  received  during  the  year. 

Fourth. — Amount  of  interest  and  all  other  receipts,  specifying 
the  items. 

Fifth.  —Amount  of  losses  paid  during  the  year. 

Sixth. — Amount  of  losses  unpaid. 

Seventh. — Amount  of  expenses. 

Eighth. — Whole  number  of  policies  in  force. 

JVi/i^^.— Amount  insured  thereby. 

Ten^/j.— Amount  required  to  reinsure  all  policies  in  force,  esti- 
mating the  same  by  the  table  known  as  the  American  Experience 
Tables,  with  interest  at  four  and  one-half  per  cent,  per  annum  ;  also, 
amounts  of  all  other  liabilities 


OHIO.  721 

Eleventh.— Amount  of  capital  stock,  specifying  amount  paid  and 
unpaid. 

Twelfth. — Amount  of  assets,  and  manner  in  which  they  are  in- 
vested, specifying  what  amount  in  real  estate,  on  bonds  and  mort- 
gages, stocks,  loans  on  stocks,  premium  notes,  credits  or  other 
securities. 

Thirteenth. — Amount  of  dividends  unpaid. 

Fourteenth. — An  exhibit  of  the  policy  obligations  of  the  company, 
as  follows :  With  the  first  annual  statement  required  under  the  pro- 
visions of  this  chapter,  there  shall  be  prepared  and  deposited  a 
schedule  showing  the  number,  date,  age,  when  insured,  amount  in- 
sured, term  of  policy,  and  term  of  premium  of  all  policies  then  in 
force,  and  with  every  succeeding  annual  statement  a  schedule  of 
the  foregoing  items  as  to  all  policies  issued  during  the  year,  and  a 
similar  schedule  as  to  policies  which  shall  have  ceased  to  be  in  force 
during  the  year.     {Ibid,  §  17,  as  amended  by  laws  of  1873,  p.  119.) 

77.  It  shall  not  be  lawful  for  any  life  insurance  company  or- 
ganized by  act  of  Congress,  or  by  or  under  the  laws  of  any  other 
{State  of  the  United  States,  to  transact  any  business  of  insurance  in 
this  State,  without  first  procuring  from  the  Superintendent  of  In- 
surance a  certificate  of  authority  so  to  do ;  nor  shall  it  be  lawful  for 
any  person  or  corporation,  directly  or  indirectly,  to  act  as  agent  in 
this  State  for  any  such  company,  either  in  procuring  applications 
for  insurance,  taking  risks,  or  in  any  manner  transacting  the  busi- 
ness of  insurance,  without  first  procuring  from  the  Superintendent 
of  Insurance  a  license  so  to  do,  in  which  said  Superintendent  shall 
state  that  said  comj)any  has  complied  with  all  the  requisitions  of 
this  act  applicable  to  such  company,  and  depositing  a  certified  copy 
of  such  license  in  the  ofdce  of  the  Kecorder  of  the  county  in  which 
the  office  or  place  of  business  of  such  agent  shall  be  es-tablished ; 
nor  shall  it  be  lawful  for  any  such  insurance  company  to  take  risks, 
or  transact  any  business  of  insurance  in  this  State,  unless  possessed 
of  the  amount  of  actual  capital  required  of  similar  companies  organ- 
ized in  this  State,  under  the  provisions  of  this  act,  nor  unless  the 
entire  capital  stock  of  said  company  is  fully  paid  up,  and  invested, 
as  required  by  the  laws  of  the  State  where  organized ;  and  any  such 
company,  desiring  to  transact  any  such  business  in  this  State,  by  an 
agent  or  agents,  shall  file  with  the  Superintendent  of  Insurance  a 
written  instrument,  duly  signed  and  sealed,  authorizing  any  agent 
or  agents  of  such  company  in  this  State  to  acknowledge  service  of 
process  for  and  in  behalf  of  such  company  in  this  State,  consenting 
that  the  service  of  process,  mesne  or  final,  upon  any  such  agent  or 
agents,  shall  be  taken  and  held  to  be  valid,  as  if  served  upon  the 
company,  according  to  the  laws  of  this  or  any  other  State  or  gov- 
ernment, and  waiving  all  claims  or  right  of  error  by  reason  of  such 
acknowledgment  of  service;  also  waiving  all  claim  or  right  to 
transfer  or  remove  any  cause  then  and  thereafter  pending  in  any 
courts  of  this  State,  wherein  such  company  may  be  a  party,  to  any 
of  the  courts  of  the  United  States ;  and  in  case  suit  shall  be  brought 
against  any  company  which  has  ceased  to  do  business  in  this  State 
as  aforesaid,  and  there  shall  be  no  agent  of  said  company  in  the 
county  in  which  suit  is  brought,  upon  whom  service  of  process  can 
be  had,  as  provided  in  section  19  of  this  act,  service  upon  such  com- 
pany shall  be  had  by  the  sherift'  mailing  a  copy  of  the  summons  or 
other  process,  postage  prepaid,  addressed  to  such  company  at  the 
place  of  its  principal  office,  located  in  the  State  where  such  company 
46 


722  hine's  insurance  statutes. 

was  organized  ;  in  case  of  a  company  organized  under  the  laws  of 
any  State  of  the  United  States,  and  in  case  of  a  foreign  insurance 
company,  tlien  such  copy  of  summons  or  other  process  shall  be 
mailed,  postage  prepaid,  to  such  company,  or  the  place  of  its  prin- 
cipal office  in  the  United  States,  at  least  thirty  days  prior  to  the 
date  of  taking  judgment  in  said  suit ;  Provided,  That  the  sherift's 
return  shall  show  the  time  and  manner  of  such  service.     Said  com- 
pany shall  also  file  a  certified  copy  of  its  charter  or  deed  of  settle- 
ment, together  with  a  statement,  under  the  oath  of  the  president, 
vice-president,  or  other  chief  officer  or  manager,  and  secretary  of 
such  company,  stating  the  name  of  the  company,  the  place  where  it 
is  located,  and  amount  of  its  capital,  with  a  detailed  statement  of 
all  the  facts  required  in  the  annual  statements  required  of  companies 
organized  under  this  chapter,  except  as  to  statement  required  by 
item  fourteen,  section  seventeen,  of  this  chapter,  which  statement 
shall  be  required  of  said  companies  only  when  required  by  the 
Superintendent  of  Insurance,  for  purposes  of  actual  valuation,  as 
provided  by  the  insurance  laws  of  this  State ;  also,  a  copy  of  their 
last  annual  report,  if  any  were  made ;  nor  shall  it  be  lawful  for  any 
such  company'  to  transact  any  business  of  insurance  in  this  State, 
unless  at  least  one  hundred  thousand  dollars  of  its  capital  is  in- 
vested in  the  interest-paying  bonds  or  stocks  of  the  United  States, 
or  of  this  State,  or  of  some  other  State  of  the  United  States,  of  the 
market  value  of  one  hundred  thousand  dollars,  in  the  city  of  New 
York,  or  in  bonds  and  mortgages  of  unincumbered  real  estate  in 
this  State,  or  in  the  State  under  the  laws  of  which  such  company  is 
or  may  be  organized,  of  at  least  double  the  value  of  the  amount 
loaned  thereon ;  and  such  bonds  and  mortgages  deposited  with  the 
Superintendent  of  Insurance  of  this  State,  or  the  chief  financial  or 
other  officer  of  the  State  in  which  such  company  is  or  may  be  organ- 
ized, designated  by  the  laws  of  such  State  to  receive  the  same;  and 
if  said  bonds  and  mortgages  be  deposited  with  the  Superintendent 
of  Insurance  or  other  officer  of  another  State  as  aforesaid,  the  Super- 
intendent of  Insurance  of  this  State  shall  be  furnished  with  the 
certificate  of  such  other  State  officer,  under  his  hand  and  official 
seal,  thfit  he,  as  such  officer,  holds  in  trust  and  on  deposit,  for  the 
benefit  of  all  the  policy-holders  of  such  company,  the  securities  above 
mentioned,  giving  the  items  of  such  securities,  and  stating  that  he 
is  satisfied  such  securities  are  worth  at  least  one  hundred  thousand 
dollars ;  Provided,  That  nothing  herein  contained  shall  be  construed 
to  prevent  the  company  from  collecting  the  interest  on  such  secur- 
ities, so  long  as  it  continues  solvent,  and  complies  with  all  the  pro- 
visions of  this  act  applicable  to  it,  nor  from  exchanging  for  other 
securities  of  equal  value,  and  of  the  kind  hereinbefore  named,  with 
the  officers  having  them  in  trust  as  aforesaid;  and  Provided,  further, 
TJiat  in  the  cases  of  mutual  companies,  actual  cash  assets  of  the 
same  amount  and  description,  invested  and  deposited  as  required 
by  the  laws  of  the  State  wherein  organized,  shall  be  accepted  in 
lieu  of  capital  stock ;  Provided,  That  no  answer  or  answers  to  any 
interrogatory  or  interrogatories,  made  by  any  applicant,  in  his  or 
her  application  for  a  life  policy,  shall  bar  the  right  to  recover  upon 
any  policy  issued  upon  such  application,  or  be  used  in  evidence 
upon  any  trial  to  recover  upon  such  policy,  unless  such  answer  or 
answers  shall  first  be  clearly  proven  to  have  been  willfully  false 
and  fraudulently  made,  and  that  such  answer  or  answers  are  ma- 
terial, and  induced  such  policy  to  be  issued,  and  but  for  such  answer 


OHIO.  723 

or  answers  such  policy  would  not  have  been  issued ;  and  moreover, 
that  the  a;^ent  or  corai^any  had  no  knowledge  of  the  falsity  or  fraud 
of  such  answer  or  answers,  {Ibid,  p.  155,  §  18,  as  amended  by  laws 
of  18TS,  p.  91 .) 

78.  All  licenses  granted  by  the  Superintendent  of  Insurance 
in  pursuance  of  this  chapter  shall  continue  in  force,  unless  suspended 
or  revoked,  until  the  first  day  of  April  of  the  year  next  after  the 
date  of  their  issue ;  and  in  case  any  life  insurance  company  organ- 
ized under  the  laws  of  any  other  State  or  government  shall  cease  to 
do  business  in  this  State  according  to  law,  the  said  company  shall 
appoint,  in  the  manner  herein  provided  for,  in  every  county  wherein 
an  agency  existed  at  the  date  of  such  discontinuance  to  do  business, 
one  or  more  agents  for  the  purpose  of  receiving  service  of  process 
in  all  actions  upon  policies  of  insurance  issued  to  the  citizens  of  this 
State  while  such  company  was  lawfully  transacting  the  business  of 
insurance  in  this  State,  and  service  of  process  in  the  actions  afore- 
said upon  such  agents  shall  be  hekl  to  be  as  valid  as  actual  service 
upon  the  company ;  and  in  every  case  where  no  such  agent  shall  be 
appointed,  the  agent  last  designated  and  acting  for  said  company 
shall  be  deemed  and  taken  to  be  duly  authorized  by  said  company 
as  to  receive  service  of  process  as  aforesaid;  Provided,  however, 
That  the  officer  serving  such' process  shall  also  send  a  copy  of  the 
process  served  on  such  agent,  by  mail,  to  the  address  of  such  com- 
pany, at  the  place  of  its  principal  or  home  office  at  the  time  it  ceased 
to  do  business  in  this  State,  and  the  return  of  such  officer  upon  such 
process  shall  distinctly  show  that  such  copy  was  mailed  as  aforesaid, 
at  least  thirty  days  before  any  judgment  shall  be  rendered  in  such 
action.     {Ibid,  p.  156,  §  19.) 

79.  All  life  insurance  companies  organized  by  act  of  Congress, 
or  under  the  laws  of  any  other  State  of  the  United  States,  doing 
business  in  this  State,  shall  annually  file  a  statement  of  its  condition 
and  affairs  in  the  office  of  the  Superintendent  of  Insurance,  at  the  same 
time  and  in  the  same  form  and  manner  required  of  similar  companies 
organized  under  the  laws  of  this  State,  except  as  to  requiremantsof 
statement  by  item  14,  in  section  seventeen  (17)  of  this  chapter, 
which  schedule  shall  be  required  of  said  companies  only  when  re- 
quired by  the  Superintendent  of  Insurance  for  j)urpose  of  actual 
valuation,  as  provided  by  the  laws  of  this  State.  {Ibid,  p.  157, 
§20.) 

80.  If  the  said  annual  statement  shall  be  satisfactory  evidence 
to  the  Superintendent  of  Insurance  of  the  solvency  and  ability  of  the 
said  company  to  meet  all  its  engagements  at  maturity,  and  that  the 
said  deposit  is  maintained  as  above  required  and  provided,  he  shall 
issue  renewal  certificates  of  authority  to  the  agents  of  said  company, 
certified  copies  of  which  shall  be  filed  in  the  County  Kecorder's. 
office  of  the  county  where  the  agency  is  located,  and  which  renewal 
certificates  shall  be  the  authority  of  such  agents  to  issue  new  poli- 
cies in  this  State  for  the  ensuing  year.     {Ibid,  §  21.) 

81.  It  shall  not  be  lawful  for  any  person  to  act  in  this  State  as 
agent  or  otherwise,  in  receiving  or  procuring  apidications  for  life  in- 
surance, or  in  any  manner  to  aid  in  transacting  the  business  of  any 
life  insurance  company,  partnership  or  association,  incorporated  by 
or  organized  under  the  laws  of  any  foreign  government,  until  suchi 
company,  partnership  or  association  shall  have  deposited  with  the- 
Superintendent  of  Insurance,  for  the  benefit  of  the  jjolicy-holders  of 
said  company,  partnership  or  association,  citizens  or  residents  of  the 


724  bine's  insurance  statutes. 

United  States,  securities  to  the  amount  of  one  hundred  thousand 
dollars  of  the  kind  required,  or  which  may  hereafter  be  required,  for 
similar  companies  of  this  State,  and  shall  have  appointed  an  agent 
or  attorney  in  each  county  in  this  State  in  which  the  company  has 
established  an  agency,  on  whom  process  of  law  can  be  served,  and 
the  said  company,  partnership  or  association  shall  have  filed  with  the 
Superintendent  of  Insurance  a  duly  certified  copy  of  the  charter  or 
deed  of  settlement  of  the  said  company,  partnership  or  association, 
and  also  a  duplicate  original  copy  of  the  letter  or  power  or  attorney 
of  such  company  or  assocation  appointing  the  attorney  thereof, 
which  appointment  shall  continue  until  another  attorney  be  substi- 
tuted.    {Ibid,  §  22.) 

^2.  In  case  any  such  insurance  corporation  shall  cease  to  trans- 
act business  in  this  State  according  to  the  laws  thereof,  the  agent 
last  designated,  or  acting  as  such  for  such  cori>oration,  shall  be 
deemed  to  continue  agents  for  such  corporation,  for  the  purpose  of 
serving  process,  for  commencing  actions  upon  any  policy  or  liability 
issued  or  contracted  while  such  corporation  transacted  business  in 
this  State ;  and  service  of  such  process,  for  the  causes  aforesaid, 
upon  any  such  agent,  shall  be  deemed  a  valid  service  upon  such  cor- 
poration.    {Ibid,  2^.  158  §  23.) 

83.  Such  company,  j)artnership  or  association  shall  also  file  a 
statement  of  its  condition  and  affairs  in  the  office  of  the  Superinten- 
dent of  Insurance,  in  the  same  form  and  manner  required  for  the  an- 
nual statements  of  similar  companies  organized  under  the  laws  of  this 
State ;  and  such  company,  partnership  or  association  shall,  annually, 
on  the  first  day  of  January,  or  within  sixty  days  thereafter,  file  with 
the  Superintendent  of  Insurance  a  statement  of  all  its  affairs,  in  the 
same  manner  and  form  required  of  similar  companies  in  this  State, 
except  as  to  requirements  of  schedule  of  item  14  of  section  seventeen 
(17)  of  this  act,  which  schedule  shall  be  required  of  said  companies 
only  when  required  by  the  Superintendent  for  purposes  of  actual  val- 
uation, as  provided  by  the  laws  of  this  State.     {Ibid,  §  24.) 

84.  Said  statement  shall  be  accompanied  also  by  a  supple- 
mentary annual  statement,  duly  verified  by  the  attorney  or  general 
agent  of  the  company  or  association  in  this  State,  giving  a  detailed 
description  of  the  policies  issued  and  those  which  have  ceased  to  be 
in  iorce  during  the  year,  the  amount  of  premiums  received,  and 
claims  and  taxes  paid  in  this  State  and  the  United  States  for  the 
year  ending  on  the  thirty-first  day  of  December.     {Ibid,  §  25.) 

85.  Said  supplementaiy  statement  shall  also  contain  a  descrip- 
tion of  the  investments  of  such  company  or  association  in  this  coun- 
try, and  such  other  information  as  may  be  required  by  said  Superin- 
tendent of  Insurance;  and  if  the  said  annual  statement  shall  be 
satisfactory  evidence  to  the  said  Superintendent  of  the  solvency 
and  ability  of  the  said  company  to  meet  all  its  engagements  at 
maturity,  he  shall  issue  renewal  certificates  of  authority  to  the 
agents  of  said  company,  partnership  or  association,  certified  copies 
of  which  shall  be  tiled  by  such  agents  in  the  County  Recorder's  office 
of  the  county  where  the  agency  is  located,  and  which  renewal  cer- 
tificates shall  be  the  authority  of  such  agents  to  issue  new  ijolicies 
in  this  State  for  the  ensuing  year.     {Ibid,  §  26.) 

86.  It  shall  not  be  lawful  for  any  person,  company  or  corpora 
tion,  directly  or  indirectly,  to  act  as  agent  for  any  life  insurance 
company,  partnership  or  association,  organized  under  the  laws  of 
any  foreign  government,  either  in  procuring  application  for  insur- 


OHIO.  725 

ance,  taking  risks,  or  in  any  manner  aiding  in  the  transaction 
of  the  business  of  life  insurance  in  this  State,  without  procuring 
from  the  said  Superintendent  a  certificate  of  authority  (which  shall 
be  renewable  annually),  stating  that  the  foregoing  requirements 
have  been  complied  with,  and  setting  forth  the  name  of  the  attorney 
for  such  company,  a  certified  copy  of  which  certificate  shall  be  filed 
in  the  County  Recorder's  office  of  the  county  where  the  agency  is  to 
be  established,  and  which  shall  be  the  authority  of  such  company 
and  agent  to  do  business  in  this  State.     {Ibid,  §  27.) 

8T,  In  case  of  neglect  or  refusal  to  make  such  annual  state- 
ments as  aforesaid,  all  persons  acting  in  this  State  as  agents  or 
otherwise,  in  transacting  the  business  of  insurance  for  said  compa- 
nies, corporations,  associations,  i^artnerships,  or  individuals,  shall 
be  subject  to  the  same  penalties  provided  by  law  in  case  of  the  fail- 
ure of  an  insurance  company  organized  under  the  laws  of  this  State 
to  make  an  annual  statement,  as  now  provided  by  law.  (Ibid, 
j).  159,  §28.) 

88.  All  life  insurance  companies  organized  under  any  law  of 
this  State  shall  continue  corporations  for  the  purpose  for  which  they 
were  chartered,  but  subject  to  all  the  provisions,  requirements,  and 
penalties  imposed  on  companies  organized  under  this  chapter,  and 
entitled  to  all  the  benefits  and  privileges  of  this  chapter,  (ibid, 
§29.) 

89.  Any  medical  examiner  for  any  life  insurance  company,  or 
for  any  person  seeking  insurance  therein,  who  shall  knowingly  make 
any  false  statement  or  report  to  such  company  or  any  officer  thereof 
concerning  the  health  or  bodily  condition  of  any  applicant  for  in- 
surance, or  concerning  any  other  matter  or  thing  which  might 
affect  the  propriety  of  granting  such  insurance,  shall  be  deemed 
guilty  of  a  misdemeanor,  and,  on  conviction  thereof,  be  fined  in  any 
sum  not  exceeding  five  hundred  dollars,  or  be  imprisoned  in  tho 
county  jail  not  exceeding  three  months,  at  the  discretion  of  the 
court,  and  shall,  moreover,  be  liable  to  the  company  injured  for  any 
damages  sustained  by  reason  thereof.     (J6id,  §  31.) 

90.  All  life  insurance  companies,  after  having  received  at 
least  three  annual  premiums  on  any  policy  issued  on  the  life  of  any 
person  in  the  State,  are  hereby  estopped  from  defending  against  any 
claim  arising  upon  such  policy  bj'^  reason  of  any  errors,  omissions 
or  misstatements  of  the  assured  in  any  application  made  by  such 
assured  on  which  such  policy  was  issued,  except  as  to  age  or  fraud. 
{Ibid, p.  160,  §32.) 

91.  The  act  entitled  "An  act  for  the  incorporation  and  regu- 
lation of  life  insurance  companies,"  passed  April  IG,  1867;  an  act 
entitled  "  An  act  supplementary  to  an  act  entitled  '  An  act  for  the 
incorporation  and  regulation  of  life  insurance  companies,' "  passed 
May  8,  1868  ;  an  act  to  regulate  insurance  companies,  passed  April 
15, 1867  ;  and  an  act  amendatory  and  supplementary  thereto,  passed 
May  7,  1869 ;  and  an  act  to  amend  section  twenty-four  of  an  act  to 
regulate  insurance  companies,  passed  May  15,  1868,  be  and  the  same 
are  hereby  repealed  ;  but  all  charters  obtained  under  any  of  the 
acts  hereby  repealed,  and  all  riglits  of  action  and  of  property  ac- 
quired by  any  company  under  any  of  the  acts  hereby  repealed,  shall 
be  retained  as  fully  as  if  said  act  or  acts  had  not  been  repealed,  sub- 
ject, however,  to  the  provisions  of  this  act.     {Ibid,  §  33.) 


726  hine's  insurance  statutes. 


TAXATION  OF  INSUEANCE  COMPANIES. 

92.  The  president,  secretary,  or  principal  accounting  oflBcer  of 
every  insurance  com[)any,  whether  incorporated  by  any  law  of  this 
State  or  not,  shaU  list  for  taxation,  verified  by  the  oath  or  affirma- 
tion of  the  person  so  listing,  all  the  personal  property,  moneys  and 
credits  of  such  company  or  corporation,  within  this  State,  at  their 
actual  value  in  money,  in  manner  following: 

In  all  cases  return  shall  be  made  to  the  several  auditors  of  the 
respective  counties  where  such  pro])erty  may  be  situated,  together 
with  a  statement  of  the  amount  of  said  property  which  is  situated 
in  each  township,  incorporated  village,  city  or  ward  therein.  The 
value  of  all  movable  proi)erty  shall  be  added  to  the  stationary  and 
fixed  property  and  real  estate,  and  apportioned  to  such  wards,  cities, 
incorporated  villages  or  townships,  pro  rata,  in  proportion  to  the 
value  of  the  real  estate  and  fixed  property  in  said  ward,  city,  incor- 
porated village,  or  township.  And  all  property  so  listed  shall  be 
subject  to  and  pay  the  same  taxes  as  other  property  listed  in  such 
ward,  city,  or  incorporated  village  or  township.  It  shall  be  the 
duty  of  the  accounting  officer  aforesaid  to  make  return  to  the  Au- 
ditor of  State  during  the  month  of  May  of  each  year,  the  aggregate 
amount  of  all  property  by  him  returned,  as  required  by  the  provis- 
ions of  this  act,  to  the  several  auditors  of  the  respective  counties  in 
which  the  same  may  be  located. 

If  the  (Jounty  Auditor  to  whom  returns  are  made  is  of  the  opinion 
that  false  or  incorrect  valuations  have  been  made,  or  that  the  pro- 
perty of  the  corporation  or  association  has  not  been  listed  at  its  full 
value,  or  that  it  has  not  been  listed  in  the  location  where  it  properly 
belongs,  or  in  cases  where  no  return  has  been  made  to  the  County  Audi- 
tor, he  is  hereby  required  to  proceed  to  have  the  same  valued  and  as- 
sessed in  tlie  same  manner  as  is  prescribed  in  the  several  sections  of 
this  act,  regulatingthe  duties  of  county  auditors ;  Provided,  That  noth- 
ing in  this  section  shall  be  so  construed  as  to  tax  any  stock  or  inter- 
est in  any  joint  stock  company  held  by  the  State  of  Ohio  ;  Provided, 
That  every  agency  of  an  insurance  company,  incorporated  by  the 
authority  of  any  other  State  or  government,  shall  return  to  the 
Auditor  of  the  county  in  which  the  office  or  agency  of  such  company 
maj'^  be  kept,  in  the  month  of  May,  annually,  the  amount  of  the 
gross  receipts  of  such  agency,  which  shall  be  entered  upon  the  tax 
list  of  the  proper  county,  and  subject  to  the  same  rate  of  taxation 
for  all  purposes  that  other  personal  property  is  subject  to  at  the 
place  where  located.  {Revised  Statutes,  18G0,  Swan  ti&  Critchjield, 
vol.  2, 2J'  1440.) 


LIFE  INSURANCE  FOR  THE  BENEFIT  OF  MARRIED 
WOMEN  AND  CHILDREN. 

9JI.  It  shall  be  lawful  for  any  married  woman,  by  herself,  and 
in  her  own  name,  or  in  the  name  of  any  third  person,  with  his  as- 
sent as  her  trustee,  to  cause  to  be  insured  for  her  sole  use  the  life 
other  husband,  for  any  definite  period,  or  for  the  term  of  his  nat- 
ural life ;  and  in  case  of  her  surviving  such  period  or  term,  the 
amount  of  the  insurance  becoming  due  and  payable  by  the  terms  of 
the  insurance  shall  be  payable  to  her,  to  and  for  her  own  use,  free 


OHIO.  727 

from  the  claims  of  the  representatives  of  the  husl)and  or  of  any  of 
his  creditors ;  and  a  policy  of  insurance  on  the  life  of  any  person, 
duly  assigned,  transferred  or  made  payable  to  any  married  woman, 
or  to  any  person  in  trust  for  her  or  for  her  benefit,  whether  such 
transfer  be  made  by  her  husband  or  other  person,  shall  inure  to  her 
separate  use  and  benefit,  and  that  of  her  children,  independently  of 
her  husband  or  their  creditors,  or  of  the  person  effecting  or  trans- 
ferring the  same,  or  his  creditors.  The  amount  of  such  insurance 
may  be  made  payable  in  case  of  the  death  of  the  wife  before  the 
period  at  which  it  becomes  due,  to  his,  her,  or  their  children,  for 
their  use,  as  shall  be  provided  in  the  policy  of  insurance,  and  to 
their  guardian  if  under  age;  Provided,  however,  That  if  such  poli- 
cies are  procured  by  any  person  with  intent  to  defraud  his  creditors, 
an  amount  equal  to  the  premium  paid  on  such  policy  or  policies, 
with  interest,  shall  inure  to  the  benefit  of  said  creditors,  subject, 
however,  to  the  statute  of  limitations.     {Laws  o/1872,  jg.  159,  §  30.) 


AESON  AND  INCENDIARISM. 

94.  If  any  person  shall  willfully  and  maliciously  burn,  or  cause 
to  be  burned,  any  dwelling-house,  kitchen,  smoke-house,  shop,  barn, 
stable,  storehouse,  warehouse,  malt-house,  stilling-house,  mill,  or 
pottery,  the  property  of  any  other  person,  or  any  other  building, 
the  property-  of  any  other  person,  of  the  value  of  fifty  dollars,  or 
containing  property  of  the  value  of  fifty  dollars ;  or  any  church, 
meeting-house,  court-house,  work-house,  school-house,  jail,  or  other 
public  building ;  or  any  ship,  boat,  or  other  water  craft  of  the 
value  of  fifty  dollars ;  or  any  bridge  of  the  value  of  fifty  dollars 
erected  across  any  of  the  waters  within  this  State  ;  every  person  so 
offending  shall  be  deemed  guilty  of  arson,  and,  upon  conviction 
thereof,  shall  be  imprisoned  in  the  penitentiary,  and  kept  at  hard 
labor  not  more  than  twenty  years,  nor  less  than  one  year.  {Revised 
Statutes,  8.  &  G.,l^m,  p.  4QQ,^  12.) 

95.  If  any  person  shall  willfully,  maliciously,  and  unlawfully 
attempt  to  burn,  or  cause  to  be  burned,  any  dwelling-house,  kitchen, 
smoke-house,  shop,  barn,  stable,  storehouse,  warehouse,  malt- 
house,  stilling-house,  mill,  or  pottery,  the  property  of  any  other 
person,  of  the  value  of  fifty  dollars ;  or  any  church,  meeting-house, 
court-house,  work-house,  school-house,  jail,  or  other  public  building; 
or  any  ship,  boat,  or  other  water  craft  of  the  value  of  fifty  dollars  j 
or  any  bridge  of  the  value  of  fifty  dollars  erected  across  any  of 
the  waters  within  this  State ;  or  if  any  person  shall  willfully,  ma- 
liciously, or  unlawfully  attempt  to  set  fire  to  any  of  the  buildings 
or  other  property  described  herein,  with  intent  to  burn  or  destroy 
the  same,  by  igniting  or  trying  to  set  fire  to  or  ignite  the  same,  of 
any  material  or  thing  therein,  or  any  combustible  material  or  thing 
without  the  same  and  nearly  adjoining  thereto,  though  the  same,  or 
part  thereof,  be  not  fired  or  burned,  every  person  so  offending 
shall  be  deemed  guilty  of  a  misdemeanor,  and,  upon  conviction 
thereof,  shall  be  fined  in  any  sum  not  exceeding  three  hundred  dol- 
lars, or  imprisonment  in  the  county  jail,  and  fed  on  bread  and  water 
only,  for  a  term  not  exceeding  four  months,  or  both,  at  the  discre- 
tion of  the  court.     {Revised  Statutes,  1868,  S.  tfe  S.,  p.  207,  §  19.) 

96.  Every  person  who  shall  willfully  and  maliciously  burn  or 
cause   to   be  burned,  any  dwelling-house,  kitchen,   smoke-house, 


728  hike's  insurance  statutes. 

shop,  office,  barn,  stable,  storehouse,  warehouse,  still-house,  mill, 
l)0ttery,  or  any  other  building  of  the  value  of  fifty  dollars  ;  or  any 
ship,  boat,  or  other  water  craft  of  the  value  of  fifty  dollars ;  or  any 
goods,  wares,  merchandise,  or  other  chattels  of  the  value  of  fifty 
dollars,  which  shall  be  at  the  same  time  the  property  of  such  per- 
son, and  insured  against  loss  or  damage  by  fire,  with  intent  to  pre- 
judice such  insurer,  every  person  so  oft'ending  shall  be  deemed 
guilty  of  arson,  and,  upon  conviction  thereof,  shall  be  imprisoned 
in  the  penitentiary,  and  kept  at  hard  labor  not  more  than  twenty 
years,  nor  less  than  one  year.  {Revised  Statutes,  1860,  ;S^.  &  C,  p. 
4.51a,  §  240.) 

97.  If  any  person  shall  willfully  and  maliciously  set  fire  to  any 
of  the  buildings,  water  craft  or  other  property  described  in  the  fore- 
going section,  and  which  shall  be  at  the  same  time  the  property  of 
guch  person,  and  insured  against  loss  or  damage  by  fire,  with 
intent  to  burn  or  destroy  the  same,  and  with  intent  to  prejudice  such 
insurer,  every  person  so  offending  shall  be  deemed  guilty  of  a  mis- 
demeanor, and  upon  conviction  thereof,  shall  be  imprisoned  in  the 
penitentiary,  and  kept  at  hard  labor  not  more  than  seven  years,  nor 
less  than  one  year.    {Ibid,  p.  4576,  §  241.) 


EMBEZZLEMENT. 

98.  If  any  clerk,  agent  or  servant  of  any  private  person,  or 
of  any  copartnernership  (except  aj)prentices  and  persons  within  the 
age  of  eighteen  years),  or  if  any  officer,  agent,  clerk  or  servant  of 
any  incorporated  company  or  joint-stock  company,  shall  embezzle  or 
convert  to  his  own  use,  or  fraudulently  take  or  make  away  with  or 
secrete  with  intent  to  embezzle,  or  fraudulently  convert  to  his  own 
use  without  the  assent  of  his  or  her  employer  or  employers  or  the 
owner  or  owners  thereof  any  money,  goods,  rights  in  action  or  other 
valuable  security  or  effects  whatever  belonging  to  any  other  person 
or  persons,  body  politic  or  corporate,  which  shall  come  into  his  or 
her  possession  or  care  by  virtue  of  such  employment,  shall  upon 
conviction,  be  punished  in  the  manner  prescribed  by  law  for  felon- 
iously stealing  property  of  the  value  of  the  article  so  embezzled, 
taken  or  secreted,  or  of  the  value  of  any  sum  of  money  payable  and 
due  upon  any  right  in  action,  so  embezzled.     {Laws  o/1869,  p.  29.) 

99.  For  General  Provisions  relating  to  Corporations  see 
Revised  Statues,  1860,  S.  and  0.,  pp.  271,  309,310,  317, 318 ;  Revised 
Statutes,  1868,  S.  and  S.,  pp.  243-247  ;  Laws  of  1869,  pp.  94,  344 ; 
Laws  of  1874,  pp.  26,  27     Laws  of  1875,  pp.  24,  37,  38,  139. 


INDEX   TO   OREG-OK 


PAGE 

Agents— 

License  of  (13,  17) 731,732 

Penalty  for  Illegal  Business  (3) 730 

Embezzlement  by  (23) 733 

Arson,  Crime  and  Penalty. of  (18-22i  732,  733 
Attorney  of  Foreign  Companies  ( 1 0, 1 1 )  ■  ■  731 

Corporations— 

Constitutional   Provisions   Concerning 

(1,  2) 730 

Liability  of  Stockholders  of  (2) 730 

General  ProTisions  Relating  to  (24).  -  -  733 

Deposits— 

Of  Foreign  Companies  (4,  5) 730 

Tax  on  (6) 730 

"Withdrawal  of  (7) 730 

Claims  against  (8,  9) 731 

Fees  for  Keeping  (16) 732 

BHBEZZLEMEiiT,  Crime  and  Penalty  of  (23)  733 

Fees- 

For  Filing  Papers  (12) 731 

For  Licenses  (13,  17) 731,  732 

Of  State  Treasurer  (16) 732 

Of  Secretary  of  State  (17) 732 

Fire  and  Marine  Policies,  Stamp  Tax  on 

(15) 732 

Foreign  Insurance  Companies — 

Deposits  of  (3-5) 730 

Tax  on  Deposits  of  (6) 730 


PAGB 

Foreign  Insurance  Companies  (Continued)— 

Withdrawal  of  Deposits  by  (7) 730 

Claims  against  (8,  9) 731 

Cessation  of  Business  by  (7,  9) 730,  731 

Attorney  of  (1 0,  1 1 ) 731 

Service  of  Process  on  (11) 731 

Fees  Paid  by  (12-14,  16,  17)..  731,732 
Life,  License  of  (1 4) 731 

Incendiarism,  Crime  and  Penalty  of  (1 8- 

22) 732,733 

License  Fees  (13,  14,  17) 731,732 

Life  Insurance  Companies — 

License  of  ( 1 4) 731 

Agents'  Licenses  (17) 732 

Penalty— 

For  Illegal  Business  (3) 730 

For  Arson  and  Incendiarism  (18-22)  732, 

733 

For  Embezzlement  (23) 733 

Policies,  Stamp  Tax  on  Fire  and  Marine 

(15) 732 

Power  of  Attorney  (10,  11) 731 

Service  of  Process  (11) 731 

Stamp  Tax  (15) 733 

Stockholders,  Liability  of  (2) 730 

Tax— 

On  Deposits '6) 730 

By  Stamps  (16) 732 


INSURANCE  STATUTES  OF  OREGON. 


CONSTITUTIONAL    PROVISIONS    CONCERNING    CORPOR 

ATIONS. 

1 .  Corporations  may  be  formed  under  general  laws,  but  shall 
not  be  created  by  special  laws  except  for  municipal  purposes.  All 
laws  passed  pursuant  to  this  section  may  be  altered,  amended,  or 
repealed,  but  not  so  as  to  impair  or  destroy  any  vested  corporate 
rights.     (Art  9,  §  2.) 

2.  The  stockholders  of  all  corporations  and  joint-stock  compa- 
nies shall  be  liable  for  the  indebtedness  of  said  corporation  to  the 
amount  of  their  stock  subscribed  and  unpaid,  and  no  more.  [Ibid, 
§3.) 

FOREIGN  INSURANCE  COMPANIES. 

3.  No  foreign  corporation  or  association  shall  be  permitted  to 
transact  the  business  of  fire  or  marine  insurance,  brokerage  or  ex- 
press, within  the  limits  of  this  State,  without  first  complying  with 
the  provisions  of  section  two  of  the  act  to  regulate  and  tax  foreign 
corporations,  approved  October  21,  1864;  [4.]  and  every  person  act- 
ing, or  professing  to  act  as  agent  for  such  foreign  corporation  or  as- 
sociation, before  such  compliance,  shall  be  guilty  of  a  misdemeanor, 
and  on  conviction,  shall  be  punished  by  a  fine  not  exceeding  one 
thousand  dollars,  or  imprisonment  in  the  county  jail  not  exceeding 
one  year,  or  both,  at  the  discretion  of  the  court.  {General  Laws, 
1872,^).  447,§  725.) 

4.  Every  such  corporation  before  engaging  in  the  business  of 
fire  or  marine  insurance,  or  express  or  brokerage,  shall  deposit  with 
the  Treasurer  of  this  State  the  sum  of  fifty  thousand  dollars,  as 
hereinafter  provided.     (Ibid,  p.  16,  §  1.) 

3.  Such  deposit  shall  be  made  in  interest-bearing  bonds  of  the 
United  States  or  the  bonds  of  the  State  of  Oregon,  and  shall  be 
safely  kept  for  the  benefit  and  security  of  persons  transacting  busi- 
ness with  such  corporations  or  associations  in  this  State,  for  claims 
and  demands  arising  out  of  said  business,  and  shall  be  held  and 
considered  specially  pledged  for  such  security  for  such  claims  and 
demands.     {Ibid,  §  2.) 

O.  The  corporation  or  association  shall  pay  taxes  upon  such 
deposit,  within  the  county  where  deposited,  in  the  same  manner 
and  to  the  same  extent,  as  an  individual,  and  the  deposit  shall  be 
held  liable  therefor.  All  interest  accruing  from  the  United  States 
on  said  bonds,  shall  be  paid  as  the  same  may  accrue,  to  the  corpor- 
ation or  association  to  whom  the  same  belong.     {Ibid,  §  3.) 

7,  When  any  corporation  or  association,  having  made  such  de- 
posit, shall  desire  to  cease  business  in  this  State  and  withdraw  its 
capital,  it  may  do  so  by  first  giving  six  month's  public  notice  of  such 
intention,  by  continuous  publication  in  three  weekly  newspapers, 


OREGON.  731 

published  in  and  of  general  circulation  in  the  State,  and  if  no  claims 
shall  be  filed  af?aiust  such  corporation  within  said  six  months,  the 
deposit  may  be  withdrawn.     {Ibid,  §  4.) 

8.  All  residents  of  this  State,  having  outstanding  policies  of 
insurance  made  or  effected  within  this  State,  upon  property,  and  all 
persons,  having  claims  or  demands  against  such  corporations  or  as- 
sociations for  which  such  deposit  is  security,  may  file  the  same  with 
said  County  Treasurer,  prior  to  the  time  when  such  deposit  is  with- 
drawn, a  s«  in  the  preceding  section  is  provided;  and  such  deposit 
shall  not  be  withdrawn  until  such  policies  of  insurance  are  provided 
for,  and  such  claims  adjusted  and  settled,  without  leaving  a  suffi- 
cient amount  to  cover  the  same  in  the  hands  of  such  Treasurer. 
(/6w7,_p.  617,  §  5.) 

9.  The  corporation  or  association,  desirous  of  discontinuing 
business,  and  withdrawing  its  deposit,  may,  at  the  expiration  of  the 
period  required  for  publishing  its  notice,  as  in  section  five  provided, 
in  case  it  cannot  amicably  adjust  its  matters,  with  persons  having 
or  holding  policies  of  insurance  against  it,  petition  the  Circuit  Court 
of  the  county,  for  an  adjustment  of  the  same,  making  the  claimants 
parties,  and  the  court  shall  have  full  jurisdiction  to  examine  and  de- 
termine the  same,  as  in  proceedings  in  equity.     {Ibid,  §  C.) 

10.  A  foreign  corporation,  before  transacting  business  in  this 
State,  must  duly  execute  and  acknowledge  a  power  of  attorney,  and 
cause  the  same  to  be  recorded  in  the  County  Clerk's  office,  of  each 
county  where  it  has  a  resident  agent,  which  power  of  attorney,  so 
long  as  such  company  shall  have  places  of  business  in  the  State, 
shall  be  irrevocable,  except  by  the  substitution  of  another  qualified 
person  for  the  one  mentioned  therein,  as  attorney  for  such  company. 
{Ibid,  §  7.) 

1 1 .  Such  power  of  attorney  shall  appoint  some  person  who  is 
a  citizen  of  the  United  States,  and  a  citizen  and  resident  of  this 
State,  an  attorney  for  such  company,  and  shall  authorize  and  em- 
power such  attorney  to  accept  service  of  all  writs  and  process, 
requisite  and  necessary  to  give  complete  jurisdiction  of  such  corpor- 
ation to  any  of  the  courts  of  this  State,  or  United  States  courts 
therein,  and  shall  constitute  such  attorney  the  authorized  agent  of 
such  corporation,  upon  whom  lawful  and  valid  service  maybe  made 
of  all  writs  and  process  in  any  action,  suit,  or  proceeding  com- 
menced by  or  against  any  such  corporation,  in  any  of  the  courts 
mentioned  in  this  section,  and  necessary  to  give  such  courts  com- 
plete jurisdiction  thereof     {Ibid,  §  8.) 

12.  A  corporation  or  company  offering  to  file  a  certificate  of 
deposit  with  the  State  Treasurer,  shall  pay  such  Treasurer  a  fee  of 
ten  dollars  therefor,  and  all  expenses  of  printing  any  notice  required 
by  this  chai)ter,  shall  be  paid  by  the  company  concerning  which 
such  notice  is  published.     {Ibid,  §  9.) 

13.  Each  County  Treasurer  shall  be  entitled  to  receive  and  re- 
tiiiu  three  per  centum  of  all  moneys  received  by  him  under  this  chap- 
ter, and  each  County  Clerk  shall  be  entitled  to  demand  and  receive 
from  the  i)erson  ai:>plying  for  such  license,  the  sum  of  two  dollars 
for  issuing  the  same.     {Ibid,  p.  G18,  §  11.) 

14.  All  comijanies  having  agents  or  solicitors  doing  business 
within  the  State  as  life  insurance  agents  or  solicitors,  shall  pay  to 
the  Treasurer  of  this  State  the  sum  of  one  hundred  dollars  annually, 
in  gold  coin  of  the  United  States  of  America.     {Ibid,  §  15.) 

15.  The  Secretary  of  State  shall  procure  and  cause  to  be 


732  HINE'S   mSURANCE   STATUTES. 

printed  stamps  as  hereinafter  provided,  and  it  shall  be  unlawful 
for  aoy  fire  or  marine  insurance  company  to  transact  business  within 
this  State  unless  they  shall  affix  such  stamijs  to  each  and  every 
policy  of  insurance,  as  hereinafter  provided,  to  wit : 

For  every  one  on  which  the  premium  is  less  than  ten  dollars,  a 
stamp  of  the  value  of  ten  cents  ; 

Over  ten  dollars  and  less  than  twenty  dollars,  a  stamp  worth 
twenty  cents ; 

Over  twenty  dollars  and  less  than  fifty  dollars,  a  stamp  worth 
fiftv  cents ; 

Over  fifty  dollars  and  less  than  one  hundred  dollars,  a  stamp 
worth  one  dollar ; 

And  an  additional  one  per  centum  on  all  sums  over  one  hundred 
dollars. 

Said  stamps  shall  be  affixed  and  canceled  at  the  time  of  deliver- 
ing said  policy,  by  the  secretary  or  actuary  of  the  company"  by  whom 
such  insurance  is  effected.     {Ibid,  §  16.) 

16.  The  fees  of  the  State  Treasurer  for  carrying  out  such  por- 
tion of  the  provisions  of  this  chapter,  as  shall  pertain  to  his  office 
shall  be  as  follows  : 

For  keeping  such  deposits  and  for  returning  to  depositors  the 
coupons  on  all  bonds  deposited  by  them,  one-eighth  of  one  per  cen- 
tum per  annum  on  all  amounts  so  deposited  in  his  charge.  {Ibid, 
p.  629,  §  17.) 

17.  The  fees  of  the  Secretary  of  State  for  carrying  out  such 
portions  of  this  chapter  as  pertain  to  the  duties  of  his  office,  shall 
be  as  follows  : 

For  recording  each  certificate  of  deposit  and  issuing  such  certifi- 
cate to  depositors,  twenty -five  dollars  ; 

For  issuing  license  to  life  insurance  agents  or  solicitors,  annual- 
ly, ten  dollars ; 

From  commission  on  the  sale  of  stamps,  as  provided  in  section 
16  of  this  chapter,  five  per  centum  of  the  amount  sold.  (/  bid, 
§18.) 

ARSON  AND  INCENDIARISM. 

18.  If  any  person  shall  willfully  and  maliciously  burn  in  the 
night-time,  any  dwelling-house  of  another,  orshall  in  the  night-time, 
willfully  or  maliciously  set  fire  to  any  building  owned  by  himself  or 
another,  by  the  burning  whereof,  any  dwelling-house  of  another 
shall  be  burned  in  the  night-time,  such  person  shall  be  deemed  guilty 
of  arson  and  upon  conviction  thereof,  shall  be  punished  by  imprison- 
ment in  the  penitentiary  not  less  than  ten,  nor  more  than  twenty 
years.     {General  laws,  1872,  p.  411,  §  540.) 

19.  If  any  person  shall  willfully  and  maliciously  burn,  in  the 
night-time,  any  church,  courthouse,  town-house,  meeting-house, 
asylum,  college,  academy,  school-house,  prison,  jail  or  other  public 
building  erected  or  used  for  public  uses,  or  any  steamboat,  ship  or 
other  vessel,  or  any  banking-house,  warehouse,  express-office,  store- 
house, manufactory,  mill,  barn,  stable,  shop  or  office  of  another, 
or  shall  willfully  or  maliciously  set  fire  to  any  building  or  boat 
owned  by  himself  or  another,  by  the  burning  whereof  any  edifice, 
building,  boat  or  vessel  mentioned  in  this  section,  shall  be  burned 
in  the  night-time,  such  person  shall  be  deemed  guilty  of  arson,  and 
upon  conviction  thereof,  shall  be  punished  by  imprisonment  in  the 


OREGON.  733 

peuitentiary  not  less  than  five  nor  more  than  fifteen  years.    (Ibid, 
§541.) 

20.  If  any  person  shall,  in  the  day-time,  willfully  and  mali- 
ciously commit  any  of  the  acts  specified  in  sections  540  and  541,  and 
thereby  declared  to  be  arson,  such  person  shall  be  deemed  guilty  of 
arson,  and  upon  conviction  thereof,  shall  be  punished  by  imprison- 
ment in  the  penitentiarv,  not  less  than  three,  nor  more  than  ten 
5'ears.     {Ibid,  p.  412,  §  542.) 

5S 1 .  If  any  person  shall  willfully  and  maliciously  burn  any  build- 
ing whatsoever  of  another,  other  than  those  specified  in  sections 
540  and  541,  or  shall  willfully  and  maliciously  burn  any  bridge, 
lock,  dam  or  flume  of  another,  or  erected  or  used  for  public  uses, 
sucb  person,  upon  conviction  thereof,  shall  be  punished  by  im- 
prisonment in  the  penitentiary,  not  less  than  one,  nor  more  than  ten 
years.     {Ibid,  §  543.) 

2»J.  If  any  person  shall  willfully  burn  or  in  any  other  manner  in- 
jure or  destroy  any  propertj^  whatever,  which  is  at  the  time  insured 
against  loss  or  damage  by  fire  or  other  casualty,  with  intent  to  de- 
fraud or  prejudice  the  insurer,  whether  the  same  be  the  property  of 
snch  person  or  of  any  other,  such  person  upon  conviction  thereof, 
shall  be  punished  by  imprisonment  in  the  penitentiary,  not  less  than 
three,  nor  more  than  seven  years.     {Ibid,  §  546.) 

EMBEZZLEMENTS. 

2)1.  If  any  officer,  clerk,  employee  or  servant,  of  any  private 
I>6rson  or  persons,  co-partnersnip  or  incorporation,  shall  embezzle  or 
fraudulently  convert  to  his  own  use,  or  shall  take  or  secrete,  with  in- 
tent to  embezzle,  or  fraudulently  convert  to  his  own  use,  any  money, 
property  or  thing  of  another,  which  may  be  the  subject  of  larceny, 
and  which  shall  have  come  into  his  possession,  or  be  under  his  care, 
by  virtue  of  such  employment,  such  officer,  agent,  clerk,  employee 
or  servant  shall  be  deemed  guilty  of  larceny,  and  upon  conviciion 
thereof,  shall  be  punished  accordingly.  {General  laws,  1812,  p.  414, 
§  557.) 

34.  For  General  Provisions  relating  to  Corporations  see  Gen- 
eral Laws,  1872j  pp.  524-529. 


INDEX  TO  PENNSYLVANIA. 


PA  OR 

Accident  Insurance  Coa.  (59,  60,  62)..  750 

Advertising  Annual  Statements  (65,  64)  750, 

751 

Agents- 
Service  of  Process  on  (6,  30,  77,  78)736, 

743,  754,  755 

Certificates  of  Authority  (28) 742 

Pena.ty  for  Illegal  Business  of   (31, 

76) 743,  754 

Embezzlement  by  (93) 758 

Taxation  of,  in  Philadelphii  (70-73) .  753 
Appointment  of  (74) 754 

Annual  Statements-(27,  2Q) 742 

Blanks  for  (2 1 ) 740 

Advertising  (5  5,  64) 749,  751 

Arson,  Crime  and  Penalty  of  (90-92)  ....  758 

Burglar  Insurance  Cos.  (59,  60) 750 

Capital— 

Impairment  of  (18,  53) 739,  749 

Reduction  of  (18) 739 

Of  Fire  and  Marine    Insurance  Com- 
panies (37) 744 

Subscription  to  (41) 745 

Investment  of  (4U) 747 

Certificate  of  Authority  (22,  27) 741,  742 

Charter- 
Amendment  of  (1,  3,  8) 736 

Maybe  Revoked  (8) 736 

Extension  of  (1,  3) 736 

Of  Fire  Insurance  Companies  (42) 745 

Corporations — 

Constitutional   Provisions    Concerning 

(1-8) 736 

Not  to  be  Formed  under  Special  Laws 

(1) 736 

Taxation  of  (2) 736 

Election  of  Directoie  of  (5) 736 

foreign  (6) 736 

Restrictions  upon  Business  of  ( 7) 736 

Real  Estate  of  (7) 730 

To  Establish  Offices  and  Appoint  Agent 

(74) 751 

To  File  Statements  (76) 754 

General  Provisions  Relating  to  (94) . . .  759 

Deposits  of  Insurance  Cos.  (06,  66) 751 

Directors — 

Election  of  (5,  44,  45) 736,  746 

To  make  Dividends  (52-54) 749 

Liability  of  (53) 749 

Dividends  of  Fire  and  Marine  Insurance 

Companies  (62) 749 


PAGB 

Embezzlement,  Crime  and  Penalty  of  (93)  758 

Fees  Paid  to  Insurance  Commissioner  for 

Valuing  Life  Policies  (23) 741 

Fire,  Inquests  in  Cases  of  (86-89) 757 

Fire  Insurance  Companies- 
Reinsurance  Reserve  of  (1 7)  739 

Impairment  of  Capital  of  (18,  53)  739,  749 

Reduction  of  Capital  of  (1 8) 739 

Insolvency  of  (20) 740 

Suits  against  (22) 740 

Illegal  Business  of  (26) 748 

Annual  Statements  (29) 742 

Incorporation  ot,  by  Courts  of  Common 

Pleaa  (36-42) 744,  745 

Incorporation  of  Mutual  (40,  51)  745,  748 

Deposits  {0  5,  66) 751 

Charter  of  (42) 745 

General  Kights  and  Privileges  of  (42).  745 

Capital  of  (37,  43) 744,  746 

Directors  of  (5,  44,  45) 736,  746 

Transfer  of  Stock  of  (4  6) 746 

May  Insure  what  (47)  746 

Restrictions  upon  Business  of  (48,  58)  747, 

750 
Investment  of  Capital   and  Assets  of 

(49) 747 

Real  Estate  of  (7,  4SJ) 736,  747 

Dividends  of  (52-54) 749 

To  Advertise  Statements  (56,  64)  749,  751 

Taxation  of  (2,  5  6) 736,  749 

Forfeiture  of  Charter  of  (57) 74  9 

Service  of  Process  on  (7  7, 78) 754,  755 

Foreign  Insurance  Companies  — 

Annual  Statements  of  (27,  29, 742 

Certificate  of  Authority  of  (27) 742 

Tax  on  Premiums  of  (2  7) 742 

To  Report  Names  of  Agents  (28) 742 

Service  of  Process  on  (6,  30,  77,  78)  736, 

743,  7.i4,  758 
Forbidden  to  do  Business  in  the  State 

(67-69) 752 

To  Establish  Oflice  and  Appoint  Agent 

(74) 754 

To  File  Statements  (75) 754 

Life,  to  File  Certificate  of  Valuation 
(16) 738 

Health  Insurance    Cos.    (59,   60,  62)  750 

Impairment  of  Capital  (18) 739 

Incendiarism,  Crime  and  Penalty  of  (90- 

92) 758 


INIjEX  to  PENNSYLVANIA. 


735 


PAGE 

Inquests  in  Cases  of  Fire  (86-89) 757 

InsolTeucy,  Proceedings  in  Cases  of  (20) . .  740 
Insurance  Commissiouer — 

Appointment  and  Term  of  (10) 737 

Salary  of  ( 1 0) 737 

Deputy  and  Clerks  of  (1 0) 731 

To  have  Custody  of  Books  and  Papers 

(11) 737 

Gftneral  Powers  and  Duties  of  (12-1  5, 

21) 738-40 

To  Value  Life  Policies  ( 1 4) 737 

To  Require  Life  Companies  to  be  Kept 

up  to  Legal  Standard  (15) 738 

May  Accept  Valuations  of  Other  States 

(16) 738 

To  Calculate  Reinsurance  Reserve  (1  7)  739 
May  Permit  Life  Companies  to  do  Busi- 
ness while  Impaired  (19) 739 

Annual  Report  of  (2 1 ) ';40 

To  Examine  Companies  (22,  23).  740,  741 

To  Institute  Suits  (22) 740 

Fees  Paid  to  (23) 74 1 

To     Report  Fees    to  Auditor-General 

(24) 741 

To    Assess    Expenses    of    Department 

(24) 741 

To  Collect  Taxes  and  Penalties  (32)  . .  743 
Insurance  Department— 

Establisiied  (9) 736 

Rooms  for  (12) 737 

Expenses  of  (.24) 741 

Laws  Repealed  (35) 744 

Life  Insurance  for  the  Benefit  of  Women 

and  Children  and  Others  (8  5) 756 

Life  Insurance  Companies — 

Impairment  of  (15,  19) 739 

Valuation  of  PoUciesof  (14,  16,  23)  737, 

738,  741 
May  do  Business  while  Impaired  (1 9) .  739 

Insolvency  of  (20) 740 

Restrictions  upon  Business  of  (2 1 ) 740 

Suits  against  (22) 740 

lUegal  Business  of  (26) 742 

Annual  Statements  of  (29) 742 

Organization  of  (59,  60,  62) 750 

Deposits  of  (65,  66) 751 

To  Advertise  Annual  Statements  (64)  751 
Service  of  Process  on  (77,  78) 754,  755 

Livestock  Insurance  Cos.  (59-61) 750 

MABrNB  and  Inland  Ins.  Companies — 

Reinsurance  Reserve  of  ( 1 7) 739 

Impairment  of  Capital  of  (18,  53)  739,749 

Reduction  of  Capital  of  ( 1 8) 739 

Insolvency  of  (20) 740 

Suits  against  (22) 740 

Dlegal  Business  of  (26) 742 

Annual  Statements  of  (29) 742 

Incorporation  of  by  Courts  of  Common 

Pleas  (36-42) 744,745 

Deposits  of  (65,  66) 751 

Charter  of  (42)., 745 


PAGB 

Marine  and  Inland  Ins.  Cos.  (Continned)— 

Rights  and  Privileges  of  (42,  47)  745,  746 

Capital  of  (37,  43) 744,746 

Directors  of  (5,  44,  45) 736,746 

Transfer  of  Stock  of  ^  4  6) 746 

May  Insure,  what  (47) 746 

Restrictions   upon    Business    of   (48, 

58) 747, 750 

Investment  of  Capital  and  Assets  of 

(49) 747 

Real  Estate  of  (7,  49) 736,  747 

Mutual  (51) 748 

Dividends  of  (52-54) 748,  749 

To  Advertise  Statements  (55,  64)  749,  751 

Taxation  of  (2,  56) 736,747 

Forfeiture  of  Charter  of  (5  7) 749 

Service  ofProeess  on  (77,  78).-..  754,  755 

Mortgage  Insurance  Cos.  (59,60,63)759,  751 

Mutual  Insurance  Companies — 

Fire  (40,  51) 745,748 

Marine(51) 748 

Dividends  of  (5 2-5 4) 748,  749 

To  Advertise  Statements  (55,  64)  749,  751 

Taxation  of  (2,  5  6) 736,  749 

Forfeiture  of  Charter  of  (5  7) 749 

Service  of  Process  on  (77,  78) 754,  755 

Penalties — 

For  not  Filing  Statement  (29) 742 

For  Illegal  Business  (31,76) 743,  754 

To    be   Collected  by  Insui'auce    Com- 
missioner i32) -'--•  743 

For  Unlawful  Issue  of  Policies  (80) . .  -  755 
For  Arson  and  Incendiarism  (90-92)  758 
For  Embezzlement  (93) 758 

Policies — 

Of  Fire  and  Marine  Ins.  Cos.  (50) 747 

Assignment  of  (81) 755 

Unlawful  Issue  of  (79,80) 755 

Supplying  Lost  (8  2-8  4) 756 

Premiums,  Tax  on  (27,  70-73) 742,  753 

Real  Estate— 

Of  Insurance  Companies  (7,  49)  . .  736,  747 
Insurance  Companies  (59,  60,63)  750,  751 

Reinsurance  Reserve  (17) 739 

Repeal  ot  Laws  (35) 744 

Service  of  Process  (6,  30,  77,  78)  736,  743, 

754,  755 
Stock,  Transfer  of  (46) 746 

Taxation— 

Of  Inaurance  Companies  (2) 736 

On  Premiums  (27,7  0-7  3) 742,  753 

On  Stock  and  Dividends  (56) 749 

Municipal,  Forbidden  (34) 743 

On  Agents  in  Philadelphia  (70-73). .  -  753 

VALDATiONof  Life  Policies— (14,16,  23)  737, 

738,  741 
Fees  for  (23) 741 

"Wivas*  Policy  (85) '56 


INSURANCE  STATUTES  OF  PENNSYLVANIA. 


CONSTITUTIONAL  PROVISIONS  CONCERNING  CORPORA- 
TIONS. 

1 .  The  General  Assembly  shall  not  pass  any  local  or  special  law 
creating  corijorations,  or  amending,  renewing  or  extending  the  char- 
ters thereof,  granting  to  any  corporation,  association  or  individual 
any  special  or  exclusive  privilege  or  immunity.     {Art.  3,  §  7.) 

S.  The  power  to  tax  corporations  and  corporate  property  shall 
not  be  surrendered  or  suspended  by  any  contract  or  grant  to  which 
the  State  shall  be  a  party,     {Art.  9,  §  3.) 

3.  The  General  Assembly  shall  not  remit  the  forfeiture  of  the 
charter  of  any  corporation  now  existing,  or  alter  or  amend  the  same, 
or  pass  any  other  general  or  special  law  for  the  benefit  of  such  cor- 
poration, except  upon  the  condition  that  such  corporation  shall 
thereafter  hold  its  charter  subject  to  the  provisions  of  this  Constitu- 
tution.     {Art.  16,  §  2.) 

4.  The  exercise  of  the  right  of  eminent  domain,  shall  never  be 
abridged  or  so  construed  as  to  prevent  the  General  Assembly  from 
taking  the  property  and  franchises  of  incorporated  comi)anies,  and 
subjecting  them  to  public  use,  the  same  as  the  property  of  individ- 
uals ;  and  the  exercise  of  the  police  power  of  the  State  shall  never  be 
abridged  or  so  construed  as  to  jiermit  corporations  to  conduct  their 
business  in  such  manner  as  to  infringe  the  equal  rights  of  individuals 
or  the  general  well-being  of  the  State.     {Art.  16,  §  3.) 

5.  In  all  elections  for  directors  or  managers  of  a  corporation, 
each  member  or  shareholder  may  cast  the  whole  number  of  his 
votes  for  one  candidate,  or  distribute  them  ui^on  two  or  more  candi- 
dates, as  he  may  prefer.     {Ibid,  §  4.) 

6.  No  foreign  corporation  shall  do  any  business  in  this  State 
without  having  one  or  more  known  places  of  business  and  an  au- 
thorized agent  or  agents  in  the  same,  upon  whom  process  may  be 
served.    {I  bid,  §  5.) 

7.  No  corporation  shall  engage  in  any  business  other  than  that 
expressly  authorized  in  its  charter,  nor  shall  it  take  or  hold  any  real 
estate  except  such  as  may  be  necessary  and  proper  for  its  legiti- 
mate business.    [Ibid,  §  6.) 

8.  The  General  Assembly  shall  have  the  power  to  alter,  revoke, 
or  annul  any  charter  of  incorporation  now  existing,  and  revocable  at 
the  adoption  of  this  Constitution,  or  any  that  hereafter  may  be 
created,  whenever  in  their  opinion  it  may  be  injurious  to  the  citizens 
of  this  commonwealth,  in  such  manner,  however,  that  no  injustice 
shall  be  done  to  the  corporators.  No  law  hereafter  enacted  shall 
create,  renew,  or  extend  the  charter  of  more  than  one  corporation. 
{Ibid,  §  10.) 

INSURANCE  DEPARTMENT. 

O.  There  is  hereby  established  a  distinct  department,  to  be 
known  as  the  Insurance  Department,  which  shall  be  charged  with 


PENNSYLVANIA.  737 

the  execution  of  the  laws  of  this  State  in  relation  to  insurance. 
(iaw;*o/1873,i).  20,  §  1.) 

10.  The  chief  officer  of  said  department  shall  be  denominated 
the  Insurance  Commissioner  of  Pennsylvania ;  he  shall  be  appointed 
by  the  Governor,  with  the  advice  and  consent  of  the  Senate,  within 
thirty  days  after  the  passage  of  this  act,  for  the  term  of  three 
years,  and  until  his  successor  is  duly  qualified,  and  shall  receive  the 
annual  salary  of  three  thousand  dollars  ;  Provided,  That  the  person 
first  appointed  Commissioner  under  this  act  shall  enter  upon  the 
duties  of  his  office  on  the  first  Monday  of  May  next ;  in  case  of  a 
vacancy  in  said  office  by  death,  resignation,  or  otherwise,  the  Gov-  • 
ernor  shall  fill  such  vacancy  for  the  unexpired  balance  of  the  term  ; 
he  shall  employ,  from  time  to  time,  with  the  approval  of  the  Gov- 
ernor, not  exceeding,  in  addition  to  deputy,  three  clerks,  to  discharge 
such  duties  as  he  shall  assign  them,  whose  compensation  shall  be 
paid  them  by  the  State  Treasurer  at  the  same  rate  and  in  the  same 
manner  as  the  clerks  in  the  office  of  the  Secretary  of  the  Common- 
wealth ;  he  shall  appoint  one  of  the  said  clerks  to  be  his  deputy, 
who  shall  perform  the  duties  attached  by  law  to  the  office  of  princi- 
pal during  the  absence  or  inability  of  his  principal,  who  shall  receive 
an  annual  salary  of  eighteen  hundred  dollars,  payable  as  aforesaid ; 
within  fifteen  days  from  the  date  of  his  appointment,  the  Commis- 
sioner shall  take  and  subscribe  the  oath  of  office  prescribed  by  the 
constitution,  and  file  the  same  in  the  office  of  the  Secretary  of  the 
Commonwealth,  and  shall  also  give  to  the  commonwealth  a  bond  in 
the  penalty  of  ten  thousand  dollars,  with  two  sureties,  to  be  ap- 
proved by  the  Governor,  conditioned  for  the  faithful  discharge  of 
the  duties  of  his  office.     {Ibid,  §  2.) 

1 1 .  All  books,  papers,  records,  and  securities  whatever,  in  the 
office  of  the  Auditor-General,  relating  to  the  business  of  insurance, 
shall,  on  demand,  be  delivered  and  transferred  to  the  Insurance 
Commissioner,  and  be  and  remain  in  his  charge  and  custody. 
{Ibid,  p.  21,  §3.) 

1*2,  There  shall  be  assigned  to  the  said  Commissioner,  by  the 
Commissioners  of  Public  Buildings  and  Grounds,  a  suitable  room 
or  rooms  for  conducting  the  business  of  said  department ;  and  the 
said  Commissioner  shall,  from  time  to  time,  with  the  approval  of  the 
Commissioner  aforesaid,  procure  the  necessary  furniture,  stationery, 
and  other  proper  conveniences  for  the  transaction  of  the  said  busi- 
ness, the  expenses  of  which  shall  be  paid  on  the  certificate  of  the 
Commissioner  and  the  warrant  of  the  Auditor-General.    {Ibid,  §  4.) 

13.  It  shall  be  the  duty  of  the  Insurance  Commissioner 
First — To  see  that  all  the  laws  of  this  State  respecting  insurance 

companies,  and  the  agents  thereof,  are  faithfully  executed,  and  for 
this  purpose  he  is  hereby  invested  with  all  the  powers  now  conferred 
by  law  upon  the  Auditor-General  in  relation  to  the  licensing  of  the 
agents  of  foreign  insurance  companies ;  to  file  in  his  office  any  char- 
ter of  a  company  now  or  hereafter  required  by  law  to  be  filed,  and 
upon  application  to  furnish  a  certified  copy  thereof. 

14.  Second. — He  shall,  as  soon  as  practicable,  in  each  year,  cal- 
culate, or  cause  to  be  calculated,  the  net  value  on  the  thirty-first  day 
of  December,  of  the  previous  year,  of  all  the  policies  in  force  on 
that  day  in  each  life-insurance  company  doing  business  in  this 
State,  organized  by  authority'  of  this  State,  and  of  every  other  life 
insurance  company  doing  business  in  this  State  that  shall  fail  to 
fiimish  him,  as  hereinafter  provided,  a  certificate  of  the  Insurance 

47 


738  niNE'S   INSURANCE   STATUTES. 

Commissioner  of  the  State  by  whose  authority  the  company  was 
organized,  or  by  the  State  in  which  it  may  elect  to  have  its  policies 
valued  and  its  dei)osit  made,  in  case  the  company  is  chartered  by 
the  government  of  the  United  States,  giving  the  net  value  of  all 
policies  in  force  in  the  company  on  the  thirty Urst  day  of  December 
in  the  preceding  year,  which  calculation  of  the  net  value  of  each 
policy  shall  be  based  upon  the  American  experience  table  of  mor- 
tality and  four  and  one-half  per  cent,  interest  per  annum  ;  Pro- 
vided, That  when  any  life  insurance  company  shall  have  a  cash 
ca])ital  of  not  less  than  five  hundred  thousand  dollars,  fully  paid  in 
and  safely  invested,  the  reserve  to  provide  for  the  liabilities  on  all 
policies  of  such  company  not  particij^ating  in  the  profits  of  the  com- 
pany shall  be  computed  by  the  American  Experience  Table  of  Mor- 
tality, with  interest  at  not  less  than  four  and  one-half  nor  more  than 
six  per  centum  per  annum,  in  the  discretion  of  the  Commissioner, 
and  with  reference  to  the  rates  of  premium  charged  by  such  company ; 
the  net  value  of  a  policy,  at  any  time,  shall  be  taken  to  be  the 
single  net  premium,  which  will,  at  that  time,  eftect  the  insurance, 
less  the  value  at  that  time  of  the  future  net  premiums  called  for  by 
the  table  of  mortality  and  rate  of  interest  designated. 

15.  Third. — In  case  it  is  found  that  any  life  insurance  company 
doing  business  in  this  State  has  not  on  hand  the  net  value  of  all 
its  policies  in  force,  after  all  other  debts  of  the  company  and  claims 
against  it,  exclusive  of  capital  stock,  have  been  provided  for,  it 
shall  be  the  duty  of  the  Insurance  Commissioner  to  publish  the  fact 
that  the  then  existing  condition  of  the  afi"airs  of  the  company  is 
below  the  standard  of  legal  safety  established  by  this  State,  and  he 
shall  i-equire  the  company  at  once  to  cease  doing  new  business,  and 
he  shall  immediately  institute  proceedings  to  determine  what  further 
shall  be  done  in  the  case  ;  and  it  is  hereby  made  the  duty  of  the 
Insurance  Commissioner,  after  ha\ing  determined  as  above  the 
amount  of  the  net  value  of  all  the  policies  in  force,  to  see  that  the 
company  has  that  amount  in  safe  legal  securities,  after  all  its  other 
debts  and  claims  against  it,  exclusive  of  capital  stock,  have  been 
provided  for. 

16.  Fourth. — He  shall  accept  the  valuations  made  by  the  Insur- 
ance Commissioner  of  the  State,  under  whose  authority  a  life  insur- 
ance company  was  organized,  when  such  valuations  have  been 
properly  made  on  sound  and  recognized  principles  and  legal  basis 
as  above ;  Frovided,  The  company  shall  furnish  to  the  Insurance 
Commissioner  of  this  State,  on  or  before  the  first  day  of  March  in 
each  and  every  year,  a  certificate  from  the  Insurance  Commissioner 
of  such  State,  setting  forth  the  value,  calculated  on  the  data  desig- 
nated above,  of  all  the  policies  in  force  in  the  company  on  the  pre- 
vious thirty-first  day  of  December,  and  stating  that  after  all  the 
other  debts  of  the  company  and  claims  against  it  at  that  time  were 
provided  for  the  company  had,  in  safe  securities,  an  amount  equal 
to  the  net  value  of  all  its  policies  in  force,  and  that  said  company  is 
entitled  to  do  business  in  its  own  State  ;  and  every  life  insurance 
company  doing  business  in  the  State  during  the  year  for  which  the 
statement  is  made,  that  fails  promptly  to  furnish  the  certificate 
aforesaid,  shall  be  required  to  make  full  detailed  lists  of  policies 
and  securities  to  the  Insurance  Commissioner  of  this  State,  and  shall 
be  liable  for  all  charges  and  expenses  consequent  upon  not  having 
fnrnished  said  certificate. 

17.  Fifth. — For  every  company  doing  fixe  insurance  business  in 


PENNSYLVANIA.  739 

this  State,  he  shall  calculate  the  reinsurance  reserv'e  for  unexpired 
fire  risks,  by  taking  fifty  per  centum  of  the  premiums  received  on 
all  unexpired  risks  that  have  less  than  one  year  to  run,  and  a  pro 
rata  on  all  premiums  received  on  risks  that  have  more  than  one 
year  to  run ;  and  in  marine  and  inland  insurance  he  shall  charge  all 
the  premiums  received  on  unexpired  risks  as  a  reinsurance  reserve. 

1 8.  Sixth. — Having  charged  against  a  company  the  reinsurance 
reserve  as  above  determined,  for  fire,  inland,  and  marine  insurance, 
and  adding  thereto  all  other  debts  and  claims  against  the  company, 
he  shall,  in  case  he  finds  the  capital  stock  of  the  comi)any  impaired 
to  the  extent  of  twenty  per  centum,  give  notice  to  the  company  to 
make  good  its  whole  capital  stock  within  sixty  days  ;  and  if  this  is 
not  done,  he  shall  require  the  company  to  cease  to  do  new  business 
within  this  State,  and  shall  thereupon,  in  case  the  company  is  or- 
ganized under  authority  of  this  State,  immediately  institute  legal 
proceedings  as  required  in  this  act,  to  determine  what  further  shall 
be  done  in  this  case.  Any  company  receiving  the  aforesaid  notice 
of  the  Insurance  Commissioner  to  make  good  its  whole  capital  stock 
within  sixty  days,  shall  forthwith  call  upon  its  stockholders  for  such 
amounts  as  will  make  its  capital  equal  to  the  amount  fixed  by  the 
charter  of  said  company;  and  in  case  any  stockholder  of  such  com- 
pany shall  neglect  or  refuse  to  pay  the  amount  so  called  for,  after 
notice  personally  given  or  by  advertisement  in  such  time  and  man- 
ner as  the  said  Commissioner  shall  approve,  it  shall  be  lawful  for 
the  said  company  to  require  the  return  of  the  original  certificate  of 
stock  held  by  such  stockholder,  and  in  lieu  thereof  to  issue  new  cer- 
tificates for  such  number  of  shares  as  the  said  stockholder  may  be 
entitled  to  in  the  proportion  that  the  ascertained  value  of  the  funds 
of  the  said  company  may  be  found  to  bear  to  the  original  capital  of 
the  said  company ;  the  value  of  such  shares  for  which  new  certi- 
ficates shall  be  issued  to  be  ascertained  under  the  direction  of  the 
said  Commissioner,  and  the  company  paying  for  the  fractional  parts 
of  shares ;  and  it  shall  be  lawful  for  the  directors  of  such  company 
to  create  new  stock  and  dispose  of  the  same,  and  to  issue  new  cer- 
tificates therefor  to  any  amount  sufflcient  to  make  up  the  original 
capital  of  the  company.  Whenever  the  capital  stock  of  any  joint 
stock  fire  or  marine  insurance  company  of  this  State  becomes  im- 
paired, the  Commissioner  may,  in  his  discretion,  permit  the  said 
company  to  reduce  its  capital  stock  and  the  par  value  of  its  shares 
in  proijortion  to  the  extent  of  impairment ;  Provided,  That  in  fixing 
such  reduced  capital  no  sum  exceeding  twenty-five  thousand  dol- 
lars shall  be  deducted  from  the  assets  and  property  on  hand,  which 
shall  be  retained  as  surplus  assets ;  and  Provided,  That  no  part  of 
such  assets  and  property  shall  be  distributed  to  the  stockholders ; 
and  Provided,  further,  That  the  capital  stock  shall  not  be  reduced  to 
an  amount  less  than  that  required  by  law  for  the  organization  of  the 
company. 

19,  Seventh. — It  shall  be  the  duty  of  the  Insurance  Commis- 
sioner after  he  has  notified  a  life  insurance  company,  organized  under 
authority  of  this  State,  to  cease  doing  new  business  until  the  net 
value  of  its  policies  in  force  is  equal  to  that  called  for  by  the  stand- 
ard of  safety  established  by  the  State,  at  once  to  cause  a  rigid  ex- 
amination in  regard  to  all  the  affairs  of  such  company  ;  in  case  it 
shall  appear  that  there  is  no  fraud  or  gToss  incompetency  or  reck- 
lessness shown  to  exist  in  the  management,  he  may,  upon  publish- 
ing the  facts  in  the  case,  permit  such  company  to  continue  in  charge 


740  hike's  insurance  statutes. 

of  its  business  for  one  year ;  Provided,  There  is,  in  his  opinion,  rea- 
son to  believe  that  the  company  may  eventually  be  able  to  re-es- 
tablish the  legal  net  value  of  its  policies  in  force.  At  the  end  of 
the  year  named  above,  he  may  renew  the  permission,  in  case,  on  ex- 
amination, he  is  satisfied  that  the  company  is  likely  to  retrieve  its 
affairs. 

20.  Mghth.—WheneYer  the  Insurance  Commissioner  shall  have 
reason  to  believe  that  any  insurance  company  of  this  State  is  insolv- 
ent or  fraudulently  conducted,  or  that  its  assets  are  net  sufiicient 
for  carrying  on  the  business  of  the  same,  or  during  any  non-compli- 
ance with  the  provisions  of  this  act,  he  shall  comanmicate  the  fact 
to  the  Attorney-General,  whose  duty  it  shall  then  become  to  apply 
to  the  Supreme  Court,  or  the  district  court,  or  any  court  of  common 
pleas  in  this  commonwealth,  or  in  vacation  to  any  of  the  judges 
thereof,  for  an  order  requiring  said  company  to  show  cause  why 
their  business  should  not  be  closed  ;  and  the  court  or  judge,  as  the 
case  may  be,  shall  thereupon  hear  the  allegations  and  proofs  of  the 
respective  parties,  or  api)oint  some  suitable  person  as  examiner  to 
perform  such  duty  and  report  upon  the  facts  to  said  court  or  judge  j 
if  it  appears  to  the  satisfaction  of  said  court  or  judge  that  such 
company  is  insolvent,  or  that  the  interests  of  the  public  so  require, 
the  said  court  or  judge  shall  decree  a  dissolution  of  such  corporation 
and  a  distribution  of  its  effects  ;  but  in  case  it  shall  appear  to  said 
court  or  judge  that  said  corporation  is  able  to  comply  with  the  pro- 
visions of  this  act,  and  that  it  is  not  insolvent,  a  decree  shall  be  en- 
tered annulling  the  act  of  the  Commissioner  in  the  premises,  and  au- 
thorizing such  company  to  resume  business. 

SI .  Ninth. — The  Insurance  Commissioner  shall  publish  the  result 
of  his  examination  of  the  affairs  of  any  company,  whenever  he  deems 
it  for  the  interest  of  the  public  so  to  do,  in  one  or  more  publications 
of  this  State;  suspend  the  entire  business  of  any  company  of  this 
State,  and  the  business  within  this  State  of  any  other  company, 
during  its  non-compliance  with  any  provisions  of  this  act,  or  when- 
ever its  assets  appear  to  him  insufficient  to  justify  its  continuance 
in  business,  by  suspending  or  revoking  the  certificate  granted  by 
him ;  report  to  the  Attorney -General  any  violation  of  the  law  rela- 
tive to  iusurance  companies,  their  officers  or  agents ;  furnish  to  the 
companies  the  necessary  blank  forms  for  the  statements  required ; 
preserve  in  a  permanent  form  a  full  record  of  his  proceedings  and 
concise  statement  of  the  condition  of  each  company  or  agenc}^  visited 
or  examined ;  at  the  request  of  any  person,  and  on  payment  of  the 
fee  to  give  certified  copies  of  any  record  in  his  office,  when  he  deems 
it  not  prejurticial  to  the  public  interest ;  report  annually  to  the 
legislature  the  receipts  and  expenses  of  his  department  for  the  year, 
his  official  acts,  the  condition  of  companies  doing  business  in  this 
State,  and  such  other  information  as  will  exhil)it  the  affairs  of  his 
department ;  adopt  and  renew  from  time  to  time,  with  the  approval 
of  the  Governor,  a  seal  of  office,  an  impression  of  which  shall  be 
filed  in  the  office  of  the  Secretary  of  the  Commonwealth ;  and  it 
shall  be  his  duty  to  see  that  no  company  is  permitted  to  enter  into 
new  contract  to  insure  lives  in  this  State,  who  continue  to  do  fire, 
marine  and  inland  insurance  business. 

123.  Tenth. — The  Insurance  Commissioner,  for  the  purpose  of 
examination  authorized  by  this  act,  is  hereby  empowered,  either  in 
person  or  by  one  or  more  examiners  by  him  commissioned  in  writ- 
iug,  to  require  free  access  to  all  books  and  papers  within  this  State 


PENNSYLVANIA.  741 

of  any  insurance  company,  or  the  agents  thereof,  doing  business 
within  this  State;  to  summon  and  examine  any  person  being  within 
this  State,  imder  oath,  which  he  or  any  examiner  may  administer, 
rehitive  to  the  affairs  and  condition  of  any  company  ;  for  probable 
cause  to  visit  at  its  principal  office,  wherever  it  may  be,  any  insur- 
ance company  not  of  a  State  in  which  the  substantial  provisions  of 
this  act  shaUbe  enacted,  and  doing  business  in  this  State,  for  the 
purpose  of  investigating  its  affairs  and  condition,  and  to  revoke  its 
certificate  in  this  State  gTanted  as  hereinafter  described,  if  it  does 
not  permit  an  examination ;  to  revoke  or  modify  any  certificate  of 
authority,  when  any  conditions  prescribed  by  law  for  granting  it  no 
longer  exist.  The  Insurance  Commissioner  is  hereby  empowered  to 
institute  suits  and  prosecutions,  either  by  the  Attorney-General  or 
such  other  attorney  as  the  Commissioner  may  designate,  for  any 
violation  of  this  act ;  and  the  Commissioner  shall  be  made  a  party 
to  any  proceedings  instituted  for  the  purpose  of  closing  up  the  af- 
fairs of  any  company,  when  the  same  shall  not  be  in  the  name  of  the 
commonwealth.     {Ibid,  §  5.) 

23.  The  Commissioner  may  employ  an  actuary  to  make  the 
valuation  of  life  policies,  at  the  compensation  of  not  exceeding  three 
cents  for  each  thousand  dollars  of  insurance,  to  be  paid  by  the  com- 
pany for  which  the  valuation  is  made  ;  and  there  shall  be  paid  by 
every  company  to  which  this  act  applies,  the  following  fees  towards 
defraying  the  expenses  of  enforcing  its  provisions :  For  filing  certi- 
fied copy  of  charter,  twenty-five  dollars ;  for  filing  the  annual  state- 
ment or  certificate  in  lieu  thereof,  twenty  dollars;  for  each  certifi- 
cate of  authority  and  certified  copy  thereof,  two  dollars  ;  for  every 
copy  of  any  paper  filed  in  the  Department,  the  sum  of  twenty  cents 
per  folio,  and  for  affixing  the  official  seal  to  such  copy  and  certifying 
the  same,  one  dollar ;  tor  official  examinations  of  companies  under 
this  act,  the  actual  expenses  incurred.     {Ibid,  p.  25,  §  6.) 

24.  The  Insurance  Commissioner  shall,  on  or  before  the  tenth 
day  of  each  month,  make  report  to  the  Auditor-General,  showing 
the  entire  amount  of  fees  received  by  him  dui'ing  the  month  preced- 
ing, and  pay  over  the  same  to  the  State  Treasurer ;  and  in  case  the 
necessary  expenses  of  said  Department  exceed  the  amount  of  fees 
collected  under  this  act,  exclusive  of  the  tax  upon  premiums,  the 
excess  of  such  expense  shall  be  annually  assessed  by  the  Commis- 
sioner, in  just  proportioa,  upon  all  the  insurance  companies  doing 
business  in  this  State,  and  the  Commissioner  is  empowered  to  col- 
lect such  assessments  and  pay  the  same  into  the  State  Treasury ;  and 
all  the  necessary  expenses  of  the  Commissioner  in  the  execution  of 
this  act  shall  be  paid  by  the  State  Treasurer  upon  his  certificate 
and  the  warrant  of  Auditor-General,  out  of  the  fund  thus  created. 
{Ibid,  §  7.) 

25.  Within  ninety  days  after  the  first  Monday  of  May  next,  it 
shall  be  the  duty  of  every  insurance  company  of  this  State  to  file 
with  the  (Commissioner  a  certified  copy  of  its  charter,  together  with 
a  certificate,  stating  the  time  of  its  organization,  the  location  of  its 
principal  place  of  business  and  the  names  and  residence  of  its 
officers  ;  and  the  Commissioner  shall  proceed,  as  soon  as  i)racticable 
thereafter,  to  institute  an  examination  into  its  affaii^s,  in  accordance 
with  the  provisions  of  this  act;  and  any  company  failing  to  comply 
with  the  requirements  of  this  section,  shall  be  subject  to  a  fine  of 
one  hundred  dollars  for  each  month's  delay,  to  be  collected  as  other 
fines  and  penalties  under  this  act.     {Ibid,  §  8.) 


742  hike's  insurance  statutes. 

26.  It  shall  be  unlawful  for  any  person,  company  or  corporar 
tion,  to  negotiate  or  solicit  within  this  State  any  contract  of  insur- 
ance, or  to  effect  an  insurance  or  insurances,  or  pretend  to  eftect  the 
same,  or  to  receive  or  transmit  any  ofler  or  offers  of  insurance,  or 
receive  or  deliver  a  policy  or  policies  of  insurance,  or  in  any  manner 
to  aid  in  the  transaction  of  the  business  of  insurance  without  com- 
plying fully  with  the  provisions  of  this  act.     {Ibid,  p.  26,  §  9.) 

27.  T^o  person  shall  act  as  agent  or  solicitor  in  this  State  of 
any  insurance  company  of  another  State,  or  foreign  government,  in 
any  manner  whatever  relating  to  risks,  until  the  provisions  of  this 
act  have  been  complied  with  on  the  part  of  the  company  or  associa- 
tion, and  there  has  been  granted  to  said  company  or  association,  by 
the  Commissioner,  a  certificate  of  authority,  showing  that  the  com- 
pany or  association  is  authorized  to  transact  business  in  this  State  ; 
and  it  shall  be  the  duty  of  every  such  company  or  association,  au- 
thorized to  transact  business  in  this  State,  to  make  report  to  the 
Commissioner  in  the  month  of  January  of  each  year,  under  oath  of 
the  president  or  secretary  thereof,  showing  the  entire  amount  of 
premiums  of  every  character  ^nd  description  received  by  said  com- 
l)any  or  association  in  this  State,  during  the  year  or  fraction  of  a 
year  ending  with  the  thirty-first  day  of  December  preceding,  whether 
said  premiums  were  received  in  money  or  in  the  form  of  notes,  cred- 
its, or  diiij  other  substitute  for  money,  and  pay  into  the  State  Treas- 
ury a  tax  of  three  per  centum  upon  said  premiums  ;  aud  the  Com- 
missioner shall  not  have  power  to  grant  a  renewal  of  the  certificate 
of  said  company  or  association  until  the  tax  aforesaid  is  paid  into 
the  State  Treasury.    {Ihid,  §  10.) 

28.  Companies  to  which  certificates  of  authority  are  issued,  as 
provided  in  the  preceding  section,  shall,  from  time  to  time,  certify 
to  the  Commissioner  the  names  of  the  agents  appointed  by  them  to 
solicit  risks  in  this  State  ;  and  no  such  agent  shall  transact  business 
until  he  has  procured  from  the  Commissioner  a  certificate,  showing 
that  the  company  has  complied  with  the  requirements  of  this  act, 
and  that  tbe  person  named  in  said  certificate  has  been  duly  ap- 
pointed its  agent.     {I hid,  §  11.) 

29.  Every  insurance  company,  including  individuals,  partner- 
ships, joint-stock  associations  and  corporations  conducting  any 
branch  of  insurance  business  in  this  State,  must  transmit  to  the  In- 
surance Commissioner  a  statement  of  its  condition  and  business,  for 
the  year  ending  on  the  preceding  thirty-first  day  of  December, 
which  statement  shall  be  rendered  on  the  first  day  of  January  fol- 
lowing, qr  within  sixty  days  thereafter,  except  that  foreign  compa- 
nies shall  transmit  their  statement  of  business,  other  than  that  done 
in  the  United  States,  prior  to  the  following  first  day  of  July,  which 
statements  must  be  in  form,  and  state  the  particulars  required  by 
the  blanks  prescribed  by  the  Commissioner;  and  the  Insurance 
Commissioner  may  require,  at  any  time,  statements  from  any  com- 
pany doing  business  within  this  State,  or  from  any  of  its  officers  or 
agents,  on  such  points  as  he  deems  necessary  and  proper  to  elicit  a 
full  exhibit  of  its  business  and  standing,  all  of  which  statements 
herein  required  must  be  verified  by  the  signatures  and  oath  of  the 
president  or  vice-president,  with  those  of  the  secretary  or  actuary. 
No  company  having  neglected  to  file  a  statement  required  of  it 
within  the  time  and  manner  prescribed,  shall  do  any  new  business, 
after  notification  by  the  Insurance  Commissioners,  while  such  neg- 
lect continues ;  aud  any  company  or  association  neglecting  to  make 


PENNSYLVANIA.  743 

and  transmit  any  statement  required,  shall  forfeit  one  hundred  dol- 
lars for  each  day's  neglect.     {Ibid,  §  12.) 

30.  No  insurance  comjiany,  not  of  this  State,  nor  its  agents, 
sball  do  business  in  this  State,  until  he  has  filed  with  the  Insurance 
Commissioner  of  this  State  a  written  stipulation,  duly  authenticated 
by  the  company,  agreeing  that  any  legal  process  affecting  the  com- 
pany served  on  the  Insurance  Commissioner,  or  the  party  desig- 
nated by  him,  or  the  agent  specified  by  said  company  to  receive  ser- 
vice of  process  for  the  said  company,  shall  have  the  same  effect  as 
if  served  personally  on  the  company  within  this  State,  and  if  such 
company  should  cease  to  maintain  such  agent  in  this  State  so  de- 
signated, such  process  may  thereafter  be  served  on  the  Insurance 
Commissioner ;  but  so  long  as  any  liability  of  the  stipulating  com- 
pany to  any  resident  of  this  State  continues,  such  stipulation  can 
not  be  revoked  or  modified,  except  that  a  new  one  may  be  substi- 
tuted, so  as  to  require  or  dispense  with  the  service  at  the  office  of 
said  company  within  this  State,  and  that  such  service  of  process  ac- 
cording to  this  stipulation  shall  be  sufficient  personal  service  on  the 
company.  The  term  process  includes  any  writ  of  summons,  sub- 
poena, or  order,  whereby  any  action,  suit,  or  proceedings  shall  be 
commenced,  or  which  shall  be  issued  in  or  upon  any  action,  suit,  or 
proceedings  brought  in  any  court  of  this  commonwealth  having  ju- 
risdiction of  the  subject  matter.     {Ibid,  p.  27,  §  13.) 

3 1 .  Any  person  or  persons,  or  corporation,  receiving  premiums, 
or  forwarding  applications,  or  in  any  other  way  transacting  busi- 
ness for  any  insurance  company  or  association  not  of  this  State, 
without  having  received  authority  agreeably  to  the  provisions  of 
this  act,  shall  forfeit  and  pay  to  the  commonwealth  tbe  sum  of  five 
hundred  dollars  for  each  month  or  fraction  thereof  during  which 
such  illegal  business  was  transacted,  and  any  company  not  of  this 
State  doing  business  without  authority,  shall  forfeit  a  like  sum  for 
every  month  or  fraction  thereof,  and  be  prohibited  from  doing  busi- 
ness in  this  State  until  such  fines  are  fully  paid.     {Ibid,  §  14.) 

32.  The  taxes,  fines  and  penalties  provided  in  this  act  shall,  in 
case  of  non-payment,  after  notice  from  the  Commissioner,  be  col- 
lected as  taxes  upon  corporations  or  individuals  are  now  collected 
by  law,  and  for  this  purpose  the  Insurance  Commissioner  shall  have 
all  the  powers  now  conferred  by  law  upon  the  Auditor-Greneral  in 
the  settlement  of  accounts,  subject,  however,  to  the  approval  of  the 
State  Treasurer,  and  to  the  right  of  appeal  as  in  other  cases.  {Ibid, 
§15.) 

33.  Tbe  provisions  of  this  act  shall  not  be  applicable  to  insur- 
ance companies  incorporated  by  other  States,  or  by  the  United 
States,  or  by  foreign  governments,  until  from  and  after  the  first  day 
of  January,  anno  domini  one  thousand  eight  hundred  and  seventy- 
four;  nor  shall  it  apply,  excepting  the  eighth  section  of  this  act,  to 
fire  insurance  companies  of  this  State  organized  and  conducted  on 
the  purely  mutual  plan  with  premium  notes  as  the  basis  of  security, 
and  without  capital  stock,  guaranty  caj^ital  or  accumulated  reserve 
in  lieu  of  capital  stock,  but  the  mutual  companies  aforesaid  shall,  at 
all  times,  be  required  to  answer  such  interrogatories  as  the  Insur- 
ance Commissioner  may  require,  in  order  to  ascertain  their  true 
character  and  condition,  and  for  this  purpose  he  may,  at  any  time, 
institute  an  examination  into  their  affairs,  as  in  the  case  of  compa- 
nies subject  to  the  general  provisions  of  this  act.    {Ibid,  p.  28,  §  IG.) 

34.  It  shall  not  be  lawful  for  any  city,  county  or  muuioii)ality 


744  hike's  insurance  statutes. 

to  impose  or  collect  any  license  fee  or  tax  upon  insurance  companies 
or  their  agents,  authorized  to  transact  business  under  this  act. 
{Ibid,  §  17.) 

35.  An  act  to  revise,  amend  and  consolidate  the  several  laws 
regulating  the  licensing  of  foreign  insurance  companies,  approved 
Ai^ril  eleventh,  anno  domini  one  thousand  eight  hundred  and  six- 
ty-eight, is  hereby  repealed,  said  repeal  to  date  from  the  first  day 
of  January,  anno  domini  one  thousand  eight  hundred  and  seventy- 
four,  saving,  however,  to  the  commonwealth  the  right  to  collect  all 
taxes  and  fees  accrued  under  said  act.     {Ibid,  §  18.) 

INSURANCE  COMPANIES  CHARTERED  BY  THE  COMMON 

WEALTH. 

36.  The  said  Courts  of  Common  Pleas  shall  have  power  and 
authority  to  grant  charters  of  incorporation,  in  all  cases  wherein 
any  number  of  persons,  citizens  of  this  commonwealth,  are  associated 
for  the  purpose  of  insuring  horses,  cattle  and  other  live  stock,  against 
loss  by  death,  from  diseases  or  accident,  or  from  being  stolen  *  ♦  • 
and  in  granting  such  charters  of  incorporation,  the  said  courts  shall 
proceed  in  the  manner  provided  by  law  for  the  incorporation  of 
literary,  charitable  or  religious  societies  ;  and  the  said  courts  shall 
have  power  to  incorporate,  by  the  same  form  of  i)roceeding,  fire  in- 
surance companies;  which  said  companies,  when  so  incorporated, 
shall  have  all  the  rights,  powers  and  privileges,  and  be  subject  to 
all  the  restrictions  and  provisions  of  the  general  law  regulating  fire 
insurance  companies,  approved  April  second,  one  thousand  eight 
hundred  and  fifty  six,  and  the  several  supplements  thereto.  {Laws 
o/1867,i>.  45,  §3.) 

37.  Insurance  companies  created  by  the  Courts  of  Common 
Fleas,  under  the  provisions  of  the  act  of  March  twenty- sixth,  one 
thousand  eight  hundred  and  sixty-seven,  entitled  "  An  act  to  enlarge 
the  jurisdiction  of  the  Courts  of  Common  Pleas  of  this  Common- 
wealth," shall  be  chartered  by  the  said  courts  as  of  the  first  class  as 
set  forth  and  defined  in  section  seven  of  the  act  of  April  two,  one 
thousand  eight  hundred  and  fifty-six  [47],  entitled  "An act  to  pro- 
vide for  the  incorporation  of  insurance  companies;"  and  all  insurance 
companies  so  incorporated  shall  have  such  amount  of  capital  stock 
as  may  be  determined  by  the  court  (not  less  in  any  case  than  fifty 
thousand  dollars),  at  least  fifty  per  cent,  of  which  shall  be  paid  in 
before  any  certificate  of  incorporation  shall  be  issued.  {Laivs  of 
1869,  p.  7,  §  1.) 

38.  All  insurance  companies  organized  under  the  provisions  of 
this  act,  or  the  acts  to  which  this  is  a  supplement,  shall  pay  into  the 
State  treasury  the  same  bonus,  and  in  like  manner,  as  prescribed  by 
the  fifteenth  section  of  the  act  approved  May  one,  one  thousand 
eight  hundred  and  sixty-eight,  entitled  "  An  act  to  revise,  amend 
and  consolidate  the  several  laws  taxing  corporations,  brokers  and 
bankers,"  and  such  tax  on  dividends  on  capital  stock  as  is  now  or 
may  hereafter  be  required  by  law ;  and  said  bonus  shall  be  paid  to 
the  State  Treasurer  before  the  certificate  of  incorporation  shall  be 
issued.     {Ibid,  p.  8,  §  2.) 

39.  All  payments  for  stock  required  to  be  made  under  the 
provisions  of  said  act  of  April  two,  one  thousand  eight  hundred 
and  fifty-six,  may  be  made  in  lawful  money  of  the  United  States. 
{Ibid,  §  3.) 


PENNSYLVANIA.  745 

40.  The  provisions  of  the  first  section  of  an  act  entitled  "  An 
act  supplementary  to  an  act  to  enlarge  the  jurisdiction  ofthe  Courts 
of  Common  Pleas  of  this  Commonwealth,"  approved  March  twenty- 
sixth,  one  thousand  eight  hundred  and  sixty-seven,  so  far  as  the 
same  relates  to  the  chartering  of  insurance  companies,  shall  not 
apply  to  mutual  fire  insurance  companies,  but  such  companies  may 
be  incorporated  bv  the  courts,  without  a  capital  stock.  {Laics  of 
1871,  p.  240.) 

4 1 .  Whenever  the  Courts  of  Common  Pleas  shall  authorize  the 
incorporation  of  an  insurance  company  within  this  commonwealth, 
the  commissioners  named  in  the  charter,  or  any  five  of  them,  shall 
have  power  to  open  books  for  receiving  subscriptions  to  the  capital 
stock  of  said  company,  at  such  time  and  place  as  they  may  deem 
expedient,  after  having  given  at  least  thirty  days  previous  notice  in 
one  or  more  newspapers  published  in  the  county  where  a  book  of 
subscription  is  to  be  opened,  or  if  no  such  paper  shall  be  published 
in  said  county,  then  in  a  newspaper  published  in  the  next  adjoining 
county,  at  which  time  and  place  two  or  more  of  said  commissioners 
shall  attend,  and  permit  all  persons  of  lawful  age  who  shall  offer  to 
subscribe  in  such  book  in  their  own  names,  or  in  the  name  of  any 
person  who  shall  duly  authorize  the  same,  for  any  number  of  shares 
of  stock ;  and  the  said  book  shall  be  kept  open  for  the  purpose  afore- 
said, at  least  six  hours  in  every  secular  day  for  the  space  of  five  days, 
or  until  the  said  book  shall  have  the  whole  number  of  shares  so  au- 
thorized therein  subscribed,  and  if  at  the  expiration  of  the  said  five 
days  the  book  aforesaid  shall  not  have  the  full  number  of  shares  so 
authorized  therein  subscribed,  the  said  commissioners  may  adjourn 
from  time  to  time,  and  transfer  said  book  from  place  to  place  until 
the  whole  number  of  shares  shall  be  subscribed,  of  which  adjourn- 
ment and  transfer  the  commissioners  aforesaid  shall  give  public 
notice  in  one  or  more  newspapers  published  as  aforesaid ;  and  when 
the  whole  number  of  shares  shall  be  subscribed,  as  aforesaid,  the 
said  book  shall  be  closed ;  Provided,  always^  That  every  person  otfer- 
ing  to  subscribe  in  such  books,  in  his  own  or  any  other  name,  shall 
at  the  time  of  subscribing  j)ay  to  the  attending  commissioners  five 
dollars  for  every  share  subscribed  by  such  person,  out  of  which  fund 
shall  be  defrayed  such  incidental  charges  and  expenses  as  may  be 
incurred  in  taking  such  subscriptions,  and  the  remainder  shall  be 
paid  to  the  treasurer  of  the  corporation  as  soon  as  the  same  shall 
be  organized,  and  the  officers  chosen,  as  hereinafter  mentioned. 
{Brifihtly's  Purdon's  Digest,  1700-1872,  p.  790,  §1.) 

4:ii,  When  twenty  persons  or  more  shall  have  subscribed  the 
whole  number  of  shares  authorized,  and  shall  have  paid  ten  per 
centum  on  the  capital  stock,  the  said  commissioners,  or  a  majority 
of  them,  shall  certify,  under  their  hands  and  seals,  and  with  their 
oaths  or  affirmations  respectively,  the  names  of  the  subscribers,  and 
the  number  of  shares  subscribed  and  amount  paid  in  by  each,  to  the 
Governor  of  this  commonwealth,  who  thereupon,  if  satisfied  of  the 
truth  of  said  certificate,  shall,  by  letters  patent  under  his  hand  and 
seal  of  State,  create  and  erect  the  subscribers  into  a  body  politic 
and  corporate  in  deed  and  in  law,  by  the  name,  style  and  title  de- 
signated by  said  special  act ;  and  by  such  name  the  said  subscribers, 
and  those  who  may  thereafter  become  associated  with  them,  shall 
have  perpetual  succession,  and  shall  be  able  to  sue  and  be  sued,  im- 
plead and  be  imi^leaded,  in  all  courts  of  record  and  elsewhere,  and 
to  make  and  to  have  a  common  seal,  and  the  same  to  break,  alter 


746  hine's  insurance  statutes. 

and  renew  at  pleasure ;  and  also  to  ordain,  establish  and  put  in  exe- 
cution such  by-laws,  ordinances  and  regulations,  as  shall  be  neces- 
sary and  convenient  for  the  government  of  said  corporation,  not 
being  contrary  to  the  Constitution  or  laws  of  the  United  States  or 
of  this  commonwealth,  and  generally  to  do  all  and  singular  the  mat- 
ters which  to  them  it  shall  lawfully  appertain  to  do  for  the  well  being 
of  the  said  corporation  and  the  management  of  the  affair^  thereof. 
{Ibid,  p.  791,  §  2.) 

43.  The  capital  stock  of  such  company  shall  be  divided  into 
shares  of  fifty  dollars  each,  payment  of  which  shall  be  made  in  gold, 
silver,  or  notes  of  specie-paying  banks  of  this  commonwealth,  and 
in  the  manner  following,  to  wit:  five  dollars  on  each  share  at  the 
time  of  subscription  as  aforesaid,  and  twenty  dollars  on  each  sliare 
within  ninety  days  thereafter,  the  residue  to  be  paid  in  such  install- 
ments as  by  the  by-laws  of  the  corporation  shall  be  directed,  and  if 
any  subscriber,  his  or  her  assignee  or  transferee,  shall  refuse  or  neg- 
lect to  pay  the  first  or  any  subsequent  installment  called  for  and  de- 
manded by  the  directors  of  said  company  for  the  space  of  sixty  days 
after  the  same  shall  be  payable,  such  subscriber,  his  or  her  assignee 
or  transferee,  shall  forfeit*^  each  and  every  share  on  which  payment 
shall  not  have  been  duly  made,  or  shall  be  liable  to  suit  therefor, 
with  one  per  cent,  a  month  interest  thereon,  in  the  same  manner  as 
debts  of  the  like  amount  are  now  recoverable.     {Ibid,  §  3.) 

44.  The  affairs  of  said  company  shall  be  managed  by  twelve 
directors,  stockholders  of  the  said  corporation,  who  shall  be  elected 
annually  on  the  second  Monday  of  January,  between  the  hours  of 
ten  A.M.  and  two  p.m.,  and  the  directors  so  elected  shall  appoint  a 
president  and  vice-president  of  the  company,  and  such  other  ofdcers 
and  agents  as  they  may  deem  necessary  for  conducting  the  business 
of  the  corporation,  who  shall  perform  the  duties  of  their  respective 
ofiaces  until  they  shall  be  re-elected,  removed  from  office,  or  their 
successors  shall  be  chosen,  and  in  case  of  the  death  or  resignation 
of  a  director,  the  vacancy  occasioned  thereby  shall  be  filled  by  the 
remaining  directors.     {Ibid,  §  4.) 

45.  At  all  elections  for  directors  the  votes  of  the  stockholders 
shall  be  by  ballot,  each  share  of  stock  not  exceeding  ten  having 
one  vote,  and  every  five  shares  over  ten  having  one  additional  vote. 
No  stockholder  shall  vote  by  proxy,  nor  shall  he  or  she  be  entitled 
to  vote  after  the  said  first  election,  unless  the  share  or  shares  shall 
have  been  standing  in  his  or  her  name  on  the  books  of  the 
company  for  three  months  previous  to  said  election,  nor  unless 
the  whole  sum  due  and  payable  on  the  share  or  shares  by  him  or 
her  held  at  the  time  of  such  election,  shall  have  been  fully  paid  and 
discharged.  The  first  election  of  directors  shall  be  held  on  the  third 
Monday  after  letters  patent  shall  have  been  granted  as  aforesaid  ; 
and  said  directors  then  chosen  shall  hold  their  ofiices  until  the  first 
annual  election,  or  until  new  directors  shall  be  chosen  as  herein  pro- 
vided.    {Ibid,  §  5.) 

415.  The  shares  of  stock  of  the  said  corporation  shall  be  assign- 
able and  transferable  only  on  the  books  of  the  corporation,  accord- 
ing to  such  rules  and  regulations  as  the  directors  shall  for  that  pur- 
pose ordain  and  establish,  and  not  otherwise.     [Ibid,  p.  792,  §  0.) 

47.  The  said  companies  shall  be  *  *  *  empowered 
to  take  risks  against  fire  on  all  kinds  of  buildings,  merchandise 
and  other  property,  either  limited  or  perpetual ;  to  eftect  marine 
and  inland  insurances  on  vessels,  cargoes    and  freights,  and    on 


PENNSYLVANIA.  747 

mercliaiidise  and  other  property  transported  on  rivers,  canals, 
lakes  and  railroads,  and  by  steamboats,  wagons  or  other  wise, 
and  to  reinsure  themselves ;  #  *  #  Provided,  That  any 
com jiany  may  limit  itself  in  its  charter  to  the  exercise  of  a  portion 
of  the  powers  enumerated.     *     *     *     (Z6i<?,  §  7.) 

48.  Any  company  incorporated  under  this  act  shall  not  have 
nor  exercise  the  powers  of  savings  or  discount  institutions,  and 
shall  be  subject  to  the  right  of  the  legislature  to  alter,  revoke  or 
annul  their  charters,  whenever,  in  their  opinion,  it  may  be  neces- 
sary for  the  public  welfare ;  in  such  manner,  however,  that  no  in- 
justice can  be  done  to  the  corporators.     {Ibid,  §  8.) 

49.  It  shall  and  may  be  lawful  for  said  companies  to  employ 
and  invest  their  capital  stock,  and  other  moneys  of  said  companies, 
in  bonds  and  mortgages  on  real  estate,  in  respondentia  or  bottomry 
bonds,  ground  rents,  stocks  or  loans  of  the  United  States  and  State 
of  Pennsylvania,  and  stocks  or  loans  of  any  borough,  city  or  insti- 
tution, incor]>orated  by  the  laws  of  this  State,  and  in  other  good 
securities,  and  to  sell  and  transfer  the  same,  and  to  reinvest  the 
proceeds  of  such  sale  or  transfer  in  other  such  loans,  stocks  or  securi- 
ties ;  and  the  real  estate  which  it  shall  be  lawful  for  said  company 
to  purchase,  receive,  hold,  and  convey,  shall  be — 

First — Such  as  shall  be  requisite  for  its  immediate  accommoda- 
tion in  the  convenient  transaction  of  business. 

Second— Such  as  shall  have  been  mortgaged  to  it  in  good  faith, 
by  way  of  security  for  loans  previously  contracted,  or  for  moneys 
due. 

Third — Such  as  shall  have  been  conveyed  to  it  in  satisfaction  of 
debts  previously  contracted  in  the  course  of  its  dealings. 

Fourth — Such  as  shall  be  purchased  at  sales  upon  judgments, 
decrees  or  mortgages,  obtained  or  made  for  debts  due  said  com- 
pany, or  for  debts  due  other  persons  where  said  company  may  have 
liens  or  incumbrances  on  the  same,  and  the  purchase  is  deemed 
necessary  to  save  the  company  from  loss ;  Provided,  That  no  real 
estate  acquired  by  the  corporation,  except  that  necessary  for  the 
transaction  of  business,  shall  be  retained  by  said  corporation  for  a 
longer  period  than  five  years  ;  and  Provided,  further.  That  whenever 
such  company  shall  have  the  power  of  receiving  and  executing 
trusts  under  the  second  classification  aforesaid,  it  shall  be  and  is 
hereby  authorized  and  empowered  to  take,  receive  and  hold,  all 
estates  and  property,  real  and  personal,  which  may  be  granted, 
committed,  transferred  or  conveyed  to  it  with  its  consent  upon  any 
trust  or  trusts  whatsoever,  at  any  time  or  times,  by  any  person  or 
persons,  body  or  bodies  corporate,  or  by  any  court  of  the  United 
States  or  of  this  State,  and  to  administer,  fulfill  and  discharge,  the 
duties  of  such  trusts.     {Ibid,  §  9.) 

50.  In  execution  of  the  several  powers  that  may  be  conferred 
on  such  companies  respectively,  they  are  hereby  empowered  to 
make,  execute  and  perfect,  such  contracts,  bargains,  agreements, 
policies  and  other  instruments,  as  shall  or  may  be  necessary,  and  as 
the  nature  of  the  case  may  require ;  and  every  such  contract,  bar- 
gain, policy  and  other  agreement,  shall  be  in  writing  or  i)rint  under 
the  corporate  seal,  and  signed  by  the  president,  or  in  his  absence  or 
inability  to  serve,  by  the  vice-president^  or  other  officer  in  that  event 
designated  by  the  by-laws,  and  shall  be  duly  attested  bj-^  the  secre- 
tary or  other  i)roper  officer  of  said  company,  who  may  be  in  like 
manner  designated.     {Ibid,  §  10.) 


748  hike's  insurance  statutes. 

•51,  Whenever  any  company  may  be  incorporated  under  this 
law,  and  may  intend  to  transact  its  business  upon  the  mutual  prin- 
ciples exclusively,  or  in  connection  with  a  joint  stock  capital,  it  shall 
be  so  designated  in  its  charter ;  and  if  upon  the  mutual  principle 
exclusively,  then  the  parties  named  in  said  special  act,  and  their  as- 
sociates, shall  be  made  and  constituted  a  body  corporate,  directly, 
and  without  the  grant  of  letters  patent,  as  hereinbefore  provided  in 
reference  to  joint  stock  companies ;  and  in  that  case  all  persons  in- 
suring with,  and  continuing  to  be  insured  therein,  shall  thereby 
become  members  during  the  period  they  shall  remain  so  insured, 
and  no  longer,  and  shall  pay  such  rates  as  shall  be  determined  by 
the  board  of  directors,  and  be  liable  for  all  losses  and  expenses  of 
said  company  to  the  amount  of  the  premiums  paid,  or  agreed  to  be 
paid  by  said  members  respectively.  At  the  elections  for  directors, 
each  member  insured  by  any  sum  not  less  than  one  dollar,  paid  in 
as  a  ijremium  of  insurance  to  said  company  during  the  year  previous 
to  said  election,  and  on  policy  then  existing,  shall  have  one  vote ; 
and  for  every  additional  twenty-five  dollars  so  paid,  one  other  vote. 
In  other  respects  the  management  of  said  mutual  companies  shall 
be  as  hereinbefore  provided  in  reference  to  joint  stock  insurance 
companies.     {Ibid,  §  11.) 

5i£.    The  directors  of  the  said  companies  shall,  on  the  first  Mon- 
day of  January  and  July  in  each  and  every  year,  declare  dividends  of 
profits  as  to  them  shall  appear  advisable,  first  deducting  all  expenses 
and  losses,  but  the  moneys  received  for  premiums  upon  risks,  which 
remain  undetermined  and  outstanding  at  the  time  of  declaring  such 
dividend,  shall  not  then  be  considered  as  part  of  the  profits,  nor 
divided  as  such,  when  said  companies  are  conducted  upon  the  joint 
stock  principle ;  said  dividends  shall  be  paid  to  the  respective  stock- 
holders, or  to  the  agents  duly  empowered  to  receive  them ;  and 
when  organized  upon  the  mutual  principle  exclusively,  each  mem- 
ber  shall  be  entitled  to   such  a   proportion  of  the  said  surplus 
as  the  cash  premium  paid  by  such  members  respectively  may 
bear  to  the  aggregate  sui'plus  so  declared;  and  for  the  propor- 
tionate share  of  each  member  so  ascertained,  a  certificate   shall 
be  issued  declaring  him  or  them  to  be  entitled  to  such  a  portion  of 
the  accumulated  capital  of  the   company,  said  certificate   to   be 
construed  and  governed  as  hereinafter  mentioned;  but  no  certificate 
shall  be  issued  for  a  less  sum  than  twenty-five  dollars,  nor  for  any 
fractional  part  of  five  dollars,  and  shall,  at  the  discretion  of  the  di- 
rectors, bear  and  be  paid  interest  at  a  rate  not  exceeding  six  per 
centum  per  annum.     When  said  companies  shall  be  organized  upon 
the  stock  and  mutual  principle  jointly,  the  directors,  after  ascertain- 
ing the  surplus  as  above  mentioned,  shall  first  set  aside  out  of  the 
same  six  per  cent,  on  the  actual  value  of  the  capital  stock  of  said 
company ;  which  valuation  shall  be  estimated  by  the  said  directors 
for  that  purpose,  and  the  balance  shall  be  apportioned  among  the 
insured  members  and  the  stockholders ;  and  each  insured  member 
shall  receive  certificates  as  aforesaid  for  such  a  y>roportiou  of  the  said 
surplus  as  the  premiums  paid  by  him  on  determined  risks  may  bear 
to  the  entire  collective  amount  of  stock  valued  as  aforesaid,  and 
premiums  earned;  and  each  stockholder  shall  receive  such  a  pro- 
portion of  the  same  as  the  stock  so  valued  and  held  by  him  may 
bear  to  the  entire  collective  amount  of  said  stock  and  premiums 
earned.     {Ibid,  §  15.) 

53.    No  dividend  shall  be  declared,  certificate  issued,  or  interest 


PENNSYLVANIA.  749 

paid  to  either  stock  or  certiticate-holders,  when  the  capital  stock 
shall  have  been  reduced,  by  losses  or  expenses,  until  the  same  shall 
have  been  restored.  And  if  the  directors  shall  knowingly  make  a 
dividend  or  dividends  contrary  to  the  true  intent  and  meaning  of 
the  prohibition  herein  contained,  such  of  them  as  shall  consent 
thereto,  shall  in  their  individual  capacity  be  accountable  for,  and 
pay  over  to  the  said  company  for  the  use  thereof,  as  much  as  they 
may  divide  and  pay  without  authority ;  and  each  director  in  office 
at  the  time  of  making  such  dividend  so  prohibited,  shall  be  deemed 
as  consenting  thereto,  unless  he  or  they  shall,  at  the  time  of  mak- 
ing and  declaring  the  same,  be  absent,  or  if  present,  shall  imme- 
diately enter  his  or  their  protest  on  the  minutes  of  the  board ;  no 
interest  shall  be  paid  on  certificates  of  surplus  profit  until  the  in- 
terest on  the  stock  of  said  company  shall  first  be  provided  for. 
{Ibid,  p.  704,  §  16.) 

54.  Within  thirty  days  after  the  yearly  balance  of  the  aifairs 
of  said  company  shall  be  struck,  the  directors  shall  cause  to  be 
j)aid,  in  cash,  to  the  stockholders  of  any  such  joint  stock  insurance 
company,  the  amount  of  dividends  they  may  respectively  be  entitled 
to ;  and  when  any  such  company  may  be  chartered  upon  the  stock 
and  mutual  principle  combined,  they  shall  cause  to  be  paid  to  the 
stockholders,  in  cash,  not  exceeding  six  per  centum  on  their  stock 
respectively ;  and  shall  issue  the  company's  certificate  to  such  in- 
sured members  and  stockholders  respectively,  agreeably  to  the 
provisions  of  the  twelfth  section;  in  which  case,  and,  when  said 
company  shall  be  chartered  on  the  mutual  principle  exclusively, 
the  certificates  issued  to  the  members  as  aforesaid  shall  not  be  paid 
until  the  net  profits  or  surplus  shall  exceed  the  sum  of  two  hun- 
dred and  fifty  thousand  dollars,  when  the  said  excess  may  be  ap- 
plied for  the  redemption  of  said  certificates,  and  any  arrears  of 
interest  that  may  have  been  allowed  thereon.     {Ibid,  §  17.) 

55.  It  shall  be  the  duty  of  every  company  incorporated  under 
this  act  to  publish  within  thirty  days  after  the  first  Monday  of 
January,  in  each  year,  at  least  three  times  a  week  for  the  space  of 
two  weeks,  in  a  daily  newspaper  published  in  the  county  in  which 
they  do  business,  if  a  daily  newspaper  be  printed  in  said  county ; 
and  in  such  counties  where  no  daily  newspaper  is  published,  once  a 
week  for  three  weeks,  a  statement  showing  particularly,  in  tabular 
form,  the  amount  of  their  capital  authorized  and  paid  in;  the 
amount,  nature,  and  actual  value  of  their  assets ;  the  annual  amount 
of  their  premiums,  and  the  amount  derived  from  interest  on  loans 
or  investments  during  the  said  period;  the  amount  of  annual  ex- 
penses of  said  company  ;  the  amount  of  their  losses  during  said 
period,  and  the  amount  of  their  risks,  insurances,  and  annuities, 
and  also  of  their  debts  and  liabilities.     {Ibid,  §  18.) 

56.  All  companies  incorporated  under  this  act  shall  semi- 
annually account  for,  and  pay  into  the  treasury  of  this  common- 
wealth, the  tax  on  capital  stock  and  dividends,  as  provided  by  the 
thirty -third  section  of  "  An  Act  to  reduce  the  State  debt,  and  in- 
corporate the  Pennsylvania  Canal  and  Railroad  Company,"  passed 
the  twenty-ninth  day  of  April,  anno  domini  one  thousand  eight 
hundred  and  forty-four,  or  as  may  be  from  time  to  time  provided  by 
law.     {Ibid,  §  19.) 

57.  Any  violation  of  the  provisions  of  their  charter  by  any 
of  the  companies  aforesaid  shall  be  held  and  deemed  a  forfeiture  of 
the  corporate  privileges  therein  conferred ;  and  said  forfeitm-e  shall 


760  hine's  insurance  statutes. 

be  declared  upon  quo  warranto,  or  otherwise  according  to  law,  at 
the  relation  of  the  commonwealth  or  of  any  private  citizen.  {Ibid, 
p.  795,  §  21.) 

58.  Nothing  contained  in  the  ninth  section  of  the  act  to 
which  this  is  a  supplement,  shall  be  so  construed  as  to  authorize 
any  company  incorporated  under  the  provisions  of  said  act  to  invest 
or  employ  their  capital  stock  or  other  moneys  in  the  purchase  or 
discount  of,  or  advance  upon  promissory  notes,  bills  of  exchange,  or 
other  negotiable  paper.     {Laws  of  1857,  p.  380.) 

59.  Corporations  may  be  formed  uuder  the  provisions  of  this 
act  by  the  voluntary  association  of  five  or  more  i)ersons,  for  the 
jjurposes  and  in  the  manner  mentioned  herein  ;  and  when  so  formed, 
each  of  them,  by  virtue  of  its  existence  as  such,  shall  have  the  fol- 
lowing powers,  unless  otherwise  specially  provided:  First — To 
have  succession  by  its  corporate  name  for  the  period  limited  by  its 
charter,  and  when  no  period  is  limited  thereby,  or  by  this  act,  per- 
petually, subject  to  the  power  of  the  General  Assembly,  under  the 
constitution  of  this  commonwealth.  Second — To  maintain  and  de- 
fend judicial  proceedings.  Third— To  make  and  use  a  common 
seal,  and  alter  the  same  at  pleasure.  Fourth — To  hold,  purchase, 
and  transfer  such  real  and  personal  property  as  the  purposes  of  the 
corporation  reqmre,  not  exceeding  the  amount  limited  by  its  charter 
or  by  law.  Fifth — To  appoint  and  remove  such  subordinate  officers 
and  agents  as  the  business  of  the  corporation  requires,  and  to 
allow  them  a  suitable  compensation.  Sixth — To  make  by-laws  not 
inconsistent  with  law,  for  the  management  of  its  property,  the  regu- 
lation of  its  affairs,  and  the  transfer  of  its  stock.  Seventh — To 
enter  into  any  obligation  necessary  to  the  transaction  of  its  ordi- 
nary affairs.     {Laws  of  1874,  p.  73,  §  1.) 

60.  The  purposes  for  which  the  said  corporation  may  be 
formed,  shall  be  as  follows  [among  others]  : 

The  insurance  of  the  lives  of  domestic  animals. 

The  insurance  of  human  beings  against  death,  sickness  or  per- 
sonal injury. 

The  prevention  and  punishment  of  theft  or  willful  injuries  to 
property,  and  insurance  against  such  risks. 

The  insurance  of  owners  of  real  estate,  mortgagees,  and  others 
interested  in  real  estate,  from  loss  by  reason  of  defective  titles, 
liens  and  incumbrances.     {Ibid,  §  2.) 

61  o  Companies  incorporated  under  the  provisions  of  this  act 
for  the  insurance  of  the  lives  of  domestic  animals,  or  any  of  them, 
shall  have  the  power  and  right  to  make  insurance  of  every  kind, 
pertaining  to  or  connected  with  life  risks  of  domestic  animals  of 
any  and  every  kind,  and  against  the  loss  by  death  of  all  kinds  of 
cattle,  live  stock,  valuable  beasts,  and  domestic  animals  of  every 
kind,  whether  such  death  be  the  result  of  accident,  natural  causes, 
or  diseases  of  any  description  whatever,  and  to  make,  execute  and 
perfect  such  and  so  many  contracts,  agreements,  policies,  and  other 
instruments  as  may  be  required  therefor.     {Ibid,  p.  84,  §  27.) 

63.  Companies  incorporated  under  the  provisions  of  this  act 
for  the  insurance  of  human  beings  against  sickness,  death  or  per- 
sonal injury,  shall  have  the  power  and  right  to  make  insurances  of 
every  kind  pertaining  to  or  connected  with  death,  accidents  of  every 
natute  and  kind  to  human  beings,  and  to  insurances  of  every  kind 
against  the  death,  sickness  or  the  health  of  human  beings  by  dis- 
ease of  every  kind,  and  whether  within  this  commonwealth  or  be- 


PENNSYLVANIA.  751 

yond  it,  and  such  corporations  shall  have  the  power  and  right  to 
inake,  execute  and  perfect  such  and  so  many  contracts,  agreements, 
policies  and  other  instruments  as  may  be  required  therefor.  {Ibidy 
§28.) 

63.  Companies  incorporated  under  the  provisions  of  this  act 
for  the  insurance  of  owners  of  real  estate,  mortgagees  and  others  in- 
terested in  real  estate,  from  loss  by  reason  of  defective  titles,  liens 
and  incumbrances,  shall  bave  the  power  and  right  to  make  insur- 
ances of  every  kind  pertaining  to  or  connected  with  titles  to  real 
estate,  and  shall  have  the  i)ower  and  right  to  make,  execute  and 
perfect  such  and  so  many  contracts,  agreements,  policies  and  other 
instruments  as  may  be  required  therefor.     {Ibid,  §  29.) 

04.  All  insurance  or  trust  companies,  created  by  the  laws  of 
this  commonwealth,  shall,  on  or  before  the  third  Tuesday  of  Jan- 
uary, 1843,  and  annually  thereafter,  publish  in  one  or  more  news- 
papers in  the  city  or  county  in  which  they  may  have  been  estab- 
lished, a  detailed  statement  of  the  assets  belonging  to  the  said 
institutions,  that  is  to  say  :  a  description  of  the  property ;  if  real 
estate,  what  kind  and  where;  if  mortgages,  whether  first,  second  or 
otherwise ;  if  stock,  what  kind  and  description  of  the  same ;  desig- 
nating, if  bank  stocks,  what  bank  or  banks,  what  amount,  if  any, 
that  is  loaned  upon  other  securities,  together  with  the  amount  of 
cash  upon  hand  at  the  time  said  statement  shall  be  made.  {Brightly^s 
Purdoris  Digest,  1700-1872,  2).  795,  §  22.) 

65.  Any  insurance  comj)any  incorporated  under  the  laws  of 
this  commonwealth,  desiring  to  transact  business  in  other  States, 
the  laws  whereof  require  that  such  company  shall  first  deposit  secur- 
ities of  a  designated  value  with  the  Auditor-General  or  other  proper 
officer  of  this  State  in  trust  and  for  the  benefit  of  all  its  policy-hold- 
ers, is  hereby  authorized  to  deposit  with  either  of  said  officers  secur- 
ities for  such  a  sum  as  the  laws  of  such  other  States  designate  ;  and 
if  such  officer  is  satisfied  that  such  securities  are  worth  the  said 
sum,  it  shall  be  his  duty  to  receive  and  hold  the  same  or  those  given 
in  exchange  therefor  as  hereinafter  provided,  and  for  the  purjiose 
aforesaid,  and  from  time  to  time  upon  the  written  request  of  said 
insurance  comi)any,  to  certify  under  his  hand  and  official  seal  to  the 
proper  officer  of  such  other  State  or  States  wherein  said  insurance 
company  may  desire  to  transact  business,  that  said  company  has 
deposited  with  him  securities,  giving  the  items  of  kind  thereof,  and 
that  he  is  satisfied  they  are  worth  the  sum  designated  by  the  laws 
of  such  other  State  or  States ;  Provided,  That  such  insurance  com- 
pany shall  be  entitled  to  demand  and  receive  from  the  Auditor-Gen- 
eral or  other  officer  of  this  State,  from  time  to  time,  the  whole  or 
any  portion  of  any  securities,  upon  depositing  with  him  in  lieu 
thereof  other  securities  of  at  least  equal  value,  and  also  to  demand, 
receive,  sue  for  and  recover  the  interest  and  income  from  said 
securities  from  the  payee  or  obligee  thereof  as  the  same  becomes  due 
and  payable,  and  that  the  Auditor-General  shall  charge  the  usual 
fee  for  the  issuing  of  such  certificates.     {Ibid,  p.  793,  §  13.) 

66.  When  any  insurance  company  shall  deposit  as  aforesaid 
the  loans  of  this  commonwealth,  the  Auditor-General  shall  notify 
the  Farmers'  and  Mechanics'  Bank  of  Philadelphia  or  other  agent 
authorized  hy  law  to  transfer  the  same,  of  such  deposit,  giving  the 
name  of  the  company  so  depositing,  the  amount  deposited,  with  the 
numbers  of  the  certificates  of  such  loans ;  and  it  shall  not  be  lawful 
to  transfer  any  of  the  said  loan  without  the  certificate  of  the  Auditor- 


752  htoe's  insubance  statutes. 

General  that  such  company  has  received  the  same  from  him  accord- 
ing to  the  provisions  of  this  act,  and  the  authority  or  power  to  trans- 
fer duly  executed  by  the  company  owning  the  said  loan  under  its 
corporate  seal :  Provided,  however,  That  when  deposits  shall  be  made 
in  securities  other  than  the  loan  of  this  commonwealth,  such  com- 
pany shall  pay  into  the  treasury  of  the  commonwealth,  at  the  time 
of  such  first  deposit,  the  sum  of  fifty  dollars.    {Ibid,  §  14.) 

INSURA]!^CE  COMPANIES  OF  OTHER  STATES  AND  FOR- 
EIGN COUNTRIES. 

67.  No  body,  politic  or  corporate,  of  any  foreign  State,  king- 
dom or  country,  no  company  or  partnership  of  foreigners,  by  them- 
selves or  any  agent  or  agents  of  such  company  or  copartnership, 
and  no  person  or  persons,  who  is  or  are  not  a  citizen  or  citizens  of 
the  United  States,  shall  be  insurers,  in  any  case,  within  this  State, 
against  loss  at  sea,  against  loss  by  fire,  upon  any  property  within 
the  same,  upon  inland  transportation  of  any  goods,  wares  or  mer- 
chandise in  or  out  of  this  State,  or  upon  the  life  or  lives  of  any  per- 
son or  persons  residing  within  the  same ;  and  all  contracts  and  pol- 
icies entered  into  by  any  such  person  or  persons,  company,  copart- 
nership or  body  politic  or  corporate,  as  insurers,  shall  be  null  and 
void.  *    {Ibid,  p.  795,  §  25.) 

68.  If  any  person  or  persons  shall  make  or  renew  any  contract 
or  policy  of  insurance,  as  assurers  on  acount  or  in  behalf  of,  or  as 
agent  or  agents  for  any  body,  politic  or  corporate,  of  any  foreign 
State,  kingdom  or  country,  any  company  or  copartnership  of  for- 
eigners, or  any  person  or  persons  who  is  or  are  not  a  citizen  or  citi- 
zens of  the  United  States,  within  this  State,  every  such  person  or 
persons  so  offending  shall,  on  conviction  in  any  court  of  competent 
jurisdiction,  forfeit  and  pay  the  sum  of  five  thousand  dollars  for 
every  such  offense,  one-half  to  the  use  of  the  commonwealth,  and 
the  other  to  the  use  of  the  informer,  who  shall  sue  for  the  same.* 
(Ibid,  §  2G.) 

6'J.  If  any  citizen  or  citizens  of  this  commonwealth  shall  make 
or  renew  any  contract  or  policy  of  insurance,  as  a  party  insured, 
■with  any  foreign  company  or  corporation,  any  agent  or  agents  for 
any  such  company  or  corporation,  or  with  any  person  or  persons 
who  is  or  are  not  citizens  of  the  United  States,  every  person 
so  offending  shall,  on  conviction  in  any  court  of  competent  juris- 
diction, forfeit  and  pay  the  sum  of  five  hundred  dollars,  to  the  uses 
aforesaid ;  and  in  all  and  either  case  or  cases,  the  policy  or  policies 
shall  be  deemed  and  received  as  conclusive  evidence  of  such  con- 
tract of  insurance ;  Provided,  nevertheless.  That  the  penalty  herein 
mentioned  shall  not  be  construed  to  extend  to  any  case  of  marine 
insurance  made  in  any  foreign  country  by  any  agent  or  agents  for 
any  American  merchant  or  merchants,  so  as  to  secure  the  vessel  or 
cargo  belonging  to  any  American  merchant  or  merchants,  nor  to 
prevent  any  foreigner  or  foreigners  from  having  his,  her  or  their 
property  insured  within  this  State,  excepting  only  an  alien  enemy.* 
(I6tt?,i>.  796,  §27.) 

»  This  law  has  not  been  repealed,  but  has  practically  bean  a  dead  letter  ever 
since  the  passage  of  the  first  subsequent  act  allowing  such  companies  to  do  busi- 
ness in  the  State. 


PENNSYLVANIA.  ,758 

70.  There  shall  be  paid  to  the  Treasurer  of  the  Philadelphia 
Association  for  the  Relief  of  Disabled  Firemen  of  the  City  of  Phila- 
del])hia,  for  the  use  and  benefit  of  said  association,  for  the  relief  of 
disabled  firemen,  on  the  first  day  of  February  in  each  year,  by  every 
person  who  shall  act  in  the  city  and  county  of  Philadelphia,  as  an 
agent  for,  or  on  behalf  of  any  individual  or  association  of  individu- 
als not  incorporated  by  the  laws  of  this  State  to  eft'ect  insurances 
against  losses  or  injuries  by  fire  in  the  city  and  county  of  Philadel- 
phia, although  such  individuals  or  associations  may  be  incorpor- 
ated for  that  purpose  by  any  other  State  or  country,  the  sum  of  two 
dollars  upon  the  one  hundred  dollars,  and  at  that  rate  upon  the 
amouut  of  all  premiums  which,  during  the  year  or  a  part  of  a  year 
ending  on  the  next  preceding  first  day  of  September,  shall  have 
been  received  by  such  agent  or  person,  or  received  by  any  other 
person  for  him,  or  shall  have  been  agreed  to  be  paid  for  any  insui> 
ance  effected,  or  agreed  to  be  paid  for  any  insurance  effected  or 
agreed  to,  effected  or  promised  by  him  as  such  agent  or  otherwise, 
against  loss  or  injury  by  fire  in  the  city  and  county  of  Philadelphia. 
{Ibid. p  199,  ^41.) 

71.  No  person  shall,  in  the  city  and  county  of  Philadelphia,  as 
agent  or  otherwise  for  any  individual,  individuals  or  associations, 
effect  or  agree  to  effect  any  insurance  upon  which  the  duty  above 
mentioned  is  required  to  be  paid,  or  as  agent  or  otherwise  procure 
such  insurance  to  be  effected,  until  he  shall  have  executed  and 
delivered  to  the  said  Treasurer  a  bond  to  the  Philadelphia  Associ- 
ation for  the  Kelief  of  Disabled  Firemen  of  the  City  of  Philadelphia, 
in  the  penal  siun  of  one  thousand  dollars,  with  such  sureties  as  the 
said  Treasurer  shall  approve,  with  a  condition  that  he  will  annually 
render  to  the  said  Treasiu-er,  on  the  first  day  of  February  in  each 
year,  a  just  and  true  account,  verified  by  his  oath,  that  the  same  is 
just  and  true,  of  all  premiums  which,  during  the  year  ending  on  the 
first  day  of  September,  preceding  such  report,  shall  have  been 
received  by  him  or  by  any  other  person  for  him  or  agreed  to  be 
paid  for  any  insurance  against  loss  or  injury  by  fire  in  the  city  and 
county  of  Philadelphia,  which  shall  have  been  effected,  or  promised 
by  him  to  be  effected,  from  any  individual,  or  individuals,  or  asso- 
ciation not  incorporated  by  the  laws  of  this  State  as  aforesaid,  and 
he  will  annually,  on  the  first  day  of  February  in  each  year,  pay  to 
the  said  Treasurer  two  dollars  upon  every  hundred,  and  at  that 
rate  upon  the  amount  of  any  premiums  so  received.  {Ibid,  p.  800, 
§42.) 

7'2.  Every  person  who  shall  effect,  agree  to  effect,  promise  or 
procure  any  insurance  specified  in  the  preceding  sections,  of  this 
act,  without  having  executed  and  delivered  the  bond  required,  by 
the  preceding  section,  shall  for  each  offense  forfeit  one  thousand 
dollars  for  the  use  of  the  said  association ;  such  penalty  of  one 
thousand  dollars  shall  be  collected  in  the  name  of  the  Philadelphia 
association  for  the  Relief  of  Disabled  Firemen  of  the  City  of  Phila- 
delphia ;  Provided,  That  this  act  shall  apply  to  only  such  persons 
as  are  bona  fide  agents  of  foreign  insurance  companies,  under  the 
provisions  ot"  the  act  of  1856.     (ibid,  §  43.) 

73.  Every  person  who,  at  any  time  hereafter,  as  agent  or 
otherwise  for  any  individual  or  individuals,  or  association,  may,  in 
the  city  and  county  of  Philadelphia,  effect  or  agree  to  effect  any 
insurance  specified  in  the  preceding  sections  of  this  act,  shall,  on 
the  first  day  of  February  in  each  year,  or  within  ten  days  thereafter, 
48 


754  HINE'S  mSUEANCE  STATUTES. 

and  as  often  in  each  year  as  he  shall  alter  or  change  his  place  of 
doing  business  in  the  said  city,  report  in  writing,  under  his  proper 
signature,  to  the  Treasurer  of  this  State,  and  also  the  Treasurer  of 
the  Philadelphia  Association  for  the  Relief  of  Disabled  Firemen  m 
the  City  of  Philadelphia,  the  street  and  number  thereof  in  said  city 
of  his  place  of  doing  business  as  such  agent,  or  otherwise  designating 
in  such  report  the  individual  or  individuals  and  association  and 
associations,  for  which  he  may  be  such  agent  or  otherwise.  And  in 
case  of  default  in  any  of  these  particulars,  such  persons  shall  forfeit 
for  every  offense  the  sum  of  five  hundred  dollars,  to  be  recovered 
and  collected  in  the  name  of  the  people  of  this  State,  for  the  use  of 
the  Philadelphia  Association  for  the  Relief  of  Disabled  Firemen  of 
the  City  of  Philadelphia.     {Ibid,  §  44.) 

74.  ]Sfo  foreign  corporation  shall  do  any  business  in  this  com- 
monwealth, until  said  corporation  shall  have  established  an  office  or 
offices  and  appointed  an  agent  or  agents  for  the  transaction  of  its 
business  therein.     {Laws  o/1874,  p.  108,  §  1.) 

75.  It  shall  not  be  lawful  for  any  such  corporation  to  do  any 
business  in  this  commonwealth,  until  it  shall  have  filed  in  the  office 
of  the  Secretary  of  the  Commonwealth  a  statement,  under  the  seal 
of  said  corporation,  and  signed  by  the  president  or  secretary  thereof, 
showing  the  title  and  object  of  said  corporation,  the  location  of  its 
office  or  offices,  and  the  name  or  names  of  its  authorized  agent  or 
agents  therein  ;  and  the  certificate  of  the  Secretary  of  the  Common- 
wealth, under  the  seal  of  the  commonwealth,  of  the  filing  of  such 
statement,  shall  be  ijreserved  for  public  inspection  by  each  of  said 
agents,  in  each  and  every  of  said  offices.     {Ibid,  §  2.) 

76.  Any  person  or  persons,  agent,  officer,  or  employee  of  any 
such  foreign  corporation,  who  shall  transact  any  business  within 
this  commonwealth  for  any  such  foreign  corporation,  without  the 
provisions  of  this  act  being  complied  with,  shall  be  guilty  of  a  mis- 
demeanor, and,  upon  conviction  thereof,  shall  be  punished  by  im- 
prisonment not  exceeding  thirty  days,  and  by  a  fine  not  exceeding 
one  thousand  dollars,  or  either,  at  the  discretion  of  the  court  trying 
the  same.     {Ibid^  §  3.) 

SERVICE   OF  PROCESS  FPON^  INSURANCE  CORPORA- 
TIONS. 

77.  In  addition  to  the  remedies  now  provided  by  law,  it  shall  be 
lawful  for  any  person  or  persons,  bodj'  politic  or  corporate,  who  may 
have  a  cause  of  action  against  any  insurance  company  incorporated  by 
the  legislature  of  this  commonwealth,  or  against  any  insurance  com- 
pany that  may  have  an  agency  established  in  this  commonwealth,  to 
bring  suit  in  any  county  where  the  property  insured  may  be  located, 
and  to  direct  any  process  to  the  Sheriff"  of  either  of  the  counties  in 
this  commonwealth,  and  it  shall  be  the  duty  of  said  Sheriff'  to  exe- 
cute all  process  directed  to  him  under  the  provisions  of  this  act, 
upon  the  president  or  other  chief  officer  of  the  company  against 
whom  the  same  issued  as  he  shall  be  directed,  or  upon  the  agent  of 
a,ny  company  not  incorporated  by  the  legislature  of  this  common- 
wealth ;  and  the  manner  of  service  and  return  shall  be  in  the  same 
manner  as  like  process  is  now  by  law  required  to  be  made,  and  the 
same  shall  be  returned  to  the  court  issuing  the  same ;  and  all  pro- 
ceedings upon  any  suit  not  under  this  act,  shall  be  the  same  as  in 
other  cases.     {Brightly's  Purdon^s  Digest,  1700-1872,  p.  802,  §  53.) 


PENNSYLVANIA.  756 

78.  The  fees  allowed  for  any  services  performed  by  any  officer 
under  the  provisions  of  this  act,  shall  be  the  same  as  are  now  al- 
lowed by  law  for  similar  services  in  other  cases  ;  Provided,  That  uo 
Sheriff  or  other  officer  charged  with  the  service  of  any  process,  shall 
be  entitled  to  charge  traveling  fees  for  any  greater  distance  than 
the  actual  distance  from  the  office  of  such  Sheriff  to  the  office  or 
usual  place  of  business  of  such  insurance  company,  or  to  the  place 
of  residence  of  such  agent,  as  the  case  may  be,  and  back  to  the 
office  of  such  Sheriff;  and  Provided,  further,  That  all  legal  pots- 
age,  paid  on  any  and  all  writs  transmitted  by  mail  shall  be  charged 
and  taxed  as  part  of  the  costs.     {Ibid,;p.  803,  §  2.) 


UNLAWFUL  ISSUE  OF  POLICIES. 

79.  It  shall  be  unlawful  for  any  person,  partnership,  or  asso- 
ciation, to  issue,  sign,  seal,  or  in  any  manner  execute,  any  policy  of 
insurance,  contract,  or  guaranty  against  loss  by  lire  or  lightning, 
without  authority  expressly  conferred  by  a  charter  of  incorporation, 
given  according  to  law ;  and  every  such  policy,  contract,  or  guar- 
anty hereafter  made,  executed  or  issued  shall  be  void.  [Laws  of 
1870,_p.  14,  §1.) 

80,  Any  person  oft'ending  against  the  provisions  of  this  act, 
or  any  person  who  shall  make,  execute,  or  issue  any  policy  of  in- 
surance, contract,  or  guaranty  against  loss  by  fire  or  lightning, 
without  being  so  authorized  by  law,  shall  be  deemed  guilty  of  a  mis- 
demeanor, and,  upon  conviction  thereof,  shall  pay  a  fine  not  exceed- 
ing two  hundred  dollars,  to  the  commonwealth,  and  the  costs  of 
prosecution ;  one-half  of  said  fine  shall  be  for  the  use  of  the  in- 
former J  Provided,  That  nothing  herein  contained  shall  applj^  to  any 
insurance  company  authorized  by  the  laws  of  any  other  State  to 
issue  policies  and  effect  insurance  against  loss  by  fire  or  lightning^ 
which  shall  have  complied  with  the  laws  of  this  commonwealth  with 
respect  to  foreign  insurance  companies.     {Ibid,  §  2.) 


ASSIGNMENT  OF  POLICIES. 

81.  It  shall  be  lawful  for  the  assignee  or  assignees  of  the 
whole  or  any  part  of  any  policy  of  life,  fire,  or  marine  insurance,, 
his  executors  or  administrators,  to  bring  suit,  in  the  name  of  tbe 
assignee  or  assignees,  for  his,  her,  or  their  interest  in  any  policy  of 
insurance,  against  the  company  issuing  the  same,  upon  the  happen- 
ing of  the  contingency  provided  against.     {Laws  o/1873,  p.  46.) 


SUPPLYING  LOST  POLICIES  OF  INSUEANCE. 

83.  Whenever  any  policy  of  insurance  upon  any  property, 
real  or  personal,  granted  by  any  body  corporate  or  i)olitic,  shall 
have  been  lost  or  destroyed,  such  body  corporate  or  politic  shall,  on 
proof  of  the  loss  or  destruction  of  the  same,  in  the  manner  herein- 
after provided,  furnish  to  the  person  or  persons  whose  jiolicy  haa 
been  so  lost  or  destroyed,  a  copy  of  the  same,  together  with  the 
transfers,  which  have  been  approved  and  recorded  on  the  books  of 
such  body  corporate,  if  any,  which  may  have  been  made  by  the 


756  niNE's  INSURANCE   STATUTES. 

original,  or  any  subsequent  grantee  of  such  policy  to  the  person  or 
persons  having  the  same,  at  the  time  of  the  loss  or  destruction 
thereof;  the  copy  so  made  to  be  as  eflectual  for  the  security  and  in- 
demnification of  the  person  or  persons  holding  the  same  as  the 
original,  and  subject  like  it  to  transfer  to  any  person  purchasing 
the  property  insured.  {Brightly's  Purdon^s  Digest^  1700-1872, jw.  800, 
§  45.) 

83.  On  the  application  of  any  person  or  persons  to  the  Court 
of  Common  Pleas  of  the  county  in  which  the  property  has  been  in- 
sured, setting  forth  the  loss  or  destruction  of  the  policy  of  insur- 
ance, on  oath  or  affirmation,  together  with  a  description  of  the 
property,  the  amount  for  which  it  was  insured,  the  person  or  persons 
to  whom  granted,  if  practicable,  together  with  the  mesne  transfers 
thereof,  the  court  shall  grant  a  rule  in  the  body  corporate  or  politic 
which  granted  such  policy  of  insurance,  commanding  such  body 
corporate  or  politic  to  appear  before  said  court,  on  a  day  certain, 
not  less  than  twenty  days  from  the  service  of  said  rule,  to  show 
cause  why  a  copy  of  such  policy  of  insurance  should  not  be  supplied, 
in  pursuance  of  the  provisions  of  the  first  section  of  this  act ;  and 
on  the  default  of  such  body  corporate  or  politic  to  appear  and  show 
cause  why  such  copy  as  aforesaid  should  not  be  supplied,  the  court 
shall  issue  a  mandate  to  such  body  corporate  or  politic  to  furnish 
such  copy  in  ten  days  after  service  of  the  same ;  and  on  the  neglect 
or  refusal  of  such  body  corporate  or  politic  to  furnish  a  coi)y  as 
aforesaid,  the  court,  on  due  proof  of  the  service  of  such  mandate, 
and  the  neglect  or  refusal  of  such  body  corporate  or  politic  to  fur- 
nish such  copy,  shall  direct  a  judgment  to  be  entered  by  the  pro- 
thonotary  in  favor  of  the  person  or  persons  making  the  application, 
against  the  said  body  corporate  or  politic,  for  the  sum  for  which  the 
said  policy  of  insurance  was  granted,  which  said  judgment  shall 
stand  for  the  security  of  the  plaintift*  or  plaintiffs  for  such  time  as 
the  policy  of  insurance  itself  would  have  done,  and  for  the  like 
purposes,  and  the  costs  of  the  proceedings  shall  be  paid  by  the 
defendant,  and  the  officers  rendering  services  shall  receive  the  like 
fees  as  are  now  allowed  by  law  for  similar  services.  {Ibid,  p.  801, 
§  46.) 

84.  The  rule  and  mandate  to  be  issued  under  the  provisions 
of  the  preceding  section  shall  be  directed  to  the  Sheriff  of  the  city 
or  county  in  which  the  body  politic  or  corporate  has  its  office,  or 
any  branch  or  agency  thereof,  and  the  service  shall  be  sufficient  if 
made  upon  the  president,  secretary,  treasurer,  or  authorized  agent 
thereof;  Provided,  That  no  rule  shall  be  entertained  by  the  court, 
Buch  as  is  authorized  by  the  second  section  of  this  act,  unless  the 
person  or  persons  entitled  to  the  benefit  of  the  policy,  his  agent  or 
attorney,  shall  make  oath  or  affirmation  that  the  policy  of  insur- 
ance has  been  lost  or  destroyed,  and  that  a  demand  for  a  copy  of 
such  policy  was  previously  made  of  the  president,  secretary,  treas* 
urer,  or  authorized  agent  of  the  body  corporate  or  politic  which 
granted  it,  and  a  tender  of  not  less  thau  one  dollar  for  the  exi^enses 
of  making  such  copy.     {Ibid,  ^4:7.) 

LIFE  INSURANCE    FOR   THE  BENEFIT   OF  WOMEN  AND 

CHILDREN  AND  OTHERS. 

85.  All  policies  of  life  insurance,  or  annuities  upon  the  life  of 
any  person,  which  may  hereafter  mature,  and  which  have  been  or 


PENNSYLVANIA.  757 

shall  be  taken  out  for  the  benefit  of,  or  honajide  assigned  to  the  wife 
or  children  or  any  relative  dependent  upon  such  person,  shall  be 
vested  in  such  wife  or  children,  or  other  relative,  full  (free)  and  clear 
from  all  claims  of  the  creditors  of  such  person.  {Brightly's  Purdon^s 
Digest^  1700-1872,  p.  802,  §  52.) 


INQUESTS  IN  CASES  OF  FIEE. 

SO.  Whenever  it  shall  be  made  to  appear,  by  the  affidavit  of  a 
credible  witness,  that  any  building  or  other  property  has  been  set  on 
fire  maliciously,  or  burned  from  an  unknown  cause,  it  shall  be  law- 
ful for  the  mayor,  or  any  alderman  of  any  city,  or  justice  of  the 
peace  of  any  borough  or  township  wherein  such  fire  may  have  oc- 
curred, upon  request  of  any  citizen  of  such  city,  borough,  or  town- 
ship, as  the  case  may  be,  or  of  any  president,  secretary,  or  agent  of 
any  insurance  company  having  a  policy  written  and  in  force  upon 
the  premises  burned  or  attempted  to  be  burned,  to  proceed,  with  all 
reasonable  dispatch,  to  investigate  and  ascertain,  as  far  as  practica- 
ble, the  facts  relating  to  the  cause  and  origin  of  such  fire  ;  and  for 
this  purpose  the  said  mayor,  alderman,  or  justice  of  the  peace 
shall  have  all  the  powers  of  a  coroner  for  summoning  a  jury  and 
witnesses  and  conducting  the  investigation.     {Ibid,  p.  354,  §  201.) 

87.  The  number  of  jurors  shall  not  be  less  than  three,  and 
shall  be  selected  from  the  v^icinity  where  the  fire  occurred,  who, 
after  being  sworn,  or  affirmed,  to  perform  their  duties  faithfully,  and 
inspecting  the  place  where  the  fire  occurred,  and  hearing  such  testi- 
mony as  may  be  produced  before  them  in  regard  to  the  premises, 
shall  make  out  and  deliver,  to  the  officers  having  cognizance  of  the 
case,  a  report,  under  their  hands  and  seals,  in  which  they  shall  find 
and  certify,  as  far  as  ascertained,  how  and  in  what  manner  such  fire 
occurred,  and  who  was  guilty  of  firing  the  same,  either  as  principal 
or  accessory,  or  if  not  willfully  set  on  fire,  to  certify  how  the  same 
originated,  as  far  as  can  be  ascertained.     {Ibid,  §  202.) 

88.  If  the  jury  shall  find  that  any  person  or  persons  willfully 
set  fire  to  the  premises  in  question,  or  that  reasonable  cause  exists 
for  believing  them  to  have  been  accessory  thereto,  then  the  mayor 
or  other  officer  having  cognizance  of  the  case  as  aibresaid,  shall 
bind  over  the  witnesses  to  appear  at  the  next  court  of  quarter  ses- 
sions of  the  proper  county,  to  give  testimony  in  the  case ;  and  if 
the  person  charged  or  implicated  by  the  jury  as  aforesaid  be  not  in 
custody,  the  mayor  or  other  officer  holding  the  inquest  shall  issue 
his  warrant  for  the  arrest  of  the  accused,  and  being  brought  before 
such  magistrate  shall  be  committed  or  admitted  to  bail,  to  appear 
and  answer,  at  the  next  court  of  quarter  sessions  of  the  proper 
county,  such  bill  or  bills  of  indictment  as  may  then  and  there  be 
preferred  against  him,  her,  or  them,  in  the  same  manner  as  persons 
are  held  by  such  magistrates  to  answer,  upon  information  made 
before  them  for  like  offenses.     {Ibid,  §  203.) 

89.  The  officer  issuing  such  process  shall  have  the  same  power 
to  examine  the  defendant  as  in  other  cases ;  the  testimony  of  all 
witnesses  examined  before  the  jury  under  this  act  shall  be  reduced 
to  writing,  by  the  officer  holding  the  inquest,  and  shall  be  returned 
by  him,  together  wifh  the  inquisition  of  the  jury  and  the  recogniz- 
ances and  examinations  taken  by  such  officer,  to  the  next  court  of 
quarter  sessions  of  the  proper  county.     {Ibid,  p.  355,  §  204.) 


758  hike's  insurance  statutes. 


ARSON  AND  INCENDIARISM. 

90.  If  any  person  sliall  maliciously  and  voluntarily  burn  or 
cause  to  be  burned,  or  set  fire  to,  or  cause  or  attempt  to  set  fire  to, 
with  intent  to  burn,  any  factory,  mill  or  dwelling-house  ol  another, 
or  any  kitchen,  shop,  barn,  stable,  or  other  out-house,  that  is  parcel 
of  such  dwelling,  or  belonging  or  adjoining  thereto,  or  any  other 
building,  by  means  whereof  a  dwelling-house  shall  be  burnt,  then 
and  in  every  such  case,  the  person  so  offending  shall  be  adjudged 
guilty  of  felonious  arson ;  and  on  conviction  thereof,  shall  be 
sentenced  to  pay  a  fine,  not  exceeding  two  thousand  dollars,  and  to 
undergo  an  imprisonment,  by  separate  or  solitary  confinement,  at 
labor,  not  exceeding  twelve  years ;  and  in  case  of  the  malicious 
burning  or  setting  fire  to  an 3"  dwelling-house,  or  building  that  is 
parcel  of  such  dwelling  or  belonging  thereto,  there  is  any  parson  in 
the  same,  the  offender  being  convicted  thereof,  shall  be  sentenced 
to  pay  a  fine,  not  exceeding  four  thousand  dollars,  and  to  undergo 
an  imprisonment,  at  separate  or  solitary  confinement,  not  exceeding 
twenty  years.     {Brightly^s  PurdorCs  Digest,  1700-1872,  p.  353,  §  196.) 

91.  If  any  person  shall  willfully  and  maliciously  burn,  or 
cause  to  be  burned,  set  fire  to,  or  attempt  to  set  fire  to,  with  intent 
to  burn,  or  aid,  counsel,  procure,  or  consent  to  the  burning  or  set- 
ting fire  to,  of  any  barn,  stable  or  other  building  of  another,  not 
parcel  of  the  dwelling  house,  or  any  shop,  storehouse  or  warehouse, 
malt  house,  mill  or  other  building  of  another,  or  any  barrick,  rick 
or  stack  of  grain,  hay,  fodder  or  bark,  jjiles  of  wood,  boards  or 
other  lumber,  or  any  ship,  boat  or  other  vessel  of  another,  lying 
within  any  county  in  this  State,  or  any  wooden  bridge  within  the 
same,  or  State  capitol  or  adjoining  offices,  or  any  church,  meeting- 
house, court-house,  jail  or  other  public  building  belonging  to  this 
commonwealth,  or  to  any  city  or  county  thereof,  or  to  any  body 
corporate  or  religious  society  whatever;  the  j^erson  offending  shall, 
on  conviction,  be  adjudged  guilty  of  a  misdemeanor,  and  be 
sentenced  to  pay  a  fine,  not  exceeding  two  thousand  dollars,  and  to 
undergo  an  imprisonment,  by  separate  or  solitary  confinement,  at 
labor,  not  exceeding  ten  years.     (Ibid,  §  197.) 

9SJ.  Every  person,  being  the  owner  of  any  ship,  boat  or  other 
vessel,  or  the  owner,  tenant,  or  occupant  of  any  house,  out-house, 
office,  store,  shop,  warehouse,  mill,  distillery,  brewery,  or  manufac- 
tory, barn  or  stable,  or  any  other  building,  who  shall  willfully  burn 
or  set  fire  thereto,  with  intention  to  burn  the  same,  with  an  inten- 
tion thereby  to  defraud  or  prejudice  any  person  or  body  politic  or 
corporate,  that  hath  underwritten  or  shall  underwrite  any  i)olicy  of 
insurance  thereon,  or  on  any  moneys,  goods,  wares,  or  merchandise 
therein,  or  that  shall  be  otherwise  interested  therein,  shall  be  guilty 
of  a  misdemeanor,  and  on  conviction,  be  sentenced  to  pay  a  fine, 
not  exceeding  one  thousand  dollars,  and  to  undergo  an  imprison- 
ment, by  separate  or  solitary  confinement  at  labor,  not  exceeding 
seven  years.     {Ibid,  p.  354,  §  198.) 

93,  If  any  director,  officer,  agent  or  other  person  connected 
with,  or  doing  business  for  or  with  any  of  said  domestic  insurance 
companies,  shall  fraudulently  embezzle  or  appropriate  to  his  own 
use,  or  the  use  of  any  other  person  or  persons,  any  money  or  other 
property  belonging  to  the  said  institution,  or  left  with  or  held  by 
the  said  company  in  trust,  as  a  special  deposit  or  otherwise,  be  or 


PENNSYLVANIA.  769 

they,  on  conviction  thereof,  shall  be  fined  in  a  sum  not  less 
than  the  amount  so  appropriated  or  embezzled,  and  sentenced  to 
undergo  an  imprisonment,  in  the  penitentiary,  in  separate  and  soli- 
tary confinement,  at  labor,  for  a  term  not  exceeding  five  years,  at 
the  discretion  of  the  court ;  Provided,  That  this  shall  not  prevent 
any  person  aggTieved  ft'om  pursuing  his,  her  or  their  civil  remedy 
against  such  person  or  persons.  {Brightly's  Purdoii's  Digest,  1700- 
1872,  p.  795,  §  20.) 

94.  For  General  Provisions  relating  to  Corporations,  see 
Brightlv's  Purdon's  Digest,  1700-1872,  pp.  286-294,  801,  802  Laws 
of  1874,  pp.  68-72,  73-75,  107. 


INDEX  TO  RHODE   ISLAND. 


PAGE 

AcciDEKTAL  Insurance  Companies,  State- 
ments (35) 768 

Agents— 

Who  are  (33) 767 

To  File  Charter  (34) 768 

Licenses  of  (34) 768 

To  Display  Name  of  State  (39) 769 

Penalty  for  Illegal  Business  (40,  42).  769 
Penalty   for  Refusing  to  Answer  En- 
quiries (44) 770 

Branch  Agencies  (46) 770 

Penalty  for  not  Paying  Tax  (51) 770 

Bond  of  (52) 770 

Embezzlement  by  (62) 772 

Annual  Statements  (25,  26,  37) 766,  769 

Arson,  Crime  and  Penalty  of  (58-61)  771,  772 
Assessments  of  Mutual   Companies  (14, 

17) 764,765 

Attorney  of  Foreign  Companies  (28-31, 

41) 767,  769 

Capital— 

Impairment  of  (16) 764 

EatioofRiskto(38) 769 

Capital  and  Assets  of  Foreign  Companies 

(32,  35,  36,  38) 767-69 

Charter,  Forfeiture  of  (6) 763 

Corporations,  General  Provisions  Relating 

to  (63) 772 

Deposits— 

Of  Insurance  Companies  (18-23)  765,  766 

Withdrawal  of  (21) 765 

Examination  of  (22) 765 

State  not  Liable  for  (23) 766 

Under  Reciprocal  Laws  (24) 766 

Of  Foreign  Life  Insurance  Companies 
(32) 767 

Embezzlemekt,  Crime  and  Penalty  of  (62)  772 

Fees— 

Under  Reciprocal  Laws  (24) 766 

For  Examining  Securities  (22) 765 

For  License  (34) 768 

Foreign  Insurance  Companies — 

Statements  of  (25,  26) 766 

Attorney  of  (28-31,  41) 767,769 

Service  of  Process  on  (28-31) 767 

Capital  of  Life  (32) 767 

Agents  of  (33) 767 


PAOB 

Foreign  Insurance  Companies  (Continued) — 

To  FUe  Statement  (35) 768 

Capital  and  Assets  of  (32.36, 36,38)767-69 

Ratio  of  Risk  to  Capital  (38) 769 

To  Advertise  Name  of  State  (39) 769 

Examination  of  (47) 770 

Taxation  of  (49-55) 770,  771 

Health  Insurance  Companies,  Statements 

of  (35,  36) 768 

Incendiarism,  Crime  and  Penalty  of  (58- 

61) 771,772 

Insolvency,  Proceedings  in  Cases  of  (5- 

14) 762,764 

Insurance  Commissioner — 

State  Auditor  is  ( 1 ) 763 

Salary  of  (2) 769 

Powers  and  Duties  of  (3,  4) 762 

To  Examine  Companies  ^3,  4,47)  762,  770 

Report  of  (25,  37,  45) 766,  768,  770 

To   Publish    Abstract   of  Statements 

(37) 768 

May  make  Special  Inquiries  (43) 769 

May  Visit  Foreign  Companies  (47).  -  -  770 

Insurance  Companies — 

Of  the  State  (5-26) 762-66 

Insolvency  (5-14) 762-64 

Powers  and  Duties  of  Receiver  of  (6-8)  763 

Injunctions  against  (9-13) 763,  764 

Impairment  of  Capital  of  ( 1 5) 764 

Special  Meetings  of  (16) 764 

Deposits  of  (18,23) 765,766 

Certificate  of  Deposit  (20) 765 

Annual  Statements  of  (25,  26) 766 

Taxation  of  (49-55) 770,  771 

Licenses— 

Fees  for  (34) 768 

Under  Reciprocal  Laws  (24) 766 

Life  Insurance  for  the  Benefit  of  Married 

Women  (56,  57) 771 

Life  Insurance  Companies — 

Capital  of  Foreign  (32) 767 

Deposits  of  Foreign  (32) 767 

Live  Stock  Insurance  Companies  (36) 766 

Mutual  Insurance  Companies — 

Receivers  of  ( 1 4) 764 

Assessments  of  (14,  17) 764,  765 

Premium  Notes  of  ( 1 7) 765 

Annual  Statements  of  (26) 766 


INDEX  TO  RHODE  ISLAND. 


701 


PAGE 

Penalties— 

For  Obstrnoting  Commissioner  (4 ) 762 

For  Kefnsing  to  Deliver  Property  to 

Receiver  (13) 764 

Under  Reciprocal  Laws  (24) 766 

For  Illegal  Business  (40,  42) 769 

For  Refusing  to  Answer  Inquiries  (44)  770 

For  not  Paying  Tax  (51) 770 

For  Arson  and  Incendiarism  (58-61)  771, 

77a 

For  Embezzlement  (62) 772 

Power  of  Attorney  of  Foreign  Companies 

(28,  29) 767 

Premium  Notes  1 17) 765 


PAon 
Premiums — 

What  are  (53) 770 

Taxation  of  (50) 770 

Receiver  of  Insolvent  Companies  (6-8, 

14) 763,764 

Reciprocal  Laws  (24) 766 

Service  of  Proces*  (28-31) 767 

Tax  ation— 

Of  Insurance  Companies  (49-55)  770,  771 

Of  Premiums  (60) 770 

Under  Reciprocal  Laws  (24) 766 

Taxes,  Sales  for  Delinquent  (54,  55) 771 

Wife's  PoUoy  (56,  57) 771 


INSURANCE  STATUTES  OF  RHODE  ISLAND. 


Revised  by  Ron.  Joel  31.  Sjjencer,  Insurance  Commissioner. 


insuea:n^ce  commissioi^er. 

1 .  The  State  Auditor,  by  virtue  of  Ms  oflBce,  shall  be  Insurance 
Commissioner.     {General  Statutes,  1872,  jp.  308,  §  1.) 

3.  The  annual  salary  of  the  Insurance  Commissioner  shall  be 
one  thousand  dollars.     {Laics  of  1873,  p.  18.) 

3.  The  Insurance  Commissioner  shall,  whenever  requested  so 
to  do  by  the  Governor,  visit  any  insurance  company  incorporated 
in  this  State,  and  shall  have  free  access  to  its  vaults  and  all  its 
books  and  papers,  and  shall,  if  he  deems  it  expedient,  thoroughly 
inspect  and  examine  all  the  aflairs  of  such  company,  and  make  all 
such  inquiries  as  may,  in  his  opinion,  be  necessary  to  ascertain  the 
condition  of  such  company,  and  its  ability  to  fulfill  all  its  engage- 
ments, and  whether  it  has  complied  with  the  provisions  of  law  ap- 
plicable to  its  transactions.     {General  Statutes,  1872,  p.  308,  §  2.)  _ 

4,  The  Insurance  Commissioner  may  summon  and  examine, 
under  oath,  all  directors,  officers,  and  other  agents  of  such  insur- 
ance company,  and  such  other  witnesses  as  he  may  think  proper,  in 
relation  to  the  affairs,  transactions,  and  condition  of  the  same;  and 
any  such  director,  ofticer,  agent,  or  other  person,  who  shall  refuse, 
without  justifiable  cause,  to  appear  and  testify  when  thereunto  re- 
quired as  aforesaid,  or  who  shall  in  any  way  obstruct  said  Com- 
missioner in  the  discharge  of  his  duties,  as  prescribed  in  this  chap- 
ter shall,  on  conviction  thereof,  be  fined  not  exceeding  five  thou- 
sand dollars,  or  be  imprisoned  for  a  term  not  exceeding  two  years ; 
and  in  case  the  person  so  refusing  or  obstructing  as  aforesaid  be  a 
director,  officer,  or  agent  of  such  company,  such  company  may  also 
be  proceeded  against,  as  is  hereinafter  provided.     {Ibid,  §  3.) 

LNSUEANCE   COMPANIES   CHARTERED   BY   THE  STATE. 

5  The  Supreme  Court,  when  in  actual  session,  or  otherwise, 
any  justice  thereof,  shall,  upon  complaint  in  writing  from  the  Insur- 
ance Commissioner,  under  oath,  setting  forth  that,  in  his  opinion, 
any  insurance  company  has  forfeited  its  charter  at  law,  oris  so  man- 
aging its  concerns  that  the  public,  or  those  having  fands  in  its 
custody,  are  in  danger  of  being  defrauded  thereby,  or  has  become 
insolvent,  forthwith  issue  a  citation  to  such  company,  directed  to, 
and  to  be  served  upon  the  president,  secretary,  or  treasurer  thereof, 
by  leaving  an  attested  copy  at  the  office  of  the  company,  or  usual 
place  of  business,  commanding  such  president,  secretary,  or  treas- 
urer personally  to  appear  before  said  court  or  justice,  on  a  day  and 
in  a  place  to  be  mentioned  in  the  citation,  then  and  there  under 


RHODE  ISLAND.  763 

oatli  to  show  cause,  if  any  they  have,  why  a  writ  of  injunction  should 
not  issue  enjoining  such  company  from  further  exercising  the  powers 
and  franchises  conferred  by  its  charter,  and  why  said  charter  should 
not  be  forfeited.     {General  Statutes,  1872,  p.  309,  §  4.) 

6,  If,  upon  the  examination  of  the  presulent,  secretary,  or 
treasurer,  and  of  such  other  witnesses  and  evidence  as  may  be  in- 
troduced by  the  Insurance  Commissioner  and  defendants,  the  court 
or  justice  shall  be  of  opinion  that  the  charter  of  such  company  is 
forfeited  at  law,  or  that  such  company  is  so  managed  as  that  the 
public,  or  those  having  funds  in  its  custody,  or  who  hold  policies  of 
insurance  issued  by  it,  are  in  danger  of  being  defrauded  thereby, 
or  that  such  company  has  become  insolvent,  said  court  or  justice 
shall  issue  an  injunction  to  the  president,  secretary,  or  treasurer, 
and  other  officers  of  said  corporation,  enjoining  them  from  i)roceed- 
ing  further  in  transacting  the  business  thereof,  and  shall  appoint 
some  discreet  and  proper  person  to  be  receiver  of  all  the  e^idences 
of  debt,  goods,  effects,  and  property  of  every  description  belonging 
to  such  corporation,  and  may,  from  time  to  time,  require  such  re- 
ceiver to  give  bond,  with  surety  to  the  satisfaction  of  said  court  or 
justice,  for  the  faithful  execution  of  his  trusts.     {Ibid,  §  5.) 

7,  The  receiver  may  take  such  evidences  and  property  into  his 
possession,  and  shall  collect  the  debts,  dispose  of  the  property,  and 
pay  out  of  the  proceeds  thereof,  if  the  same  shall  be  sufficient,  all  the 
debts  of  the  corporation,  first  reserving  to  himself  such  reasonable 
compensation  as  shall  be  allowed  by  said  court  or  any  justice 
thereof  for  his  services.     {Ibid,  §  6.) 

8,  The  receiver  shall  be  clothed  with  all  the  powers  and  rights 
in  respect  to  the  collection  of  debts  due  to  such  corporation,  which 
the  corporation  possessed  by  virtue  of  its  charter  or  otherwise,  be- 
fore such  injunction  issued ;  and  may  be  removed  by  the  Supreme 
Court  when  in  actual  session,  or  otherwise,  by  any  justice  thereof, 
and  another  be  appointed  by  said  court  or  justice  in  his  stead ;  and 
the  said  court  shall  have  the  same  power  and  authority  over  the  re- 
ceiver, his  acts,  proceedings,  and  accounts,  as  is  exercised  by  courts 
of  equity  in  like  cases.     {Ibid,  §  7.) 

9,  So  long  as  any  such  injunction  shall  be  in  force  against  any 
corporation,  all  executions  and  other  final  process  against  such  cor- 
poration, for  the  collection  of  debts  shall  be  stayed.  {Ibid,  p.  310, 
§8.) 

1 0,  The  said  court,  when  in  actual  session,  or  otherwise,  any 
justice  thereof,  is  also  empowered  to  issue  a  limited  or  temporary 
injunction,  staying  proceedings  in  such  particulars  and  for  such 
length  of  time  as  in  the  opinion  of  the  court,  or  justice,  may  be  nec- 
essary for  the  safety  of  the  public  and  the  proper  management  of 
the  affairs  of  the  corporation,  without  proceeding  to  the  appoint- 
ment of  a  receiver.     {Ibid,  §  9.) 

1 1 ,  The  Supreme  Court,  at  any  term  thereof,  subsequent  to 
issuing  said  injunction,  shall,  upon  hearing  of  the  parties  to  said 
complaint,  if  it  sees  cause,  declare  the  charter  of  such  corjioration 
forfeited.     {Ibid,  §  10.) 

12,  Such  citation,  whether  issued  by  said  court  or  by  a  single 
justice,  may  also  contain  a  temporary  injunction  on  said  corporation 
and  all  its  officers,  restraining  them  from  proceeding  in  any  business 
of  such  corporation,  except  under  the  direction  of  the  Supreme  Court, 
when  in  actual  session,  or  otherwise,  some  justice  thereof,  which  in- 


764  hine's  insurance  statutes. 

junction,  unless  removed,  shall  continue  until  the  complaint  is 
finally  disposed  of.     [Ibid,  §  11.) 

1 3.  If  the  president,  secretary,  or  treasurer,  agent  or  servant 
of  any  insurance  company,  which  shall  be  enjoined  as  before  men- 
tioned, or  any  other  person  upon  being  required  thereto,  shall  neg- 
lect or  refuse  to  deliver  to  the  receiver  or  receivers  of  such  corpora- 
tion, who  may  be  appointed  by  virtue  of  this  chapter,  such  evi- 
dences of  debt,  goods,  effects,  books,  papers,  and  other  evidence  of 
property  of  every  description,  belonging  to  such  corporation,  aa 
may  be  in  their  possession  or  under  their  control,  every  person  so 
offeading  shall  be  fined  not  exceeding  ten  thousand  dollars,  or  be 
imprisoned  not  exceeding  three  years ;  or  be  both  fined  and  impris- 
oned within  the  limits  last  aforesaid,  at  the  discretion  of  the  court. 
{Ibid,  §  12.) 

1 4.  The  receiver  of  any  mutual  insurance  company  shall,  under 
decree  of  the  Supreme  Court,  or  some  justice  thereof  for  that  pur- 
pose, make  and  assess,  pursuant  as  far  as  may  be  to  the  provisions 
of  the  charter  of  the  company  of  which  he  shall  be  receiver,  such 
further  assessments,  in  addition  to  those  which  may  have  been  there- 
tofore made  by  such  company,  as  may  be  necessary  for  the  pay- 
ment of  the  debts  of  such  corporation,  with  the  incidental  expenses 
of  assessing  and  collecting  such  assessments,  and  the  cost  and  ex- 
penses of  closing  up  the  business  of  such  corporation,  including 
such  reasonable  compensation  of  such  receiver  as  may  be  allowed 
by  said  court  or  some  justice  thereof,  and  may  demand,  receive,  sue 
for  and  collect  the  same  ;  and  for  the  purpose  of  such  assessment 
and  collection,  such  receiver  shall  have  all  the  powers  and  rights  in 
these  respects  which  such  corporation  possessed  by  virtue  of  its 
charter,  or  otherwise.     (Ibid,  §  13.) 

15.  Whenever  the  capital  stock  of  any  insurance  company 
shall  be  diminished  by  reason  of  losses,  or  from  any  other  cause,  the 
stockholders  of  such  company,  at  any  legal  meeting  thereof  called 
for  the  purpose,  may  (after  making  due  allowance  from  the  assets 
of  the  company  of  such  amount  as  may  be  required  to  reinsure  its 
outstanding  risks)  assess  such  further  sum  as  may  be  necessary  to 
fill  up  the  capital  stock  to  its  original  amount  upon  the  several 
stockholders,  in  proportion  to  the  amount  of  stock  owned  by  each ; 
and  the  stock  of  every  stockholder  shall  be  pledged  and  liable  for 
such  assessments  ;  aad  in  case  any  stockholder  refuses  to  pay  any 
such  assessment,  the  stock  standing  in  the  name  of  such  delinquent 
stockholder  may  be  sold  at  public  auction  after  thirty  days'  notice, 
in  such  manner  as  may  be  provided  in  the  by-laws  of  such  insur- 
ance company.     {Ibid,  §  14.) 

1 6.  The  board  of  directors,  or  the  president  and  secretary  of 
any  insurance  company,  may  call  special  meetings  of  the  stock- 
holders of  such  company,  whenever  they  may  deem  it  expedient  to 
do  so,  first  giving  thirty  days'  notice  of  the  time,  place  and  purpose 
of  such  meeting,  in  some  newspaper  published  in  the  county  where 
such  insurance  company  is  established,  or,  if  there  be  no  newspaper 
in  the  county,  then  in  some  newspaper  of  an  adjoining  county ;  and 
at  all  such  special  meetings  not  less  than  two-thirds  of  the  shares 
shall  be  represented,  either  in  person  or  by  proxy,  to  constitute  a 
quorum  for  doing  business ;  and  the  stockholders  of  such  insurance 
company,  when  so  assembled,  may  act  upon  the  business  for  which 
they  were  specially  called  together,  and  also  upon  such  other  busi- 


RHODE  ISLAND.  '765 

ness  as  might,  by  law,  be  transacted  at  any  regular  meeting  of  such 
company.     (Jiirf,  ji.  311,  §  15.) 

17.  Every  mutual  fire  insurance  company  incorporated  by  the 
laws  of  this  State  may  decline  to  take  premium  notes  in  part  pay- 
ment for  insurance ;  Provided,  There  be  inserted  in  the  body  of  the 
policy  issued  a  provision  making  the  assured,  his  or  their  executors, 
administrators,  or  assigns,  liable  to  such  assessments  as  may  be 
provided  in  such  policy,  and  as  shall  become  necessary  in  order  to 
pay  all  losses  and  expenses,  not  exceeding  twenty  times  the  amount 
of  the  cash  premium  i)aid.     {Ibid,  §  16.) 

18.  In  all  cases  in  which  the  laws  of  any  of  the  United  States, 
other  than  this  State,  now  require,  and  may  hereafter  require,  that 
the  insurance  companies  incorporated  by  the  laws  of  other  States 
shall  deposit  with  some  oflBcer  of  the  State  in  which  suc;h  insurance 
company  is  incorporated,  stocks  or  other  securities,  in  trust  or  for 
the  benefit  of  policy-holders  of  such  companies,  as  a  prerequisite  to 
such  companies  transacting  business  in  such  other  State,  the  Gene- 
ral Treasurer  of  this  State  is  hereby  authorized  to  receive  from  any 
insurance  company  incorporated  under  the  laws  of  this  State, 
stocks  or  other  securities,  in  such  amount  as  may  be  required  by 
the  laws  of  such  other  State  or  States,  on  deposit  and  in  trust  for  the 
benefit  of  the  policy-holders  of  such  company.     {Ibid,  §  17.) 

19.  The  General  Treasurer  shall  hold  such  stocks  or  securities 
so  deposited,  as  security  for  policy-holders  in  said  company,  but  any 
company  so  depositing  may  be  permitted  to  receive  and  to  collect 
the  interest  and  dividends  on  its  securities  so  deposited,  and  from 
time  to  time  to  withdraw  such  securities,  on  depositing  with  the 
said  General  Treasurer,  other  securities  of  the  same  character,  the 
market  value  of  which,  at  the  time  of  such  deposit,  shall  equal  or 
exceed  the  amount  required  to  be  deposited.     {Ibid,  §  18.) 

90.  Whenever  any  insurance  company  shall  ha\'e  deposited 
the  requisite  stocks  or  securities,  in  conformity  with  the  laws  of  the 
State  or  States  in  which  such  company  is  desirous  of  transacting 
business,  the  General  Treasurer  shall  iurnish  such  company,  at  its 
expense,  a  certificate  under  seal  of  such  deposit,  for  each  State 
which  shall  require  the  same,  which  certificate  shall  embrace  the 
items  of  security,  and  the  amount  of  each  thus  deposited,  and  shall 
state  that  he,  said  General  Treasurer,  is  satisfied  that  such  stocks 
are  of  the  market  value  represented  ;  but  no  stock  or  other  securi- 
ties so  deposited,  shall  be  withdrawn  except  as  provided  in  the  pre- 
ceding section.     {Ibid,  §  19.) 

21.  Whenever  any  insurance  company  which  shall  have  so 
deposited  stocks  or  other  securities  with  the  General  Treasnier  of 
the  State  shall  desire  to  relinquish  its  business,  the  General  Treas- 
urer shall,  on  application  of  such  company,  under  the  oath  of  the 
president  or  principal  officer,  and  secretary,  "give  notice  of  such  in- 
tentions, in  two  newspapers  published  in  this  State,  to  be  inserted 
at  least  twice  a  week,  for  six  months  ;  and,  after  such  publication, 
the  General  Ti'easurer,  on  being  satisfied  by  an  examination  of  the 
books,  and  of  the  officers  of  such  company  under  oath,  that  all  its 
debts  and  liabilities  are  paid  or  extinguished  upon  any  contract  or 
agreement,  shall  deliver  up  to  the  company  from  whom  he  received 
the  same,  the  stocks  or  other  securities  held  by  him  belonging  to 
such  company.     {Ibid,  §  20.) 

23.  Whenever  it  shall  become  necessary,  on  application  of  any 
company,  for  the  General  Treasurer,  or  any  person  appointed  by 


766  hike's  insurance  statutes. 

him,  to  examine  into  and  ascertain  the  value  and  condition  of  any 
stocks  or  other  securities  deposited  with  him  by  an}'  insurance  com- 
pany, the  expenses  of  such  examination  shall  be  borne  by  the  com- 
pany so  applying,  and  the  said  General  Treasurer  shall  be  allowed 
to  charge  for  his  time  and  expense  or  for  the  time  and  expense  of 
the  person  he  shall  appoint  to  make  such  examiDation  ;  such  exam- 
ination shall  be  made  annually  by  the  General  Treasurer  ;  and  in  case 
it  shall  appear  at  any  time  that  the  stocks  or  other  securities  so  de- 
posited amount  to  less  than  the  sum  required  for  the  purposes  for 
which  such  deposits  has  been  made,  the  General  Treasurer  shall 
notify  the  company,  and,  unless  the  deficiency  is  made  up  within 
thirty  days,  the  said  General  Treasurer  shall  countermand  all  the 
certificates  he  may  have  issued,  and  notify  the  treasurer,  comp- 
troller, or  other  financial  officer  of  such  States  as  he  may  have  trans- 
mitted his  certificates  to,  and  shall,  as  soon  as  may  be,  publish  his 
doings  in  one  newspaper  printed  in  the  city  of  Providence,  for 
three  weeks.     {Ibid^  p.  312,  §  21.) 

23.  Nothing  in  this  chapter  shall  be  construed  as  rendering 
this  State  liable  for  the  value  of  any  stock  or  other  securities,  de- 
posited by  any  insurance  company  according  to  the  provisions 
herein  contained.   {1  bid,  §  22.) 

24.  Whenever  by  the  laws  of  any  other  State  of  the  United 
States  any  charges,  taxes,  fines,  penalties,  deposits  of  money  or  of 
securities,  or  other  obligations,  or  prohibitions,  are  imposed  upon 
insurance  companies  incorporated  or  organized  under  the  laws  of 
this  State,  or  upon  the  agents  of  such  insurance  companies  ;  so  long 
as  such  laws  continue  in  force,  the  same  charges,  taxes,  fines, 
penalties,  deposits,  and  obligations  shall  be  imposed  upon  all  in- 
surance companies  doing  business  in  this  State,  which  are  incorpor- 
ated or  organized  under  the  laws  of  such  other  State,  and  upon  their 
agents.     [Ibid,  §  23.) 

25.  Every  insurance  company  doing  business  in  this  State 
shall  transmit  to  the  Insurance  Commissioner  a  statement  of  its  con- 
dition and  business  for  the  year  ending  on  the  preceding  thirty-first 
day  of  December,  which  statement  shall  be  rendered  on  the  first  day 
of  January  following,  or  within  thirty  days  thereafter,  by  fire  insur- 
ance companies,  or  within  sixty  days  thereafter  by  marine  and  life 
insurance  companies,  except  that  foreign  insurance  companies  shall 
transmit  their  statement  of  business  other  than  that  done  in  the 
United  States,  prior  to  the  following  first  day  of  July  ;  and  the  In- 
surance Commissioner  shall  present  transcripts  thereof  to  the 
general  assembly  with  his  report,     (i  bid,  §  24.) 

3(i,  The  statements  and  returns  required  to  be  made  and  pub- 
lished pursuant  to  the  provisions  of  this  chapter  shall,  so  far  as  the 
same  may  be  applicable,  be  made  and  published  of  and  concerning 
each  class  in  any  company  authorized  to  take  risks  in  separate 
classes;  and,  in  case  of  mutual  insurance  companies,  the  form  of 
such  statements  and  returns  may  be  varied  by  the  Insurance  Com- 
missioner, 80  as  to  ascertain  more  correctly  the  condition  of  such 
companies,     {Ibid,  §  25.) 


F0EEIG:N^  INSURANCE  COMPANIES. 

27.    No  insurance  company,  unless  incorporated  by  the  gen- 
eral assembly,  shall  make  any  insurance  on  property  within  this 


RHODE  ISLAND.  767 

State,  nor  contract  for  insurance  with  any  party  resident  therein, 
until  such  insurance  company  shall  have  complied  with  the  pro- 
visions of  this  chapter.     {General  Statutes,  1872,^.  313,  §  1.) 

•48.  Every  insurance  company,  not  incorporated  under  the  au- 
thority of  this  State,  before  contracting  to  insure  property  within 
this  State,  shall  appoint  by  a  written  power  some  citizen  of  this 
State,  resident  therein,  their  attorney,  with  authority  to  accept  ser- 
vice of  all  lawful  process  against  such  company  in  this  State,  and 
upon  whom  all  lawful  process,  including  the  process  of  garnishment 
agaiust  such  company  in  this  State,  may  be  served,  whose  duty  it 
shall  be,  in  case  of  garnishment,  when  his  lawful  fees  therefor  shall 
have  been  j)aid  or  tendered,  to  make  tlis  affidavit  required  by 
law  in  such  cases,  and  to  cause  an  appearance  to  be  entered  in  like 
manner  as  if  such  company  had  existed  and  been  duly  served  with 
process  within  this  State.     {Ibid,  §  2.) 

29.  A  copy  of  such  power  of  attorney,  duly  certified  and  au- 
thenticated, shall  be  filed  with  the  Insurance  Commissioner,  and 
copies  thereof,  duly  certified,  shall  be  received  in  evidence  in  all 
courts  of  this  State.     {Ibid,  p.  314,  §  3.) 

30.  If  such  attorney  shall  die,  or  resign,  or  be  removed,  it 
shall  be  the  duty  of  such  company  to  make  a  new  appointment  as 
aforesaid,  and  file  a  copy  with  the  said  Insurance  Commissioner  as 
above  prescribed,  so  that  at  all  times,  and  while  any  liability  re- 
mains outstanding  on  such  insurance,  there  shall  be  within  this 
State  an  attorney  authorized  to  accept  service  of  process  and  to  en- 
ter an  appearance  as  aforesaid ;  and  no  such  power  of  attorney  shall 
be  revoked  until  after  a  like  i30wer  shall  have  been  given  to  some 
other  competent  person,  and  a  cojjy  thereof  filed  as  aforesaid. 
(Ibid,  §  4.) 

31.  Service  of  process  upon  such  attorney  shall  be  deemed 
sufficient  service  upon  his  principals.     {Ibid,  §  5.) 

3!3.  No  person  shall  act  within  this  State  as  agent  or  other- 
wise, in  procui"ing  or  securing  applications  for  insurance,  upon  the 
life,  health,  or  safety  of  any  person,  or  in  any  manner  aid  in  trans- 
acting the  business  of  such  life,  health,  or  safety  insurance,  for  any 
company  or  association  incorporated  by,  or  organized  uadsr  the 
laws  of  any  other  State  or  government,  unless  such  company  is  pos- 
sessed of  one  hundred  thousand  dollars  capital,  and  the  same  is  in- 
vested in  stocks  created  by  the  laws  of  the  United  States,  or  by  or 
under  the  laws  of  the  State  in  which  such  company  is  located,  or  in 
other  good  and  safe  stocks  or  securities,  the  market  value  of  which, 
at  the  time  of  such  deposit,  shall  be  at  or  above  par,  which  invest- 
ments are  deposited  with  the  Auditor,  Comptroller,  or  chief  finan- 
cial officer  of  the  State,  by  whose  laws  such  company  is  incorpor- 
ated, and  the  general  Treasurer  of  this  State  is  furnished  with  the 
certificate  of  such  Auditor,  Comptroller,  or  chief  financial  officer 
aforesaid,  under  his  hand  and  oflicial  seal,  that  he  as  such  Au- 
ditor, Comptroller,  or  chief  financial  officer  of  such  State,  holds  in 
trust  and  on  deposit,  for  the  benefit  of  all  policy-holders  of  such 
company,  the  security  before  mentioned,  which  certificate  shall  em- 
brace the  items  of  security  so  held,  and  shall  state  that  he  is  satis- 
fied that  such  securities  are  worth  one  hundred  thousand  dollars. 
{Ibid,  §  6.) 

33.  Every  person  who  shall  so  far  represent  any  insurance 
compauy,  established  in  any  other  State  or  country,  as  to  receive 
or  transmit  proposals  for  insurance,  or  to  receive  for  delivery  poli- 


768  hike's  insurance  statutes. 

cies  founded  on  proposals  forwarded  from  this  State,  or  otherwise 
to  procure  insurance  to  be  effected  by  such  company  for  persons  re- 
siding in  this  State,  shall  be  deemed  and  taken  to  be  acting  as 
agent  for  and  undertaking  to  make  insurance  as  agent  for  and  in 
behalf  of  such  company,  and  shall  be  subject  to  the  restrictions,  and 
liable  to  the  penalties,  herein  made  applicable  to  agents  of  such  com- 
panies.    {Ibidj  §  7.) 

34.  Every  such  agent,  before  making  any  such  contract  of  in- 
surance as  aforesaid,  shall  dei)Osit  with  the  Insurance  Commis- 
sioner of  this  State  a  copy  of  the  charter  of  the  company  or  cor- 
poration for  which  he  is  agent  as  aforesaid,  and  a  copy  of  the  power 
of  attorney  given  to  him  by  such  company,  and  shall  pay  to  the 
Insurance  Commissioner  five  dollars,  for  the  use  of  the  State. 
{Ibid,  §  8.) 

3d.  Every  such  agent  shall  also,  before  making  any  contract 
of  insurance  as  aforesaid,  deposit  with  the  Insurance  Commissioner 
of  this  State  a  statement,  signed  and  sworn  to  by  the  president  and 
secretary  of  the  company  for  which  he  acts,  specifying  if  such  com- 
pany is  either  a  fire,  marine,  or  fire  and  marine,  life,  health,  accident, 
or  other  insurance  company,  stating  the  amount  of  its  capital,  and 
the  manner  of  its  investment,  designating  the  amount  invested  re- 
spectvely  in  mortgages,  in  public  securities,  in  the  stock  of  incor- 
porated companies  (stating  what  companies,)  and  also  the  amount 
invested  in  other  securities,  particularizing  each  item  of  investment; 
the  amount  of  marine  risks  not  terminated,  and  the  premium  paid 
thereon ;  the  amount  of  fire  risks  not  terminated,  and  the  premiums 
paid  thereon;  the  amount  of  liabilities,  specifying  therein  the 
amount  of  outstanding  claims,  adjusted  or  unadjusted,  due  or  not 
due ;  and  in  case  said  company  is  incorporated  upon  the  mutual 
principle,  such  statement  shall  set  forth,  in  addition  to  the  Ibrego- 
ing,  the  whole  amount  of  risks  insured  by  the  same ;  the  whole 
amount  of  i^remium  thereon ;  what  portion  of  it  has  been  paid  in 
cash ;  what  security  has  been  taken  for  the  remainder ;  and  what  is 
the  largest  sum  insured  in  any  one  risk;  and  the  statement  herein 
required  to  be  made,  so  far  as  the  same  is  applicable,  shall  be  made 
of  each  class  in  companies  authorized  to  take  risks  in  classes,  and 
in  all  cases  the  returns  may  be  varied  by  the  Commissioner,  to  ob- 
tain more  definite  information  of  such  comj^any.     {Ibid,  §  9.) 

30.  If  the  company  for  which  such  agent  acts  is  either  a  life 
insurance  company,  health  insurance  company,  or  live-stock  or 
other  insurance  company,  such  agent  shall  also,  before  making  any 
contract  of  insurance  as  aforesaid,  deposit  with  the  Insurance  Com- 
missioner a  statement,  signed  and  -sworn  to  by  the  president  and 
secretary  of  the  company  for  which  he  acts,  specifying  the  amount 
of  its  capital  and  all  its  assets,  and  the  manner  of  its  investment, 
designating  the  amount  invested  respectively  in  mortgages,  in  pub- 
lic securities,  in  stock  of  incorporated  comi)anies  (stating  what 
companies),  and  also  the  amount  invested  in  other  securities,  par- 
ticularizing each  item  of  investment ;  the  amount  insured  by  exist- 
ing policies,  the  amount  of  liabilities,  specifying  therein  the  amount 
of  outstanding  claims,  adjusted  or  unadjusted,  due  or  not  due,  and 
the  largest  sum  insured  in  any  one  risk.     {Ibid,  p,  315,  §  10.) 

37.  The  agent  of  every  insurance  company  not  incorporated 
under  the  authority  of  this  State,  doing  business  in  this  State, 
shall,  before  the  fifteenth  of  February  annually,  also  deposit  with 
the  Insurance  Commissioner  a  similar  statement  of  the  capital  of 


RHODE  ISLAND.  769 

the  company,  and  the  investments  and  risks,  and  premiums,  as 
aforesaid,  to  be  made  up  to  the  thirty-first  day  of  December  prior 
thereto,  signed  and  sworn  to  as  above  directed ;  and  the  Commis- 
sioner shall  annually  in  the  month  of  February  publish  an  abstract 
of  the  statements  filed  in  his  office  as  required  by  section  nine  of 
said  chapter  144  [35],  and  by  this  section,  and  the  expense  of 
publishing-  said  abstract  shall  be  paid  by  such  companies.  {Ibid, 
§  II,  ais  amended  by  laics  of  1874,^.  147.) 

38.  No  person  shall  be  allowed  to  act  as  agent  as  aforesaid  for 
any  such  insurance  company  in  making  any  contract  of  insurance 
with  any  person  in  this  State,  unless  the  capital  stock  of  the  com- 
pany for  which  he  acts  amounts  to  the  sum  of  one  hundred  thousand 
dollars,  actually  paid  in  in  money  and  invested,  exclusively  of  any 
obligations  of  the  stockholders  of  any  description ;  nor  unless  such 
company  shall  be  restricted,  by  its  charter  or  otherwise,  so  that  it 
can  not  lawfully  incur  in  any  one  risk  a  greater  hazard  than  one- 
tenth  part  of  the  amount  of  its  capital.     {Ibid,  §  12.) 

39.  Every  such  agent  shall  exhibit,  in  conspicuous  letters,  on 
the  sign  designating  his  place  of  business,  the  name  of  the  State 
under  whose  authority  the  comijany  he  represents  has  been  incor- 
porated ;  and  such  company  and  agent  shall  have  printed  in  large 
type  the  name  of  such  State,  upon  all  policies  issued  to  citizens  of 
this  State,  on  all  cards,  placards,  and  pamphlets,  and  in  all  adver- 
tisements i^ublished,  issued,  or  circulated  in  this  State  by  them  or 
him,  relating  to  the  business  of  such  company.     [Ibid,  §  13.) 

40.  If  any  such  insurance  company  shall  make  insurance  with- 
out complying  with  the  provisions  of  this  chapter,  the  contract 
shall  be  valid ;  but  any  agent  of  such  company  acting  within  this 
State,  respecting  the  effecting  of  any  poUcy  of  insurance,  shall  be 
fined  not  exceeding  one  thousand  dollars,  nor  less  than  three  hun- 
di'ed  dollars ;  and  all  persons  shall  be  deemed  agents  of  such  com- 
pany, and  acting  as  such,  respecting  the  eft'ecting  a  policy  of  insur- 
ance within  the  meaning  of  this  section,  who  are  agents  and  do  acts 
within  the  terms  of  the  seventh  section  thereof.  {Ibid,  p.  316, 
§14.) 

41.  In  case  any  insurance  company,  when  thereto  notified  by 
the  Insurance  Commissioner,  shall  neglect  to  appoint  an  attorney, 
as  is  hereinbefore  provided,  such  company  shall  not  be  entitled  to 
recover  any  premium  or  assessment  made  by  them  on  any  con- 
tract of  insurance  with  any  citizen  of  this  State,  until  such  company 
shall  have  complied  with  the  law  requiring  the  appointment  of  such 
attorney.     {Ibid,  §  15.) 

4!2.  No  person  shall  be  allowed  to  act  as  agent  of  any  such 
insurance  company,  until  such  company  and  such  agent  shall  have 
complied  with  all  the  requirements  of  the  laws  of  this  State  relat- 
ing to  such  companies  and  their  agents,  and  every  ])erson  so  acting 
without  such  compliance  shall  be  fined  one  thousand  dollars.  {Ibid, 
§16.) 

43.  The  Insurance  Commissioner  shall  annually  examine  the 
statements  and  returns  required  to  be  made  by  the  companies  and 
agents  as  atoresaid;  and  it^  in  his  opinion,  any  return  shall  be  ob- 
scure, defective,  or  unsatisfactory,  he  shall  immediately  require 
answers  under  oath,  from  the  agent  by  whom  such  obscure,  defec- 
tive, or  unsatisfactory  return  shall  have  been  made,  to  such  inter- 
rogatories as  he  may  deem  necessary  or  proper  to  be  answered,  in 
order  to  explain  such  return,  and  exhibit  a  full  and  accurate  view 
49 


770  hike's  insitbance  statutes. 

of  the  business  and  resources  of  tlie  company  represented  by  such 
agent.     {Ibid,  §  17.) 

44.  Every  agent  refusing  or  neglecting  to  answer  such  inter- 
rogatories for  the  space  of  thirty  days  shall  be  deemed  not  to  have 
complied  with  the  provisions  of  tbe  laws  of  this  State ;  and  if  he 
continue  to  act  as  agent  aforesaid,  shall  be  liable  to  the  penalty 
prescribed  in  tbe  sixteenth  section  hereof     {Ibid,  §  18.) 

45.  The  Insurance  Commissioner  shall  prepare  an  abstract  of 
the  statements  and  returns  made  by  such  companies  and  their 
agents,  which  abstract  shall  be  printed  and  laid  before  the  general 
assembly  in  each  year.     {Ibid,  §  19.) 

46.  aS^o  agent  of  any  foreign  insurance  company  doing  business 
in  any  town  in  this  State  shall  be  allowed  to  establish  any  branch 
agency  in  any  other  town  in  this  State.     {Ibid,  §  20.) 

47.  The  Insurance  Commissioner  may,  when  he  shall  deem  it 
important  for  the  safety  of  the  policy-holders,  visit  foreign  insurance 
companies  doing  business  in  this  State,  and  examine  the  condition 
of  such  companies  j  and  such  companies  so  visited  shall  pay  to  said 
Commissioner  his  expenses  of  such  visit  and  examination.  {Ibid, 
§21.) 

48.  The  provisions  of  this  and  the  preceding  chapter  are  not 
intended  to  apply  to  or  affect  corporations  for  religious,  literary,  or 
charitable  purposes.    {Ibid,  §  22.) 


TAXATIONS  OF  INSUEANCE  COMPANIES. 

49.  Every  insurance  company,  incorporated  and  doing  busi- 
ness in  this  State,  shall  annually,  on  the  first  jVIonday  in  June,  pay 
to  the  General  Treasurer  one  cent,  on  each  one  hundred  dollars  on 
the  amount  at  risk  in  such  company  on  the  31st  day  of  the  preced- 
ing December.     {General  Statutes,  1872,  p.  73,  §  4.) 

S'O.  Every  agent  of  an  insurance  company  not  incorporated  by 
this  State,  doing  business  or  residing  herein,  shall,  during  the  month 
of  January  in  every  year,  make  return  to  the  General  Treasurer  of 
the  amount  insured  or  procured  to  be  insured  by  him,  in  this  State,  as 
such  agent,  during  the  year  preceding,  and  of  the  amount  of  pre- 
miums received,  and  assessments  collected,  dui'ing  the  said  period ; 
and  shall,  at  the  same  time,  pay  to  the  General  Treasurer  a  tax  of 
two  per  cent,  on  the  amount  of  such  premiums  and  assessments. 
{Ibid,  §  5.) 

51.  If  any  such  agent  shall  neglect  to  make  such  returns  and 
payments  as  are  prescribed  by  the  preceding  section,  or  if  he  shall 
make  the  same  falsely  or  fraudulently,  he  shall  be  fined  for  every 
such  offense  not  exceeding  one  thousand  dollars,  and  a  suit  upon  his 
bond  given  to  secure  the  payment  of  such  tax  shall  be  forthwith 
prosecuted.     {Ibid,  §  6.) 

52.  Every  such  agent  shall,  before  making  or  procuring  to  be 
made  any  contract  of  insurance  as  aforesaid,  give  bond  to  the  Gen- 
eral Treasurer,  with  two  or  more  sureties,  to  be  approved  by  him,  in 
the  sum  of  one  thousand  dollars  at  least,  with  conditions  to  make 
the  annual  returns  before  prescribed,  and  to  pay  said  tax.  {Ibidf 
§7.) 

53.  All  payments  made  for  policies,  whether  in  money  or  by 
note  or  other  security,  shall  be  deemed  to  be  premiums  within  the 
meaning  of  the  preceding  sections  of  this  chapter. 


RHODE  ISLAND.  771 

54.  If  any  insurance  company,  institution  for  savings,  or  cor- 
poration shall  neglect  for  the  space  of  thirty  days  to  pay  the  duty 
imposed  upou  such  company,  institution,  or  corporation,  the  Gen- 
eral Treasurer  shall  issue  his  warrant  of  distress  against  the  same, 
directed  to  the  Sheriff  or  his  deputy  of  the  county  in  which  such 
comjiany,  institution,  or  corporation  is  located,  for  the  amount  of 
such  duty;  commanding  him,  in  the  name  of  the  State,  to  collect 
from  such  delinquent  said  amount,  with  interest  thereon  from  the 
time  the  same  was  payable  to  the  time  of  its  actual  receipt  by  such 
officer,  with  his  lawful  fees,  and  to  make  return  thereof  within 
ninety  days  from  the  date  of  such  warrant.     {Ibid,  §  11.) 

55.  The  officer  charged  with  the  service  of  such  warrant  shall 
levy  and  collect  the  sum  therein  named,  by  attachment  and  seizure 
of  the  real  and  j)ersonal  estate  of  the  delinquent  against  whom  such 
warrant  was  issued,  and  shall  sell  the  same  at  public  auction,  giv- 
ing thirty  days'  previous  notice  of  the  time  and  place  of  such  sale, 
by  posting  up  two  notices,  in  the  town  in  which  sucti  insurance  com- 
pany, or  institutions  for  savings,  or  other  corporation  is  located,  and 
deed  of  such  estate  made  by  such  officer,  shall  vest  in  the  purchaser 
all  the  right,  title,  and  interest  which  such  insurance  company,  or 
institution  for  savings,  or  other  corporation  had  therein  at  the  time 
of  the  attachment  and  seizure  thereof.    {Ibid,  p.  74,  §  12.) 


insuba:ncb  on  lives  for  the  benefit  of  married 

WOMEN. 

56.  Any  policy  or  policies  of  insurance,  or  part  thereof,  which 
shall  not  excsscl  in  the  aggregate  the  sum  of  ten  thousand  dollars, 
made  by  an  insurance  company  on  the  life  of  any  person,  and  ex- 
pressed to  be  for  the  benefit  of  a  married  woman,  whether  the  same 
be  effected  by  herself  or  by  her  husband,  or  by  any  other  person 
on  her  behalf,  shall  enure  to  her  separate  use  and  benefit,  independ- 
ently of  her  husband  and  of  his  creditors  and  representatives  ;  and 
also  independently  of  any  other  person  effecting  the  same  on  her 
behalf,  his  creditors  and  representatives ;  and  such  policy  may  be 
sued  in  the  name  of  the  person  beneficially  interested  therein,  or  in 
the  name  of  the  representative  of  such  person,  ( General  Statutes, 
1872,  p.  332,  §  21.) 

57.  A  trustee  or  trustees  may  be  appointed  by  any  court  au- 
thorized to  appoint  trustees,  to  hold  and  manage  the  interest  of  any 
married  woman  in  any  such  policy,  or  the  proceeds  thereof.  (Ibid,, 
§  22.) 

ARSON  AND  INCENDIARISM. 

58.  Every  person  who  shall  commit  arson  shall  be  imprisoned! 
for  life,  or  for  any  term  not  less  than  ten  years.  ( General  Statutes, 
1872,  p.  544,  §1.) 

59.  Every  person  convicted  of  arson  shall  thereupon,  with 
respect  to  all  rights  of  property,  to  the  bond  of  matrimony,  and  to 
all  civil  rights  and  relations,  of  whatever  nature,  be  deemed  to  be 
dead  in  all  respects,  as  if  his  or  her  natural  death  had  taken  place 
at  the  time  of  such  conviction.     {Ibid,  p.  505,  §  35.) 

60.  Every  person  who  shall  wrongfully  or  maliciously  burn,  or 
attempt  to  bui'n,  or  otherwise  destroy  any  dwelling  house  or  other 


772  hine's  insurance  statutes. 

building  whatever,  the  burning  whereof  shall  not  be  arson  at  com- 
mon law,  or  any  ship  or  vessel,  dam,  lock,  bridge,  or  flume,  shall  be 
imprisoned  not  exceeding  ten  years.     {Ibid,  p.  544,  §  2.) 

61 ,  Every  person  who  shall  willfully  burn,  or  attempt  to  burn, 
any  building,  or  any  goods,  wares,  or  merchandise,  or  other  chat- 
tels, which  shall  at  the  time  be  insured  against  loss  by  fire,  with  in- 
tent to  injure  the  insurer,  whether  such  person  be  tbe  owner  of  the 
property  or  not,  shall  be  imprisoned  not  exceeding  ten  years,  nor 
less  than  two  years.     {Ibid,  §  4.) 


EMBEZZLEMENT. 

62.  If  any  officer,  agent,  clerk,  or  servant,  or  person  to  whom 
any  money  or  other  property  shall  be  intrusted  for  any  specific  pur- 
pose, shall  embezzle  or  fradulently  convert  to  his  own  use,  or  shall 
take  or  secrete,  with  intent  to  embezzle  and  fraudulently  convert 
to  his  own  use,  any  money  or  other  property  which  shall  have  come 
into  his  possession  or  shall  be  under  his  care  or  charge,  by  virtue 
of  such  employment,  or  for  such  specific  purpose,  he  shall  be  deemed 
guilty  of  larceny,  and  may  be  tried,  sentenced,  and  punished,  as  for 
any  other  larceny.     {General  Statutes,  1872,  p.  545,  §  15.) 

63.  For  General  Provisions  relating  to  Corporations  see  Gen- 
neral  Statutes,  1872,  pp.  290-292 ;  Laws  of  1874,  chapter  366. 


INDEX  TO  SOUTH  CAROLINA. 


PAGE 

Advertibinq  Annual  Statements  (7) 775 

Agents — 

Licenses  of  (5) 774 

To  File  Charter,  etc.  (6) 774 

Service  of  Process  on  (6) 774 

To  Pablish  License  (7) 775 

To  Advertise  Statements  (7) 775 

Penalty  for  Illegal  Business  (9) 775 

To  Make  Returns  for  Taxation  (11).--  776 

Liable  for  Taxes  (11) 776 

May  Retain  Amount  of  Taxes  (11) 776 

Annual  Statements  (6,  7) 774,775 

Arson,  Crime  and  Penalty  of  (1 6) 777 

Certificate  of  Authority  (10) 775 

Charter,  to  be  Filed  (6) 774 

Corporations — 

Constitutional   Provisions    Concerning 

(1-4) 774 

Formed  under  General  Laws  ( 1 ) 774 

Property  of,  Subject  to  Taxation  (2)...  774 

Liability  of  Stockholders  of  (3,  4) 774 

Fraudulent  Misrepresentations  by  (4) . .  774 
Turnpike,  etc.,  not  to  Make  Insurance 

(14) 776 

General  Provisions  Relating  to  (1 7)  . .  777 

Fees  for  License  (5) 774 

Foreign  Insurance  Companies — 

To  Obtain  License  (5) 774 

Service  of  Process  on  (6) 774 


PAOB 

Foreign  Insurance  Companies  (Continued)— 

Attorney  of  (6) 774 

To  File  Charter  and  Statement  (6)  . .  - .  774 

Annual  Statements  of  (6,  7J 774,  775 

Insolvency  of  (8 ) 775 

Certificate  of  Authority  of  ( 1 0) 775 

Taxation  of  (11) 776 

Incendiarism,  Crime  and  Penalty  of  (16).  777 

Insurance — 

Limited  Partnersbips  not  to  Make  (1 3)  776 
Certain  Corporations  not  to  Make  (1 4)  776 

Licenses— 

Of  Agents  (5) 774 

To  be  Published  (7) 775 

Life  Insurance  for  the  Benefit  of  Married 

"Women  and  Children  (15) 776 

Penalty— 

For  doing  Illegal  Business  (9) 775 

For  Arson  and  Incendiarism  (16) 777 

Service  of  Process  (6) 774 

Stockholders,  LiabiUty  of  (3,  4) 774 

Taxation— 

Corporations  Subject  to  (2) 774 

Of  Insurance  Companies  (11,  12) 776 

Wives' Policies  (15) 776 


INSURANCE  STATUTES  OF  SOUTH  CAROLINA. 


CONSTITUTIONAL    PEO VISIONS    CONCEENING    COE- 

POEATIONS. 

1 .  Corporations  may  be  formed  under  general  laws ;  but  all 
such  laws  may  from  time  to  time  be  altered  or  repealed.     (Art.  12, 

§1.) 

9.  Tbe  property  of  corporations  now  existing,  or  hereafter 
created,  shall  be  subject  to  taxation,  except  in  cases  otherwise  pro- 
vided for  in  this  constitution.     {Ibid,  §  2.) 

3,  Dues  from  corporations  shall  be  secured  by  such  individual 
liability  of  the  stockholders  and  other  means  as  may  be  prescribed 
by  law.     {Ibid,  §  4.) 

4.  All  general  laws  and  special  acts  passed  pursuant  to  this 
section  shall  make  provisions  therein  for  fixing  the  personal  liability 
of  stockholders  under  proper  limitations;  and  shall  prevent  and 
furnish  fraudulent  misrepresentations  as  to  the  capital,  property, 
and  resoui'ces  of  such  cori^orations.     {Ibid,  §  5.) 


FOEEIGN  INSUEANCE  COMPANIES. 

5.  It  shall  not  be  lawful  for  any  agent  of  any  insurance  com- 
pany in  the  United  States,  or  any  foreign  State,  not  incorporated 
by  the  laws  of  this  State,  to  take  risks  or  transact  any  business  of 
insurance  in  this  State,  without  first  obtaining  a  license  from  the 
Comi)troller-General,  which  license  shall  expire  on  the  thirty-first 
day  of  March  of  each  year;  and,  for  every  such  license,  the  com- 
pany or  agent  taking  out  the  same  shall  pay,  or  cause  to  be  paid,  to 
the  Comptroller-General  the  sum  of  five  dollars.  {Eerised  Statutes, 
1873,  p  335,  §  6,  as  amended  by  act  approved  February  22,  1873.) 

6.  Before  the  Comptroller-General  shall  issue  such  license  to 
any  agent  of  any  insurance  company  not  incorporated  in  South 
Carolina,  there  shall  be  filed  in  his  office,  by  such  agent,  a  certified 
copy  of  the  charter  of  the  company  from  which  the  said  agent  or 
attorney  has  received  his  appointment,  and  also  a  certified  copy  of 
the  vote  or  resolution  of  the  trustees  or  directors  of  said  company 
appointing  him  such  agent,  accompanied  by  a  warrant  of  appoint- 
ment under  the  official  seal  of  the  company,  and  signed  by  the 
president  and  secretary.  Such  warrant  of  ajjpointment  shall  con- 
tinue valid  and  irrevocable  until  another  agent  or  attorney  has  been 
substituted,  so  that  at  all  times,  while  any  liability  remains  out- 
standing, there  shall  be  within  the  State  an  agent  or  attorney  as 
aforesaid  ;  and  shall  contain  a  consent  expressed,  authorizing  pro- 
cess of  law  to  be  served  on  said  agent  or  attorney  for  all  liabilities 
of  every  nature  incurred  in  this  State  by  said  company,  and  that 


SOUTH  CAROLINA.  775 

Such  service,  made  on  such  a<?ent  or  attorney  iu  the  manner  required 
by  the  laws  of  this  State,  shall  be  deemed  legal  and  binding  on  the 
company  or  companies  in  all  cases  whatsoever,  and  that  every  judg- 
ment so  recovered  shall  be  conclusive  evidence  of  the  indebtedness 
of  the  company ;  and  in  addition  to  said  warrant  of  ap])ointment, 
there  shall  be  filed  and  published  a  statement,  made  under  oath  of 
its  president  or  secretary,  showing  its  assets  and  liabilities,  and  dis- 
tinctly showing  the  amount  of  capital  stock,  and  how  the  same  has 
been  paid,  and  of  what  the  assets  of  the  company  consist,  the 
amount  of  losses  due  and  unpaid,  and  all  other  claims  against  the 
company,  or  other  indebtedness,  whether  due  or  not  due  at  the  time 
of  the  filing  of  the  statement  above,  and  shall  further  show  : 

First. — That  said  companies  have  fulfilled  the  provisions  of  their 
respective  charters,  and  of  the  extensions  and  amendments  thereto, 
in  every  particular,  and  whether  there  has  been  any  change  of  char- 
ters since  last  statement. 

Second.— The  amount  of  policies  outstanding,  as  near  as  can  be 
ascertained. 

Third. — The  character  of  the  risks,  and  the  rule  governing  compa- 
nies and  their  agents  in  taking  the  same,  both  as  to  locality  and 
amount. 

Fourth. — The  particular  character  of  the  assets,  specifying  the 
amount  of  cash  and  public,  bank,  manufacturing  or  other  stocks  and 
bonds,  or  other  securities,  held  by  the  companies,  with  the  evidence 
that  they  are  held  by  them,  the  rue  of  investment  in  real  estate 
securities,  and  the  general  localities  of  real  estate  secoi^ed  to 
companies. 

Fifth. — The  amount  received  from  premiums,  and  whether  suffi- 
cient to  pay  losses,  etc. 

Sixth. — Whether  there  have  been  any  changes  in  agencies  during 
the  preceding  year.     {Ibid,  §  7.) 

7.  Every  agent  or  attorney  obtaining  such  license  shall  also 
cause  such  license  to  be  published  in  some  newspaper,  to  be  designa- 
ted by  the  Comptroller-Greneral,  having  circulation  in  the  county  in 
which  he  resides.  The  company  shall  also  furnish  to  the  Comp- 
troller-General, through  their  agent,  an  annual  statement  of  the 
affairs  of  the  company,  as  provided  in  the  preceding  section,  and  it 
shall  be  the  duty  of  the  agent  or  agents  to  publish  the  same.  {Ibid, 
p.  336,  §  8.) 

8.  If  the  Comptroller-General  shall  become  satisfied  that  any 
company  is  insolvent  or  unsafe,  it  shall  be  his' duty  to  refuse  license 
to  its  agent  or  agents,  and  to  withdraw  any  license  that  has  been 
already  issued.     {Ibid,  §  9.) 

9.  Any  person  who  shall  deliver  any  policy  of  insurance,  or 
collect  any  premium  of  insurance,  or  transact  any  business  of  in- 
surance in  this  State,  for  any  company  in  the  United  States,  or  for- 
eign State,  not  incorporated  by  the  laws  of  this  State,  without  having 
first  obtained  the  license  by  law  required,  or  after  his  license  has 
been  withdrawn,  or  who  shall  in  any  way  violate  the  foregoing 
provisions  in  relation  to  licenses  of  agents  of  insurance  companies, 
shall  be  fined,  for  every  such  offense,  not  less  than  one  hundred  dol- 
lars, nor  more  than  five  hundred  dollars,  at  the  discretion  of  the 
Judge  ;'  Provided,  That  nothing  contained  in  this  section  shall  release 
any  such  company  or  companies  upon  any  policy  issued  or  delivered 
by  it  or  them.     {Ibid,  §  11.) 

1 0.  When  insurance  companies  shall  have  complied  with  the 


776  hine's  insurance  statutes. 

requirements  of  the  law,  the  Comptroller-General  shall  give  a  certifi- 
cate to  that  effect,  and,  also,  state  the  names  of  their  attorneys ; 
which  certificate,  when  filed  in  the  County  Clerk's  office,  of  the 
county  where  the  agency  is  to  be  located,  shall  be  the  authority  to 
commence  business.     {Ibid,  p.  119,  §  26.) 


TAXATION  OF  INSUEANCE  COMPANIES. 

1 1 .  Each  agent  in  this  State  of  any  insurance  company  organ- 
ized under  the  laws  of  any  other  State  or  country,  and  doing  business 
in  this  State,  shall,  annually,  in  the  month  of  July,  or  before  the 
twentieth  of  August,  return  to  the  Auditor  of  the  County  in  which 
such  agency  is  located,  a  sworn  statement  of  the  gross  receipts  of 
such  agency  for  the  year  ending  on  the  first  day  of  that  month,  in- 
cluding all  notes,  accounts  and  other  things  received  or  agreed  upon 
as  a  compensation  for  insurance  at  such  agency,  together  with  all  the 
value  of  any  personal  property  of  said  company  situate  at  such 
agency ;  and  the  company  shall  be  charged  with  taxes,  at  the  place 
of  said  agency,  on  the  amount  so  returned ;  and  the  agent  shall  also 
be  personally  responsible  for  such  taxes,  and  may  retain  in  his  hands 
a  sufficient  amount  of  the  company's  assets  to  pay  the  same,  unless 
the  same  shall  be  paid  by  the  company.  {Revised  Statutes,  1873, 
p.  56,  §  26.) 

1 S.  Every  insurance  company,  organized  under  the  laws  of  this 
State,  shall  return  all  its  personal  property,  moneys,  credits  (inclu- 
ding subscriptions  of  stock),  investments  in  bonds,  stocks,  securities 
and  assets  of  every  kind,  for  taxation,  at  the  place  where  its  princi- 
pal office  is  located.    {Ibid,  §  27.) 


MISCELLANEOUS. 

1 3.  Limited  partnerships  m;iy  be  formed  by  two  or  more  per- 
sons upon  the  terms,  with  the  rights  and  powers,  and  subject  to 
the  conditions  and  liabilities  herein  prescribed ;  but  these  provis- 
ions shall  not  be  construed  to  authorize  any  such  partnership  for 
the  purpose  of  banking  or  making  insurance.  {Revised  Statutes, l^Td, 
p.  323,  §  1.) 

14.  Such  [turnpike,  bridge,  causeway,  or  ferry]  corporation  is 
expressly  yirohibited  from  eftecting  any  insurance  on  lives  or  pro- 
perty.    {Ibid,  p.  348,  §  55.) 


LIFE  INSURANCE  FOR  THE  BENEFIT  OF  MARRIED 
WOMEN  AND  CHILDREN. 

15.  A  policy  of  insurance  upon  the  life  of  any  person  which  has 
already  or  may  hereafter  be  taken  out,  in  which  it  is  expressed  to 
be  for  the  benefit  of  any  married  woman,  or  for  the  benefit  of  her- 
self and  her  children,  or  for  the  benefit  of  herself  and  the  children 
other  husband,  whether  procured  by  herself  or  her  husband,  shall 
inure  to  the  use  and  benefit  of  the  person  or  persons  for  whose  use 
and  benefit  it  is  expressed  to  be  taken  out ;  and  the  sum  or  net 
amount  of  the  insurance  becoming  due  and  payable  by  the  terms  of 
the  policy  shall  be  payable  to  the  person  or  persons  for  whose  use 


SOUTH   CAROLINA.  777 

and  benefit  it  shall  be  expressed  to  be  taken,  free  and  discharged 
from  the  claims  of  the  representatives  of  the  husband  or  of  any  of 
his  creditors,  or  any  party  or  parties  claiming  by,  through,  or  under 
him  or  them,  or  either  of  them ;  Provided^  however^  That  if  the  pre- 
mium paid  in  any  one  year  out  of  the  property  or  funds  of  the  hus- 
band shall  exceed  the  sum  of  five  hundred  dollars,  the  exemption 
from  the  claims  of  the  creditors  of  the  husband  shall  not  apply  to 
so  much  of  said  premium  so  paid  as  shall  be  in  excess  of  five  hun- 
dred dollars,  but  such  excess,  with  the  interest  thereon,  or  so  much 
thereof  as  may  be  necessary,  shall  inure  to  the  benefit  of  such  credi- 
tors, if  any ;  Provided^  That  the  same  be  necessary  for  their  pay- 
ment.    (Laics  of  1875,  p.  865.) 


AESON  AND  INCENDIARISM. 

16.  The  willful  and  malicious  setting  fire  to  or  burning  any 
house,  of  whatever  name  or  kind,  within  the  curtilage  or  common 
enclosure  of  any  house  or  room  wherein  persons  habitually  sleep, 
whereby  any  such  dwelling-house  or  sleeping  apartment  shall  be 
endangered  ;  also  the  willful  and  malicious  setting  fire  to  or  burn- 
ing any  court-house  or  other  public  building,  whether  owned  by  the 
State  or  a  corporation,  or  a  building  owned  by  an  individual  or  in- 
dividuals, and  kept  or  let  for  public  meetings  or  exhibitions,  barn, 
stable,  coach-house,  gin-house,  store-house,  warehouse,  grist  or  saw- 
mill, railroad  depot,  coach  or  cotton  factory,  or  other  house  used  for 
manufacturing  purposes,  of  whatever  name  or  kind,  or  setting  fire 
to  or  burning  any  house  habitually  used  for  public  religious  wor- 
ship, shall  be  deemed  arson,  whether  such  setting  fire  to  or  burning 
be  in  the  day  or  night  time  ;  and  the  person  setting  fire  to  or  burn- 
ing any  such  house,  as  aforesaid,  and  his  or  her  aiders,  abettors  and 
accessories  before  the  fact,  shall,  upon  conviction,  be  punished  by 
hard  labor  in  the  penitentiary  for  life,  or  for  a  period  not  less  than 
ten  years,  according  to  the  aggravation  of  the  offense.  {Revised 
Statutes,  1873,^.  714,  §  1.) 

1 7,  For  General  Provisions  relating  to  Corporations  see  Re^ 
vised  Statutes,  1873,  pp.  oQ,  57,  338,  375,  GOl,  623,  679. 


INDEX  TO   TENNESSEE. 


PAGE 

Agents— 

Licenses  (23,  32) 786,788 

Serviceof  Process  on  (19,  43) 785,791 

To  File  Copy  of  License  (23) 786 

Penalty  for  THe^al  Business  (23) 786 

To  Report  Premiums  for  Taxation  (25)  786 

Tax  on  Keceipts  of  (25> 786 

Embezzlement  by  (54) 792 

Annual  Statements— (1 8,  33)  -  -  -  ■  783,  784,  788 
Blanks  for  (9,  44) 781,  791 

Arson,  Crime  and  Penalty  of  ^48-53).  791,  792 

Attorney-General  to  Prosecute  Companies 

(8) 781 

Capital— 

Of  Forei^  Companies  (19,  20) 785 

Impairment  of(21) 785 

Certificate  of  Antbority— 

When  Issued  (22,  32,  34) 786,  788 

•When  Revoked  (6,  7,  25,  40)  780,  781, 

786. 790 
Commissioner   of  the   Insurance    Depart 

ment-(4) 780 

To  Examine  Companies  (5-7,  21,40)  774, 

775,  785,  790 
To  Revoke  Certificate  of  Antbority  (6, 

7,25,  40) 774,775,786,790 

To  Report  Violations  of  Law  <8) 781 

To  Furnish  Blanks    for  Statements  to 

(9,  44) 781,791 

To  Value  Life  Policies  (10) 781 

May  Accept  other  Valuations  (10) 781 

Report  of  (11,  31) 782,788 

To  Keep  Recorcls(12) 782 

To  Furnish  Certificate  Copies  of  Papers 

(13) 782 

Papers   Certified  by,  to  bo   Evidence 

(14) 782 

General  Powers  and  Duties  of  (1 5) 782 

Fees  Paid  to  (16,  28) 782,787 

Penalty  for  Neglect  of  Duty  by  (1 7)  ■  ■  783 
May  Make  Special  Inquiries  (1  8)  -  783,  784 
To  Issue  Certificate  of  Authority  (22, 

32,34) 766,788 

To  Issue  Licenses  (23) 786 

Company  Defined  (24) 786 

Corporations — 

Constitutional   Provisions  Concerning 

(1) 774 

General  Provisions  Relating  to  (66)..  792 


PAGB 

Deposits— 

Of  Foreign  Fire  Insurance  Cos.  (20). .  785 
Of  Foreign  Life  Insurance  Cos.  (24)..  786 
Under  Reciprocal  Laws  (26,  34).  787,  788 
Of  Home  Life  Insurance  Cos.  (35) 789 

Dividends  of  Fire  and  Marine  Cos .  (30)...  787 

Embezzlement,  Crime  and  Penalty  of  (54)  792 

Fees— 

Paid  to  Commissioner  (16,  28,  39)  782, 

787,  789 
Under  Reciprocal  Laws  (26,  34).  787,  788 

Fire  and  Marine  Insurance  Companies- 
Examination  of  (5-7,  21) 780,  781,  785 

To  File  Charter  and  Statement  (1  8)  783,  784 

Annual  Statements  ot  (1  8 ) 783,  784 

Capital  of  Foreign  (19,20) 785 

Impairment  of  Capital  of  (2 1 ) 785 

Unearned  Premiums  of  (21)   785 

To  Pay  Expenses  of  Examination  (21)  795 

Tax  on  Premiums  of  (25) 786 

Dividends  of  (30) 767 

Fees  Paid  by  (28) -  -  787 

Foreign  Insurance  Companies- 
Examination  of  (6,  7) 780,  781 

Penalty  for  Doing   Business   without 

Authority  (6) 780 

Certificateof  Authority  of  (6,  7,32)  780, 

781,  788 
To  FileCharter  and  Statement  (18)  783,  784 
Annual  Statements  of  (18,  33,  37)  783, 

784,  788,  789 

Capital  of  ( 1 9) 785 

Service  of  l^rocess  on  (19)  785 

Examination  of  (21) 785 

Tax  on  (25,  38) 786,789 

Deposits  ofLite  (34) 788 

Impairment  of  Capital  (21) 785 

Incendiarism,  Crime  and  Penalty  of  (48- 

63) 791,  792 

Insurance  Bureau- 
Established  (2) 780 

Expenses  of  (3) 780 

Commissioner  of  (4) 780 

Records  of  (12,  13) 783 

Seal  of  (14) 782 

Laws  Repealed  (45) 791 


INDEX  TO  TENNESSEE. 


779 


PAQB 

Licenses — 

Of  Agents(23,  32) 786,788 

Under  Reciprocal  Laws  (26,  34).  787,  788 
Fees  for  (28,  39) 787,789 

Life  Insurance  for  the  Benefit  of  Married 

Women  and  Children  (46,47) 791 

Life  Insurance  Compauies — 

Examination  of  ( 5-  7,40)  - .  -  .780,  781,  790 

Valuation  of  Policies  of(lO) 781 

Licenses  of  (32). 788 

Annual  Statements  of  (33>  3  7'--  788,  789 

deposits  of  Foreign  (34) 788 

Deposits  of  Home  (35) 789 

Tax  on  (36,38) '.-.  789 

Fees  Paid  by  (39) 789 

Surplus  of  (41) 790 

Insolvency  of  (42) 790 

Attorney  of  Foreign  (43) 791 

Service  of  Process  on  Foreign  (43) 791 

Penalties — 

For  Doing  Business  without  Authority 

(6,23) 780,786 

For  Obstructing  Commissioner  (7) 781 

For  Neglect  of  Duty  by  Commissioner 

(17) 783 


PAOB 

Penalties  (Continued) — 

For  Refusing  to  make  Annual  State- 
ment (18) 783,  784 

For  not  Paying  Taxes  (16) 782 

Under  Reciprocal  Laws  (26,  34).  787,  788 

Recovery  of  (29) 787 

For  not  Reporting  Investments  (35) . .  789 
For  Arson  and  Incendiarism  (48-53)  790- 

792 
For  Embezzlement  (54) 792 

Premiums — 

''       Tax  on  (25,  36) 786.789 

Enearned  (21) 785 

Reciprocal  Laws  (26,  34) 787,  788 

Repeal  ofLaws  (45) 791 

Seuvice  of  Process  (19,  43) 785 

Taxes~ 

On  Insurance  Cos.  (25,  36,  38).  786,  789 
Under  Reciprocal  Laws  (26,  34)  787,  788 

Valuation— 

Of  Life  Policies  (10) 781 

Feesfor(10,  16) 781,  782 

Wives' Policies  (46,  47) 791 


INSURANCE  STATUTES  OF  TENNESSEE. 


Revised  by  Hon.  Henry  W.  Morroiv,  Commissioner  of  the  Insurance 

Department. 


CONSTITUTIONAL    PROVISIONS  CONCERNING  CORPOR- 
ATIONS. 

1 .  No  corporation  shall  be  created,  or  its  powers  increased  or 
diminished  by  special  laws ;  but  the  general  assembly  shall  pro- 
vide by  general  lawvS  for  the  organization  of  all  corporations  here- 
after created,  which  laws  may,  at  any  time,  be  altered  or  repealed  ; 
and  no  such  alteration  or  repeal  shall  interfere  with  or  divest  rights 
which  have  become  divested.     {Article  11,  §  8.) 


INSURANCE   BUREAU. 

2.  There  is  hereby  established  a  bureau,  in  connection  with 
the  office  of  the  Treasurer,  and  to  be  designated  the  "  Bureau  of 
Insurance,"  which  shall  be  charged  with  the  enforcement  of  the 
laws  heretofore,  or  which  may  be  hereafter,  passed  relating  to  in- 
surance.    [Laics  of  1873,  ^.  88,  §  1.) 

SI.  The  State  shall  not  be  responsible  for  the  expense  of  the  es- 
tablishment and  future  management  of  the  "  Insurance  Bureau," 
but  the  same  shall  be  provided  for,  and  paid  by  the  fees  and  allow- 
ances named  in  this  act.     (Ibid,  p.  89,  §  2.) 

4.  The  chief  officer  of  said  bureau  shall  be  the  Treasurer,  and 
he  shall  be  denominated  the  Commissioner  of  the  Insurance  De- 
partment.    {Ibid,  §  3.) 

5.  The  Commissioner  shall  visit  and  examine  any  insurance 
company  incorporated  in  the  State,  on  requisition  by  three  or  more 
persons,  each  of  whom  is  a  stockholder  or  creditor,  or  pecuniarily 
interested  in  such  company,  which  requisition  shall  contain  a  state- 
ment made  under  oath  by  three  or  more  persons  making  it,  that 
they  believe  the  company  to  be  in  an  unsound  condition,  and  shall 
state  the  grounds  of  such  belief.  At  such  time  he  shall  have  access 
to  its  books  and  papers,  and  make  inquiries,  such  as  are  necessary 
to  ascertain  its  condition  and  ability  to  fulfill  its  engagements,  and 
whether  it  has  complied  with  all  the  provisions  of  law  applicable  to 
its  transactions.     {Ibid,  §  4.) 

6.  He  shall,  when  required,  as  in  the  preceding  section,  ex- 
amine into  the  affairs  and  condition  of  any  insurance  company 
doing  business  in  this  State,  not  organized  under  the  laws  of  this 
State,  or  cause  such  examination  to  be  made  by  some  competent 
person  appointed  by  him ;  and  whenever  it  shall  appear  to  the  satis- 
faction of  the  Commissioner  that  the  affairs  of  any  such  company 


TENNESSEE.  781 

are  in  an  unsound  condition,  or  not  conformable  to  any  standard 
adopted  by  the  State ;  or  any  sucli  company  shall  refuse  to  permit 
the  examination  herein  designated,  he  shall  revoke  all  certificates 
granted  in  behalf  of  such  company,  and  shall  cause  a  notification 
thereof  to  be  published  in  some  newspaper  of  general  circulation, 
published  in  this  State,  and  all  agents  of  such  company  are,  after 
such  notice,  required  to  discontinue  the  issuing  or  delivering  of  any 
new  policy,  or  the  renewal  of  any  previously  issued,  or  the  effecting 
in  any  form  of  any  new  insurance,  for  or  on  account  of  such  com- 
pany, under  a  penalty  of  five  hundred  dollars  for  ea(;h  offense  j 
which  sum  it  shall  be  the  duty  of  the  Commissioner  of  Insurance 
to  recover  before  any  court  of  competent  jurisdiction ;  two- thirds 
to  be  paid  into  the  State  treasury,  and  the  other  third  to  be  re- 
tained by  said  Commissioner.     {Ibid,  §  5.) 

7.  He  may  summon  and  examine,  under  oath,  the  directors, 
officers  and  agents,  of  any  insurance  company,  and  such  other  per- 
sons as  he  may  think  proper,  in  relation  to  the  affairs,  transactions 
and  condition  of  said  company.  Whoever,  without  justifiable 
cause,  shall  refuse  to  appear  and  testify  when  so  required,  or  ob- 
struct the  Commissioner  in  the  discharge  of  his  dutj^,  shall  for 
each  offense  be  punished  by  a  fine  not  exceeding  one  thousand  dol- 
lars, or  by  imprisonment  not  exceeding  one  year ;  and  if  the  di- 
rectors, officers  or  agents,  of  any  insurance  company,  not  incorpor- 
ated by  the  State  of  Tennessee,  but  transacting  business  therein, 
shall  refuse  to  appear  and  testify,  when  so  required,  he  shall  revoke 
the  certificate  of  authority  and  license  of  such  company  and  its 
agents.  Any  expense  incurred  in  this  behalf,  shall  be  paid  by  the 
company  into  whose  affairs  an  examination  is  made.  {Ibid,  p.  90, 
§6.) 

8.  When  in  his  opinion,  upon  examination,  as  heretofore  pro- 
vided, an  insurance  company,  its  officers  or  agents,  have  violated 
any  law  of  this  State  relative  to  such  company,  the  Commissioner 
shall  forthwith  report  the  fact  to  the  Attorney -General  of  the  Ju- 
dicial Circuit,  within  which  such  violation  has  occurred,  and  it  shall 
be  his  duty  at  once  to  prosecute  such  company,  officer  or  agent 
therefor;  Provided,  That  upon  the  examination  of  the  testimony, 
he  shall  deem  such  prosecution  proper.     {Ibid,  §  7.) 

9.  He  shall  annually  furnish  to  the  insurance  companies  of 
this  State,  and  to  the  insurance  companies  not  incorporated  in  this 
State,  and  doing  business  therein,  so  far  as  their  agents  are  known 
to  him,  two  or  more  printed  copies  of  the  form  of  annual  state- 
ments to  be  made  to  him  by  all  such  companies  on  or  before  the  1st 
day  of  December  of  each  year.     {Ibid,  §  8.) 

10.  Upon  some  day  in  each  year  designated  by  him,  the  Com- 
missioner shall  calculate  the  existing  values  of  all  outstanding  poli- 
cies of  life  insurance  in  companies  authorized  to  make  insurance  on 
lives  in  this  State,  on  the  basis  of  four  and  a  half  per  cent,  interest 
on  all  mutual  or  participating  policies  ;  six  per  cent,  interest  on  all 
stock  or  non-participating  policies  (where  the  company  has  as  much 
as  one  hundred  thousand  dollars  capital  stock  paid  uj)).  These  cal- 
culations to  be  made  upon  the  "  American  Experience  Table  of 
Mortality ;  "  Provided,  however.  That  if  any  company  incorporated 
by  any  State  where  a  regular  organized  Insurance  Bureau  or  De- 
partment exists,  shall  furnish  certificate  under  seal,  in  due  form 
of  the  Insurance  Commissioner  or  Superintendent,  setting  forth 
the  existing  values  of  all  its  outstanding  policies ;  such  certificate 


782  HINE'S  INSURANCE  STATUTES. 

shall  be  received  as  evidence  by  tbe  Insurance  Commissioner  of 
this  State ;  and  no  valuation  of  the  policies  of  such  companies 
shall  be  made  by  him ;  Provided,  the  cost  of  making  every  valua- 
tion, under  this  section  shall  be  assessed  on  the  company  whose 
policies  are  so  valued;  and  Provided,  further,  That  any  valuation 
made  by  the  actuary  of  any  home  company,  if  made  under  oath, 
shall  be  received  by  the  Commissioner;  and  in  the  event  compa- 
nies, whether  foreign  or  home,  make  valuations  as  above  provided, 
the  Commissioner  shall  receive  uo  fee.     {Ibid,  §  9.) 

1 1 ,  The  Commissioner  shall  annually,  on  or  before  the  first 
day  of  December,  make  a  report  to  the  Governor  of  the  condition  of 
the  several  insurance  companies  doing  business  in  this  State,  with 
such  suggestions  as  he  may  deem  expedient,  and  shall  include  there- 
in an  aggregate  of  the  calculated  value  of  all  outstanding  policies  of 
life  insurance  ascertained  by  him,  in  the  manner  prescribed  in  the 
preceding  section ;  and  in  connection  therewith,  shall  prepare  an 
abstract  of  all  returns  and  statements  made  to  him,  by  such  insur- 
9iuce  companies  and  agents.     {Ibid,  p.  91,  §  10.) 

1 5l.  The  Commissioner  shall  keep  and  preserve  in  a  permanent 
form,  a  full  record  of  his  proceedings,  including  a  concise  statement 
of  the  condition  of  each  company  visited  or  examined  by  him,  and 
of  the  facts  elicited  by  such  examiuation.     {Ibid,  §  11.) 

13.  The  records  of  the  said  "Insurance  Bureau"  shall,  at  all 
times,  be  open  to  the  inspection  of  the  public,  subject  to  such  rules 
as  miiy  be  made  by  the  Commissioner  for  their  safe-keeping,  free 
from  any  charge  whatever ;  and  he  shall,  on  demand,  furuish  certi- 
fied copies  of  any  paper,  report  or  document  on  file  in  his  office  to 
auy  person  requesting  the  same,  upon  payment  of  the  fee  allowed 
by  law.     {Ibid,  §  12.) 

14.  The  Commissioner,  with  the  approval  of  the  Governor, 
shall  devise  a  seal,  with  suitable  inscription,  for  the  "  Bui-eau  of  In- 
surance ; "  a  description  of  which,  with  a  certificate  of  approval  by 
the  Governor,  together  with  an  impression  thereof,  shall  be  filed  in 
the  office  of  the  Secretary  of  State ;  which  seal  shall  thereupon  be  and 
become  the  seal  of  the  "  Insurance  Bureau,"  and  the  same  may  be 
renewed  whenever  necessary.  Every  certificate,  assignment,  or 
conveyance  executed  by  the  Commissioner,  relating  to  the  business 
of  insurance  companies,  iu  pursuance  of  authority  conferred  by  law, 
and  sealed  with  said  seal  of  office,  shall  be  recorded  in  the  proper 
recording  office,  in  the  same  manner  and  with  the  same  effect  as  a 
deed  regularly  acknowledged  or  proved  before  an  officer  authorized 
by  law  to  take  the  proof  or  acknowledgment  of  deeds,  and  all  copies 
of  papers,  in  the  office  'of  said  Bureau,  certified  by  the  Insurance 
Commissioner,  and  authenticated  by  the  said  seal,  shall,  in  all 
cases,  be  evidence  equally  and  in  like  manner  with  the  original. 
{Ibid,  §  13.) 

Id,  The  Commissioner  of  the  Insurance  Bureau  shall  possess 
all  of  the  powers  and  perform  all  of  the  duties  now  conferred  by  law 
upon  the  Comptroller,  or  upon  the  Board  of  Commissioners  under 
the  act  of  July  8,  1870,  in  relation  to  insurance  companies  ;  and  all 
books,  papers,  and  documents  in  any  department,  relating  to  the 
business  of  insurance,  shall  be  transferred  to  the  Bureau  of  Insur- 
ance,    {Ibid,  p.  92,  ^U.) 

1 6.  The  fees  of  the  Commissioner  shall  be  as  now  established 
by  law,  with  the  following  additional  fees:  For  seal  of  office,  one 
dollar ;  for  copies  of  papers  in  his  office,  twenty  cents  per  folio  ;  for 


TENNESSEE.  783 

cost  of  making  valuations  under  section  nine,  not  to  exceed  three  (3) 
cents  on  every  one  thousand  dolhirs  of  insurance  effected,  and  all 
fees  in  excess  of  three  thousand  dollars  shall  be  jiaid  into  the  State 
Treasury.     {I bid,  ^15.) 

17.  If  the  Insurance  Commissioner  shall  exact  or  receive, 
either  directly  or  indirectly,  any  sum  of  money  from  any  insurance 
company  doing  business  in  this  State,  other  than  the  fees  allowed 
bylaw;  or  shall  willfully  issue  a  fraudident  or  false  certificate  of 
soundness  to  any  such  company ;  or  shall  directly  or  indirectly  re- 
ceive any  money  or  other  valuable  things  for  doing,  or  not  doing, 
any  ofhcial  act  as  such  Commissioner,  other  than  the  fees  allowed 
by  law,  he  shall  be  deemed  guilty  of  a  felony,  and,  upon  convic- 
tion, shall  be  imprisoned  in  the  State  j)enitentiary  not  less  than  one 
nor  more  than  five  years,     (i  bidy  §  17, 


INSURANCE   COMPANIES  OTHER  THAN  LIEE. 

18.  Before  any  insurance  company,  whether  incorporated  by 
the  laws  of  this  State  or  not,  shall  transact  any  business  of  insur- 
ance in  this  State,  except  the  business  of  life  insurance,  through 
agents  or  otherwise,  it  shall  file  with  the  Commissioner  of  Insurance 
a  certified  copy  of  the  charter,  or  deed  of  settlement,  of  the  com- 
pany, and  a  statement  of  the  company  on  the  31st  day  of  December 
next  preceding  the  day  on  which  it  shall  apply  for  permission  to 
transact  business  in  this  State,  exhibiting  the  following  facts  and 
items,  in  the  following  form,  namely : 

First. — The  amount  of  capital  stock  of  the  company,  and  how 
much  of  the  same  has  been  paid  uj)  in  cash. 

Second. — The  property  and  assets  held  by  the  company,  specify- 
ing: 

1.  The  value  and  location  of  the  real  estate  held  by  such  com- 
pany. 

2.  The  amount  of  cash  on  hand  and  deposited  in  banks  to  the 
credit  of  the  company  ;  in  what  banks  the  same  is  deposited, 
and  the  amount  in  each. 

3.  The  amount  in  the  hands  of  agents  and  in  course  of  trans- 
mission. 

4.  The  amount  of  loans  secured  by  bonds  and  mortgages,  or 
deeds  of  trust,  constituting  the  first  lien  on  real  estate,  on  which 
there  shall  be  less  than  one  year's  interest  due  or  owing ;  the  lo- 
cation and  value  of  each  piece  of  such  real  estate,  and  the 
amount  loaned  on  each  piece. 

5.  The  amount  of  loans  on  which  interest  shall  not  have  been 
paid  within  one  year  previous  to  such  statement,  and  how  se- 
cured. 

6.  The  amount  due  the  company  on  which  judgments  have 
been  obtained,  and  the  cash  value  thereof 

7.  The  amount  of  stocks  and  bonds  of  this  State,  or  of  the 
United  States,  or  of  any  other  stocks  or  bonds  owned  by  the 
company  or  corporation,  specifying  the  amount,  number  ot 
shares,  and  par  and  market  value  of  each  kind  of  stocks  or 
bonds. 

8.  The  amount  of  bonds,  mortgages,  or  stocks  held  as  col- 
lateral security  for  loans  with  the  amount  loaned  on  each  kind 
of  stock  or  bond,  and  their  par  and  market  value. 


784  hike's  insuhance  statutes. 

9.  The  amount  of  interest  actually  due  and  unpaid. 

10.  The  amount  of  interest  accrued  but  not  due. 

11.  The  amount  of  all  other  assets  of  every  description  and 
of  what  composed. 

Third. — The  liabilities  of  such  company,  specifying : 

1.  The  amount  of  losses  due  and  unijaid,  and  how  much 
thereof  is  to  citizens  of  this  State. 

2.  The  amount  of  claims  for  losses  resisted  by  the  company, 
and  how  much  thereof  is  to  citizens  of  this  State. 

3.  The  amount  of  claims  for  losses  incurred  during  the  year, 
including  those  claimed  and  not  due,  and  those  reported  to  the 
company  upon  which  no  action  has  been  taken,  and  how  much 
thereof  is  to  citizens  of  this  State. 

4.  The  amount  of  dividends  declared  and  due,  and  remaining 
unpaid. 

5.  The  amount  of  dividends  declared  and  not  due. 

6.  The  amount  of  money  borrowed,  and  security  given  for 
the  payment  thereof. 

7.  The  amount  required  for  reinsurance  of  outstanding  poli- 
cies, estimating  the  same  at  fifty  per  cent,  of  the  premiums  re- 
ceived on  all  policies  having  not  more  than  one  year  to  run, 
and  a  pro-rata  on  all  premiums  received  on  risks  having  more 
than  one  year  to  run. 

8.  The  amount  of  all  claims  against  the  company,  and  of 
what  they  consist. 

Fourth. — The  income  of  the  company  during  the  year,  specifying: 

1.  The  amount  of  premiums  received,  designating  the  amount 
received  in  this  State. 

2.  The  amount  of  interest  money  received. 

3.  The  amount  of  income  received  from  all  sources,  and  from 
what  the  same  was  derived. 

Fifth. — The  expenditures  during  the  preceding  year,  specifying : 

1.  The  amount  of  losses  paid  during  the  year,  stating  how 
much  thereof  to  citizens  of  this  State. 

2.  The  amount  of  dividends  paid  during  the  year. 

3.  The  amount  paid  in  taxes  and  commissions  to  agents. 

4.  The  amount  of  all  other  payments  and  expenditures. 
Which  statement  shall  be  subscribed,  under  oath,  by  the  pres- 
ident and  secretary,  or  other  chief  officers  or  managers  of  such  com- 
pany, and  shall  be  renewed  annually,  on  the  31st  day  of  December 
of  each  year  thereafter,  or  within  thirty  days  thereafter ;  and  the 
8aid  Commissioner  is  hereby  authorized  to  propose  such  additional 
inquiries  as  may,  in  his  judgment,  be  necessary  to  elicit  a  full 
exhibit  of  the  business  and  standing  of  any  insurance  company  as 
aforesaid,  transacting,  or  proposing  to  transact  the  business  of  in- 
surance in  this  State. 

Every  company,  the  capital  of  which  is  composed  in  whole  or  in 
part  of  notes  shalf,  in  addition  to  the  foregoing,  exhibit  a  list  of  the 
notes  held  by  such  company  as  a  part  of  its  capital,  showing  the 
names  of  the  makers  and  endorsers  of  each  note. 

Any  company  failing  or  refusing  to  file  such  statement,  or 
refusing  to  answer  any  inquiry  of  the  Commissioner,  shall  be  sub- 
ject to  a  penalty  of  five  hundred  dollars,  and  an  additional  penalty 
of  five  hundred  dollars  for  every  month  thereafter  that  such  com- 
pany shall  continue  to  transact  any  business  of  insurance.  {Laws  of 
1875,  p.  192,  §  1.) 


TENNESSEE.  785 

19.  It  shall  not  be  lawful  for  any  insurance  company,  not  or- 
ganized under,  or  incorporated  by,  the  laws  of  this  State,  to  trans- 
act any  business  of  insurance  in  this  State,  through  agents  or 
otherwise,  unless  possessed  of  at  least  two  hundi-ed  thousand  dol- 
lars of  paid-up  actual  cash  capital ;  of  which  at  least  one  hundred 
thousand  dollars  shall  be  invested  in  bonds  of  the  United  States, 
or  some  one  or  more  of  the  States,  reckoning  the  same  at  their  cur- 
rent market  value;  nor  until  such  company,  in  addition  to  the 
other  requirements  of  this  act,  shall  have  filed  with  the  Commis- 
sioner of  Insuran(;e  a  written  instrument,  duly  signed  and  sealed, 
authorizing  said  Commissioner  to  acknowledge  service  of  process 
for  and  in  behalf  of  such  company  in  this  State,  consenting  that 
service  of  process,  mesne  or  final,  upon  any  such  agent  or  agents, 
shall  be  taken  and  held  as  valid,  as  if  served  upon  the  company', 
according  to  the  laws  of  this  State,  or  any  other  State,  and  waiving 
all  claim  or  right  of  error  by  reason  of  such  acknowledgment  of  ser- 
vice ;  and  any  process  issued  by  any  court  of  record  in  this  State, 
and  served  upon  such  Commissioner  by  the  proper  oifieer  of  the 
county  in  which  said  Commissioner  may  have  his  office,  shall  be 
deemed  a  sufficient  process  on  said  company.     {Ibid,  p.  194,  §  2.) 

20,  Before  any  company  incorporated  by,  or  organized  under, 
the  laws  of  any  foreign  government  shall  transact  any  business  of 
insurance  in  this  State,  it  shall  file  with  the  Commissioner  of  Insur- 
ance the  certificate  of  the  Comptroller,  or  other  chief  financial  offi- 
cer of  some  other  State,  or  of  the  United  States,  under  his  hand  and 
official  seal,  that  he  holds,  on  deposit  and  in  trust,  for  the  benefit 
of  all  the  i)olicy-holders  of  such  company  in  the  United  States, 
securities  in  which  it  is  authorized  to  invest  its  capital  stock  by  the 
laws  of  the  State  in  which  such  deposit  is  made,  worth  at  least  two 
hundred  thousand  dollars,  and  which  shall  be  increased  in  case  of 
any  depreciation  in  their  value;  Provided,  That  companies  organ- 
ized under  the  laws  of  any  foreign  government,  depositing  the 
amount  of  securities  aforesaid  with  the  Treasurer  of  this  State,  who 
shall  receive  the  same  in  his  official  capacity,  and  producing  and 
filing  a  certificate  thereof  in  the  manner  provided  by  this  section, 
shall  be  held  to  have  complied  with  the  requirements  of  this  sec- 
tion, if  such  certificate  shall  state  that  the  aforesaid  deposit  is  for 
the  benefit  and  protection  of  its  policy-holders  in  the  United  States. 
{Ibid,  p.  195,  §  3.) 

21,  Whenever  the  Commissioner  of  Insurance  shall  have 
reason  to  suspect  the  correctness  of  any  statement  furnished  him, 
or  that  the  attairs  of  any  company  doing  business  in  this  State, 
whether  chartered  by  this  State  or  not,  are  in  unsound  condition,  it 
shall  be  his  duty,  by  himself  or  his  deputy,  or  whenever  he  shall 
deem  it  expedient  so  to  do,  at  his  option,  to  appoint  one  or  more 
persons,  not  officers,  agents  or  employees  of  any  insurance  com- 
pany, who,  before  entering  upon  the  discharge  of  the  duty,  shall 
take  an  oath  to  perform  faithfuly  and  impartially  the  business  with 
which  they  are  charged,  to  examine  into  the  affairs  of  such  com- 
pany ;  and  it  shall  be  the  duty  of  the  officers  or  agents  of  such 
company  to  cause  their  books  to  be  opened  for  the  inspection  of  the 
Commissioner,  or  person  or  persons  so  appointed  by  him,  and  other- 
wise to  facilitate  such  examination,  so  far  as  it  may  be  in  their 
power  to  do ;  and  for  that  purpose  the  Commissioner,  or  the  person 
or  persons  so  appointed  by  him,  shall  have  power  to  examine,  under 
oath,  the  officers  or  agents  of  any  such  comj^anv  relative  to  the  bua- 
50 


ZS6  hine's  insurance  statutes. 

iness  of  said  company ;  and  whenever  it  shall  appear  to  the  satis- 
faction of  the  Commissioner,  that  the  assets  of  any  such  company 
are  reduced  more  than  twenty  per  cent,  below  the  capital  stock  re- 
quired by  this  act,  or  its  charter,  after  reserving  fifty  per  cent,  of 
the  amount  received  for  premiums  on  all  risks  which  are  unexpired, 
which  are  hereby  declared  unearned  premiums,  he  shall  revoke  all 
authority  to  such  company,  or  its  agents,  to  do  business  in  this 
State,  and  shall  cause  a  notification  thereof  to  be  j)ublished  in  one 
or  more  newspapers  of  general  circulation,  and  copies  thereof  to  be 
jpiailed  to  each  agent  licensed  by  him  to  transact  business  for  said 
company ;  and  the  agents  of  such  company  are,  after  such  notice, 
^•equired  to  discontinue  the  issuing  of  any  new  policies,  or  the  re- 
newal of  anj'  previously  issued.  The  necessary  expenses  of  such 
examination  shall  be  certified  to  by  the  Commissioner  and  paid  by 
the  company  examined.   {Ibid,  §  4.) 

22.  Whenever  any  insurance  company,  as  provided  in  section 
1,  shall  have  fully  complied  with  all  the  requirements  of  this  act, 
and  the  Commissioner  is  satisfied  that  the  affairs  of  such  company 
are  in  a  sound  condition,  he  shall  issue  certificates  of  authority  to 
such  persons  as  such  company  may  designate,  authorizing  them  to 
transact  the  business  of  insurance  for  and  in  behalf  of  such  com- 
pany in  this  State,  which  certificates  shall  be  renewed  annually  in 
January  of  each  year.     {Ihid,  p.  196,  §  5.) 

33.  It  shall  not  be  lawful  for  any  person  or  persons  to  act  as 
agent,  or  solicit  risks,  or  in  any  way,  directly  or  indirectly,  to  trans- 
act the  business  of  insurance  for  and  in  behalf  of  any  company, 
whether  organized  under  or  incorporated  by  the  laws  of  this  State 
or  not,  without  first  obtaining  a  certificate  of  authority  from  the 
Commissioner  of  this  State  so  to  do,  which  certificate  shall  state 
that  said  company  has  fully  complied  with  all  the  requirements  of 
this  act  applicable  to  such  companies,  and  depositing  a  certified 
copy  of  such  license  in  the  office  of  the  Clerk  of  the  county  in  which 
the  office  or  place  of  business  of  such  agent  or  agents  may  be  estab- 
lished ;  and  whoever  shall,  directly  or  indirectly,  aid  in  transacting 
the  insurance  business  of  any  such  company  without  first  receiving 
such  certificate  of  authority,  or  having  received  such  certificate  of 
authority  shall,  after  receiving  from  such  Commissioner  notice  of 
the  revocation  thereof,  continue  to  act  as  agent  for  any  such  com- 
pany, shall  forfeit  and  pay  to  the  State  for  each  offense  the  sum  of 
one  hundred  dollars.    {Ibid,  §  6.) 

24.  The  term  company,  used  in  this  act,  shall  embrace  and  in- 
clude every  company,  corporation,  association,  or  partnership,  or- 
ganized for  the  purpose  of  transacting  the  business  of  insurance, 
other  than  life  insurance.     {Ibid,  p.  197,  §  7  ) 

25.  Each  and  every  company  organized  for  any  of  the  purposes 
^amed  in  this  act,  not  incorporated  by  or  organized  under  the  laws 
6t  this  State,  shall,  on  the  30th  of  June  and  December  in  each  year, 
report,  under  oath  of  the  president,  and  secretary,  or  other  chief  of- 
ficers of  such  company,  the  total  amount  of  i^remiums  received  from 
policies  issued  in  this  State  within  the  six  months  next  ijreceding,  or 
since  the  last  returns  of  such  premiums  were  made  by  such  com- 
pany ;  and  shall,  at  the  same  time,  pay  into  the  Treasury  of  this 
State  the  sum  of  two  dollars  and  fifty  cents  upon  each  one  hundred 
dollars  of  said  premiums  so  ascertained,  which  shall  be  in  lieu  of  all 
other  taxes.  And  any  company  failing  or  neglecting  to  make  such 
returns  and  payments  promptly  and  correctly,  shall  forfeit  and  pay 


TENNESSEE.  787 

to  the  State,  in  addition  to  the  amount  of  said  taxes,  the  sum  of 
five  hundred  dollars  ;  and  the  compauy  so  failing  or  neglectiug  for 
sixty  days,  shall  thereafter  be  debarred  from  transacting  any  busi- 
ness of  insurance  in  this  State  until  said  taxes  and  penalty  are  fully 
paid ;  and  the  Commissioner  of  Insurance  shall  revoke  the  certifi- 
cates of  authority  granted  to  the  agent  or  agents  of  such  company 
to  transact  business  in  this  State.  Companies  incorporated  by  this 
State  shall,  at  the  same  time  and  in  the  same  manner,  pay  one  dol- 
lar and  fitly  cents  upon  each  hundred  dollars  of  premiums  received 
on  policies  issued  in  this  State,  and  be  subject  to  the  penalties  pro- 
vided for  companies  not  chartered  by  this  State.     (1  hid,  §  8.) 

S6,  AVhenever  the  existing  or  futiue  laws  of  any  other  State 
of  the  United  States  shall  require  of  insurance  companies  incorpor- 
ated by  or  organized  under  the  laws  of  this  State,  or  of  the  agents 
thereof,  any  deposit  of  securities  in  such  State  for  the  protection  of 
policy-holders,  or  otherwise,  greater  than  the  amount  required  for 
similar  purposes  from  similar  companies  of  other  States  by  the  then 
existing  laws  of  this  State,  then,  in  every  such  case,  all  companies 
of  such  States  establishing,  or  having  heretofore  established  an 
agency  or  agencies  in  this  State  shall  be,  and  are  hereby  required  to 
make  the  same  deposit  for  a  like  purpose  with  the  Treasurer  of  this 
State,  and  to  pay  into  the  Treasury  of  this  State  for  taxes,  fines, 
penalties,  license  fees,  or  otherwise,  an  amount  equal  to  the  amount 
of  such  charges,  and  payments  imposed  by  the  laws  of  such  State 
upon  companies  of  this  State  and  the  agents  thereof.    [Ibid,  §  9.) 

Sf .  All  companies  which  may  have  received  license  to  trans- 
act business  in  this  State  prior  to  the  passage  of  this  act,  shall  not 
be  obliged  to  renew  application  until  such  license  shall  exjiire ;  but 
such  companies  shall  be  subject  to  examination  at  the  discretion  of 
the  Commissioner.     {Ibid,  p.  198,  §  10.) 

2§.  Every  company  receiving  from  the  Commissioner  a  certifi- 
cate of  authority  to  transact  business  in  this  State,  shall  pay  the 
following  fees  and  allowances  to  the  Commissioner  : 

For  filing  copy  of  charter  or  deed  of  settlement $10  00 

For  filing  annual  statement 25  00 

For  filing  any  additional  or  supplemental  statement 10  00 

For  each  certificate  of  authority  issued  by  him 3  00 

For  certified  copy  of  certificate  of  authority 3  00 

For  copies  of  any  paper  on  file  or  deposit  in  his  office,  per  folio     20 

For  affixing  seal  of  office  and  certifying  any  paper 1  00 

{Ibid,^  11.) 

•J9.  Every  penalty  provided  for  by  this  act  shall  be  sued  for- 
and  recovered'  in  the  name  of  the  State  of  Tennessee,  by  the  Dis- 
trict Attorney  of  the  district  in  which  such  delinquency  occurs  ;  and,, 
when  sued  for  and  collected  by  him,  shall  be  paid  into  the  State 
Treasury,  less  thirty  per  cent,  to  be  paid  him  for  his  services ;  and 
in  case  of  the  non-payment  of  such  penalty,  the  party  so  oflending 
shall  be  liable  to  imprisonment  for  a  period  not  exceeding  six 
months,  in  the  discretion  of  any  court  having  cognizance  thereof. 
{Ibid,  §  12.) 

30.  It  shall  not  be  lawful  for  the  directors,  trustees  or  man- 
agers of  any  insurance  company  incorporated  by  this  State  to  make 
any  dividend  excspt  from  the  surplus  profits  arising  from  its  busi- 
ness ;  and  in  estimating  such  profits,  there  shall  be  reserved  there- 
from a  sum  equal  to  the  whole  reinsurance  liability  of  said  company, 
as  provided  for  in  section  one  of  this  act.    Any  dividend  made  con- 


788  hine's  insurance  statutes. 

trary  to  this  act  shall  subject  the  company  making-  the  same  to  a  for- 
feiture of  its  charter,  and  each  stockholder  receiviuor  it  to  a  liability 
to  the  creditors  of  such  company  to  the  extent  of  double  the  amount 
of  the  dividend  received.     {Ibid,  §  13.) 

m.  It  shall  be  the  duty  of  the  Commissioner  of  Insurance  to 
publish  annually,  and  as  soon  after  the  first  day  of  January  in  each 
year  as  practicable,  an  itemized  statement  of  the  condition  of  each 
company  as  provided  for  in  section  one,  doing  business  in  this  State. 
(JM(7,j?.  199,  §  14.) 


LIFE  INSURANCE  COMPANIES. 

33.  It  shall  not  be  lawful  for  any  Life  Insurance  Company, 
chartered  by  the  United  States  or  any  State  of  the  United  States, 
or  any  foreign  government,  or  any  agent  or  agents  thereof,  or  by 
the  laws  of  Tennessee,  to  transact  any  business  of  life  insurance  in 
this  State,  without  first  procuring  a  license  therefor  from  the 
Bureau  of  Insurance,  and  a  certificate  of  authority  for  each  agent 
employed.     [Laics  of  1^75,  j)-  76,  §  1.) 

SIS.  Any  such  company  applying  for  such  license,  shall  present 
to  the  Insurance  Commissioner  a  sworn  statement  of  the  president 
and  secretary  thereof,  exhibiting — 

First. — The  name  and  parent  office  of  the  company. 

Second. — The  financial  position  of  such  company  on  the  thirty- 
first  day  of  December  of  the  year  ijreceding  the  date  of  application. 

Third. — The  amount  of  the  capital  stock  of  the  company,  and  what 
part  of  the  same  has  been  paid  in  cash,  and  what  part  of  the  same 
has  been  paid  in  notes  of  the  stockholders ;  together  with  a  full 
exhibit  of  the  assets  and  liabilities — in  what  the  former  consists, 
and  what  the  latter,  and  when  and  how  due. 

Fourth. — The  income  and  expenditures  for  the  year  i>receding. 

Fifth. — A  copy  of  the  charter  of  such  company,  certified  by  au- 
thority, and  this  statement  shall  be  filed  with  the  Insurance  Com- 
missioner.    [Ibid,  §  2.) 

34,  It  shall  be  the  duty  of  the  Insurance  Commissioner,  if  the 
statement  and  exhibit  of  any  company,  chartered  by  the  United 
States,  or  any  other  State,  or  foreign  government  should  show  it  to 
be  in  a  sound  and  solvent  condition,  to  issue  thereupon  a  license  to 
transact  the  business  of  life  insurance  within  the  limits  of  the  State, 
apon  the  terms  and  conditions  set  forth  in  this  section,  and  those 
hereinaiter  provided,  viz.:  Whenever  the  existing  or  future  laws  of 
any  other  State  of  the  United  States  shall  require  of  the  lile  in- 
surance companies  chartered  by  this  State,  and  having  agencies  in 
such  other  State,  or  of  the  agents  thereof,  any  deposits  ot  security 
in  such  State,  for  the  protection  of  policy-holders,  or  otherwise,  or 
any  payment  for  taxes,  penalties,  license,  fees,  or  otherwise,  greater 
than  the  amount  required  for  such  purpose  from  similar  companies 
of  other  States  by  the  existing  laws  of  this  State,  then,  and  in  every 
such  case,  all  companies  of  such  States  establishing,  or  having  here- 
tofore established  an  agency  or  agencies  in  this  State,  shall  be,  and 
are  hereby  required  to  make  the  same  deposits  in  bonds  of  the 
State  of  Tennessee,  for  a  like  purpose  with  the  Comptroller  of  the 
Treasury  of  this  State,  or  with  the  similar  officer  of  the  State  in 
which  the  parent  office  of  the  company  ma^"^  exist,  and  to  i)ay  to  the 
Comptroller  of  this  State,  for  taxes,  penalties,  license,  and  fees  of 


TENNESSEE.  789 

all  kindvS,  an  amount  equal  to  the  amount  of  such  charges  and  pay- 
ments imposed  by  the  laws  of  such  State  upon  companies  of  this 
State  and  the  agents  thereof;  and  all  companies  chartered  by  the 
United  States,  and  by  States  having  no  laws  requiring  deposits  of 
security,  and  by  foreign  governments,  shall  deposit  with  the  In- 
surance Commissioner,  to  be  kept  in  the  custody  of  the  Comj)troller 
of  the  Treasury,  a  certificate  duly  attested  by  the  proper  officer 
under  the  laws  of  the  State  or  government  in  which  such  company 
or  association  is  incorporated  or  organized,  that  securities  to  the 
actual  value  of  at  least  one  hundred  thousand  dollars,  have  been 
deposited  with  him  to  secure  the  policy-holders,  consisting  of  the 
bonds  of  this  State,  the  United  States,  or  of  the  State  in  which  such 
company  is  organized,  or  of  notes  or  bonds,  secured  by  mortgage 
on  real  estate,  for  double  the  amount,  and  stating  the  time  and 
amount  of  each  of  such  bonds,  notes  or  stocks,  and  that  he  is  satis- 
fied they  are  worth  one  hundred  thousand  dollars.  {Ibid,  p.  77,  §  3.) 

35.  No  life  insurance  company  or  association,  organized  or 
chartered  under  the  laws  of  this  State,  shall  transact  business, 
unless  within  three  months  from  the  passage  of  this  act  it  shall 
have  deposited  with  the  Insurance  Commissioner,  for  the  security 
of  its  policy-holders,  the  sworn  statements  of  the  president,  vice- 
president,  and  the  secretary  or  actuary  of  such  company  or 
association,  that  they  have  invested  in  the  bonds  of  this  State  or  of 
the  United  States,  or  in  notes  or  bonds,  secured  by  mortgage  on 
real  estate,  for  double  the  amount  loaned,  one  hundred  thousand 
dollars,  always  subject  to  the  inspection  of  the  Insurance  Commis- 
sioner at  any  time  he  may  deem  proi^er  to  examine  them ;  and 
should  the  investments  of  any  company  or  association  doing 
business  of  life  insurance  in  this  State,  be  less  than  one  hundred 
thousand  dollars  at  any  time  after  such  certificate  is  given,  it  shall 
be  reported  to  the  Insurance  Commission.er  in  thirty  days  thereafter, 
under  penalty  of  five  hundred  dollars  for  each  month  said  report  is 
withheld.     {Ibid,  p.  78,  §  4.) 

36.  Every  life  insurance  company  chartered  by  this  State,  and 
all  companies  chartered  by  the  United  States,  or  under  foreign  gov- 
ernments, or  other  States  of  the  United  States,  to  which  the  recip- 
rocal provisions  of  section  10  of  this  act  do  not  apply,  and  to  any 
one  of  them  by  the  laws  of  the  State  in  which  chartered,  there  may 
be  no  license,  fees,  or  taxes  required,  shall  pay  to  the  Comptroller 
of  the  Treasury,  in  lieu  all  other  taxes,  a  tax  of  one  and  a  half  per 
cent,  on  gross  premium  receipts,  payable  on  the  first  days  of  January 
and  July  of  each  year,  on  sworn  statements  of  president  or  secretary 
of  the  company.     {Ibid,  §  5.) 

37.  The  Insurance  Commissioner  shall  require  annual  sworn 
statements,  on  the  31st  day  of  December,  or  within  thirty  days 
thereafter,  of  each  year,  of  every  company,  home  and  foreign,  trans- 
acting life  insurance  business  in  this  State  ;  said  statement  to  con- 
tain the  full  exhibit  of  facts  described  in  section  2  of  this  act,  and 
to  be  made  by  the  president  and  secretary  thereof.     {Ibid,  §  G.) 

38;  Any  companies  to  which  the  reciprocal  feature  of  this  act 
applies,  shall  pay  such  taxes  as  are  now  assessed  by  law  on  all  in- 
surance companies,  and  such  fees  as  may  be  charged  by  the  State 
in  which  chartered  or  organized.     {Ibid,  p.  79,  §  7.) 

39.  Every  company,  home  and  foreign,  transacting  the  busi- 
ness of  life  insurance  in  this  State,  shall  be  required  to  pay  annually 
the  sum  of  fifty  dollars  to  the  Insurance  Commissioner,  for  the  labor 


790  hike's  insurance  statutes. 

of  examining  and  furnishing  blanks  for  the  sworn  statement  and 
exhibit  thereof,  and  the  sum  of  six  dollars  annually  for  each  certifi- 
cate of  authority  for  every  agent  employed.     {Ibid,  §  8.) 

40.  It  shall  be  the  duty  of  the  Insurance  Commissioner,  -when- 
ever he  shall  have  good  reason  to  suspect  that  the  affairs  of  any  life 
insurance  company  doing  business  in  this  State,  whether  chartered 
by  the  laws  of  this  or  any  other  State,  are  in  an  unsound  condition, 
to  require  of  said  company  or  association  a  special  statement  of  its 
affairs ;  and  if  said  Commissioner  shall  not  be  satisfied  that  the  af- 
fairs of  said  company  or  association  are  in  a  safe  condition,  or  if  any 
three  stockholders  or  policy-holders  of  such  company  or  association 
shall  make  affidavit  that  they  believe  special  statement  or  any  an- 
nual statement  to  be  incorrect  or  untrue,  setting  forth  in  what  re- 
spect, and  on  what  grounds  they  believe  the  same  to  be  untrue,  then 
the  said  Commissioner  shall  make  a  i)ersonal  examination  of  the  af- 
fairs of  said  company,  or  cause  one  to  be  made  by  some  disinterested 
person  or  persons  specially  appointed  by  him  for  that  purpose;  and 
he  or  they  shall  have  power  to  examine,  under  oath,  the  ofiScers  or 
agents  of  any  companies  in  relation  to  the  business  of  said  company ; 
and  it  shall  be  the  duty  of  the  officers  and  agents  of  any  life  insur- 
ance company  or  association  doing  business  in  this  State  to  cause 
their  books  to  be  opened  for  such  inspection  or  examination  as  may 
be  necessary ;  and  if  it  shall  appear  that  the  affairs  of  such  com- 
pany are  in  an  unsound  condition,  the  Commissioner  shall  revoke 
the  certificate  of  authority  granted  to  such  company,  and  cause  a 
notice  to  be  published  of  such  revocation,  at  least  three  times,  in 
some  newspaper  in  the  city  of  Nashville ;  and  the  agent  or  agents 
of  such  company  or  association,  after  such  notice,  are  required  to 
discontinue  the  issuing  of  any  new  policies  or  the  collection  of  any 
premiums.     {Ibidy  §  9.) 

41 .  Every  company  doing  a  life  insurance  business  in  Tennes- 
see, whether  chartered  by  the  laws  of  Tennessee  or  any  other  State 
or  foreign  country,  shall  be  requii-ed,  for  the  better  protection  of 
policy-holders,  to  keep  at  ail  times,  in  addition  to  the  sum  necessary 
to  reinsure  all  outstanding  risks  calculated  upon  the  American  Ex- 
perience Table  of  Mortality,  at  four  and  a  half  per  cent,  on  mutual 
or  participating  policies,  and  at  six  percent,  on  stock  or  non-jjarti- 
cipating  policies,  the  sum  of  one  hundred  thousand  dollars,  invested 
in  bonds,  securities  or  mortgages — (if  mortgages  on  real  estate,  worth 
double  the  sum  loaned)— to  be  certified  as  safe  and  worth  this 
amount  by  the  Insurance  Commissioner  of  the  State  in  which  the 
company  was  organized.     {Ibid,  §  10.) 

42.  Whenever  the  Insurance  Commissioner  shall  have  become 
satisfied,  by  examination  or  otherwise,  that  the  standard  of  solvency 
set  forth  in  section  ten  of  this  act  has  become  impaired,  it  shall  be 
his  duty  to  suspend  the  company,  whether  home  or  foreign,  from 
the  transaction  of  any  new  business  until  said  impairment  has  been 
made  good  ;  and  if  such  impairment  exists  in  the  case  of  a  foreign 
company  for  six  months  from  date  of  first  examination,  then  the 
exclusion  of  the  company  shall  be  final.  If  in  case  of  a  company 
organized  under  the  laws  of  Tennessee,  then  it  shall  be  the  duty  of 
the  Insurance  Commissioner  to  file  a  bill  in  some  court  of  equity 
jurisdiction  in  the  State  against  said  company,  its  stockholders, 
policy-holders,  and  creditors  generally,  for  the  purpose  of  winding 
up  the  affairs  of  such  company,  or  of  affording  such  protection  to 


TENNESSEE. 


7§1 


the  interests  of  all  as  in  the  opinion  of  the  court  the  circumstances 
demand.    {Ibid,  p.  80,  §  11.) 

43.  Any  such  company  or  association  desiring  to  transact 
any  such  aforesaid  business  by  any  agent  or  agents  in  this  State, 
shall  file  with  the  Insurance  Commissioner  a  power  of  attorney, 
authorizing  the  Secretary  of  State  aforesaid,  to  acknowledge  sct- 
vice  of  process,  for  and  in  behalf  of  such  company,  at  any  and  all 
times  after  a  company  has  once  complied  with  the  laws  of  Tennes- 
see, and  been  regularly  admitted,  even  though  such  company  may 
subsequently  have  retired  from  the  State  or  been  excluded.  And 
it  is  hereby  "made  the  duty  of  the  said  Secretary  of  State,  within 
five  days  after  such  service  of  process  by  any  claimant,  to  forward 
by  mail  an  exact  copy  of  such  notice  to  the  company.    {Ibid,  §  12.) 

44.  The  Insurance  Commissioner  shall  cause  to  be  prepared, 
and  furnished  to  every  company  and  association  to  which  this  act 
shall  apply,  printed  forms  of  the  statement  herein  required,  and  he 
may  make  such  changes  from  time  to  time,  and  in  the  statements 
required,  as  shall  seem  to  him  best  adapted  to  elicit  from  said  com- 
panies or  associations  a  true  exhibit  of  their  condition.    {Ibid,  §  13.) 

45.  All  acts  and  parts  of  acts  inconsistent  with  the  provisions 
of  this  Act,  are  hereby  repealed;  Provided,  That  nothing  contained 
in  this  Act  shall  be  so  construed  as  to  prevent  the  repeal  or  amend- 
ment of  the  same,  or  any  section  thereof,  by  the  present  or  any 
fiiture  general  assembly  of  this  State.     {Ibid,  p.  81,  §  14.) 


LIFE    INSUEANCE    FOR    THE    BENEFIT    OF    MARRIED 
WOMEN   AND  CHILDREN. 

46.  Any  life  insurance  effected  by  a  husband  on  his  own  life 
shall,  in  case  of  his  death,  inure  to  the  benefit  of  his  widow  and 
children ;  and  the  money  thence  arising  shall  be  divided  between 
them  according  to  the  law  of  distributions,  without  being  in  any 
manner  subject  to  the  debts  of  the  husband,  whether  by  attachment, 
execution,  or  otherwise.     {Statutes,  1871,  §  2478.) 

47.  Whenever  a  married  woman  causes  a  life  insurance  to  be 
effected  upon  her  husband's  life,  it  shall  in  no  case  be  subject  to  ex- 
ecution or  attachment  for  the  debts  of  the  husband,  but  shall  inure 
to  the  benefit  of  the  widow  and  children.     {Ibid,  §  2479.) 


ARSON  AND  INCENDIARISM. 

48.  Any  person  who  willfully  and  maliciously  burns  the  house 
or  out-house  of  another  is  guilty  of  arson,  and  shall  be  punished  by 
confinement  in  the  penitentiary  not  less  than  five,  nor  more  than 
twenty-one  years.     {Ibid,  §  4666.) 

49.  Every  person  who  mllfully  and  maliciously  sets  fire  to,  or 
burns  any  house  or  building  in  a  town  or  city,  or  procures  the  same 
to  be  done,  shall  be  punished  as  for  arson.     {Ibid,  §  4667.) 

50.  Every  person  who  shall  willfully  and  maliciously  burn  or 
set  fire  to  any  house,  barn,  stable,  or  other  valuable  building,  or 
any  building  containing  valuable  property  therein  ;  or  any  stack  or 
shocks  of  grain,  fodder,  straw,  or  hay ;  or  any  valuable  bridge,  boat, 
or  water-craft,  shall  be  imprisoned  in  the  penitentiary  not  less  than 
two,  nor  more  than  twenty -one  years.    {Ibid,  §  4068.) 


792  hike's  insurance  statutes. 

51.  If  any  person  set  fire  to  any  material,  or  thing,  witb  intent 
to  burn  any  building,  boat,  or  other  thing  mentioned  in  the  forego- 
ing sections  of  this  article,  he  shall  be  confined  in  the  penitentiary 
not  less  than  one,  nor  more  than  five  years.     {Ibid,  §  4669.) 

52.  If  any  person  willfully  burn  -any  building,  goods,  wares, 
merchandise,  or  other  chattels  which  are  insured  against  loss  or 
damage  by  fire,  or  willfully  cause  or  procure  the  same  to  be  burned, 
with  intent  to  injure  the  insurer,  whether  such  person  be  the  owner 
of  the  property  or  not,  he  shall  be  punished  by  imprisonment  in  the 
penitentiary  not  exceeding  ten  years.     (Ibid,  §  4670.) 

53.  Any  person  who  willfully  casts  away,  burns,  sinks,  or  oth- 
erwise destroys  any  steamboat  or  other  vessel  of  the  value  ot  five 
hundred  dollars  or  upwards,  including  cargo,  with  intent  to  injure 
the  owner  of  such  vessel,  or  of  any  property  on  board  the  same,  or 
an  insurer  of  such  vessel  or  property,  shall,  on  con\T[ction,  be  im- 
prisoned in  the  penitentiary  not  less  than  five,  nor  more  than  fifteen 
years.     {Ibid,  §  4671.j 


EMBEZZLEMENT. 

54.  Any  officer,  agent,  or  clerk  of  any  incorporated  company, 
or  any  clerk  or  agent  of  a  copartnership  or  private  person,  except 
apprentices  and  other  persons  under  the  age  of  eighteen  years,  who 
embezzles  or  fraudulently  converts  to  his  own  use,  any  money  or 
property  of  another,  which  has  come  to  his  possession,  or  is  under 
his  care  by  wtue  of  such  employment,  shall,  on  conviction,  be  pun- 
ished by  confinement  in  the  penitentiary  not  less  than  five,  nor 
more  than  twenty  years,     {Ibid,  §  4708.) 

55.  For  General  Provisions  relating  to  Corporations  see  Sta- 
tute Laws,  1871,  pp.  742-746;  Laws  of  1873,  pp.  166, 167. 


INDEX  TO   TEXAS. 


FAGS 

Agents — 

Licenses  of  (20,  31) 801,804 

Embezzlement  by  (4  8) 807 

Annual  Statements-(17,21, 31, 35)  799,  801, 

804,  805 

Blanks  for  (27) 803 

Arson,  Crime  andPenalty  of  (42-47) 807 

Assets,  Investment  of  (6) 796 

Attorney  of  Foreign  Ins.  Cos.  (19,31)  800,804 
Attorney-General  to  Examine  Charters  (1)  795 

Capital — 

Of  Fire  and  Marine  Insniance  Cos.  (3).  795 

Subscription  to  (4) 795 

Investment  of  (6) 796 

Examination  of  (7) 796 

Ratio  of  Risk  to  (8) 798 

Increase  of  (14) 798 

Of  Foreign  Insurance  Cos.  (19) 800 

Impairment  (19,  22,23) 800-802 

Of  Life  Insurance  Companies  (32) 804 

Certificate    of  Authority— (20-22,    31, 

34,  35,39) 801,804-806 

Publication  of  (26) 803 

Charter— 

Of  Fire  and  Marine  Ins.  Cos.  ( 1 ) 795 

Forfeiture  of  (1  5) 798 

Oomptroller  of  State — 

To  Approve  Name  of  Company  ( 1 ) 795 

To  Examine  Capital   and  Assets  (7, 

14; 796,  798 

May  make  Special  Inquiries  (18) 800 

To  Issue  Certificate  of  Authority  (20, 

21,  34) 801,  805 

To  Examine  Companies  (22)  801 

Feesof  (22,  24) 801,802 

To  Appoint  Clerk  (24) 802 

To  Furnish  Blanks  (27) 803 

Report  of  ( 2 8; 803 

Corporations,  General  Provisions  Relating 

to  (49) 807 

Deposits— 

Under  Reciprocal  Laws  (25,  37).  803,  805 
Of  Foreign  Life  Insurance  Cos.  (38)..  805 

Dividends  (15) 798 

Directors- 
Election  of  (6,  9) 796,797 

Powers  and  Duties  of  (10,  11,  13, 

14) 797,  798 

To  Make  Dividends  (15) 798 

To  Make  up  Impairment  (23) 802 


PAGB 

Embezzlement,  Crime  and  Penalty  of  (48)  807 

Fees— 

Of  Comptroller  (22,  24) 80],  802 

Under  Reciprocal  Laws  (25) 803 

Fire  and  Marine  Insurance  Companies- 
Organization  of  ( 1 ,  2) 795 

Rights  and  Privileges  of  (2)  795 

Capital  of  (3) 795 

Subscription  to  Capital  of  (4). 795 

Directors  of  (5,  10,11) 796,797 

Investment  of  Capital  of  ( 6) 796 

Loans  of  (6) 796 

Investment  of  Assets  of  (6) 796 

Examination  of  Capital  and  Assets  of 

(6) 796 

May  Insure,  what  (8 ) 797 

Ratio  of  Risk  to  Capital  of  (8) 797 

Annual  Meeting  of  (9 j 797 

Policies  of  (12) 7iJ8 

Transfersof  Stockof  (13) 798 

Increase  of  Ca;  ital  of  ( 1 4) 798 

Dividends  of  (15) 798 

Unearned  Premiums  of  ( 1  5^ 798 

Real  Estate  of  ( 1 6) 798 

Annual  Statements  of  (17; 799 

Capital  of  Foreign  (19) 800 

Examination  of  (22) 801 

Impairment  of  Capital  of  (19,    22, 

23) 800-802 

Insolvency  of  (22) 801 

To   Publish   Certificate    of  Authority 

(26) 803 

Judgments  against  (29) 803 

Taxation  of  (41) 806 

Foreign  Insurance  Companies — 

Capital  of  (19,  32) 800,804 

Attorney  of  (19> 800 

Service  of  Process  on  (19) 800 

To  File  Charter  and  Statement  (19, 

22,!3 1 ) 800,  801,  804 

Impairment  of  Capital  of  (19,  22). 800,  801 

Annual  Statements  of  (21) 801 

Examination  of  (22) 801 

To    Publish   Certificate   of  Authority 

(26) 803 

Judgments  against  (29.) 803 

Life,  Deposits  of  (37,  38) 805 

Life,  Judgments  against  (39) 806 

Taxation  of  (41) 886 

Health  Insurance  Companies  (31) 804 


794 


INDEX  TO  TEXAS. 


PAOB 

Impairment  of  Capital  (19,  22,  23).. 800-802 
Incendiarism,  Crime  and  Penalty  of  (42- 

47), 806,807 

Insolvency,  Proceedings  in  Cases  of  (22). .  .801 

Licenses— 

Of  Agents  (20,  41) 801,  806 

Under  Reciprocal  Laws  (25) 803 

Penalty   for   doing   Business    without 
(30) 803 

Life  Insurance  Companies — 

Certificate  of  Authority  of  (31,  34) 

804,  805 

Annual  Statements  of  (31,  35) 804,  805 

Service  of  Process  on  (3 1) 804 

Capital  of  (32) 804 

Bestrictions  upon  Business  of  (36) 805 

Name  of  (33) 805 

Deposits  of  Foreign  (37,  38) 805 

Judgments  against  Foreign  (39) 806 

Taxation  of  (41) 806 


PAOE 

Penalties— 

Under  Reciprocal  Laws  (25) 803 

For  doing  Business    without  License 

(30) 803 

For  Violating  Law  (40) 806 

For  Arson  and  Incendiarism  (42-4  7) 

806,  807 

For  Embezzlement  (48) 807 

Policies  of  Fire  and  Marine  Ins  Cos.  (12).  798 
Premiums,  Unearned  (15) 798 

Real  Estate  of  Insurance  Companies  (16)  79B 

Service  of  Process  (19,  31) 800,  604 

Stock,  Transfers  of  (1 3) 798 

Taxation— 

Of  Insurance  Companies  (41) 806 

Under  Reciprocal  Laws  (25) 803 


INSURANCE  STATUTES  OF  TEXAS, 


Revised  by  Hon.  Stephen  H.  Barden,  Comptroller  of  State. 


FIRE  AKD  MARINE  INSURANCE  COMPANIES. 

1.  Hereafter,  when  any  number  of  persons  associate  tbem- 
Belves  together  for  the  purpose  of  forming  an  insurance  company, 
for  any  other  purpose  than  life  insurance,  they  shall  publish  a  notice 
of  such  intention  once  in  each  week,  for  four  weeks,  in  some  public 
newspaper  in  the  county  in  which  such  insurance  company  is  pro- 
posed to  be  located :  and  they  shall  also  make  a  certificate  under 
their  hand,  specifying  the  name  assumed  by  such  company,  and  by 
which  it  shall  be  known,  the  object  for  which  said  company  shall 
be  formed,  the  amount  of  its  capital  stock,  and  the  place  where  the 
principal  otfice  of  said  company  shall  be  located,  which  certificate 
shall  be  acknowledged  before  and  certified  by  some  notary  public 
or  Clerk  of  Court  of  Record  and  forwarded  to  the  Comptroller  of 
State,  who  shall  submit  the  same  to  the  Attorney-General  of  State 
for  examination,  and  if  it  shall  be  found  by  the  Attorney-General 
of  State  to  be  in  accordance  with  the  pro^isions  of  this  act,  and  not 
in  conflict  with  the  constitution  and  laws  of  the  United  States  and 
this  State,  he  shall  make  certificate  of  the  facts,  and  return  it  to  the 
Comptroller  of  State,  who  shall  reject  the  name  or  title  applied  for 
by  any  company  when  he  shall  deem  the  same  too  similar  to  any 
one  already  appropriated  by  any  other  company,  or  likely  to  mis- 
lead the  public,     {Act  approved  February  17, 1875,  §  1.) 

2.  When  the  said  certificate  of  the  said  company  shall  have 
received  the  approval  of  the  Attorney-General  of  State  and  Comp- 
troller of  State,  the  said  company  shall  cause  the  same  to  be 
recorded  as  now  required  by  law  for  recording  articles  of  incorpor- 
ation; and  said  persons,  when  incorporated  and  having  in  all 
respects  complied  with  the  provisions  of  this  act,  are  hereby  author- 
ized to  carry  on  the  business  of  insurance,  as  named  in  such  certifi- 
cate of  incorporation,  and  by  the  name  and  style  provided  therein, 
and  shall  be  deemed  a  body  corporate  with  succession,  they  and 
their  associates,  successors  and  assigns,  and  shall  be  capable  of 
suing  and  being  sued,  and  maintaining  any  action  to  final  judgment 
and  execution,  and  shall  in  law  be  capable  of  purchasing,  holding, 
improving  and  conveying  any  estate,  real,  personal  or  mixed,  for 
the  use  of  the  corporation,  as  hereinafter  provided,     (Ibid,  §  2. ) 

3.  No  joint-stock  company  shall  be  incorporated  under  the 
provisions  of  this  act,  with  a  smaller  capital  than  one  hundred 
thousand  dollars,  as  may  be  specified  in  the  certificate  of  incorpor- 
ation, which  stock  shall  be  divided  into  shares  of  one  hundred  dol- 
lars each.     (Ibid,  §  3.) 

4.  Having  published  the  notice  and  filed  publisher's  affidavit 
of  the  publication  thereof  with  the  Comptroller  of  State,  together 


796  hike's  insueance  statutes. 

with  the  certificate,  as  required  by  the  first  section  of  this  act,  the 
persons  named  in  the  certificate  of  incorporation,  or  a  majority  of 
them,  shall  be  commissioned  to  open  books  for  the  subscription  of 
stock  to  the  company,  at  such  times  and  places  as  to  them  may  seem 
convenient  and  proper,  and  shall  keep  the  same  open  until  the  full 
amount  specified  in  the  certificate  is  subscribed.     {Ibid,  §  4.) 

5.  The  afi'airs  of  any  company  organized  under  the  provisions 
of  this  act  shall  be  manager!  by  not  more  than  thirteen  nor  fewer 
than  seven  directors,  all  of  whom  shall  be  stockholders.  Within 
thirty  days  after  the  subscription  books  shall  have  been  filled,  a 
majority  of  the  subscribers  shall  hold  a  meeting  tor  the  election  of 
directors,  each  share  entitling  the  holder  thereof  to  one  vote  ;  and 
the  directors  there  elected  shall  continue  in  office  until  their  suc- 
cessors have  been  duly  chosen  and  have  accepted  the  trust.  (Ibid, 
§5.) 

ft.  It  shall  be  lawful  for  any  insurance  company  organized 
under  this  act  to  invest  its  capital  in  bonds  and  mortgages  on  unin- 
cumbered real  estate,  within  the  State  of  Texas,  worth  double  the 
swm  loaned  thereon,  exclusive  of  buildings,  unless  such  buildings 
are  insured  in  some  responsible  company  or  companies,  and  the 
policy  or  policies  transferred  to  said  company,  and  also  in  stocks 
of  this  State  or  stocks  or  treasury  notes  of  the  United  States,  in  the 
stocks  and  bonds  of  any  county  or  incorporated  city  in  this  State, 
which  may  have  been  heretofore  authorized  to  be  issued  by  the 
Legislature  of  this  State,  and  to  lend  the  same,  or  any  part  thereof, 
on  the  security  of  such  stock,  or  lands,  or  treasury  notes,  or  upon 
bonds  and  mortgages  as  aforesaid,  or  upon  bills  of  exchange,  or 
other  commercial  notes  and  bills,  and  not  otherwise ;  and  to  change 
and  reinvest  the  same  in  like  securities  as  occasion  may  from  time 
to  time  require  ;  but  any  surplus  money  over  and  above  the  paid-up 
capital  stock  of  any  such  company  organized  under  this  act  or  incor- 
porated under  any  law  of  this  State,  may  be  invested  in  or  loaned 
upon  the  pledge  of  pubbc  stocks  of  the  United  States,  or  any  of  the 
States,  or  stocks,  bonds,  or  other  e\idences  of  indebtedness  of  any 
solven^;,  dividend-paying  institutions,  incorporated  under  the  laws 
of  this  State  or  the  United  States,  and  in  bills  of  exchange,  or  other 
commercial  notes  or  bills,  except  their  own  stock ;  Provided,  always. 
That  the  current  market  value  of  such  stock,  bonds,  or  other  evi- 
dences of  indebtedness,  shall  be  at  all  times  during  the  continuance 
of  such  loans  at  least  twenty  per  cent,  more  than  the  sum  loaned 
thereon.     (Ibid,  §  6.) 

7.  Upon  receiving  notification  that  the  requirements  of  the 
preceding  sections  have  been  complied  with,  the  Comptroller  of 
State  shall  make  an  examination,  or  cause  one  to  be  made  by  some 
disinterested  person,  officially  appointed  by  him  for  that  purpose ; 
and  if  it  shall  be  found  that  the  capital  herein  required  by  the  com- 
pany named,  according  to  the  nature  of  the  business  [)roposed  to  be 
transacted  by  such  company,  has  been  paid  in  and  possessed  by  it, 
in  money,  or  in  such  stocks,  notes,  bonds  or  mortgages,  as  are  re- 
quired by  the  third  and  sixth  sections  of  this  act,  then  he  shall  so 
certify ;  and  if  the  examination  be  made  bj"  other  than  the  Comp- 
troller, then  the  finding  shall  be  certified  under  oath.  The  corpora- 
tors or  officers  of  any  such  company,  or  proposed  company,  contem- 
plated by  this  act,  shall  be  required  to  certify,  under  oath,  to 
the  Comptroller  of  State,  that  the  capital  exhibited  to  the  person 
making  the  examination  directed  in  this  section,  was  bonajidc  prop- 


TEXAS.  797 

erty  of  the  company  so  examined ;  the  certificates  above  contem- 
plated shall  be  filed  in  the  oflice  of  said  Comptroller,  who  shall 
thereupon  deliver  to  such  company  a  certified  copy  of  the  same, 
with  his  Avritten  permission  for  them  to  commence  business  as  pro- 
posed in  their  written  certificate  of  incorporation,  which,  on  being 
placed  on  record  in  the  office  of  the  Recorder  of  the  county  in  which 
the  company  is  to  be  located,  by  the  Recorder,  in  a  book  prepared 
by  him  for  that  purpose,  shall  be  their  authority  to  commence  busi- 
ness and  issue  policies ;  and  such  certified  copy  of  said  certificate 
may  be  used  in  evidence  for  or  against  said  company  with  the  same 
effect  as  the  originals.     {Ibid,  §  7.) 

8.  It  shall  be  lawful  for  any  company  organized  under  this  act 
or  doing  business  in  this  State,  to  insure  houses,  buildings,  and  all 
other  kinds  of  property  against  loss  or  damage  by  fire,  and  to  make 
all  kinds  of  insurance  on  goods,  merchandise,  or  other  property, 
in  the  course  of  transportation,  whether  on  land  or  water,  or  any 
vessel  afloat,  wherever  the  same  may  be;  to  lend  money  on  bot- 
tomry or  respondentia,  and  to  cause  itself  to  be  insured  against  any 
loss  or  risk  it  may  have  incurred  in  the  course  of  its  business  and 
upon  the  interest  which  it  may  have  in  any  property  by  means  of 
any  loan  or  loans  which  it  may  have  made  on  mortgage,  bottomry 
or  respondentia,  and  generally  to  do  and  perform  all  other  matters 
and  things  proper  to  promote  these  objects.  And  no  company  or- 
ganized under  this  act,  or  transacting  business  in  this  State,  shall 
expose  itself  to  loss  on  any  one  risk  or  hazard,  except  when  insur- 
ing cotton  in  bales,  to  an  amount  exceeding  ten  per  cent,  of  its  i)aid 
up  capital,  unless  the  excess  shall  be  insured  by  the  same  in  some 
other  good  and  reliable  company.     [Ibid,  §  8.) 

9.  The  annual  meeting  for  the  election  of  directors  shall  be 
holden  during  the  month  of  January,  as  the  by-laws  of  the  company 
may  direct ;  Provided,  however,  That  if  for  any  cause  the  stockhold- 
ers shall  fail  to  elect  at  any  annual  meeting,  then  they  may  hold  a 
special  meeting  some  day  subsequent  thereto  for  that  purpose  by 
giving  thirty  days'  notice  thereof  in  some  newspaper  in  general  cir- 
culation in  the  county  in  which  the  principal  oflice  of  the  com]iany 
shall  be  located ;  and  the  directors  chosen  at  any  such  annual  or 
special  meeting  shall  continue  in  office  until  the  next  annual  meet- 
ing, and  until  their  successors  duly  elected  shall  have  accepted. 
{Ibid,  §  9.) 

1 0,  The  directors  shall  choose  by  ballot  a  president  from  their 
own  number,  and  shall  fill  all  vacancies  which  shall  arise  in  the 
board  or  in  the  presidency  thereof,  and  the  board  of  directors  thus 
constituted,  or  a  majority  of  them,  when  convened  at  the  oflice  of 
the  company,  shall  be  competent  to  exercise  all  the  powers  vested  in 
them  by  this  act.     {Ibid,  §  10.) 

1 1 ,  The  directors  of  any  such  company  shall  have  power  to 
appoint  a  secretary  and  any  other  officer  or  agent  nece^saiy  for 
transacting  the  business  of  the  company,  paying  such  salaries  and 
taking  such  securities  as  they  may  deem  reasonable ;  they  may  or- 
dain and  establish  such  by-laws  and  regulations,  not  inconsistent 
with  this  act  or  with  the  Constitution  and  laws  of  the  United  States 
and  of  this  State,  as  shall  appear  to  them  necessary  for  regulating 
and  conducting  the  business  of  the  company ;  and  it  shall  be  their 
duty  to  keep  full  and  correct  entries  of  their  transactions,  which 
shall  at  all  times,  during  business  hours,  be  open  to  the  inspection 
of  such  persons  as  are  entitled  thereto.     {Ibid,  §  11.) 


798  hine's  insurance  statutes. 

1^,  All  policies  or  contracts  of  insurance  made  or  entered  into 
by  the  company  may  be  made  either  with  or  without  the  seal  of  said 
company  j  but  said  policies  shall  be  subscribed  by  the  president  or 
such  other  officer  as  may  be  designated  by  the  directors  for  that 
purpose,  and  shall  be  attested  by  the  secretary  thereof.  {Ibid,  §  12.) 

13.  Transfers  of  stock  may  be  made  by  stockholder  or  his  le- 
gal representative,  subject  to  such  restrictions  as  the  directors  shall 
from  time  to  time  establish  in  their  by-laws.     {Ibid,  §  13.) 

34.  Whenever  any  company  organized  under  this  act  shall  in 
the  opinion  of  the  directors  thereof,  require  an  increased  amount  of 
capital,  they  shall,  if  authorized  by  the  holders  of  a  majority  of  the 
stock  to  do  so,  tile  with  the  Comptroller  of  State  a  certiticate  setting 
forth  the  amount  of  such  desired  increase,  and  thereafter  such  com- 
pany shall  be  entitled  to  have  the  increased  amount  of  capital  fixed 
by  said  certificate  ;  and  the  examination  of  securities  composing  the 
capital  stock  thus  increased  shall  be  made  in  the  same  manner  as 
provided  in  section  seven  of  this  act,  for  the  capital  stock  first  paid 
in.     {Ibid,  §  14.) 

15.  It  shall  not  be  lawful  for  the  directors,  trustees  or  man- 
agers of  any  insurance  company  organized  under  this  act  or  incor- 
porated under  any  law  of  this  State,  to  make  any  dividend  except 
from  the  surjilus  profits  arising  from  their  business,  and  in  estimat- 
ing such  profits  there  shall  be  reserved  therefrom  a  sum  equal  to 
forty  per  cent,  of  the  amount  received  as  premiums  on  unexpired 
fire  risks  and  policies,  and  one  hundred  per  cent,  of  the  premiums 
received  on  unexpired  marine  and  inland  transportation  risks,  which 
amount  so  reserved  is  hereby  declared  to  be  unearned  premiums ; 
and  there  shall  also  be  reserved  the  amount  of  all  unpaid  losses, 
whether  adjusted  or  unadjusted,  all  sums  due  the  corporation  on 
bonds  and  mortgages,  bonds,  stocks  and  book  accounts  of  which  no 
part  of  the  i^rincipal  or  interest  thereon  has  been  paid  during  the 
year  preceding  such  estimate  of  i)rofits,  and  upon  which  suit  for 
foreclosures  or  collections  has  not  been  commenced,  or  which  after 
judgment  has  been  obtained  thereon,  shall  have  remaiued  more  than 
two  years  unsatisfied  and  upon  which  interest  shall  not  have  been 
paid ;  and  in  case  of  any  such  judgment,  the  interest  due  or  ac- 
crued thereon  and  remaining  unpaid  shall  also  be  reserved.  Any 
dividends  made  contrary  to  these  provisions  shall  subject  the  com- 
pany making  it  to  a  forfeiture  of  their  charter.     {Ibid,  §  15.) 

1 6.  No  company  organized  under  this  act  shall  purchase,  hold 
or  convey  any  real  estate,  save  for  the  purpose  and  in  the  manner 
herein  set  forth,  to  wit :  1st.  Such  as  shall  be  requisite  for  its  con- 
venient accommodation  in  the  transaction  of  its  business  ;  2d.  Such 
as  shall  have  been  mortgaged  to  it  in  good  faith  by  way  of  security 
for  loans  previously  contracted  or  for  money  due  ;  or,  3d.  Such  as 
shall  have  been  conveyed  to  it  in  satisfaction  of  debts  previously 
contracted  in  the  legitimate  business  of  the  company  or  for  money 
due ;  or,  4th.  Such  as  shall  have  been  purchased  at  sales  or  upon 
judgments,  decrees,  or  mortgages  obtained  or  made  for  such  debts. 
{Ibid,  §  10.) 

17.  It  shall  be  the  duty  of  the  president  or  of  the  vice-presi- 
dent and  secretary  of  each  comj^any  organized  under  this  act,  or  in-, 
corporated  under  any  law  of  this  State,  or  doing  business  in  this 
State,  annually,  on  the  first  day  of  January  of  each  year,  or  within 
sixty  days  thereafter,  to  prepare  under  oath  and  deposit  in  the  office 
of  the  Comptroller  of  State,  a  fuU,  true  and  complete  statement  of 


TEXAS.  799 

the  condition  of  such  company  on  the  last  day  of  the  month  of  De- 
cember preceding,  which  last  statement  shall  exhibit  the  following 
items  and  facts  in  the  following  forms,  viz. : 

First. — The  name  of  the  company,  and  where  located. 

Second.— The  name  of  the  ofiicers. 

Third. — The  amount  of  capital  stock  of  the  company. 

Fourth. — The  amount  of  capital  stock  paid  up. 

Fifth. — The  property  or  assets  held  by  the  company,  specifying 
the  value,  as  near  as  may  be,  of  the  real  estate  owned  by  such  com- 
pany. 

The  amount  of  cash  on  hand  and  deposited  in  banks  to  the 
credit  of  the  company,  and  in  what  bank  the  same  is  deposited. 

The  amount  of  cash  in  the  hands  of  agents  and  in  course  of 
transmission. 

The  amount  of  loans  secured  by  first  mortgages  on  real  estate, 
with  the  rate  of  interest  thereon,  specifying  the  location  of  such 
real  estate,  and  its  valuation. 

The  amount  of  all  other  bonds  and  loans,  and  how  secured,  with 
the  rate  of  interest  thereon. 

The  amount  due  the  company  on  which  judgments  have  been 
obtained 

The  amount  of  stocks  of  this  State,  of  the  United  States,  of  any 
incorporated  city  of  this  State,  and  of  any  other  stock  owned  by 
the  company,  specifying  the  amount,  numbers  of  shares,  and  par 
and  market  value  of  each  kind  of  stock. 

The  amount  of  stock  held  by  such  company  as  collateral  security 
for  loans,  with  amount  loaned  on  each  kind  of  stock,  its  par  and 
market  value. 

The  amount  of  interest  actually  due  and  unpaid, 

All  other  securities  and  their  value. 

Sixth. — The  liabilities  of  such  company,  specifying  the  losses  ad- 
justed and  due. 

Losses  adjusted  and  not  due. 

Losses  unadjusted. 

Losses  in  suspense,  and  the  causes  thereof. 

Losses  resisted  and  in  litigation. 

Dividends  either  in  scrip  or  cash,  specifying  the  amount  of  each 
declared,  but  not  due. 

Dividends  declared  and  due. 

The  amount  required  to  reinsure  all  outstanding  risks  on  the 
basis  of  forty  per  cent,  of  the  premium  on  all  unexpired  fire  risks, 
and  one  hundred  per  cent,  of  the  premiums  on  all  unexi)ired  marine 
and  inland  transportation  risks. 

The  amount  due  banks  or  other  creditors. 

The  amount  of  money  borrowed,  and  the  security  therefor. 

All  other  claims  against  the  company. 

Seventh. — The  income  of  the  company  during  the  previous  year, 
stating  the  amount  received  for  premiums,  specifying  separately 
fire,  marine,  and  inland  transportation  premiums,  deducting  re- 
insurance, the  amount  received  for  interest  and  from  all  other 
sources. 

Eighth. — The  expenditures  during  the  preceding  year,  specifying 
the  amount  of  losses  paid  during  said  term,  statmg  how  much  of 
the  same  accrued  prior,  and  how  much  subsequent  to  the  date  of 
the  preceding  statement,  and  the  amount  at  which  losses  were  esti- 
mated in  such  preceding  statement. 


800  hine's  insurance  statutes. 

The  amount  paid  for  dividends.  The  amount  paid  for  return 
premiums,  commissions,  salaries,  expenses,  and  other  charges  of 
officers,  agents,  clerks,  and  other  employees. 

The  amount  paid  for  h)cal.  State,  national,  internal  revenue,  and 
other  taxes  and  duties. 

The  amount  paid  for  all  other  expenses,  including  printing,  sta- 
tionery, rents,  furniture,  etc. 

JSlijith. — The  largest  amount  insured  in  any  one  risk. 

Tenth.— The  amount  of  risks  written  during  the  year  then  ending. 

Eleventh.  —The  amount  of  risks  in  force  having  less  than  one  year 

to  run. 

Twelfth.—  The  amount  of  risks  in  force  having  more  than  one,  and 
not  over  three  years  to  run. 

Thirteenth. — The  amount  of  risks  having  more  than  three  years  to 

run. 

Fourteenth. — The  following  question  must  be  answered,  viz.: 
Are  dividends  declared  on  premiums  received  for  risks  not  ter- 
minated  1 

The  Comptroller  of  State  shall  withhold  the  certificate  of 
authority  from  any  such  company  neglecting  or  failing  to  comply 
with  the'  provisions  of  this  section.     {Ibid,  §  17.) 

18,  The  Comptroller  of  State  is  hereby  authorized  and  em- 
powere'd  to  address  any  inquiries  to  any  insurance  company  in  rela- 
tion to  its  doings  and  condition,  or  any  other  matter  connected 
with  its  transactions  which  he  may  deem  necessary  for  the  public 
good  or  for  a  proper  discharge  of  his  duties ;  and  it  shall  be  the 
duty  of  any  company  so  addressed  to  promptly  reply  in  writing 
thereto.     [Ibid,  ^  IS.) 

1®.  It  shall  not  be  lawful  for  any  insurance  company,  associa- 
tion or 'partnership,  organized  or  associated  for  any  of  the  purposes 
specified  in  this  act,  incorporated  by  or  organized  under  the  laws  of 
any  other  State  of  the  United  States,  or  any  foreign  government, 
directly  or  indirectly  to  take  risks,  or  transact  any  business  of  in- 
surance in  this  State,  unless  possessed  of  one  hundred  thousand 
dollars  of  actual  paid  up  capital,  exclusive  of  any  assets  of  any  such 
company  as  shall  be  deposited  in  any  other  States  or  Territories  for 
the  special  benefit  or  security  of  the  insured  therein ;  and  any  such 
company  desiring  to  transact  any  such  business  as  aforesaid,  in  this 
State,  may  be  sued  in  any  county  in  this  State  in  which  the  cause 
of  action  or  a  part  thereof  accrued,  and  shall  appoint  one  attorney 
in  the  State,  and  shall  tile  with  the  Comptroller  of  State  a  written 
instrument  duly  signed  and  sealed,  authorizing  such  attorney  of 
such  company  to  acknowledge  service  of  process  for  and  in  behalf  of 
such  company  in  this  State,  consenting  that  such  service  of  process, 
mesne  or  final,  upon  such  attorney,  shall  be  taken  and  held  as  valid 
as  if  served  upon  the  company,  and  service  of  process  may  be  had 
on  any  such  company  by  tlelivering  a  copy  thereof  to  the  president,^ 
secretary,  or  treasurer  of  such  company,  according  to  the  laws  of 
this  State,  and  waiving  all  claim  or  right  of  error  by  reason  of  such 
acknowledgment  or  service,  and  also  a  certified  copy  of  their  charter 
or  deed  of  settlement,  together  with  a  statement,  under  the  oath  of 
the  president  or  vice-president,  or  other  chief  officer,  and  the  secre- 
tary of  the  company  for  which  they  may  act,  stating  the  name  of 
the  company  and  the  place  where  located,  the  amount  of  its  capital, 
with  a  detailed  statement  of  the  facts  and  items  as  required  from 
companies  organized  under  the  laws  of  this  State,  as  per  section 


TEXAS.  801 

seventeen  hereof;  and  shall  also  file  the  certificate  of  compliance 
with  the  laws  of  their  own  State  ;  and  no  agent  shall  be  allowed  to 
transact  business  for  auy  company  whose  capital  is  impaired  by  the 
liabilities,  as  stated  in  section  seventeen  of  this  act,  to  the  extent 
ot  twenty-five  per  cent,  thereof,  while  such  deficiency  shall  continue. 
{Ibid,  §  19.) 

!30.  It  shall  not  be  lawful  for  any  agent  or  agents  to  act  for  any 
insurance  company  or  companies  referred  to  in  this  act,  in  taking 
risks  or  transacting  business  of  insurance  in  this  State,  without  pro- 
curing from  the  Comptroller  of  State  a  certificate  of  authority, 
stating  that  such  company  has  complied  with  all  the  requisitions  of 
this  act.     {Ibid,  ^20.) 

121.  The  statements  and  evidences  of  investments  required  of 
foreign  companies  as  above,  shall  be  renewed  annually  in  such  man- 
ner and  form  as  required  by  this  act,  and  as  said  Comptroller  may 
direct,  with  any  additional  statement  of  the  amount  of  the  losses 
incurred  or  premiums  received  in  this  State,  during  the  preceding 
period,  so  long  as  such  agency  continues;  and  the  said  Comptroller, 
on  being  satisfied  that  the  capital,  securities  and  investments  remain 
secure,  as  hereinbefore  [)rovided,  shall  furnish  a  renewal  of  his  cer- 
tificate  as  aforesaid.     {Ibid,  §  21.) 

22.  It  shall  be  the  duty  of  the  Comptroller  of  State  upon  receiv- 
ing reliable  information  that  the  aflairs  of  any  insurance  company, 
incorporated  by,  or  doing  business  in  this  State,  are  in  an  unsound 
condition  by  impairment  of  capital,  or  otherwise,  to  call  upon  any 
such  company  for  a  full  statement  of  its  condition,  and  in  case  of 
refusal  or  neglect  of  any  company  to  answer  the  requisition,  or,  if 
the  exhibit  be  unsatisfactory  to  him,  he  shall  make  the  examination 
himself,  or  appoint  one  or  two  persons,  not  officers,  employees  or 
agents  of  any  insurance  company ;  and  it  shall  be  the  duty  of  the 
officers  or  agents  of  such  company  or  compaines  to  cause  their  books 
and  assets  to  be  opened  for  the  inspection  of  the  Comptroller  or  the 
person  or  persons  so  appointed,  and  otherwise  facilitate  such  exami- 
nation so  tar  as  may  be  in  their  power  so  to  do  ;  and  for  the  purpose 
of  arriving  at  the  truth  in  such  cases  the  Comptroller,  or  person  or 
persons  so  appointed  by  him,  shall  have  power  to  examine,  under 
oath,  the  officers  or  agents  of  any  company  or  others,  if  necessary, 
relating  to  the  business  and  condition  of  said  company  ;  and  when- 
ever the  Comptroller  shall  deem  it  best  for  the  interest  of  the  public 
so  to  do,  he  shall  publish  the  result  of  such  investigation  in  one  or 
two  papers  of  this  State,  one  of  which  shall  be  published  in  the 
county  in  which  the  principal  office  of  said  company  is  located;  and 
whenever  it  shall  appear  to  the  said  Comi^troller  from  such  examina- 
tion, that  the  assets  and  funds  of  any  company  incorporated  in  this 
State  are  reduced  or  impaired  by  the  liabilities  of  said  company,  as 
described  under  the  head  of  liabilities  in  the  statement  required  by 
this  act,  more  than  twenty -five  per  cent,  below  the  paid-up  capital 
stock  required  by  this  act,  he  shall  direct  the  officers  thereof  to  re- 
quire the  stockholders  to  pay  in  the  amount  of  such  deficiency 
within  sixty  days  from  the  date  of  such  requisition.  Should  said 
company  decline  or  willfully  neglect  to  make  good  said  deficiency  he 
shall  coinmunicate  the  fact  to  the  Attorney-General  of  State,  whose 
duty  it  shall  then  become  to  apply  to  the  district  court,  or,  if  in 
vacation,  to  one  of  the  judges  thereof,  for  an  order  requiring  said 
company  to  show  cause  why  their  business  should  not  be  closed ; 
and  the  court  or  judge,  as  the  case  may  be,  shall  thereupon  proceed 
51 


802  hine's  insurance  statutes. 

to  hear  the  allegations  and  proofs  of  the  respective  parties ;  and  in 
case  it  shall  appear  to  the  satisfaction  of  said  court  or  judge  that  the 
assets  and  funds  of  said  company  are  not  sufficient  as  aforesaid,  or 
that  the  interest  of  the  public  require  it,  the  said  court  or  judge 
shall  decree  a  dissolution  of  said  company,  and  a  distribution  of  its 
effects;  the  said  court  or  judge  shall  have  i^ower  to  refer  the  appli- 
cation of  the  Attorney-General  of  State  to  a  referee,  to  inquire  into 
and  report  upon  the  facts  stated  [tjherein  ;  and  if  the  Comptroller, 
upon  examination,  is  satisfied  that  the  affairs  of  any  insurance  com- 
pany doing  business  in  this  State,  and  not  organized  under  its  laws, 
are  in  an  unsound  condition,  he  shall  revoke  the  certificate  granted 
in  behalf  of  such  company,  and  shall  cause  the  notification  thereof 
to  be  published  in  two  newspapers  in  general  circulation,  published 
in  this  State,  one  of  which  shall  be  published  in  the  county  where 
the  princijial  office  of  such  company  is  located ;  and  the  agent  or 
agents  of  such  company  are,  after  such  notice,  required  to  discon- 
tinue the  issuing  of  any  new  policy,  or  the  renewal  of  any  previously 
issued.  For  such  examination,  ordered  by  the  Comptroller,  under 
this  act,  there  shall  be  allowed  to  the  person  or  persons  making 
such  examination  the  amount  of  ten  dollars  per  day,  not  to  exceed 
in  all  two  hundred  and  fifty  dollars,  together  with  actual  traveling 
expenses,  to  be  paid,  on  the  Comptroller's  certificate,  by  the  com- 
pany which  is  the  subject  of  such  investigation.     {Ibid,  §  22.) 

S3.  Any  company  receiving  the  aforesaid  requisition  from  the 
said  Comptroller,  shall  forthwith  call  upon  its  stockholders  for  such 
amounts  as  will  make  its  i)aid-up  capital  equal  to  the  amount  filed 
by  this  act,  or  the  charter  of  said  company ;  and  in  case  any  stock- 
holder shall  refuse  or  neglect  to  pay  the  amount  so  called  for,  after 
notice  personally  given,  or  by  advertisement,  in  such  time  and 
manner  as  said  Comptroller  shall  approve,  it  shall  be  lawful  for  the 
said  company  to  require  the  retura  of  the  original  certificate  of 
stock  held  by  such  stockholder,  and  in  lieu  thereof,  to  issue  new 
certificates  for  such  number  of  shares  as  the  said  stockholders  may 
be  entitled  to,  in  the  proportion  that  the  ascertained  value  of  the 
fiinds  of  the  said  company  may  be  found  to  bear  to  the  original 
capital  of  the  said  company,  the  value  of  such  shares  for  which  new 
certificates  shall  be  issued  to  be  ascertained  under  the  direction  of 
the  Comptroller,  the  said  company  paying  for  the  fractional  part  of 
shares.  And  it  shall  be  lawful  for  the  directors  of  such  company 
to  create  new  stock  and  dispose  of  the  same,  and  to  issue  new  cer- 
tificates therefor,  to  an  amount  sufficient  to  make  up  the  original 
capital  of  the  company  ;  and  in  the  event  of  any  additional  losses 
accruing  upon  new  risks  taken  upon  the  expiration  of  the  period 
limited  by  the  said  Comptroller  in  the  aforesaid  requisition  for  the 
filling  up  of  the  deficiency  in  the  capital  of  such  company,  and  be- 
fore said  deficiency  shall  have  been  made  up,  the  directors  shall  be 
individually  liable  to  the  extent  thereof.     {Ibid,  §  23.) 

94.  There  shall  be  paid  by  every  company,  association,  person 
or  persons,  agent  or  agents,  to  whom  this  act  shall  apply,  the  fol- 
lowing fees :  for  filing  and  examination  of  the  first  application  of 
any  company  and  issuing  of  the  certificate  of  license  thereon, 
twenty-five  dollars ;  for  filing  each  annual  statement  herein  required, 
ten  dollars ;  for  each  certificate  of  authority,  one  dollar ;  for  every 
copy  of  paper  filed  as  herein  provided,  the  sum  of  ten  cents  per 
folio,  and  fifty  cents  for  certifying  the  same  and  affixing  the  seal  of 
office  thereto,  which  fees  shall  go  to  the  Comptroller  tor  the  pay- 


TEXAS.  803 

ment  of  the  salary  of  an  insurance  clerk ;  and  the  Comptroller  is 
hereby  authorized  and  empowered,  upon  the  passage  of  tliis  act,  to 
api)oiut  a  suitable  person  experienced  in  the  business  of  insurance 
as  clerk  of  the  Insurance  Department,  whose  duty  it  shall  be,  under 
the  supervision  and  direction  of  the  Comptroller,  to  attend  to  all 
matters  in  detail  connected  with  insurance  in  this  iState,  and  said 
clerk  shall  receive  in  fidl  of  all  compensation  for  his  services  the 
fees  (exclusive  of  taxes)  required  to  be  paid  by  insurance  companies 
under  this  act.     {Ibid,  §  24.) 

S5.  When,  by  the  laws  of  any  other  State,  any  taxes,  fines, 
fees  for  certificates  of  license,  penalties,  deposits  of  money  or  of 
securities,  or  other  obligations  or  i)rohibitions,  are  imposed  upon 
companies  of  this  State,  as  a  condition  prior  to  doing  business  in 
such  other  State,  the  same  obligation  shall  be  imposed  upon  all 
insurance  companies  of  such  other  State  doing  business  in  this 
State ;  and  such  companies  required  to  make  deposits  in  this  State 
are  likewise  required  to  make  said  deposit  either  in  the  bonds  of 
the  State  of  Texas  or  in  the  currency  of  the  United  States.  (Ibid, 
§25.) 

2(5.  It  shall  be  the  duty  of  every  such  insurance  company 
doing  business  in  this  State,  organized  under  the  laws  of  this  State 
or  any  other  State  or  country,  to  publish  once  annually,  in  two 
newspapers  of  general  circulation,  one  of  which  newspapers  shall 
be  published  at  the  capital  of  the  State  (and  in  case  of  companies 
organized  in  the  State  of  Texas,  one  of  which  shall  be  published  in 
the  county  where  the  principal  office  is  located),  a  certificate  from 
the  Comptroller  of  State  that  such  company  has  in  all  respects  com- 
plied with  the  laws  of  this  State  relating  to  insurance.     {Ibid,  §  26.) 

27.  It  shall  be  the  duty  of  the  Comptroller  of  State  to  cause  to 
be  prepared  and  furnished  to  each  of  the  companies  organized  under 
the  laws  of  this  State,  and  to  attorneys  or  agents  of  companies  in- 
corporated by  other  States  and  foreign  governments,  who  may 
apply  for  the  same,  printed  forms  of  statements  required  by  this 
act,  and  he  may  from  time  to  time  make  such  changes  in  the  form 
of  these  statements  as  shall  seem  to  him  best  adapted  to  elicit  from 
the  companies  a  true  exhibit  of  their  condition  in  respect  to  the 
several  i)oints  hereinbefore  enumerated.     (Ibid,  §  27.) 

28.  It  shall  be  the  duty  of  the  Comptroller  of  State  to  cause 
the  information  contained  in  the  statements  required  of  the  com- 
panies organized  in  this  State,  to  be  arranged  in  tabular  form,  and 
prepare  the  same  in  a  single  document  for  printing,  and  submit  the 
same  to  the  legislature,  as  a  portion  of  his  regular  report  to  that 
body.     {Ibid,  §  28.) 

29.  Should  any  insurance  company  fail  or  neglect  to  pay  off 
and  discharge  any  execution  issued  upon  a  valid  judgment  against 
such  company  within  thirty  days  after  notice  of  the  insurance 
thereof,  then  and  in  that  event,  the  certificate  of  authority  of  said 
company  to  transact  business  of  insurance,  shall  be  revoked,.. can- 
celed and  annulled,  and  said  company  shall  be  prohibited  from 
transacting  business  of  insurance  in  this  State  until  said  execution 
be  satisfied.     {Ibid,  §  29.) 

SO.  Any  insurance  company  incori)orated  by  this  or  any  other 
State,  or  foreign  government,  issuing  policies  of  insurance  in  this 
State  without  first  obtaining  a  certificate  of  authority  as  T>rovided 
in  this  act,  or  making  any  false  return,  or  violating  any  of  the  pro- 
visions of  this  act,  shall  be  subject  to  a  fine  of  not  less  than  five 


804  hike's  insueance  statutes. 

bnndred  dollars  or  more  than  one  thousand  dollars.  Any  person  or 
agent  transacting  the  business  of  insurance,  whether  as  agent, 
solicitor  or  broker,  without  the  certificate  of  authori^^y  as  before 
provided,  or  violating  any  of  the  provisions  of  this  law,  shall  be  sub- 
ject to  a  fine  of  not  less  than  five  hundred  dollars,  nor  more  than 
one  thousand  dollars,  and  imprisonment  of  not  less  than  three  or 
more  than  six  mouths.     {Ibidj  §  30.) 

31.  It  shall  not  be  lawiul  for  any  person  or  persons  to  act 
within  this  State  as  agent  or  otherwise,  in  prosecuting  or  receiving 
applications  for  life  insurance,  or  in  any  manner  to  aid  in  the  trans- 
action of  the  business  of  any  life  or  health  insurance  company  incor- 
porated in  this  JState  or  out  of  it,  without  first  procuring  a  certiticate 
of  authoritj"  from  the  Comptroller  of  the  State  ;  and  before  obtain- 
ing such  certificate,  such  company,  association,  individual,  agent  or 
agents,  shall  furnish  the  Comptroller  with  a  statement,  under  oath, 
of  the  president  or  secretary  of  said  comi)any,  association  or 
individual,  for  which  he  or  they  may  act,  which  statement  shaU 
show : 

1.  The  name  and  locality  of  the  company  or  association. 

2.  The  amount  of  its  cajntal  stock. 

3.  The  amount  of  its  capital  stock  paid  u]). 

4.  The  assets  of  the  company,  including,  first,  the  amount  of 
cash  on  hand  and  in  the  hands  of  agents  or  other  persons; 
second,  real  estate  unincumbered ;  third,  the  bonds  owned  by 
the  company  or  association,  and  how  they  are  secured,  with  the 
rate  of  interest  thereon;  fourth,  debts  due  to  the  company 
secured  by  mortgage ;  fifth,  debts  otherwise  secured ;  sixth, 
debts  for  premiums;  seventh,  all  other  moneys  or  securities. 

5.  The  amount  of  liabilities  due  or  not  due  to  banks  or  other 
creditors  of  the  company  or  association. 

6.  Losses  adjusted  and  due. 

7.  Losses  adjusted  and  not  due. 

8.  Losses  unadjusted. 

9.  Losses  in  suspense  and  waiting  for  proof. 

10.  All  other  claims  against  the  company  or  association. 

11.  The  act  of  incorporation  of  such  comiiany,  association,  by- 
laws, articles  of  association  or  partnership  agreements,  which 
statements  shall  be  filed  in  the  office  of  the  Comptroller,  together 
with  a  resolution  under  the  seal  of  the  company,  signed  by  the 
president  of  the  company,  secretary,  or  chief  otticer  of  the  associa- 
tion, authorizing  any  agent  duly  appointed  by  resolution,  undf  r 
the  seal  of  the  company,  to  acknowledge  service  of  process  for 
and  in  behalf  of  such  company  or  association,  consenting  that 
service  of  ])rocess  ujjon  any  agent  shall  be  taken  and  held 
to  be  as  valid  as  if  service  upon  the  company  or  association,  ac- 
cording to  the  laws  of  this  State  or  any  other  State,  and  waiv- 
ing all  claims  of  error  by  reason  of  suith  service;  Provided, 
That  upon  the  passage  of  this  act,  suits  may  be  commenced 
against  such  company  or  association  in  any  county  of  this  State 
where  loss  has  occurred  by  process,  as  in  other  cases  served 
upon  any  authorized  agent  or  attorney  of  such  company,  and 
such  process  may  run  into  and  be  served  ui>on  such  agent  or 
attorney  in  any  county  of  this  State  where  such  agent  or  at- 
torney may  be.     {Lmcs  oflS"4,p.  197,  §  L.) 

33.  No  insurance  company  unincorporated  or  incorporated  in 
this  State,  or  any  other  State,  shall  transact  any  business  of  insur- 


TEXAS.  805 

auce  in  this  State  uuless  such  company  is  possessed  of  at  least  one 
hundred  thousand  dollars  of  actual  capital  invested  in  stocks  or 
bonds  and  mortgages,  or  other  satisfactory  evidence  of  security,  the 
market  values  of  which  shall  not  be  less  than  one  hundred  thousand 
doUars.     (///it?,  j;.  198,  §  2.) 

3S.  No  corporation  formed  under  any  law  of  this  State,  con- 
cerning life  assurance,  shall  adopt  the  name  of  any  existing  com- 
pany or  association  transacting  the  business  mentioned  in  the  first 
section  of  this  act,  nor  any  name  so  similar  thereto  as  to  be  cal- 
culated to  mislead  the  public.     {Ibid,  §  3.) 

34.  Upon  the  tiling  of  the  resolution  and  statement  as  set 
forth  in  section  one  of  this  act,  and  furnishing  the  Comptroller  with 
full  and  satisfactory  evidence  of  such  investment  as  aforesaid,  it 
shall  be  the  duty  of  the  Comptroller  to  issue  a  certificate  thereof, 
with  authority  to  transact  business  of  insurance,  to  the  company, 
its  officers,  agent  or  agents,  applying  for  the  same.     [Ibid,  §  4.) 

35.  It  shall  be  the  duty  of  the  company,  aswsociation,  firm  or 
individual,  its  officers  and  agents,  to  renew  annually,  or  on  the  first 
day  of  January  in  each  year,  or  within  sixty  days  thereafter,  the 
statement  set  forth  in  the  first  section  of  this  act ;  and  the  Comp- 
troller, on  being  satisfied  that  the  capital,  securities  and  invest- 
ments remain  secure  as  at  first,  shall  furnish  a  renewal  of  the  certifi- 
cate as  aforesaid.     (Ibid,  p.  5.) 

36.  No  company  organized  under  the  provisions  of  this  act 
shall  undertake  any  business  or  risks,  except  as  herein  provided ; 
and  no  company  organized  or  incorporated  by  or  under  the  laws  of 
this  State,  or  of  any  other  State  of  the  United  States,  or  of  any 
foreign  government,  transacting  the  business  of  life  assurance  in 
this  State,  shall  be  permitted  or  allowed  to  take  any  other  kind  of 
risks  except  those  connected  with  or  appertaining  to  making  assur- 
ance on  life,  and  the  granting,  purchasing  and  disposing  of  annui- 
ties and  endowments ;  nor  shall  the  business  of  life  assurance  in 
this  State  be  in  anywise  conducted  or  transacted  by  any  company 
which,  in  this  or  any  other  State  or  country,  make  insurance  on 
marine,  fire,  inland  or  any  other  risks  ;  Provided,  That  no  company 
now  doing  business  in  this  State,  and  complying  with  the  pro- 
visions of  this  act  shall  be  prevented  from  continuing  the  same. 
{Ibid, p.  6.) 

37.  Whenever  the  existing  or  future  laws  of  any  other  State 
of  the  United  States  shall  require  of  life  insurance  companies,  in- 
corporated by  this  State,  and  having  agencies  in  other  States,  any 
deposit  (of  securities)  in  such  State  for  the  protection  of  policy- 
holders or  otherwise,  then,  and  in  every  such  case,  all  companies  of 
such  State  establishing,  or  having  heretofore  established,  agencies 
in  this  State,  shall  be  and  are  hereby  required  to  make  the  same 
deposits  for  a  like  purpose  with  the  Treasurer  of  this  State.  {Ibid, 
p.  199,  §  7.) 

38.  No  such  company  incorporated  by,  or  organized  under  the 
laws  of  any  foreign  government  shall  transact  business  in  this 
State,  unless  it  shall  first  deposit,  and  keep  deposited,  with  the 
Treasurer  of  this  State,  for  the  benefit  of  the  policy-holders  of  said 
company,  citizens  or  residents  of  the  United  States,  bonds  or  secu- 
rities of  the  United  States,  or  of  the  State  of  Texas,  to  the  amount 
of  one  hundred  thousand  dollars ;  and  such  deposits  shall  be  held 
liable  to  pay  the  judgments  of  policy  holders  in  said  company,  and 
may  be  so  decreed  by  the  court  adjudicating  the  same ;  Provided, 


806  HINE'S  mSIIRANCE  STATUTES. 

That  if  such  deposit  has  been  made  in  any  other  State  of  the 
United  States,  under  the  laws  thereof,  in  such  manner  as  to  secure 
equally  all  the  policy-holders  of  such  company,  citizens  and  resi- 
dents of  the  United  States,  no  deposit  shall  be  required  in  this 
State;  but  a  certificate  of  such  deposit  shall  be  filed  with  the 
Comptroller  of  the  State  in  like  manner  as  required  in  the  first 
section  of  this  act  in  regard  to  companies  organized  under  the  laws 
of  the  United  States  and  of  other  States  of  the  United  States. 
{Iliid,  §  8.) 

39.  The  several  foreign  life  insurance  comi)anies,  and  those  in- 
corporated out  of  this  State,  in  all  cases  where  a  loss  occurs,  and 
■when  they  refuse  to  pay  the  same  within  the  time  specified  in  the 
policy,  shall  be  liable  to  pay  the  holder  of  said  policy,  in  addition 
to  the  loss,  not  more  than  twelve  per.  cent,  on  the  liability  of  said 
company  for  said  loss ;  also  all  reasonable  attorney's  fees  for  the 
prosecution  of  the  case  against  said  company;  and  should  any  such 
company  fail  to  pay  off  and  satisfy  any  execution  that  may  lawfully 
issue  on  any  final  judgment  against  said  company  within  thirty 
days  aftef  notification  of  the  issuance  thereof,  then  and  in  that 
event  the  certificate  issued  to  said  company  shall  immediately  be- 
come null  and  void,  and  said  insurance  company  shall  be  prohilDited 
from  transacting  any  business  in  this  State  until  said  execution 
shall  be  fully  satisfied  and  discharged.     {Ibid,  p.  200,  §  9.) 

4©.  All  persons  violating  any  of  the  provisions  of  this  act,  on 
conviction  thereof,  before  any  court  of  competent  jurisdiction  in 
this  State,  shall  be  fined  not  less  than  five  hundred  dollars,  nor 
more  than  one  thousand  dollars  for  each  and  every  offense.  (Ibid, 
§  10.) 

TAXATION  OF  INSURANCE  COMPANIES. 

41,  There  shall  be  levied  on  and  collected  from  every  person, 
firm  or  association  of  i)ersons,  pursuing  any  of  the  following  named 
occujiations,  an  annual  tax  (except  where  herein  otherwise  pro- 
vided) on  every  such  occupation  or  sei)arate  establishment,  as 
follows : 

From  every  life  insurance  company  doing  business  in  this 
State,  an  annual  tax  of  five  hundred  dollars ;  and  in  every  county 
in  which  they  may  do  business,  ten  dollars.  From  every  fire  and 
marine  insurance  company  doing  business  in  this  State,  an  annual 
tax  of  two  hundred  dollars ;  and  in  every  countj^  in  which  they 
may  do  business,  five  dollars ;  said  State  tax  to  be  paid  by  the 
company  to  the  Comptroller  of  Public  Accounts,  whose  receipt  un- 
der seal  shall  be  issued  to  the  company,  certified  copies  of  which 
shall  be  evidence  of  payment  of  State  tax,  and  the  County  Treas- 
urer's receipt  shall  be  authority  to  work  in  any  county  in  this  State; 
said  State  tax  to  be  assessed  in  the  county  where  the  i)rincipal  office 
of  such  company  is  located,  and  when  the  princi])al  office  is  located 
in  another  State,  to  be  assessed  in  the  county  where  the  principal 
or  general  State  agency  exists.  (Laws  of  1873,  chajy.  121,  part  of 
§3.) 

ARSON  AND  INCENDIARISM. 

42.  If  any  person  shall  willfully  bui'n  a  dwelling-house  or  out- 
house, he  shall  be  j)unished  by  confinement  in  the  penitentiary,  not 


TEXAS.  807 

less  tlian  five,  nor  more  than  fifteen  years.    {PaschaPs  Digest,  1866, 
p.  458,  Art.  2322.) 

43.  If  any  person  shall  willfully  burn  any  store-house,  ware- 
house, gin-house,  mill-house,  when  such  house  does  not  also  come 
within  the  definition  of  a  dwelling-house,  or  any  public  building,  he 
shall  be  punished,  by  confinement  in  the  penitentiary,  not  less  than 
four,  nor  more  than  ten  years.    {Ibid,  Art.  2323.) 

44.  If  any  person  shall  willfully  burn  the  capitol  building  of 
the  State,  the  treasury  building,  or  Comptrollers'  office  of  the  State, 
the '  executive  mansion  of  the  State,  the  building  in  which  the  Ex- 
ecutive or  Secretary  of  State  shall  keep  their  offices,  or  the  general 
land  office  of  the  State,  he  shall  be  punished  by  confinement  in  the 
penitentiary  for  life.     {Ibid,  Art.  2324.) 

45.  If  any  person  shall  willfully  burn  a  building  other  than  a 
dwelling  house,  he  shall  be  punished,  by  confinement  in  the  peni- 
tentiary, not  less  than  three,  nor  more  than  seven  years.  {Ibid, 
Art.  2325.) 

46.  if  any  person  shall  willfully  burn  any  public  building,  as 
enumerated  and  defined  in  this  chapter,  he  shall  be  punished  by 
confinement  in  the  penitentiary,  not  less  than  five  years,  nor  more 
than  fifteen  years.     {Ibid,  Art.  2327.) 

47.  If  any  person,  with  intent  to  defraud,  shall  willfully  bum 
any  personal  property  owned  by  himself,  which  shall  be  at  the  time 
insured  against  the  loss  or  damage  from  fire,  he  shall  be  punished 
by  confinement  in  the  penitentiary,  not  less  than  two,  nor  more 
than  five  years.     {Ibid,  Art.  2335.) 


EMBEZZLEMENT. 

48.  If  any  officer,  agent,  or  clerk,  of  any  incorporated  com- 
pany, or  institution,  or  of  any  city,  town,  or  county ;  or  if  any 
clerk,  or  agent,  of  any  private  person  or  copartnership  ;  or  if  any 
consignee  or  bailee  of  money  or  property,  shall  embezzle  or  fraudu- 
lently misaj)ply  or  convert  to  his  own  use,  without  the  consent  of 
his  principal  or  employer,  any  money  or  property  of  such  principal 
or  employer,  or  the  proceeds  of  such  property,  after  sale,  which 
shall  have  come  to  his  possession,  or  shall  be  under  his  care  by 
virtue  of  such  office,  agency,  or  employment,  he  shall  be  punished 
as  [for  larceuyj  according  to  the  amount  of,  or  value  of  such  money 
or  property  so  embezzled.     {Paschal's  Digest,  1866,  p.  468,  Art.  2421.) 

49.  For  General  Provisions  relating  to  Corporations  see 
Paschal's  Digest,  1873,  pp.  1216-1221 ;  Laws  of  1874,  pp.  31,  32.) 


INDEX  TO   VEKMOISTT. 


PAGB 

Agbkt— 

Is  Agent  of  Insurer  (4) 810 

Companies  Eesponsi-ble  for  Acta  of  (1- 

4) 810 

Penalty  for  Doing  Business  if  Company 

is  not  Responsible  for  Acts  (3) 810 

License  of  (10) 812 

Penalty  for  Doing  Business  without  Li- 
cense (10) 812 

May  Act  as  Broker  (11) 812 

Embezzlement  by  (3  4) 817 

Annual  Statements— (13) 813 

Blanks  for  (13) 813 

Arson,  Crime  and  Penalty  of  (30-33))  .816,  817 

Bbokeb— 

License  of  (11) 812 

Penalty  for  Doing  Business  without  Li- 
cense (11)  812 

Capital— 

And  Assets  of  Foreign  Insurance  Com- 
panies (7) 810 

Investment  of  (7) 810 

Inrpairment  of  (7) 810 

Charter  to  be  Filed  (9) 811 

Co-operative  Insurance  Companies,  Assets 

of  ^7) 810 

Corporations,  General  Provisions  Relating 

to  (35) 817 

Dkposi  i  6— 

Of  Life  Insurance  Cos  (20,  21).  ..814,  815 
Under  Reciprocal  Laws  (14,  15) 813 

BiiBEZZLEMEXT  by  Agents  (34) 817 

Fbbb— 

For  License  (9-11) 811,  812 

Under  Reciprocal  Laws  (14,  15) 813 

Fire  Insurance  Companies — 

Responsible  for  Acts  of  Agents  (1-4)-.  810 

Reinsurance  Reserve  of  (7) 810 

Examination  of  ( 1 1 ) 812 

Annual  Statements  of  (13) 813 

Judgments  against  (16) 814 

Foreign  Fire  Insurance  Companies — 

Responsible  for  A  cts  of  Agent  (2-4)  . .  810 

Capital  and  Assets  of  (7) 810 

Impairment  of  (7) 610 

Service  of  Process  on  (8) 811 

To  File  Charter,  etc.  (9) 811 

Examination  of  (12) 812 

Annual  Statements  of  (13) 813 

Judgments  against  (16)  814 

License  of  (9) 811 


PAGB 

Foreign  Life  Insurance  Companies  (Cent  d)  — 

Capital  and  Assets  of  (7) 810 

Service  of  Process  on  >  8) 811 

To  File  Charter,  etc.  (9) 811 

Examination  of  (12) 812 

Annual  Statements  of  (13) 813 

Under  Reciprocal  Laws  (14,  15) 813 

Judgments  against  (16) 814 

Impaikment  of  Capital  (7) 810 

Incendiarism,  Crime  and  Penalty  of  (30- 

33) 816,  817 

Insurable  Interest  of  Railroads  (22) 815 

Insurance,  Limited  Partnerships  may  not 

Make  (23) 815 

Insurance  Bureau  Established  (5) 810 

Insurance  Commissioners — 

"Who  Are  (6) 810 

May  License  Impaired  Company  (7)...  810 

Service  of  Process  on  (8) 811 

To  Issue  Licenses  (9-11) 811,  812 

Fees  of  ( 9-1 1 ) 811,  812 

To  Examine  Companies  (12) 812 

To  Revoke  Licenses  1 1 2) 812 

To  Furnish  Blanks  (13) 813 

Papers  Certified   by,   to   be  Evidence 

(17) 814 

To  Institute  Suits  for  Violations  of  Law 

(18) 814 

Report  of  f  1 9) 814 

Deputy  (19) 814 

Compensation  of  ( 1 9) 814 

Licenses— 

Of  Companies  (9) 811 

Of  Agents  (10) 812 

Of  Brokers  (11) 812 

Under  Reciprocal  Laws  (14,  15) 813 

Life  lusuracce  tor  the  Benefit  of  Women  and 

Children  and  Others  (24-29) 815,  816 

Life  Insurance  Companies — 

Reserve  of  ( 7) 810 

Impairment  of  (7) 810 

Assets  of  Mutual  (7)    810 

Capital  and  Assets  of  (7) 810 

License  of  Foreign  (9) 811 

Examination  of  (12) 812 

Annual  Statements  of  (13) 813 

Deposits  of  (-.40,  21) 814,  815 

Mutual  Fire  Insurance  Companies- 
Responsible  for  Acts  of  Agents  t,  1 ) 810 

Premium  Kotos  (7) 810 

Reinsurance  Reserve  of  (7) 810 

Mntaal  Life  Insurance  Cos.,  Assets  of  (7)  610 


INDEX  TO   VERMONT. 


809 


TAGK 

Pevaltiks — 

Por  Elegal  Basinoss  (3,  10,  11,  16). 

810,  812,  814 

Under  Reciprocal  Laws  (14,  15) 813 

For  Violating  Law  (18) 814 

For  Arson  and  Incendiarism  (30-33). 

816,  817 
For  Embezzloment  (34) 817 


PAon 
Premium  Xotos  (7) 810 

Reciprocal  Laws  (14,  16) 813 

Service  of  Process  (8 ) 811 

Taxation  Under  Reeiprooal  Laws    (14, 

16) 813 

Wives' Policies  (24-29) 815,  816 


INSURANCE  STATUTES  OF  VERMONT. 


Eevised  by  Ron.  George  Nichols  and  Hon.  John  A.  Page^  Insurance 

Commissioners. 


INSUEANCE   COMPANIES  AND  AGENCIES. 

1„  All  mutual  fire  insurance  companies  in  this  State  shall  be 
responsible  for  the  acts  and  neglect  of  the  several  agents  appointed 
by  them,  as  between,  the  said  companies  and  the  applicants  for  in- 
surance therein,  or  the  assured,  while  in  the  performance  of  their 
duties  as  the  agents  of  said  companies.     {Laics  of  1874,  p.  4,  §  1.) 

S.  All  fire  insurance  companies,  other  than  those  chartered  by 
the  General  Assembly  of  this  State,  are  prohibited  from  taking  in- 
surance in  this  State,  unless  such  company  or  companies  shall  be 
responsible  by  the  laws  of  the  State  in  which  such  company  or 
companies  are  situated,  or  by  the  act  incorporating  such  company 
or  companies,  or  by  a  proviso  to  that  effect  inserted  in  their  policies 
of  insurance,  for  the  acts  and  neglect  of  their  agents  as  between 
said  companies  and  the  assured,  and  as  between  said  companies 
and  the  applicants  for  insurance  therein.     (Ihid^  §  2.) 

3.  If  any  person  shall  take  any  application,  or  make  any  sur- 
vey intending  to  effect  insurance  on  any  property  in  this  State,  in 
any  fire  insurance  company  not  chartered  by  the  legislature  of  this 
State,  said  company  not  being  liable  for  the  acts  and  neglects  of 
such  persons,  as  specified  in  the  preceding  section,  said  person 
shall,  upon  conviction  before  any  court  proper  to  try  the  same,  for- 
feit and  pay  a  sum  not  less  than  seven  dollars  for  every  such 
offense ;  one-half  of  such  penalty  shall  go  to  the  person  prosecuting 
the  same,  and  the  other  half  to  the  treasury  of  the  town  where 
such  offense  shall  have  been  committed.     (Ibid,  §  3.) 

4.  Whenever  application  for  fire  insurance  shall  be  taken  or 
transmitted  by  or  through  a  local  or  traveling  agent  of  any  fire  in- 
surance company,  it  shall  in  law  be  deemed  to  be  the  act  of  the  said 
company ;  and  such  agent  shall  not  therein  be  deemed  to  be  the 
agent  of  the  applicant  or  insured,  and  in  all  questions  arising  as  to 
the  facts  stated  in  such  application,  the  said  agent  shall  be  taken 
and  deemed  to  be  the  agent  of  the  insurers,  and  not  of  the  insured. 
{Ibid,  p.  5,  §  4.) 

5.  There  is  hereby  established  a  distinct  bureau,  to  be  known 
as  the  Insurance  Bureau,  which  shall  be  charged  with  the  execu- 
tion of  the  laws  of  this  State  in  relation  to  insurance.     {Ibid,  §  5.) 

6.  The  Secretary  and  Treasurer  of  this  State  are  hereby  de- 
clared ex  officio  Insurance  Commissioners.     {Ibid,  §  6.) 

7.  No  joint  stock  insurance  company,  not  organized  under  the 
laws  of  this  State,  shall  be  permitted  or  allowed  to  transact  the 
business  of  such  company  in  this  State,  unless  it  shall  have  a  bona 
fide  paid  up  capital,  invested  in  securities  readily  convertible  into 
cash,  of  at  least  one  hundred  thousand  dollars ;  not  less  than  one- 


I 


VERMONT.  811 

half  of  which  shall  be  invested  in  cash  securities,  otiier  than  mort- 
gages of  real  estate,  nor  unless  such  company  shall  have,  in  ad- 
dition to  such  capital,  assets  equal  in  amount  to  all  its  outstanding 
liabilities,  reckoning  fifty  per  cent,  of  premiums  on  outstanding 
fire  risks,  the  whole  amount  of  premium  on  marine  risks,  and  the 
premium  reserve  on  life  risks,  based  on  the  Actuaries'  Table  of  Mor- 
tality, with  interest  at  four  per  cent.,  as  a  liability ;  Provided,  That 
the  Insurance  Commissioners  may,  at  their  discretion,  license  any 
company  to  do  business  in  this  State  whose  impairment  of  capital 
does  not  exceed  twenty  per  cent,  of  the  above  rule;  nor  shall  any 
mutual  fire  or  life  insurance  company  or  co-operative  insurance  com- 
pany, association  or  society,  not  organized  under  the  laws  of  this 
State,  be  permitted  or  allowed  to  transact  the  business  of  such  com- 
pany in  this  State  unless  it  possesses  assets  amounting  to  one  hun- 
dred thousand  dollars,  invested  in  seciu-ities  readily  convertible  into 
cash,  not  less  than  one-half  of  which  shall  be  invested  in  cash  secur- 
ities other  than  mortgages  of  real  estate,  nor  unless  it  possesses  such 
assets  equal  to  all  its  outstanding  liabilities  (including  reinsurance, 
to  be  estimated  as  in  the  case  of  joint  stock  insurance  companies 
above  named,  and  including  the  amount  of  guaranty  capital  as  a 
liability);  nor  until  all  the  laws  relating  to  insurance  companies  of 
other  States,  enacted  by  this  State,  shall  have  been  complied  with; 
and  further  Provided,  That  nothing  herein  shall  be  so  construed  as 
to  require  any  mutual  fire  insurance  company  to  keep  on  hand  any 
cash  reinsurance  reserve  or  funds  invested  in  securities  other  than 
their  premium  notes,  when  said  premium  notes  amount  in  gross  to 
three  per  centum  of  the  amount  at  risk  by  said  company.     (Ibid,  §  7.) 
8,     No  insurance  company,  not  organized  under  the  laws  of  this 
State,  shall  do  business  in  this  State  until  it  has  filed  with  the  Sec- 
retary of  this  State  a  written  stipulation,  agreeing  that  any  legal 
process  affecting  the  company,  served  on  either  of  the  Insurance 
Commissioners,  shall  have  the  same  effect  as  if  served  personally  on 
the  company  within  this  State.     So  long  as  any  liabilities  of  the 
stipulating  comi)any  to  any  resident  of  this  State  continue,  such 
stipulation  cannot  be  revoked  or  modified.     Service  of  process  ac- 
cording to  the  stipulation  aforesaid  shall  be  sufficient  service  on  the 
company ;  a  copy  of  such  stipulation,  certified  by  either  of  the  Com- 
missioners, and  his  certificate  that  process  has  been  served  on  him, 
shall  be  sufficient  evidence  thereof    When  process  against  or  affect- 
ing an  insurance  company  is  served  on  the  Insurance  Commissioners, 
or  either  of  them,  it  shall  be  served  by  duplicate  copies,  and  they  or 
he  shall  immediately  forward  by  mail  one  copy  of  the  same  to  the 
company  at  its  home  office,  or  to  any  person  whom  such  company 
shall  designate.     (Ibid,  p.  6,  §  8.) 

5).  It  shall  not  be  lawful  for  any  insurance  company  embraced 
in  section  seven  to  transact  any  insurance  business  in  this  State,  un- 
less such  company  shall  first  obtain  license  of  the  Insurance  Com- 
missioners, authorizing  the  company  so  to  do.  Before  receiving 
such  license,  the  company  shall  file  with  the  Secretary  of  State  a 
certified  copy  of  its  charter  and  by-laws,  and  a  full  statement,  under 
oath  of  its  president  and  secretary,  showing  the  financial  condition 
and  standing  of  the  company,  in  accordance  with  blanks  furnished  by 
him.  Upon  receiving  such  copies  and  statements,  if  the  Commis- 
sioners are  satisfied  with  the  same,  and  that  the  company  meets  the 
requirements  of  section  seven,  and  has  complied  with  the  require- 
ments of  section  eight  of  this  act,  they  shall  grant  such  license,  au- 


812  hike's  insurance  statutes. 

thorizing  such  company  to  do  insurance  business  by  authorized 
aj^ents,  subject  to  the  laws  of  this  State,  until  the  first  day  of  April 
thereafter ;  and  annually  thereafter,  on  the  first  day  of  April  such 
license  may  be  renewed,  so  long  as  such  company  shall  comply  with 
the  requirements  aforesaid,  and  the  Commissioners  shall  regard  the 
company  as  safe,  reliable,  and  entitled  to  public  confidence.  For 
each  license  or  renewal,  as  above,  the  company  shall  ])ay  to  the  In- 
surance Commissioners  the  sum  of  five  dollars.     {Ibid,  p.  7,  §  9.) 

1 0.  No  person  shall  act  as  agent  of  any  insurance  company 
aforesaid,  not  organized  under  the  laws  of  this  State,  until  he  shall 
have  filed  with  the  Secretary  of  State  a  certificate  from  the  company 
or  its  authorized  general  agent,  authorizing  him  to  act  as  such  agent, 
and  obtained  license  thereon  from  the  Commissioners  so  to  do. 
Upon  filing  the  certificate  aforesaid,  the  Commissioners  shall  issue  a 
license  to  such  person  to  act  as  an  insurance  agent  in  this  State ; 
Provided,  The  company  for  which  such  person  proposes  to  procure  or 
solicit  applications  for  insurance  therein  shall  be  authorized  to  do 
insurance  business  in  this  State,  which  license  shall  continue  until  the 
first  day  of  April  thereafter,  ualess,  for  cause,  revoked  in  the  mean- 
time. And  upon  filing  a  certificate  as  aforesaid,  such  license  may  be 
renewed  on  said  first  day  of  April,  and  annually  thereafter,  and  for 
such  license  and  each  subsequeut  renewal  the  i)erson  receiving  the 
same  shall  pay  to  the  Commissioners  the  sum  of  one  dollar.  If  any 
person  shall  solicit  or  receive  any  risk  or  application  for  insurance, 
or  receive  monej'^  or  value  therefor  for  any  insurance  company  or 
agent,  without  such  license  from  the  Commissioners,  he  shall  be 
punished  for  each  offense  by  fine  not  exceeding  one  hundred  dollars; 
one-half  to  the  use  of  the  i)rosecutor.  But  any  policy  issued  on  an 
application  thus  procured,  shall  bind  the  company,  if  otherwise 
valid ;  Provided,  however,  That  this  section  shall  not  apply  to  any 
person  who  only  acts  as  clerk  to  anj-  insurance  company  or  agent. 
{Ibid, p.  8,  §  10.) 

1 1 .  Any  person  may  be  licensed  by  the  Commissioners  as  in- 
surance broker  to  negotiate  contracts  of  insurance,  and  to  effect  in- 
surance for  others  than  himself  for  a  compensation  ;  and  by  virtue 
thereof  he  may  place  risks  or  effect  insurance  with  any  insurance 
company  of  this  State,  or  with  the  agents  of  any  insurance  company 
who  have  been  licensed  to  do  an  insurance  business  in  this  State, 
but  with  no  other.  For  such  license  he  shall  pay  the  sum  of  ten 
dollars,  which  shall  authorize  him  thus  to  act  until  the  first  day  of 
April  then  next;  and  on  payment  of  the  same  fee,  his  license  may 
be  renewed  from  year  to  year  afterwards,  ending  annually  on  the 
first  day  of  April.  Any  person  without  such  license,  assuming  to 
act  as  such  broker,  shall  forfeit  not  less  than  fifty  dollars;  one-half 
of  which  forfeiture  shall  go  to  the  complainant,  and  the  other  half 
to  the  State  Treasury ;  Provided,  That  ajiy  authorized  insurance 
agent,  whose  payments  for  certificates  of  authority  shall  amount  to 
ten  dollars  per  annum,  may  act  as  such  broker  Avitliout  further 
charge  for  license,  and  any  such  agents  whose  payments  for  such 
certificates  shall  have  been  less  than  ten  dollars  may  have  such 
license  as  a  broker  on  paying  such  sum  as  will,  with  the  sum  already 
paid  for  certificates,  make  the  sum  of  ten  dollars.     {Ibid,  p.  9,  §  11.) 

13.  The  Insurance  Commissioners  shall  be  authorized  at  any 
time  to  examine  into  the  condition  and  affairs  of  any  insurance  com- 
pany not  organized  under  the  laws  of  this  State,  doing  business  or 
prox)osing  to  do  business  therein,  or  cause  such  examination  to  be 


VEEMONT.  813 

made  by  some  person  appointed  by  them,  not  interested  in  such 
company;  and  may  in  like  manner  examine  into  the  business  trans- 
acted by  an.y  agent  of  such  company  in  this  State,  and  may  re- 
quire such  comijany  or  agent  to  produce  all  books  or  papers  relat- 
ing to  such  company  or  agency,  and  to  answer  in  writing,  under 
oath,  all  reasonable  questions  relating  thereto  ;  and  if,  in  their  opin- 
ion, the  affairs  of  such  company  are  in  an  unsound  or  failing  condi- 
tion, they  shall  revoke  any  license  that  may  have  been  granted  to 
such  company,  and  all  licenses  that  may  have  been  granted  to 
agents  of  such  company,  by  written  notice  to  the  company,  and  pub- 
lication of  the  same  by  six  consecutive  insertions  in  one  daily  or 
weekly  newspaper  in  each  county  where  such  company  may  have 
had  authorized  agent  or  agents.     {Ibid,  §  12.) 

13.  Every  lire  insurance  company  not  organized  under  the 
laws  of  this  State,  but  doing  business  therein,  on  or  before  the  first 
day  of  February  in  each  year,  and  every  life  insurance  company  not 
organized  under  the  laws  of  this  State,  but  doing  business  therein, 
on  or  before  the  first  day  of  March  in  each  year,  shall  transmit  to 
the  Insurance  Commissioners  a  statement,  under  oath  of  its  presi- 
dent and  secretary,  of  the  whole  amount  of  premiums  received  in 
monej",  or  in  the  form  of  notes,  credits,  loans  or  any  other  substitute 
for  money,  by  or  on  account  of  said  company,  during  the  year  end- 
ing on  the  31st  day  of  the  preceding  December,  for  any  insurance 
made  by  it  on  persons  or  property,  in  this  State ;  also  exhibiting 
its  assets,' liabilities,  amount  of  capital  stock  actually  paid  in,  the 
amount  of  outstanding  risks,  and  the  business,  standing  and  atfairs 
of  the  company  generally,  in  accordance  with  blanks,  to  be  fur- 
nished by  the  Commissioners,  adapted  to  the  business  of  such  com- 
pany, which  statement  shall  be  filed  in  the  oflQce  of  the  Secretary  of 
State  ;  and  shall  pay  to  the  Commissioners,  upon  filing  such  state- 
ment, the  sum  of  twenty  dollars,  which  shall  be  paid  by  said  Com- 
missioners to  the  State  Treasurer.  And  for  the  ])urpose  of  the 
above  statement  the  Commissioners  shall  prepare  suitable  blanks, 
proposing  such  interrogatories  as  may  be  necessary  to  ascertain  the 
business,  standing  and  affairs  of  such  company,  and  forward  du])li- 
cates  of  the  same  in  the  month  of  December  in  each  year,  to  every 
such  company ;  and  the  Commissioners  may  demand  a  like  state- 
ment of  its  standing  and  affairs  at  any  other  time  when,  in  their 
opinion  the  same  may  be  necessary  for  the  safety  of  the  public. 
{I bid,  p.  10,  §  13.) 

14.  When  by  the  laws  of  any  other  State  or  nation  any  taxes, 
fines,  penalties,  licenses,  fees,  deposits  of  money  or  of  securities,  or 
other  obligations  or  prohibitions  are  or  would  be  imi)osed  on  life  in- 
surance comi)anies  of  this  State  doing  business  in  such  other  State 
or  nation,  or  upon  their  agents  therein  so  long  as  such  laws  con- 
tinue in  force,  the  same  obligations  and  prohibitions,  of  whatever 
kind,  shall  be  imposed  upon  all  life  insurance  companies  of  such 
other  States  or  nations  doing  business  within  this  State,  and  their 
agents  herein.     {I lid,  p.  11,  §  14.) 

15.  When  by  the  laws  of  any  other  State  or  nation  any  taxes, 
fines,  penalties,  licenses,  or  fees,  would  be  required  to  be  paid  to,  or 
a  deposit  of  money  or  of  securities  made  with,  the  Treasurer  of  such 
other  State  by  life  insurance  companies  of  this  State,  doing  business 
in  such  other  State  or  nation,  so  long  as  such  laws  shall  continue  in 
force,  the  same  taxes,  fines,  penalties,  licenses,  or  fees  shall  be  paid 
to,  and  deposits  of  money  or  of  securities  made  with,  the  Treasurer 


814  hine's  insueance  statutes. 

of  this  state,  by  the  life  insurance  companies  of  such  other  State  or 
nation  doing  business  in  this  State,     (i  bid,  §  15.) 

1  &,  Unless  any  judgment  rendered  in  this  State  against  any 
insurance  company  "shall  be  paid  within  thirty  days  alter  demand 
made  upon  any  agent  of  such  company,  and  notice  thereof  given  to 
the  Insurance  Commissioners  by  the  officer  holding  the  execution, 
the  Insurance  Commissioners  may  suspend  the  power  of  the  company 
to  do  business  in  this  State  until  it  shall  be  paid ;  and  if  the  com- 
pany, or  any  agent  therefor,  shall,  after  notice  of  such  suspension, 
issue  any  policy  in  this  State  during  such  suspension,  said  company 
and  agent  shall  each  forfeit  a  sum  not  exceeding  two  hundred  dol- 
lars. But  any  policy  so  granted  shall  be  valid  and  binding  against 
the  company,     {Ibid, p.  12,  §  16.) 

17.  Ail  copies  of  charters,  by-laws,  certificates,  appointments, 
and  all  copies  of  other  papers  required  by  law  to  be  filed  in  the  office 
of  the  Secretary  of  this  State,  made  and  certified  by  either  of  the  In- 
surance Commissioners,  shall  in  all  cases  be  competent  evidence  in 
the  couj-ts  of  this  State.     {Ibid,  §  18.) 

1 8.  Whenever  the  Insurance  Commissioners  shall  have  reason 
to  believe  that  any  insurance  company  embraced  in  section  seven  of 
this  act,  or  any  insurance  company  organized  under  the  laws  of  this 
State,  or  any  officer  or  agent  of  any  of  the  aforesaid  insurance  com- 
panies, or  any  other  person,  shall  have  violated  any  law  of  this 
State,  relating  to  such  companies,  officers  or  agents,  or  the  business 
of  insurance,  or  fail  to  comply  with  any  requisition  of  the  laws  of 
this  State  relating  to  such  companies,  officers  or  agents,  or  the  busi- 
ness of  insurance,  they  shall  forthwith  report  the  fact  with  any  in- 
formation they  may  have  relating  thereto,  to  any  State's  Attorney 
in  this  State,  who  shall,  if  in  his  judgment  it  is  advisable  so  to  do, 
prosecute  every  such  company,  officer,  agent  or  other  person  there- 
for ;  and  any  such  company,  officer,  agent  or  other  person,  upon  cour 
viction,  shail  be  liable  for  each  offense  to  a  fine  not  exceeding  two 
thousand  dollars  and  costs  of  prosecution.     {Ibid,  p.  13,  §  19.) 

1 9.  The  Insurance  Commissioners  shall  biennially,  on  or  before 
the  first  day  of  October,  cause  to  be  printed  and  laid  before  the 
legislature  an  abstract  of  the  annual  statements  made  to  them  by 
insurance  companies  of  other  States  for  the  two  years  next  preced- 
ing, with  such  statistics,  general  information  and  suggestions  relat- 
ing to  the  subject  of  insurance  as  they  may  think  proper  to  insert  in 
such  report,  giving  the  name  and  location  of  every  such  company  ; 
and  the  Secretary  of  State  shall  keep  on  file  the  charters  of  all  such 
companies,  and  all  certificates  relating  to  the  means  or  authority  of 
such  companies,  and  the  name  and  residence  of  every  agent  licensed 
to  do  insurance  business  in  this  State,  together  with  the  certificate 
of  the  company,  or  general  agent  of  such  company,  upon  which  such 
agents  have  been  licensed ;  and  they  may  appoint  a  deputy  to  assist 
them  in  carrying  the  provisions  of  this  chapter  into  eftect,  for  whose 
acts  they  shall  be  responsible ;  and  the  fees  from  agents  and  com- 
panies for  licenses  and  examinations  hereinbefore  provided  for,  to- 
gether with  any  tees  they  may  receive  for  copies  furnished  by  them, 
shall  be  in  full  compensation  for  their  services  as  Commissioners. 
{Ibid,  §  20.) 

SO.  It  shall  be  lawful  for  any  life  insurance  company  chartered 
in  this  State  to  deposit  with  the  Treasurer  of  this  State,  or  the  Comp- 
troller or  chief  financial  officer  of  another  State,  any  funds  or  secur- 
ities of  such  companies  which  the  laws  of  any  other  State  or  country 


VEEMONT.  815 

may  require,  to  enable  the  company  or  companies  of  this  State  to 
establish  agencies  and  prosecute  the  business  of  insurance  within 
such  other  States  or  countries.     {Ibid,  p.  14,  §  1.) 

21 .  It  shall  be  the  duty  of  the  Treasurer  of  this  State  to  safely 
keep  said  securities  for  the  benefit  of  all  the  policy-holders  of  such 
company  J  but  companies  so  depositing  shall  at  all  times  have  the 
right  to  receive  the  interest  or  dividends  upon  such  mortgages  or 
stocks,  or  to  exchange  them  for  others  of  equal  value.     {Ibidy  §  2.) 


MISCELLANEOUS. 

23.  Any  railroad  corporation  shall  have  an  insurable  interest 
in  such  property  as  is  mentioned  in  the  preceding  section  (§  78), 
along  its  route,  and  may  procure  insurance  thereon,  in  its  own 
name  and  behalf     {General  Statutes,  1863,  jp.  233,  §  70.) 

23.  Nothing  contained  in  this  chapter  shall  authorize  such 
[limited]  partnerships  for  the  purpose  of  banking  or  insurance. 
\l  bid,  p.  512,  part  o/  §  1.) 


LIFE  INSURANCE  FOR  THE  BENEFIT  OF  WOMEN  AND 
CHILDREN  AND   OTHERS. 

24.  It  shall  be  lawful  for  any  married  woman,  by  herself,  and 
in  her  name,  or  in  the  name  of  any  other  third  person,  with  his  as- 
sent as  her  trustee,  to  cause  to  be  insured,  for  her  sole  use,  the  life 
of  her  husband  for  any  definite  ijeriod,  or  for  the  term  of  his 
natural  life;  and  in  case  of  her  siu'viving  her  husband,  the  sum  or 
net  amount  of  the  insurance,  becoming  due  and  payable  by  the 
terms  of  the  insurance,  shall  be  payable  to  her,  and  for  her  own  use, 
free  from  the  claims  of  the  representatives  of  her  husband,  or  of  any 
of  his  creditors;  but  such  exemptions  shall  not  apply  when  the 
amount  of  premium  annually  ])aid  shall  exceed  three  hundred  dol- 
lars.    {General  Statutes,  1803,^.  472,  §  19.) 

25.  In  case  of  the  death  of  the  wife  before  the  decease  of  her 
husband,  the  amount  of  the  insurance  may  be  made  payable  after 
death  to  her  children,  for  their  use,  and  to  their  guardian,  if  under 
age.     {Ibid,  §  21.) 

26.  It  shall  be  lawful  for  any  unmarried  woman,  by  herself, 
and  in  her  own  name,  or  in  the  name  of  any  third  person  as  her 
trustee,  to  cause  to  be  insured,  for  her  sole  use,  the  life  of  her  father 
or  brother  for  any  definite  period  or  during  his  natural  life ;  and  in 
case  of  her  surviving  such  person,  she  shall  be  entitled  to  receive 
the  amount  of  the  net  insurance  in  the  same  manner  as  in  case  of 
married  women.     {Ibid,  §  22.) 

27.  Any  policy  of  insurance  heretofore  or  hereafter  made  by 
any  insurance  company  on  the  life  of  any  person,  expressed  to  be 
for  the  benefit  of  any  married  woman,  whether  the  same  be  effected 
by  herself  or  by  her  husband,  or  by  any  third  person  in  her  behalf, 
shall  inure  to  her  separate  use  and  benefit  and  that  of  her  children' 
if  any,  independently  of  her  husband,  and  of  his  creditors  and  rep- 
resentatives, and  also  independently  of  such  third  person  effecting 
the  same  in  her  behalf,  his  creditors  and  representatives;  and  a 
trustee  may  be  appointed  by  the  Probate  Court  for  the  district  in 
which  such  married  woman  resides,  to  hold  and  manage  the  interest 


816  HINE's   INSUKANOE   STATUTES. 

of  any  married  woman  in  any  such  policy  or  the  proceeds  thereof. 
{Ibid,  §  23.) 

58.  Where  a  policy  of  insurance  is  effected  by  any  person  on 
the  life  of  another,  expressed  therein  to  be  for  the  benefit  of  such 
other,  or  his  representatives,  or  for  that  of  a  third  person,  the  party 
for  whose  benefit  such  policy  is  made  shall  be  entitled  thereto 
as  against  the  creditors  and  representatives  of  the  person  so  effect- 
ing- the  same.     (Ibid,  §  24.) 

59.  When  it  is  expressed  in  any  policy  of  insurance  by  which 
a  person  insures  his  own  life  that  it  is  made  for  the  benefit  of 
another  person,  the  policy  shall  inure  to  the  benefit  of  such  other 
person  in  the  same  manner,  and  subject  to  the  same  provisions,  as 
in  case  of  insurance  effected  by  one  person  on  the  life  of  another  for 
the  benefit  of  a  third  person.     {Ibid,  j;.  473,  §  25.) 


AESON  AND  INCENDIAEISM. 

30.  Every  person  who  shall  willfully  and  maliciously  burn  the 
dwelling-house  of  another,  or  any  other  building,  or  shall  willfully 
and  maliciously  set  fire  to  any  building  owned  by  himself,  by  means 
of  which  the  life  of  any  i)erson  shall  be  lost,  shall  suffer  the  punish- 
ment of  death.     {General  statutes,  1863,  j;.  607,  §  1.) 

31.  Every  person  who  shall  willfully  and  maliciously  burn  the 
dwelling-house  of  another,  or  out-building  adjoining  thereto,  or  so 
burn  any  other  building  which  shall  cause  the  burning  of  such 
dwelling-house  or  out-buildings,  shall  be  punished  by  imprisonment 
in  the  State  prison  during  the  term  of  his  or  her  natural  life,  or  for 
such  shorter  term  as  the  court  shall,  in  their  discretion,  deem 
adequate  to  the  degree  of  the  offense;  or  if  any  person  shall  will- 
fully and  maliciously  burn  any  meeting-house,  church  or  court- 
house, town-house,  college,  academy,  jail,  school-house  or  other 
building  erected  for  public  use,  or  any  bank-house,  warehouse, 
office,  store,  shop,  manufactory  or  mill,  or  other  house  or  building 
of  another,  not  constituting  a  dwelling-house  or  its  out-buddings,  or 
any  vessel,  cutter  or  boat,  used  on  any  lake,  river  or  creek  in  this 
State,  or  any  bridge,  lock,  dam  or  flume,  he  shall  be  punished  by 
imprisonment  in  the  State  prison  not  more  than  ten  years,  and  be 
fined  not  exceeding  one  thousand  dollars.     {Ibid,  §  2.) 

3S,  If  any  person  shall  willfully  or  maliciously  set  fire  to  the 
dwelling-house  of  another,  or  any  out-buildings  adjoining  thereto, 
or  any  other  building,  with  the  intent  of  burning  such  dwelling- 
house  and  out-building,  or  shall  willfully  and  maliciously  set  fire  to 
any  combustible  matter,  within  or  in  the  immediate  contact  with 
such  dwelling-house  or  other  building,  with  a  like  intent  of  burning 
such  dwelling  and  out-buildings,  and  shall  thereby  expose  the 
same  to  be  burned,  shall  be  punished  by  imi)risonmeut  in  the  State 
prison  during  the  term  of  his  or  her  natural  life,  or  for  such  shorter 
term  as  the  court,  in  their  discretion,  shall  deem  adequate  to  the 
degree  of  the  offense  ;  or  if  any  person  shall  willfully  or  maliciously 
set  fire,  with  intent  to  burn  the  same,  to  any  meeting-house,  church, 
or  court-house,  college,  academy,  jad,  school-house,  or  other  build- 
ing, erected  for  public  use,  or  to  any  bank,  warehouse,  office,  store, 
shop,  manufactory,  mill,  barn  or  other  building  of  another,  not  con- 
stituted a  dwelling-house  or  its  out-buildings,  or  to  any  vessel,  cut- 
ter, or  boat  used  on  any  lake,  river  or  creek  in  this  State,  or  to  any 


VERMONT.  ^  817 

bridge,  lock,  dam  or  flume,  or  shall  willfully  and  maliciously  set  fire 
to  auy  combustible  matter  within  such  buildings,  or  in  immedia'te 
contact  with  the  same,  or  in  immediate  contact  with  such  vessel, 
cutter,  boat,  bridge,  lock,  dam  or  flume,  with  a  like  intent  of  burn- 
ing the  same,  and  thereby  expose  the  same  to  be  burned,  he  shall 
be  punished  by  imprisonment  in  the  State  prison  not  more  than  ten 
years,  and  be  fined  not  exceeding  one  thousand  dollars.  {Ihid^  §  3.) 
33.  Every  person  who  shall  willfully  and  maliciously  burn,  or 
cause  or  procure  to  be  burned,  his  own  dwelling-house,  or  any 
other  building  owned  by  himself,  with  the  intent  to  defraud  any 
insurance  company,  shall  be  punished  by  imj)risonment  in  the  State 
prison  not  more  than  ten  years,  or  be  fined  not  exceeding  two  thou- 
sand dollars.     {Ibid,  p.  668,  §  5.) 


EMBEZZLEMENT. 

34.  Any  insurance  agent  doing  business  in  this  State,  who 
shall  appropriate  to  his  own  use  any  money  or  substitute  for  money 
received  by  him  as  such  agent,  and  refuse  or  neglect  to  pay  over 
such  money  or  substitute  for  money  to  the  company  or  other  party 
entitled  to  receive  the  same,  for  the  space  of  thirty  days  after  notice 
to  make  such  payment,  shall  be  deemed  guilty  of  larceny,  and  upon 
conviction,  shall  be  punished  therefor  in  accordance  with  the  laws  of 
this  State.     {Laws  of  1874,  p.  12,  §  17.) 

S5.  For  General  Provisions  relating  to  Corporations  see  Gen- 
eral Statutes,  1863,  pp.  472,  542-554 ;  Laws  of  1874-75,  pp.  40-44. 

52 


INDEX  TO  VIRGINIA. 


FAGE 
AOBNTS— 

Who  are  Deemed  (6) 819 

License  of  (6) 819 

Penalty  for  Doing  Business  -without  Li- 
cense (6) 819 

Bonds  of  (7) 819 

To  File  Statement  and  make  Deposit 

(11) 820 

Service  of  Prdcees  on  (2-5,  15)  ..819,821 

Embezzlement  by  (34) 825 

Annual  Statements  i25) 823 

Arson,  Crime  and  Penalty  of  (27-33)  824.825 
Attorney  of  Foreign  Insurance  Cos.  (2-6).  819 
Attorney-General  to  Enforce  Act  (8) 82U 

Corporations,  General  Provisions  Eelat- 

ingto^35) 825 

Deposits— 

Of  Foreign  Insurance  Cos.    (10-13, 
16) 820,821 

Of  Marine  Insurance  Cos.  (10) 820 

Annual  Examination  of  (1 0) 820 

TransIerandSaleof  (12,  14,  18). 821,  822 
Withdrawal  of  ( S  7) 821 

Embezzlement  by  Agents  (34) 825 

Foreign  Insurance  Companies— 

To  Comply  with  Law  (1) 819 

•     Attorney  of  (2-5) 819 

Service  of  Process  on  (2-5,  1 5) .  -  .819,  821 

Agentsof  (6) 819 

Bonds  of  ( 7 ) 818 

Licenseof  (10,  11,  25) ?20,  823 

Depositsof  (10  13,  16,  18) 820,832 

Payment  of  Liabilities  of  ( 1 3 ,  1 4) ... .  821 

Judgments  against  (14) 821 

Suite  against  (15,  22) 801,822 

Withdrawal  of  Deposits  by  (1 7) 821 

Taxation  of  (1 9-2 1,25) 822, 823 

Penalty  for  not  Paying  Taxes  (20,  25) 

822,  823 

Annual  Statements  of  (25 ) 

Penalty    for   Charging     Insured    with 
Taxes  (26) 826 


FAGB 

Foreign  Insurance  Companies  (Continued)— 
Life,  Valuation  of  Policies  of  (24) 823 

iNCENriARi&M,  Crime  and  Penalty  of  (27- 

33) 824,  825 

Licenses— 

Of  Agents  (6) 819 

Of  Companies  (25) 823 

Pena'ty  for  Doing  Business  without  (6)  819 

Life  Insurance  Companies,  Valuation  of  Pol- 
icies of  (23,  24) 823 

Marine  Insurance  Cos.,  Deposits  of  (10).  820 

Penalties- 

For  Doing  Business  without    License 

(6) 819 

To  whom  Paid  (9) 820 

If  Treasurer  Violates  Law  (18) 822 

For  not  Paying  Taxes  (20,  25). ..  822,  823 
For  Charging  Insured  with  Taxes  (26)  824 
For  Arson  and  Incendiarism  (27-33). 

824,  825 
For  Embezzlement  (34) 825 

Policies- 
Actions  on  (22) 822 

Valuation  of  Life  (23,  24) 823 

Power  of  Attorney  to  be  Filed  (2-4,  12) 

819,  821 

Eecipeocal  Laws  (21,25) 822,  823 

Service  of  Process  (2-5,  15) 819,  821 

Taxation— 

Of  Insurance  Companies  (21,25) .  .812,  823 

Under  Keciprocal  Laws  (21,  25). .822,  823 

Penalty  for  Non-Payment  of  (20,  25) 

822,  823 
Penalty  for  Charging  Insured  with  (26) 

824 
Treasurer — 

Duties  of  (1 0-1 8) 820-822 

Penalty  for  Violation  of  Law  by  (1 8) . .  823 

Valuation  of  Life  Policies  (23,  24) 823 


INSURANCE  STATUTES  OF  VIRGINIA. 


INSUEAI^CE  COMPARES  AND  AGENCIES. 

1 .  No  insurance  company,  unless  incorporated  by  the  legisla- 
ture of  this  commonwealth,  shall  make  any  contracts  of  insurance 
within  this  State  until  such  insurance  company  shall  ha^'e  complied 
with  the  provisions  of  this  act.    {Code  of  1S73, p.  3(j6,  §  19.) 

3.  Every  such  insurance  company  shall,  by  a  written  power  of 
attorney,  appoint  some  citizen  of  this  commonwealth,  resident 
therein,  its  agent  or  attorney,  who  shall  accept  service  of  all  lawful 
processes  against  such  company  in  this  commonwealth,  and  cause  an 
appearance  to  be  entered  in  any  action  in  like  manner  as  if  such 
corporation  had  existed  and  been  duly  served  with  process  within 
this  State.    {Ibid,  §  20.) 

3.  A  copy  of  such  power  of  attorney,  duly  certified  and  authen- 
ticated, shall  be  filed  with  the  Auditor  of  Public  Accounts  of  this 
commonwealth  ;  and  copies  thereof,  duly  certified  by  said  Auditor, 
shall  be  received  in  evidence  in  all  courts  in  this  commonwealth. 
{Ibid,  §  21.) 

4.  If  any  such  agent  or  attorney  shall  die  or  resign,  or  be  removed, 
it  shall  be  the  duty  of  such  corporation  to  make  a  new  appointment 
as  aforesaid,  and  file  a  copy  with  the  said  Auditor  of  Public  Ac- 
counts, as  above  prescribed,  so  that  at  all  times,  and  while  any  lia- 
bility remains  outstanding  on  such  insurance,  there  shall  be  within 
this  State  an  attorney  authorized  as  aforesaid;  and  no  such  power 
of  attorney  shall  be  revoked  untd  after  a  like  power  shall  have  been 
given  to  some  competent  person  and  a  copy  thereof  filed  as  afore- 
said.    {Ibid,  §  22.)  , 

5.  Service  of  process  upon  such  attorney  shall  be  deemed  to 
be  sufficient  service  upon  his  principals.     {Ibid,  §  23.) 

6.  If  any  such  insurance  company  shall  make  insurance  as 
aforesaid,  without  complying  with  the  requisitions  of  this  act,  the 
contract  shall  be  valid.  Bat  no  person  shall,  without  a  license  au- 
thorized by  l^w,  act  as  agent  for  any  foreign  insurance  company  ; 
and  any  person  offering  to  insure,  or  who  makes  any  contract  or 
policy  of  insurance  for  or  on  behalf  of  any  company  created  or  in- 
corporated elsewhere  than  by  or  in  this  State,  or  who  shall  procure 
an  application  to  any  such  insurance  company  for  any  policy  of  in- 
surance, or  who  acts  as  an  insurance  agent  in  behalf  of  any  such 
company,  or  any  person  who  shall  collect  the  dues  or  premiums  of 
any  such  insurance  company,  shall  be  regarded  as  an  agent  of  a 
foreign  insurance  company.  Any  person  aeting  as  above,  as  any 
agent  of  any  such  foreign  insurance  company,  shall  pay  a  fine  of  not. 
less  than  fitty  dollars  nor  more  than  five  hundred  dollars  for  each  of- 
fense.    {Ibid,  §  24.) 

7.  Every  such  company,  through  their  agent  or  attorney,  shall, 
before  making,  or  procuring  to  be  made,  any  contract  of  insurance 


820  hine's  insurance  statutes. 

as  aforesaid,  give  bond  to  the  Auditor  of  Public  Accounts,  with  two 
or  more  securities,  to  be  approved  by  him,  in  the  sum  of  not  less 
than  one  thousand  dollars  nor  more  than  five  thousand  dollars,  at 
the  discretion  of  the  Auditor  of  Public  Accounts,  with  conditions  to 
make  the  annual  returns  required,  and  to  pay  the  tax.  (Ibid,  p.  367, 
§  25.) 

8.  It  shall  be  the  duty  of  the  Attorney-General  and  common- 
wealth's attorneys  of  this  commonwealth,  to  cause  the  provisions  of 
this  act  to  be  enforced.     {Ibid,  §  26.) 

9.  All  penalties  recovered  for  violations  of  the  provisions  of 
this  act,  shall  go,  one-half  to  the  persons  giving  information  of  such 
violations,  and  one-half  to  the  literary  fund.     (Ibid,  §  27.) 

to.  No  insurance  company  which  has  not  been  incorporated 
under  the  laws  of  the  State  of  Virginia,  shall  carry  on  its  business 
in  this  State  without  first  obtaining  a  license  to  transact  its  business 
in  the  manner  prescribed  by  law ;  and  no  such  company  shall  re- 
ceive such  license  until  it  shall  have  deposited  with  the  Treasurer  of 
the  State,  bonds  of  the  State  of  Virginia,  or  of  public  corporations 
guaranteed  by  the  State  of  Virginia,  or  bonds  of  the  United  States, 
or  bonds  of  the  cities  of  Richmond,  Petersburg,  Lynchburg,  Nor- 
folk, or  Alexandria,  or  first  mortgage  railroad  bonds  of  a  railroad 
company  chartered  by  this  State,  or  bonds  of  indi\iduals,  residents 
of  this  State,  executed  for  money  loaned  by  said  company  since  the 
third  day  of  February,  eighteen  hundred  and  sixty-six,  and  secured 
by  deed  of  trust  on  real  estate  in  this  State  worth  double  the  value 
of  such  loan  or  debt,  together  with  the  policies  of  insurance  upon 
the  property  so  mortgaged,  approved  by  the  said  Treasurer,  or  bonds 
of  municipal  corporations  of  this  State,  secured  by  deed  of  trust  on 
real  estate  to  an  amount  which  shall  be  equal  to  five  per  centum  of 
the  capital  stock  of  the  company  depositing  the  same,  such  deposit 
being  estimated  at  the  market  value  thereof,  at  the  time  such  de- 
posit is  made;  Provided,  That  in  no  case  shall  any  comi>any  receive 
a  license  to  do  business  in  this  State  without  first  making  a  deposit 
of  securities  according  to  the  provisions  of  this  act,  the  cash  value 
of  which  shall  be  at  least  ten  thousand  dollars ;  and  no  company 
shall  be  required  to  deposit  such  securities  to  an  amount  exceeding 
in  cash  value,  fifty  thousand  dollars ;  Provided,  further.  That  the 
provisions  of  this  section  shall  not  be  construed  as  applying  to  for- 
eign insurance  companies  doing  exclusively  a  marine  insurance  busi- 
ness in  this  State.  The  Treasurer  shall  have  power  to  call  upon  any 
such  insurance  company  to  make  good  any  reduction  in  the  value  of 
the  securities  deposited  by  it  as  aforesaid,  so  as  to  bring  theii"  true 
value  ui)  to  the  amount  to  be  deposited  by  it,  and  it  shall  be  his  duty 
to  examine  all  securities  so  deposited  with  him  in  the  month  of  De- 
cember of  every  year,  for  the  purpose  of  ascertaining  whether  any 
of  them  have  become  depreciated.  {Ibid,  p.  3o7,  §  28.) 

1 1 .  Any  such  company  desiring  to  carry  on  the  business  of  in- 
surance shall,  by  an  agent  employed  to  superiutend  or  manage  its 
business  in  this  State,  deliver,  under  oath,  to  the  Treasurer,  a  state- 
ment of  the  amount  of  the  capital  stock  of  said  company,  and  make 
with  him  the  deposit  of  bonds  as  prescribed  in  the  preceding  section, 
but  the  bonds  so  deposited  shall  not  be  in  sums  exceeding  five  thou- 
sand dollars ;  and  the  Treasurer  shall  thereupon  give  to  the  said 
agent  a  receipt  for  the  same,  and  upon  the  exhibition  of  the  said  re- 
ceipt to  a  commissioner  of  the  revenue  or  townshii)  assessor  of  the 
county  or  corporation  in  which  an  oflice  of  the  said  company  in  this 


TIRGINIA.  821 

State  is,  or  is  intended  to  be  located,  and  having  paid  tlie  specific 
license  tax  which  may  be  imposed  thereon,  a  license  siiall  be  issued, 
in  the  manner  provided  by  law,  to  said  company  to  carry  on  its 
business ;  and  if,  at  the  end  of  the  i)eriod  for  which  a  license  is 
given,  the  said  company  shall  desire  another  license,  it  sliall  only 
be  given  on  the  certificate  of  the  Treasurer  that  the  bonds  required 
by  this  act  to  be  deposited  with  him  are  in  his  possession,  {[bid, 
p.  368,  §  29.) 

1 3.  If  the  bonds  deposited  with  the  Treasurer  are  registered 
or  individual  bonds,  the  company  shall  at  the  same  time  deliver  to 
him  a  power  of  attorney  authorizing  him  to  transfer  the  said  bonds, 
or  any  part  of  them,  for  the  purpose  of  paying  any  of  the  liabilities 
provided  for  in  this  act.     {Ibid,  §  30.) 

13.  The  Treasurer  at  the  time  of  receiving  said  bonds,  shall 
give  to  the  said  company  authority  to  draw  the  interest  thereof,  as 
the  same  may  become  due  and  payable,  for  the  use  of  said  company ; 
which  authority  shall  continue  in  force  until  the  said  company  shall 
faU  to  pay  any  of  its  liabilities  upon  its  insurance  policies  made  in 
favor  of  any  citizen  or  inhabitant  of  this  State,  in  which  case  the 
party  charged  with  the  payment  of  such  interest  shall  be  forthwith 
notified  of  such  failure  ;  and  thereafter  such  interest  shall  be  pay- 
able to  the  said  Treasurer,  to  be  applied,  if  necessary,  to  the  pay- 
ment of  such  liabilities.     {Ibid,  §  31.) 

14.  If  the  said  company  shall  fail  to  pay  any  of  its  liabilities 
on  said  pohcies  of  insurance,  according  to  the  terms  of  said  policies, 
when  the  same  shall  have  been  adjusted  between  the  parties  in  the 
mode  provided  in  the  policies,  if  a  mode  is  specified  therein,  or  when 
the  same  shall  have  been  ascertained  in  any  mode  agreed  upon  by 
the  parties,  or  by  the  judgment,  order  or  decree  of  a  court  having 
jurisdiction  thereof,  the  Treasurer  shall,  upon  the  application  of  the 
party  to  whom  the  debt  or  money  is  due,  proceed  to  sell  at  auction 
such  an  amount  of  said  bonds,  as  with  the  interest  in  his  hands,  will 
pay  the  amount  due  and  the  expenses  of  sale,  and  out  of  the  pro- 
ceeds of  such  sale  shall  pay  the  amount  so  due,  and  the  said  ex- 
penses of  sale ;  Provided,  That  the  party  maliing  the  application  to 
the  Treasurer  shall  give  to  the  company,  or  an  agent  of  the  company 
in  this  State,  ten  days'  notice  of  his  intention  to  make  said  applica- 
tion.    {Ibid,  §  32.) 

15.  Any  foreign  insurance  company  doing  business  as  such  in 
this  State,  may  be  sued  in  the  courts  of  this  State,  upon  policies  of 
insurance  made  to  citizens  or  residents  therein,  in  like  manner  as  if 
such  foreign  insurance  company  had  been  incorporated  by  this  Gen- 
eral Assembly  ;  and  service  of  process  or  notice  upon  the  agent  of 
such  company  shall  be  service  upon  the  company.  {Ibid,  p.  369, 
§33.) 

1 6.  When  the  principal  of  any  of  said  bonds  so  deposited  shall 
be  paid  to  the  Treasurer,  he  shall  notify  the  company,  or  its  agent 
in  this  State,  and  may  pay  the  money  so  received  to  the  said  com- 
pany upon  receiving  other  like  bonds  to  an  equal  amount ;  or  upon 
the  failure  of  the  company  for  thirty  days  after  receiving  said  notice, 
to  deliver  other  like  bonds  to  an  equal  amount  to  the  Treasurer,  he 
may  invest  the  said  money  in  such  bonds,  and  hold  the  same  as  he 
held  those  bonds  which  were  paid  off.     {Ibid,  §  31.) 

17.  If  such  company  shall  cease  to  carry  on  business  in  this 
State,  and  the  liabiUties  of  such  company  upon  its  insurance  poli- 
cies, whether  fixed  or  contingent,  to  the  citizens  and  inhajbitants  of 


822  hine's  instjeance  statutes. 

this  state,  shall  have  been  satisfied,  or  shall  have  terminated — upon 
satisfactory  evidence  of  this  fact  to  the  Treasurer,  he  shall  deliver 
to  such  insurance  company  the  bonds  deposited  with  him  by  said 
company,  or  such  as  he  purchased  under  the  precedinjif  section,  or 
such  of  them  as  remain  after  paying  the  liabilities  of  said  company 
provided  for  in  the  fifth  section  of  this  act,  or  if  such  company  shall 
reduce  the  amount  of  its  liabilities,  both  fixed  and  contingent,  upon 
its  policies  of  insurance  to  the  citizens  and  inhabitants  of  this  State, 
below  the  amount  of  the  bonds  in  the  possession  of  the  Treasurer, 
he  may  deliver  to  such  company  a  part  of  the  bonds  deposited  by 
said  company  with  him,  but  so  that  the  bonds  in  his  possession 
shall  always  be  equal  to  the  liabilities  of  said  company  upon  the  in- 
surance policies  to  citizens  and  inhabitants  of  this  State,  {IMdy 
§  35.) 

1 8.  If  the  Treasurer  shall  dispose  of  the  bonds  deposited  with 
him  by  any  insurance  company,  under  the  provisions  of  this  act,  or 
any  part  of  said  bonds,  otherwise  than  is  provided  in  this  act,  he 
shall  be  guilty  of  a  felony,  and  upon  conviction  thereof  shall  be 
punished  by  a  fine  double  the  amount  of  the  bonds  so  disposed  of, 
and  by  confinement  in  the  penitentiary  for  a  period  of  not  less  than 
five  nor  more  than  fifteen  years.     [Ihid,  §  36.) 

19.  Every  company  shall  certify  to  the  Auditor  of  Pul)lic  Ac- 
counts, between  the  first  and  filteenth  of  January,  in  each  year,  on 
the  oath  of  its  chief  accounting  ofiicer,  or  principal  agent  in  this 
State,  the  gross  amount  of  all  assessments  or  premiums  collected  or 
received,  or  obligation  taken  therefor  by  such  company  from  its 
business  in  this  State,  and  shall  immediately  pay  into  the  treasury, 
to  the  credit  of  the  Auditor  of  Public  Accounts,  the  tax  imposed  by 
law  on  such  assessments,  premiums,  or  forfeitures.  {lhicl,p.  311, 
§40.) 

20.  Any  company  failing  promptly  to  pay  the  tax  hereby  im- 
posed, shall  forfeit  five  per  centum  upon  the  amount  of  the  tax  due 
for  each  month,  or  fraction  of  a  month,  during  which  it  shall  be  in 
default.     {Ibid,  §  41.) 

21.  Any  company  failing  to  report  the  amount  of  its  receipts 
as  herein  provided,  shall  forfeit  the  right  to  do  business  in  this  State 
until  such  report  shall  have  been  made,  of  which  forfeiture  the  Au- 
ditor shall  give  notice  by  publication,  and  thereupon  the  powers  of 
such  agent  shall  cease  and  determine ;  Provided,  That  when  by  the 
laws  of  any  other  State  or  nation,  the  taxes  imposed  upon  compa- 
nies chartered  by  this  State  are  in  excess  of  taxes  imposed  on  in- 
surance companies  chartered  by  this  State,  then  all  companies  char- 
tered by  such  State  or  nation  shall  be  required  to  pay  the  same 
taxes  in  this  State  as  is  required  by  such  State  or  nation  on  compa- 
nies chartered  by  this  State.     {Ibid,  §  43.) 

22.  Hereafter  no  particular  form  of  declaration  shall  be  neces- 
sary in  an  action  ui>on  a  policy  of  insurance,  but  it  shall  be  sufficient 
for'the  plaintiff  to  aie  a  complaint  in  writing  at  common  law,  set- 
ting forth  the  grounds  of  his  action  and  tbe  relief  prayed  for,  and 
filing  therewith  the  original  policy,  or  a  sworn  copy  thereof,  upon 
which  his  action  is  brought,  and  the  loss  or  death  relied  upon  the 
ground  of  his  recovery,  and  that  he  has  performed  all  the  conditions 
of  said  policy  and  violated  none  of  its  prohibitions ;  and  in  such 
complaint  it  shall  not  be  necessary  to  set  forth  every  condition  or 
proviso  of  said  policy,  nor  to  aver  observance  of  or  compliance 
therewith  seriatim,  but  a  general  averment  to  that  effect  shall  suffice. 


VIRGINIA.  823 

* 

Such  complaint  shall  be  filed  in  the  same  conrt  and  at  the  same  lime 
at  which  a  declaration  in  such  cases  is  now  required  by  law ;  and 
such  action  shall  be  matured  in  the  same  manner  as  at  present.  The 
defendant  may  plead  the  general  issue,  or  such  other  special  plea  or 
pleas  as  is  now  allowed  by  law ;  and  the  rules  now  a[)plicable  in 
such  cases,  as  to  the  bringing  of  such  actions,  the  maturing  and 
trial  of  the  same,  shall  remain  tbe  same,  save  as  above  mo(lifled. 
{Ibid, p.  372,  §  44.) 

23.  Until  the  establishment  of  a  regular  insurance  depart- 
ment in  this  State,  the  Auditor  of  public  accounts  is  authorized,  and 
he  is  hereby  required,  at  the  request  of  any  life  insurance  company 
chartered  under  the  laws  of  this  State,  to  make  or  cause  to  be  made, 
a  valuation  of  all  policies  of  such  company  in  force  on  the  thirty 
first  day  of  December  in  any  year,  at  the  expense  of  said  company, 
and  keep  a  record  of  the  same  in  his  office,  and  certify  the  same  at 
the  request  of  such  company.  The  said  valuation  shall  be  made 
upon  the  basis  of  the  American  Table  of  Mortality,  and  at  four  and 
one-half  per  centum  interest.     {Ibid,  §  45.) 

24.  Ko  life  insurance  conij)any  chartered  under  the  laws  of 
any  other  State,  whose  Insurance  Department  refuses  to  receive  as 
valid  the  valuation  of  the  policies  of  any  life  insurance  company  of 
this  State  made  under  this  act,  shall  do  business  in  this  State  until 
there  shall  have  been  made,  at  the  expense  of  such  foreign  life  in- 
surance company,  under  the  direction  of  the  Auditor  of  Public  Ac- 
counts of  this  State  a  special  valuation  of  its  policies  in  force. 
{Ibid,  §  46.) 

25.  On  the  real  and  personal  property  of  every  insurance  com- 
pany there  shall  be  a  tax  of  fifty  cents  on  every  hundred  dollars  of 
the  estimated  value  thereof,  the  proceeds  of  one-fifth  of  which  shall 
be  applied  to  the  support  of  the  public  free  schools  of  the  State. 
The  specific  license  tax  upon  each  insurance  company,  for  the  privi- 
lege of  doing  business  in  this  State,  shall  be  two  hundred  dollars, 
and  in  addition  thereto  one  per  centum  upon  the  gross  amount  of 
all  assessments  or  premiums  collected  or  received,  or  obligations 
taken  therefor,  derived  from  its  business  in  this  State.  Every  com- 
pany shall  certify  to  the  Auditor  of  Public  Accounts,  between  the 
first  and  fifteenth  of  January  in  each  year,  on  the  oath  of  its  chief 
accounting  officer  or  principal  agent  in  this  State,  the  gross  amount 
of  all  assessments  or  premiums  collected  or  received,  or  obligations 
taken  therefor,  by  such  company,  from  its  business  in  this  State ; 
and  shall  immediately  pay  into  the  treasury  the  tax  imposed  by  law 
on  such  assessments,  premiums  and  forfeitures.  Any  company 
failing  promj^tly  to  pay  the  tax  hereby  imposed,  shall  forfeit  five  per 
centum  upon  the  amount  of  the  tax  due  for  each  month  or  fraction 
of  a  month,  during  which  it  shall  be  in  default.  Any  company 
which  shall  pay  the  specific  license  tax  into  the  treasury  on  or  be- 
fore the  first  day  of  June  in  each  year,  or  as  soon  thereafter  as  such 
company  shall  begin  business  in  this  State,  and  the  additional  tax 
of  one  per  centum  upon  the  amount  derived  from  its  business  as 
provided,  shall  be  entitled,  without  the  payment  of  any  additional 
State  tax,  to  do  business  in  any  and  every  part  of  tlie  common- 
wealth. Any  company  failing  to  report  the  amount  of  its  receipts, 
as  herein  provided,  shall  forfeit  the  right  to  do  business  in  this 
State  until  such  report  shall  have  been  made,  of  which  forfeiture 
the  Auditor  of  Public  Accounts  shall  give  notice  by  publication, 
and  thereupon  the  powers  of  such  agent  shall  cease  and  determine  ; 


824  hine's  insurance  statutes. 

Provided,  That  when,  by  the  laws  of  any  other  State  or  nation,  the 
taxes  imposed  upon  companies  chartered  by  this  State,  are  in  ex- 
cess of  taxes  imposed  on  insurance  companies  by  this  State,  then  all 
companies  chartered  by  such  State  or  nation,  shall  be  required  to 
pay  the  same  taxes  in  this  State,  as  are  required  by  such  State  or 
nation  on  companies  chartered  by  this  State.     {Laivs  of  1874,^.  357, 

211.  It  shall  not  be  lawful  for  any  incorporated  company  doing 
business  in  this  State  to  exact  or  receive  of  persons  dealing  with  it, 
or  charge  to  the  account  of  such  persons  with  the  company,  the 
tux  imposed  by  the  State  upon  the  license  or  business  of  such  com- 
l)any,  or  any  ])ortion  thereof,  or  any  amount  on  account  thereof. 
Any  company  violating  this  provision  shall,  for  every  such  violation, 
be  liable  to  a  fine  of  one  hundred  dollars,  one-half  of  which  shall 
go  to  the  informer.     {Laws  of  1875,  p.  316,  §  113.) 


AESOIT  AFD  INCENDIAEISM. 

S7.  If  any  person,  in  the  night,  maliciously  burn  the  dwelling- 
house  of  another,  or  any  jail  or  prison,  or  maliciously  set  fire  to 
anything,  by  the  burning  whereof  such  dwelling-house,  jail  or  pris- 
on, shall  be  burnt  in  the  night,  he  shall  be  punished  with  death ; 
butif  the  jury  find  that,  at  the  time  of  committing  the  offense,  there 
was  no  person  in  the  dwelling-house,  jail  or  prison,  the  offender 
shall  be  confined  in  the  penitentiary  not  less  than  five  nor  more 
than  ten  years.     {Code,  1H73,  p.  1193,  §  1.) 

28.  If  any  person,  in  the  day-time,  maliciously  burn  the  dwell- 
ing-house of  another,  or  any  jail  or  prison,  or  maliciously  set  fire 
to  any  building  or  other  thing,  by  the  burning  whereof  such  dwell- 
ing-house, jail  or  prison,  shall  be  burnt,  he  shall  be  confined  in  the 
penitentiary  not  less  than  three,  nor  more  than  ten  years.  [Ibid, 
^.1194,  §2.) 

2i^.  Ko  out-house,  not  adjoining  a  dwelling-house,  nor  under 
the  same  roof,  altliough  within  the  curtilage  thereof,  shall  be  deemed 
parcel  of  such  dwelling-house,  within  the  meaning  of  this  chai)ter, 
unless  some  person  usually  lodge  therein  at  night.     {Ibid,  §  3.) 

30.  If  any  person  maliciously  burn  any  meeting-house,  court- 
house, town-house,  college,  academy  or  other  building  erected  for 
public  use,  except  a  jail  or  prison,  or  any  banking-house,  warehouse, 
store-house,  manufactory,  or  mill  of  another  person,  not  usually  occu- 
pied byi)ersons  lodging  therein  at  night,  or  if  he  maliciously  set  fire 
to  anything,  by  the  burning  whereof  any  building  mentioned  in  this 
section  shall  be  burnt,  he  shall  be  confined  in  the  penitentiary,  when 
such  building,  with  the  proi)erty  therein,  is  of  the  value  of  one 
thousand  dollars,  not  less  than  three  nor  more  than  ten  years ;  and 
when  it  is  of  less  value,  not  less  than  three  nor  more  than  five 
years.     {Ibid,  §  4.) 

31.  If  a  person  maliciously  burn  any  building,  the  burning 
whereof  is  not  punishable  under  any  other  section  of  this  chapter, 
he  shall,  if  the  building,  with  property  therein,  be  of  the  value  of 
one  hundred  dollars  or  more,  be  confined  in  the  penitentiary  not 
less  than  three  nor  more  than  ten  years ;  and  if  it  be  of  less  value, 
be  so  confined  not  less  than  one  nor  more  than  three  years,  or  in 
the  discretion  of  the  jury,  in  jail  not  more  than  one  year,  and  l>e 
fined  not  exceeding  five  hmidred  dollars.     {Ibid,  §  6.) 


VIRGINIA.  825 

32.  If  a  person  maliciously  burn  any  bridge,  lock,  dam,  or  any 
ship,  boat,  or  other  vessel,  of  the  value  of  one  hundred  dollars  or 
more,  he  shall  be  confined  in  the  penitentiary  not  less  than  three  nor 
more  than  ten  years ;  and  if  the  value  be  less  than  one  hundred 
dollars,  he  shall  be  confined  in  jail  not  exceeding  one  year,  and  fined 
not  exceeding  two  hundred  dollars.     {Ibidj  §  7.) 

33.  If  a  person  willfully  burn  any  building,  or  any  goods  or 
chattels,  which  shall  be  at  the  time  insured  against  loss  or  damage 
by  fire,  with  intent  to  injure  the  insurer,  whether  such  person  be 
the  owner  of  the  property  or  not,  he  shall  be  confined  in  the  peni- 
tentiary not  less  than  one  nor  more  than  ten  years.  {Ibid,  p.  1195, 
§10.) 

EMBEZZLEMENT. 

34.  If  any  person  shall,  wrongfully  and  fraudulently,  use,  dis- 
jiose  of,  conceal  or  embezzle  any  money,  bill,  note,  check,  order, 
draft,  bond,  receipt,  bill  of  lading,  or  any  other  property  which  he 
shall  have  received  for  another,  or  for  his  employer,  principal,  or 
bailor,  or  by  virtue  of  his  office,  trust  or  employment,  or  which 
shall  have  been  entrusted  or  delivered  to  him  by  another,  or  by  any 
court,  corporation,  or  company,  he  shall  be  deemed  guilty  of  the 
larceny  thereof     {Laws  of  1874,  p.  50,  §  1.) 

35.  For  General  Provisions  relating  to  Corporations  see  Code 
of  1873,  pp.  535-552. 


INDEX  TO  WEST   VIRG-INIA. 


PAGE 

Agent— 

Certificate  of  Authority  of  (6) 827-29 

To  Publish  Certificate  of  Authority  (7)  829 

Licenses  of  (8) 829 

To  make  Returns  for  Taxation  (11- 

13) 829,830 

Penalty  for  Violating  Law  by  (19) 830 

Embezzlement  by  (29) 832 

Annual  Statements  (6,7) 827,  828 

Arson,  Crime  and  Penalty  of  (22-28)  831,832 
Attorney  of  Foreign  Insurance  Companies 

(16,  17) 830 

Auditor— 

To  Examine  Companies  (6) 827-29 

To  Issue  Certificate  of  Authority  (6, 

7) 827-29 

To  Kevoke  Certificate  of  Authority  (6;  827 

-829 

Fees  of  (8,1 8) 829,830 

Papers  Certified  by,  to  be  Evidence  (9, 

18) 829,  830 

To  Enforce  Law  (14) 830 

Capital— 

Of  Foreign  Insurance  Companies  (6)  827-29 
Investment  of  (6) 827-29 

Certificate  of  Authority  (6,7) 827-is9 

Charters,  Certain,  are  Void  (3) 827 

Corporations- 
Constitutional   Provisions   Concerning 

(1-4) 827 

To  be  Created  by  General  Laws  (1) 827 

LiabUity  of  Stockholders  of  (2) 827 

Charters  of  Certain,  Void  ( 3 ) 827 

Election  of  Directors  of  (4) 827 

General  Provisions  Relating  to  (3  0) .  -  -  832 

Deposits  under  Reciprocal  Laws  (6) 827-29 

Directors,  Election  of  (4) 827 

Domestic  Insurance  Companies — 

Defined(5) 827 

Election  of  Directors  of  (4) 827 

Liability  of  Stockholders  of  (2) 827 

Must  Procure  Certificate  of  Authority 

(6) 827-29 

To  File  Statement  (6) 827-29 

Examination  of  (6) 827-29 

Taxation  of  (10) 829 


Embezzlement  by  Agents  (29) 


FAGB 

,..  832' 


Fees  Paid  to  Auditor  (8,  18) 829,  830 

Foreign  Insurance  Companies — 

Defined  (5 ) 627 

Certificate  of  Authority  of  (6,  7)  ■  - .  .827-29 

To  File  Statement  (6) 827-29 

Capital  of  (6) 827-29 

Examination  of  (6) 827-29 

Taxation  of  (6) 827-29 

Annual  Statements  of  (6,  7) 827-29 

Returns  for  Taxation  of  (1 1-13)..  829,  830 

Attorney  of  (16) 830 

Service  of  Process  on  (1 6,  1 7) 830 

Penalty  for  Violation  of  Law  by  (19).  830 

Incendiarism,  Crime  and  Penalty  of  (22- 

28) 831,832 

Insurance  Cos  ,  Domestic  and  Foreign  (5)  827 

Licenses,  Fees  for  (8) 829 

Life  Insurance  for  the  Benefit  of  Married 

Women  and  Children  (20,  21) 831 

Life  Insurance  Companies,  Taxation  of  For- 
eign (6) 827-829 

Penalties— 

For  not  Making  Returns  for  Taxation 

(15) 830 

For  Violation  of  Law  (19) 830 

For  Arson  and  Incendiarism  (22-28)  831, 

832 

For  Embezzlement  (29) 832 

Power  of  Attorney  of  Foreign  Insurance 

Companies  (16- 18) 830 

Premiums,  Tax  on  (6) 827-29 

Reciphooal  Laws  (6) 827-29 

Service  of  Process  (16,  17) 830 

Stockholders,  Liability  of  (2) 827 

Taxation— 

Of  Foreign  Insurance  Companies  (6)827-29 

Of  Domestic  Insurance  Cos.  (10) 829 

Returns  for  (1 1-1 3) 829,830 


WiFE'B  Policy  (20,  21) 


831 


INSURANCE  STATUTES  OF  WEST  VIRGINIA, 


Revised  hy  Hon.  Edward  A.  Bennett^  Auditor. 


CONSTITUTIONAL   PEOVISIONS    CONCERNING    COEPOR- 

ATIONS. 

1,  The  legislature  shall  provide  for  the  organization  of  all 
corporations  hereafter  to  be  created,  by  general  laws,  uniform  as  to 
the  class  to  which  they  relate ;  but  no  corporation  shall  be  created 
by  special  law.    (^rt  11,  §  1.) 

^,     Stockholders  of  all  corporations,  and  joint-stock  companies, 
except  banks  and  banking  institutions,  created  by  laws  of  this 
State,  shall  be  liable  for  the  indebtedness  of  such  corporations  to 
the  amount  of  their  stock  subscribed  and  unpaid,  and  no  more 
[Ihid^  §  2.) 

3.  All  existing  charters,  or  giants  of  special  or  exclusive 
privileges,  under  which  organization  shall  not  have  taken  place,  or 
which  shall  not  have  been  in  operation  within  two  years  from  the 
time  this  constitution  takes  effect  [August  22, 1872],  shall  thereafter 
have  no  validity  or  effect  whatever  ;  Provided^  That  nothing  herein 
shall  prevent  the  execution  of  any  bona  fide  contract  heretofore  law- 
fully made  in  relation  to  any  existing  charter  or  grant  in  this  State. 
{I  hid  J  §  3.) 

4.  The  legislature  shall  provide  by  law,  that  in  all  elections  for 
directors  or  managers  of  incorporated  companies,  every  stockholder 
shall  have  the  right  to  vote,  in  person,  or  by  proxy,  for  the  number 
of  shares  of  stock  owned  by  him,  for  as  many  persons  as  there  are 
directors  or  managers  to  be  elected,  or  to  cumulate  said  shares,  and 
give  one  candidate  as  many  votes  as  the  number  of  directors  multi- 
plied by  the  number  of  his  shares  of  stock,  shall  equal,  or  to  dis- 
tribute them  on  the  same  principle  among  as  many  candidates  as  he 
shall  think  fit ;  and  such  directors  or  managers  shall  not  be  elected 
in  any  other  manner.     (Ibid^  §  4.) 


DOMESTIC  AND  FOREIGN  INSURANCE  COMPANIES. 

5.  Every  insurance,  telegraph,  or  express  company  having  its 
principal  place  of  business  in  this  State,  and  incorporated  by  any 
act  of  the  General  Assembly  of  Virginia,  passed  before  the  twen- 
tieth day  of  June,  eighteen  hundred  and  sixty-three,  or  heretofore  or 
hereafter  incorporated  under  and  pursuant  to  any  act  of  the  legisla- 
ture of  this  State,  shall  be  deemed  a  domestic  company ;  and  every 
other  insurance  or  express  companv,  a  foreign  company.  [Code 
1868,  i).  214,  §  1.) 

6.  It  shall  not  be  lawful  for  any  officer  or  agent  of  any  fire  or 
marine  insurance  company,  directly  or  indirectly,  to  take  risks  or 


828  hike's  insurance  statutes. 

issue  policies  of  insurance  within  this  State  without  first  procuring 
from  the  Auditor  a  certificate  as  hereinafter  directed. 

Before  obtaining  such  certificate  such  company,  its  officers  or 
agents,  shall  furnish  the  Auditor  with  a  statement,  under  oath,  of 
the  president  or  secretary  of  the  company  for  which  he  or  they  may 
act,  which  statement  shall  show  : 

First. — The  name  and  locality  of  the  company  ; 

Second. — The  amount  of  its  capital  stock ; 

Third.— The  amount  of  its  capital  stock  paid  up  ; 

Fourth. — The  assets  of  the  comjjany,  including.  First,  the  amount 
of  cash  on  hand  and  in  the  hands  of  agents  or  other  persons ; 
Second,  the  real  estate  uniucumbered ;  Thii'd,  the  bonds  owned  by 
the  company  and  how  they  are  secured,  with  the  rate  of  interest 
thereon ;  Fourth,  debts  to  the  company  secured  by  mortgage  or 
otherwise  ;  Fifth,  debts  for  premiums ;  Sixth,  all  other  securities ; 

Fifth. — The  amount  of  liabilities  due  or  owing  to  banks  or  other 
creditors  by  the  company  ; 

Sixth.— lios&es  adjusted  and  due  ; 

Seventh. — Losses  adjusted  and  not  due ; 

Eighth. — Losses  unadjusted  ; 

Ninth. — Losses  in  suspense  waiting  for  future  proof ; 

Tenth. — All  other  claims  against  the  company ; 

Eleventh. — The  greatest  amount  insured  in  any  one  risk  ; 

Which  statement  shall  be  filed  in  the  ofiice  of  the  said  Auditor. 
And  no  foreign  insurance  company,  or  agent  thereof,  shall  transact 
any  business  of  insurance  in  this  State,  unless  such  company  is  pos- 
sessed of  at  least  one  hundred  thousand  dollars  of  actual  capital, 
invested  in  the  stock  or  bonds  of  some  one  or  more  of  the  States  of 
this  Union  whose  bonds  are  at  par ;  or  of  the  bonds  of  the  United 
States  at  the  current  market  value  thereof  at  the  date  of  such  state- 
ment ;  or  in  bonds  secured  by  mortgage  or  deed  of  trust  on  real 
estate,  worth  double  the  amount  for  which  the  same  is  mortgaged, 
free  from  any  prior  incumbrance,  and  having  undoubted  title.  The 
Auditor  shall  be  authorized  to  examine  into  the  condition  and 
affairs  of  any  foreign  insurance  company  doing  business  in  this 
State,  or  cause  such  examination  to  be  made  by  some  person  or  per- 
sons appointed  by  him  having  no  interest  in  any  insurance  company. 
And  whenever  it  shall  appear  to  the  satisfaction  of  said  Auditor 
that  the  afiairs  of  any  such  company  are  in  an  unsound  condition, 
he  shall  revoke  the  certificate  granted  in  behalf  of  such  company, 
and  shall  cause  a  notification  thereof  to  be  published  in  some  news- 
paper of  general  circulation  published  at  the  capital  of  this  State, 
and  the  agent  or  agents  of  such  company  are,  on  and  after  such  no- 
tice, required  to  discontinue  the  issuing  of  any  new  policies,  or  the 
renewal  of  any  previously  issued.  When,  by  the  laws  of  any  other 
State,  any  deposits  of  money  or  of  securities,  or  other  obligations  or 
prohibitions,  are  imposed,  or  would  be  imposed  on  insurance  com- 
panies of  this  State,  doing,  or  that  might  seek  to  do  business  in  such 
other  State,  or  upon  their  agents  therein,  so  long  as  such  laws  con- 
tinue in  force,  the  same  obligations  and  prohibitions,  of  whatever 
kind,  shall  be  imposed  upon  all  insurance  companies  of  such  other 
State  doing  business  within  this  State,  or  upon  their  agents  here. 
Every  foreign  insurance  company  doing  business  in  this  State,  at 
the  time  of  making  the  annual  statement  as  required  by  law,  shall  pay 
into  the  State  treasury,  as  taxes,  three  per  cent,  of  the  gToss  amount 
of  premiums  "received  in  this  State  during  the  previous  year,  taking 


WEST  VIRGINIA.  829 

duplicate  receipts  therefor,  one  of  which  shall  be  filed  with  the 
Auditor ;  and  upon  the  filing  of  said  receipts,  and  not  till  then,  the 
said  Auditor  shall  issue  the  annual  certificate  as  provided  by  law, 
and  the  said  sum  of  three  per  cent,  shall  be  in  full  of  State  taxes 
only ;  Provided,  That  any  foreign  live  stock  insurance  company 
which  shall  invest  in  this  State  the  whole  amount  of  its  net  re- 
ceipts from  its  business  therein,  shall  pay  only  one-third  of  the 
aforesaid  rates.  No  oflicer  or  agent  of  a  foreign  insurance  company 
shall  make,  renew,  or  negotiate  in  this  State  any  insurance,  or  con- 
tract for  insurance  on  behalf  of  such  company,  or  transact  any 
business  for  such  company,  directly  or  indirectly,  without  first  ob- 
taining the  Auditor's  certificate  of  authority  as  required  by  law ; 
and  this  applies  to  all  persons  engaged  in  any  manner  in  soliciting 
risks,  insuring  or  obtaining  the  issue  of  policies,  selling  tickets  of 
insurance,  or  otherwise  doing  the  business  of  iusurance,  either  by 
direct  appointment  from  a  company  or  as  such  agent.  {Laws  of 
1872-73,  i).  646,  §  1.) 

7.  Upon  a  compliance  with  the  provisions  of  the  preceding  sec- 
tion, by  such  foreign  company,  it  shall  be  the  duty  of  said  Auditor 
to  issue  certificate  thereof,  with  authority  to  the  company  so  com- 
plying, its  agent  or  agents,  to  transact  the  business  of  insurance. 
The  said  statements,  instruments,  and  evidence  shall  be  renewed 
annually  in  the  month  of  January  in  each  year ;  and  the  Auditor, 
on  being  satisfied  that  the  capital,  securities  and  investment  remain 
secure  as  at  first,  shall  furnish  a  renewal  of  the  certificate  as  afore- 
said, and  the  company,  agent,  or  agents  obtaining  such  certificate 
shall  cause  the  same  to  be  published  in  some  newspaper  of  general 
circulation  published  in  the  State,  and  cause  a  copy  of  such  publi- 
cation to  be  filed  in  the  office  of  the  Clerk  of  the  Circuit  Court  in 
each  county  where  said  company,  its  agent  or  agents,  does  insur- 
ance business.  Every  such  certificate  shall  recite  the  statement  and 
evidence  required  by  this  and  the  preceding  sections.  {Code,  1868, 
p.  215,  §  3.) 

8.  The  Auditor  shall  be  entitled  to  ten  dollars  in  each  case  for 
the  examination  of  statements,  and  investigation  of  the  evidences  of 
investment,  and  five  dollars  for  each  certificate  of  authority  issued 
under  the  provisions  of  this  chapter.     {Ibid,  §  4.) 

9.  The  written  or  printed  copies  of  all  papers  required  by  this 
chapter  to  be  deposited  with  the  Auditor,  certified  under  the  hand 
of  such  Auditor  to  be  true  and  correct  copies  of  such  papers,  shall 
be  received  as  evidence  in  all  courts  and  places  in  the  same  manner, 
and  have  the  same  force  and  effect  as  the  original  would  have  if 
produced.     (Ibid,  p.  216,  ^  5.) 

10.  The  property  of  all  domestic  insurance,  telegraph,  and 
express  companies  shall  be  assessed  for  taxation  as  other  property 
in  this  State.  But  the  stock  notes  of  such  companies  shall  not  be 
assessed.    {Ibid,  §  6.) 

1 1 .  Every  foreign  insurance,  telegraph,  and  express  company 
doing  business  in  this  State,  or  the  agent  or  agents  thereof,  shall 
annually  make  returns  to  the  Auditor,  as  follows ;  Provided,  That 
where  there  are  several  agents  of  any  such  company  in  this  State, 
the  returns  may  be  made  by  any  one  of  them  on  behalf  of  all.     {Ibid, 

§7.) 

12.  If  such  returns  be  made  on  behalf  of  an  insurance  com- 
pany, they  shall  show  the  amount  of  premiums  on  all  insurances 
made,  renewed,  or  negotiated  within  this  State,  or  on  any  subject  of 


830  hike's  rNSUBANCE   STATUTES. 

insurance  within  this  State,  on  behalf  of  such  company,  during  the 
period  to  which  the  said  returns  relate,  including  as  well  premiums 
uncollected  as  those  which  are  paid.     [Ibid,  §  8.) 

13.  The  amount  only  may  be  stated  in  the  returns  without  the 
particulars,  unless  a  more  speciiic  return  be  required  by  the  Audi- 
tor. The  returns  so  made  shall  be  verified  by  the  affidavit  of  the 
officer  or  agent  making  the  same.     {Ibid,  §  11,  as  amended.) 

1 4.  It  shall  be  the  duty  of  the  Auditor  to  cause  the  provisions 
of  this  chapter  to  be  carried  into  eftect,  and  he  may  from  time  to 
time  prescribe  such  forms  and  regulations  as  are  proper  for  that 
purpose.  And  it  shall  be  the  duty  of  every  Assessor  to  transmit  to 
the  Auditor,  within  the  week  preceding  the  first  day  of  February 
and  August,  in  every  year,  a  list  of  all  such  companies  or  agents 
doing  business  within  his  assessment  district  as  are  required  to 
make  returns  as  aforesaid.     {Ibid,  §  12.) 

1 5.  Every  company  or  agent  hereby  required  to  make  return 
or  payment  as  aforesaid,  who  shall  fail  to  do  so,  or  knowingly  make 
a  false  return,  shall  forfeit  not  less  than  one  hundred  nor  more  than 
one  thousand  dollars  for  every  such  offense.     {Ibid,  p.  217,  §  14.) 

1 0.  Every  foreign  insurance,  telegraph,  and  express  company 
doing  business  in  this  State  shall  by  power  of  attorney  duly  acknowl- 
edged and  authenticated,  and  filed  by  the  company  in  the  office  of 
the  Auditor,  appoint  some  person  residing  in  this  State  to  accept 
service  of  process  and  notices  in  this  State  for  the  said  company  ; 
and  by  the  same  instrument  shall  declare  its  consent  that  service 
of  any  process  or  notice  in  this  State  on  the  said  attorney,  or  his 
acceptance  of  service  endorsed  thereon,  shall  have  the  same  effect 
as  service  thereof  upon  the  company.  And  thereafter  such  accept- 
ance by  thie  said  attorney,  or  service  upon  him,  shall  be  equivalent 
for  all  i^urposes  to  service  upon  his  principal.     {Ibid,  §  15. ) 

17,  As  long  as  any  liability  of  the  company  in  this  State  re- 
mains unsatisfied,  no  revocation  of  any  such  power  of  attorney  shall 
be  of  any  ettect  until  after  a  like  power  to  some  other  person  resid- 
ing in  this  State  has  been  filed  by  the  said  company  in  the  office  of 
the  Auditor.  And  when  any  such  attorney  dies  or  resigns,  the 
company  shall  immediately  make  a  new  appointment  and  tile  the 
evidence  thereof  as  aforesaid,  until  all  its  liabilities  in  this  State  are 
discharged.     {Ibid,  §  16.) 

18,  A  copy  of  any  such  power  of  attorney,  certified  by  the 
Auditor  under  his  hand,  shall  be  received  in  all  courts  and  places 
as  ^r ma y'acje  evidence  of  the  execution  and  contents  of  such  instru- 
ment. The  Auditor  may  demand  for  such  copy  from  the  person 
applying  therefor,  a  fee  at  the  rate  of  fiften  cents  for  every  hundred 
words.     {Ibid, 2).  218,^17.) 

19,  No  officer  or  agent  of  a  foreign  insurance  company  shall 
make,  renew,  or  negotiate  in  this  State  anj-  insurance  or  contract 
for  insurance  on  behalf  of  such  company,  nor  shall  any  agent  of  a 
foreign  express  company  undertake,  in  this  State,  to  forward  or 
carry  any  money,  goods,  or  merchandise  on  behalf  of  such  express 
company,  unless  the  said  insurance  or  express  company  has  com- 
plied with  the  fifteenth  and  sixteenth  sections  of  this  chapter.  Any 
person  violating  this  section  shall  forfeit  not  less  than  twenty  nor 
more  than  two  hundred  dollars  for  every  such  offense  f  but  the  con- 
tract or  undertaking  shall  nevertheless  not  be  invalidated  by  any 
thing  in  this  section  contained.     {Ibid,  §  18.) 


WEST  VIRGINIA,  831 


LIFE    mSUEANCE    FOR    THE    BENEFIT    OF    MARRIED 

WOMEN  AND  CHILDREN. 

20.  It  shall  be  lawful  for  any  married  woman,  by  herself,  and 
in  her  name,  or  in  the  name  of  any  third  person,  with  her  assent,  as 
her  trustee,  to  cause  to  be  insured,  for  her  sole  use,  the  life  of  her 
husband  for  any  definite  period,  or  for  the  term  of  his  natural  life  ; 
and  in  case  of  her  surviving  her  husband,  the  sura  or  net  amount  of 
the  insurance  becoming  due  and  payable  by  the  terms  of  the  insur- 
ance, shall  be  payable  to  her,  to  and  for  her  own  use,  free  from  the 
.claims  of  the  representatives  of  her  husband,  or  of  any  of  his  credi- 
tors; but  such  exemption  shall  not  apply  where  the  amount  of 
premium  annually  paid  out  of  the  funds  or  property  of  the  husband 
shall  exceed  one  hundred  and  fifty  dollars.     {Code,  1868,7;.  ^48,  §  5.) 

21 .  The  amount  of  the  insurance  may  be  made  payable,  in  case 
of  the  death  of  the  wife  before  the  decease  of  her  husband,  to  his  or 
her  children,  for  their  use,  as  shall  be  provided  in  the  policy  of 
insurance,  and  to  their  guardian  if  under  age.    {Ibid,  p.  449,  §  6.) 


ARSON  AND  INCENDIARISM. 

22.  If  any  person  in  the  night,  maliciously  burn  the  dwelling- 
house  of  another,  or  any  jail  or  prison,  or  maliciously  set  fire  to  any- 
thing, by  the  burning  whereof  such  dwelling-house,  jail,  or  i^rison 
shall  be  burnt  in  the  night,  he  shall  be  punished  with  death,  or  by 
confinement  in  the  penitentiary  during  his  life,  at  the  discretion  of 
the  jury ;  but  if  the  jury  find  that  at  the  time  of  committing  the 
offense,  there  was  no  person  in  the  dwelling-house,  jail,  or  prison, 
the  oifender  shall  be  confined  in  the  penitentiary  not  less  than  five 
years.     {Code,  1868,  p.  681,  §  1.) 

23.  If  any  person  in  the  day-time,  maliciously  burn  the  dwell- 
ing-house of  another,  or  any  jail  or  prison,  or  maliciously  set  fire  to 
any  building  or  other  thing,  by  the  burning  whereof  such  dwelling- 
house,  jail,  or  prison  shall  be  burnt,  he  shall  be  confined  in  the 
penitentiary  not  less  than  three  nor  more  than  ten  years.     {Ibid,  §  2.) 

24.  No  out-house  not  adjoining  a  dwelling-house,  nor  under 
the  same  roof,  although  within  the  curtilage  thereof,  shall  be  deemed 
parcel  of  such  dwelling-house  within  the  meaning  of  this  chapter, 
unless  some  person  usually  lodge  therein  at  night.     {Ibid,  §  3.) 

25.  If  a  person  maliciously  burn  any  meetiug-honse,  court- 
house, town-house,  college,  academy  or  other  building  erected  for 
public  use  (except  a  jail  or  prison),  or  any  banking-house,  ware- 
house, store-house,  manufactory,  or  mill  of  another  person,  not 
usually  occupied  by  persons  lodging  therein  at  night,  or  if  he  mali- 
ciously set  fire  to  anything,  by  the  burning  whereof  any  building 
mentioned  in  this  section  shall  be  burnt,  he  shall  be  confined  in  the 
penitentiary,  when  such  building  with  the  property  therein,  is  of 
the  value  of  one  thousand  dollars,  not  less  than  three  nor  more  than 
ten  years;  and  when  it  is  of  less  value,  not  less  than  three  nor 
more  than  five  years.     {Ibid,  §  4.) 

26.  If  a  i)erson  maliciously  burn  any  building,  the  burning 
whereof  is  not  punishable  under  any  other  section  of  this  chapter, 
he  shall,  if  the  building  with  property  therein  be  of  the  value  of 
one  hundred  dollars  or  more,  be  confined  in  the  penitentiary  not  leas 


832  hine's  lnsurance  statutes. 

than  three  nor  more  than  ten  years  ;  and  if  it  be  of  less  value,  be  so 
confined  not  less  than  one  nor  more  than  three  years,  or  in  the  dis- 
cretion of  the  jury,  in  jail  not  more  than  one  year,  and  be  fined  not 
exceeding  five  hundred  dollars.     {Ibidj  p.  682,  §  6.) 

27.  If  a  person  maliciously  burn  any  bridge,  lock,  dam,  or  any 
ship,  boat,  or  other  vessel  of  the  value  of  one  hundred  dollars  or 
more,  he  shall  be  confined  in  the  penitentiary  not  less  than  three 
nor  more  than  ten  years  ;  and  if  the  value  be  less  than  one  hundred 
dollars,  he  shall  be  confined  in  jail  not  exceeding  one  year,  and 
fined  not  exceeding  two  hundred  dollars.     {Ibid,  §  7.) 

28.  If  a  person  willfully  burn  any  building,  or  any  goods  or 
chattels  which  shall  be  at  the  time  insured  against  loss  or  damage 
by  fire,  with  intent  to  injure  the  insurer,  whether  such  person  be  the 
owner  of  the  property  or  not,  he  shall  be  confined  in  the  penitentiary 
not  less  than  one  nor  more  than  ten  years.     {Ibid,  §  10.) 


embezzleme:rt. 

29.  If  any  director  or  officer  of  any  incorporated  bank,  or  any 
office  of  public  trust  in  this  State,  or  any  officer,  agent  or  clerk  of 
any  company,  firm  or  person  embezzle  or  fraudulently  convert  to  his 
own  use  bullion,  money,  bank  notes,  or  other  security  for  money,  or 
any  effects  or  property  of  another  person,  which  shall  have  come  to 
his  possession,  or  been  placed  under  his  care  or  management,  by 
virtue  of  his  office,  place,  or  employment,  he  shall  be  deemed  guilty 
of  larceny  thereof.     {Code,  1868,  p.  683,  §  19.) 

30.  For  General  Provisions  relating  to  Corporations  see  Code 
of  1868,  pp.  388,  411 ;  Laws  of  1873,  pp.  265,  266,  535. 


INDEX    TO   WISCONSIN. 


PAGK 

AcciDEMT  Inaarance  Cos.— (54,  79)..  8")7.  8ti3 
(See  Life  and  Accident  Ins.  Cos.) 

Advertising  Annual  Statements  (30) 849 

Agent — 

Terra  Defined  (25,  74,  81,  92)844-46, 

862.  864,  866 
Service  of  Process  on  (25,  68,  91, 

92) 844-46,  861,  866 

License  of  (31,  34,  76,  83)  850,  862,  864 

E'ubezzleinent  by  (31) 850 

Taxation  of,  for  Support  of  Fire  Depart- 
ments (36-40)  852,  853 

Bonds  of  (3 7) 852 

In  Milwaukee,  to  Report  Place  of  Busi- 
ness (38) 85^ 

Penalty  for  Violation  of  Laws  by  (75, 

78,  85) 862  864 

Restrictions  upon  Business  of  (82-85)  864, 

865 
Annual  Statements— (23-25,    30,    36, 

57-61) 843-46,  849,851,  858,  859 

Blanks  for  (24) 843 

Advertising  (30) 849 

Arson,Crime  and  Penalty  of  (1 1 5-120)  871,872 
Assossaieots  of  Mutual  Companies  (16)  ...  840 
Attorney  of  Foreign  Ins.  Cos.  (25,  68)  844-46, 

861 
Attorney-General — 

To  Esamiue  Charters  (13) 839 

Duties  of,  in  Cases  of  Insolvency  (26)  .  847 

Capital— 

Of  F.  and  .\L  las.  Cos.  (9,21,  25)  837,  842, 

844-46 

Ratio  of  Risk  to  (9) 837 

Subscription  to  (1 0) 838 

Investment  of  (1 1 ) 838 

Examination  of  (13) 839 

Increase  ot  (20,  30) 841,  849 

Of  Foreign  Companies  (25) 844-46 

Impairment  of  (,25,26,30)  844-46,  847,  849 

Making  up  Impairment  of  (26) 847 

Reduction  of  (30) 849 

And  Assets  of  Life  Ins.  Cos.  (54,  56)  8.57, 

858 
Investment  of  (64,  65) 860 

Certifioateof  Authority— (31,  55) 850,  858 

Under  Reciprocal  Laws  (32,  72).  850,  861 

Charter— 

Of  Fire  and  Marine  Ins.  Cos.  (5,6)...  836 

Amendment  of  (7,  'iO,  30) 837,841,  849 

Examination  of  (13) 839 

Forfeiture  of  (15) 840 

53 


TAGS 

Charter  (Continued)— 

Extension  of  (20,  28) 841    848 

Duration  of  (28) 848 

Commissioner  of  Insurance— 
(See  Secretary  of  State.) 

Corporations — 

Constitutional   Provisions  Concerning 

(1,  2) 835 

Companies  Subject  to  Law  of  (22) 842 

General  Provisions  Relating  to  (121;.  87^ 

Depautment  of  Insurance — 

Established  (35) 8.51 

Expenses  of  (35) 851 

Deposits — 

Of  Foreign  Insuranoe  Companies  (25)844-46 

Withdrawal  of  (25) 844-46 

Under  Reciprocal  Laws  (32,  72).  850,  861 

Of  Life  Insurance  Companies  (69) 861 

How  Kept  (80) , 8  i3 

Directors,  Liability  of  (26) 847 

Dividends  — 

Of  Fire  and  Marine  Ins.  Cos.  (15) 840 

Scrip  of  Participating  (15) 840 

Embezzlement,  by  Agents  (31) 850 

Examination  of  Companies  (26)  847 

Fees  tor  (76) f62 

Fees— 

For  Examining  Mortgage?  (25) 844-48 

Under  Reciprocal  Laws  (32,  72)    850,  8iU 
Of  Secretary  of  State  (34,  55,    70, 

76) 850,  858,  861,  862 

For  Valuing  Life  Policies  (70) 861 

For  License  of  Life  Companies  (7  i>) .  -  -  663 

Fire  Departments- 
Term  Defined  (40) 853 

Taxation  for  Support  of  (36-40) 851-53 

Fire  Insurance  Companies,  Guaranty  Sur- 
plus Funds  of  (46,  53) 8.i5,  857 

Fire  and  Marine  Insuranoe  Companies — 

Organization  of  (3-6) 8.35 

May  Insure,  what  (3) 636 

May  Reinsure  (4) 8.36 

To  File  C barter  (5)  836 

Charter  of  (6) 83i 

Amendmentof  Charier  of  (7,  20,  30)637, 

841,  849 

Board  of  Managers  of  (7) 837 

Re:strictions  upon  Business  of  (8) 837 

Capital  and  Assets  of  (9,  21) 837,  842 

Ratio  of  Risk  to  Capital  (9) 837 


834 


INDEX  TO  WISCONSIN. 


PA  OB 

Fire  and  Marine  Insurance  Cos.  (Continued) — 

Subscription  to  Capital  of  ( 1 0) 838 

InTestment  of  Capital   and  Assets  of 

(11) 838 

Loan 8of(ll) 838 

Real  Estate  of  (1 2) 839 

Examination  of  Charter  and  Capital  of 

(13) 839 

May  Commence  Business,  when  (13)..  839 

Seal  and  By-Laws  of  (14) 839 

Dividends  of  (15) 840 

Stock  and  Mutual  to  be  so  Designated 

(17) 841 

Buits  by  and  against  Members  of  (1 8) .  841 

Liability  of  Stockholders  of  (19) 841 

Increase  of  Capital  of  (20,  30)...  841,  849 
Subject  to  Law  of  Corporations  (22)..  84-2 
Annual  Statements  of (2 3, 2 4, 3 6)  842,  843, 

851 
Penalty  for   not   Making   Statements 

(24) 843 

Examination  of  (26) 847 

Impairment  of  Capital   of  (25,   26, 

30) 844-47  849 

Insolvency  of  (26) 847 

Transfer  ofStock  of  (26) 847 

Durationof  Charter  of  (28) 848 

Lleus  upon  Stock  of  (29)    848 

Keduclion  of  Capital  of  1 3  0) 849 

Annual  Statementsof  Eecelversof  (30)  849 
To  Advertise  Annual  Statements  (30)  849 

Fees  Paid  by  (34) 850 

Taxation  of  (3  6) 851 

Taxation  of  for  Support  of  Fire  Depart- 
ment (36-40) 851-53 

Judgments  against  (41)- 653 

Amount  Named  in  Policy  to  be  Con- 
sidered Amount  of  Loss  (42) 853 

Agents  of  ( 8 1  -8  5) 864 

Forbidden  to  Change  Suits  from  State 
to  United  States  Courts  (86,88)  865,  866 

Conditions  in  Policies  of  (89,  90) 866 

To  Deliver  Duplicate  Copy  of  Applica- 
tion to  Insured  (93)  867 

Foreign  Fire  and  Marine  Insurance  Cos.— 

Capital  of  (2 5  > 844-46 

Attorney  of  (2  5) 844-46 

Service  of  Process  on  (25,  91,92)  844-46, 

866 
Forbidden  to  Change  Suits  from  State 
to  U.  S.  Courts  (25,  86-88)844-46,  86.i, 

8C6 
To  File  Charter  and  Statement  (25)  844-46 
Annual  Statements  of  (23,25,36)  842-46, 

651 
Impairment  of  Capital  of  (25,  26).  .844-47 

Deposits  of  (25,  80) 844^6,863 

V7;ithdrawal  of  Deposits  by  (25,80)  844-46, 

863 

Examination  of  (26) 847 

Certificate  of  Authority  of  (3 1) 850 

Agents  of  ( 3 1) 850 

fees  Paid  bj  (34) 850    [ 


FAGH 

Foreign    Fire    and    Marine   losnranco   Com- 
panies (Continued)— 

Taxation  of  (36) 851 

Taxation  of  for  Support  of  Fire  Depart- 
ments (36-40) 851-53 

Judgments  against  (41) 853 

Foreign  Life  and  Accident  Ins.  Cos. — 

Capital  and  Assets  of  (56) 858 

Annual  Statements  of  (57-61) 858,  859 

Impairment  of  (63 ) 860 

Surplus  of  Mutual  (67) 860 

Attorney  of  (68) 861 

Deposits  of  (69,  80) 861,86:$ 

Valuation  of  Policies  of  (70) 861 

To  File  Charter  and  Statement  (73)  ..  862 

Agents(74,  81-85) 862,  864 

Service  of  Process  on  (68,91,92)  861,  866 
Certain,  Excluded  from  the  State  (78)  8G2 

Guaranty  Surplus  of  Fire  Insurance  Com- 
panies (46-5  3) 855-57 

iMPAiEMENTof  Capital— (25,  26,30,63) 

844-47,  849,  860 

Making  up  (26) 847 

Incendiarism,  Crime  and  Penalty  of  (1 1 5- 

120) 871,872 

Insolvency,  Proceedings  in  Cases  of  (26)  .  847 

Licenses— 

Of  Agents  (31,  83) 850,  864 

Under  Reciprocal  Laws  (32,  72)-  850,  861 

Fees  for  (3 7,  76) 852,  862 

Of  Life  Insurance  Companies  (79) 863 

Liens  on  Vessels  for  Marine  Ins.  (43-45).  854 
Life    Insurance   for  Married  Women  and 

Children  and  Others  (113,114)...  870 
Life  and  Accident  Insurance  Companies — 

Capital  and  Assets  of  (5  4) 857 

Certificate  of  Authority  of  (5  5) 858 

Examination  of  Capital  and  Assets  of 

(55) 858 

Fees  for  Examination  of  (55) 858 

Assets  of  Foreign  (56) '858 

Annual  Statements  of  (57-61)  ...  858,  859 
Valuation  of  Policies  of  (63,  70).  860,  861 

Impairment  of  (63) 860 

Investment  of  Capital  and  Assets  of 

(64,65) 860 

Loans  upon  Policies  of  (64) 860 

Examination  of  (66) 860 

Surplus  of  Mutual  (67) 860 

Restrictions  upou  Business  of  (71) 811 

Judgment  against  (78) 862 

License  of  (79) 8G3 

Tax  on  Premiums  of  (79) 863 

Conditions  in  Policies  (89,  90) 866 

To  Deliver  Duplicate  Copy  of  Applica- 
tion to  Insured  (93) 867 

(See  Foreign  Life  and  Accident  Insur- 
ance Companies.) 

Loans  on  Life  Policies  (64) 860 

Maeink  Insurance,  Liens  upon  Vessels  for 

(43-45) 854 


INDEX  TO  WISCONSIN. 


835 


PAGB 

Mutual  Firo  Ins.  Cos.,  Town  (94,   112)   867, 

870 
Mutual  Fire  and  Marine  Insurance  Cos.— 

Capitaland  Assetsof  (9,  21) 837,842 

Premium  Notes  of  (9,  13,  16,  19)  837. 

8.39-41 

Subscription  to  (10) 838 

Investment  of  Assets  of(ll) 838 

Real  Est  ate  of  ( 1 2) 839 

Examination  of  Capital  and  Assets  of 

(13) 839 

May  Commence  Business,  when  (1 3).  -  839 

Seal  and  By-Laws  of  (14) 839 

Who  are  Members  of  (1 6) 840 

Assessments  of  (16) 840 

To  be  so  Designated  (17) 841 

Suits  by  and  against  Members  of  (18)--  841 

Increase  of  Capital  of  (20) 841 

Subject  to  Law  of  Corporations  (22)  -  -  842 
Annual  Statements  of  (23,  24). ..  842,  843 
Penalty  for   not   Making    Statements 

(24) 843 

Examination  of  (26) 847 

Insolvency  .  f  (.26) 847 

Duration  of  Charter  of  (2  8) 848 

Penalties— 

Fornot  Making  Statements  (24,  25, 

62) 843-46,  860 

For  Violation  of  Law  (25,  41,  63, 
75,  78,  85)....844-46,  853,  860,  862,  864 

Recovery  of  (27) 848 

For  Embezzlement  (31) 850 

Under  Reciprocal  Laws  (32,  72)  ■  850,  861 
If  Agent  does  not  Report  Place  of  Busi- 
ness (38)  852 

For  Removing  Suits  to  United  States 

Courts  c88) 866 

For  Arson    and   Incendiarism   (115- 

120) 871,872 

Policies — 

Stjck  and  Mutual  to  be  bo  Designated 

."        (17) 841 

Amount  Named  in,  to  be   Considered 

Amount  of  Loss  (42) 853 

Valuation  of  Life  (64) 860 

Loans  on  Life  ,64) 860 

Conditions  in  (89,  90) 866 

Premium  Notes— (9,  13,  16,  19).. 837,  839-41 

Assessment  upou  (1  6) 840 

As  Assets  (19) 841 

Premiums,  Taxation  of  (36-40,79)  851-53,  863 

Real  Estate  of  Insurance  Companies  (12)  839 
Receivers  of  lueurance  Companies  to  Make 

Annual  Statements  (30) 849 


PAGB 

Reciprocal  Laws  (32,  72) 8.50,  861 

Reinsurance  of  Risks  (4) 836 

Secretary  of  State- 
To  be  Commissioner  of  Insurance  (35)  851 

To  A pprove  Name  of  C;ompauy  (6 ) 836 

May  Extend  Time  for  Holding  Real 

Estate  (12) 839 

To  Examine  Capital  and  Assets  (13, 

65) 8  9.858 

May  make  Special  Inquiries  (24,  66)  843, 

860 

To  Furnish  Blanks  (24) 843 

To  Publish  Annual  Statements  (24, 

77) 843,  862 

To  Examine  Companies  (26,  66).  847,  860 
May  Permit  Reduction  of  Capital  (30)  849 

To  Enforce  Reciprocal  Laws  (32) 850 

Expenses  of  Examinations  by  (33) 850 

Fees  of  (34,  55,  70,  76,   79)  850,858, 

861-63 
To  Establish  Department  of  Ins.  (35).  851 
To  Pay  Excess  of  Fees  to  Treasurer 

(35) 851 

To  Issue  Certificate  of  Authority  (31, 

55) 850,  858 

To  Revise  Forms  for  Annual   State- 
ments (61) 859 

To  Value  Life  Policies  (70) 861 

May  accept  Valuations  of  Other  States 

(70) 861 

Annual  Report  of  (77) 863 

To  grant  Licenses  (83) 864 

Serviceof  Process  (25,   68,91,  92)844-46, 

861,866 

Stock,  Transfer  of  (26) 847 

Stockholders,  Liability  of  (19) 841 

Suits,    Changing   from    State    to   United 

StatesCourta  (25,86-88)  844-46,  865,  866 
Surplus  Funds  of  Fire  Ins.  Cos.  (46-53)  855-57 

Taxation— 

Of  Fire  and  Marine  Ins.  Cos.  (36) 851 

Under  Reciprocal  Laws  (.32,  72;  1850,  861 
For  Support  of  Fiio  Departments  (36- 

40) 851-53 

Municipal  (36) 851 

Of  Life  Insurance  Companies  (79) 863 

Town  Mutual  Fire  Ins.  Cos.  (94-1 1 1).  .867-70 

Valuation  of  Life  Policies  (63,  70)  -  8j0,  861 
Fees  for  (70) 861 

Wife's  Policy  (113) 870 


INSURANCE  STATUTES  OF  WISCONSIN. 


Eevised  hy  Hon.  Peta'  Doyle,  Secretary  of  State. 


CONSTITUTIONAL   PROVISIONS    CONCERNING   CORPOR- 
ATIONS. 

1 .  The  legislature  is  proliibited  from  enacting  any  special  or 
private  laws  in  the  following  cases : 

For  granting  corporate  powers  or  privileges,  except  to  cities. 
{Art.  4:,  part  of  ^  31.) 

2.  The  legislature  shall  provide  general  laws  for  the  transac- 
tion of  any  business  that  may  be  prohibited  by  section  thirty-one  of 
this  article,  and  all  such  laws  shall  be  uniform  in  their  oi)eratiou 
throughout  the  State.     {Art.  4,  §  32.) 


FIRE  AND  MARINE  INSURANCE  COMPANIES. 

3.  Any  number  of  persons  not  less  than  fifteen  may  associate 
and  form  an  incorporated  company  for  the  jjurposes,  to  wit :  To  make 
insurance  on  dwellings,  stores  and  all  kinds  of  buildings,  and  upon 
household  furniture  and  other  property,  against  loss  or  damage  by  fire 
and  the  risks  of  inland  navigation  and  transportation.  Any  and  all 
insurance  companies  hereafter  incor])orated  under  the  provisions  ot 
this  act,  which  shall,  in  the  declaration  and  charter  provided  to  be 
filed,  have  expressed  an  intention  to  make  insurance,  or  which  shall 
have  power  to  make  insurance,  against  loss  or  damage  by  the  risks 
of  inland  navigation  or  transportation,  shall  have  power  to  make 
insurance  upon  vessels,  boats,  cargoes,  goods,  merchandise,  freights 
and  other  j)roperty,  against  loss  and  damage  by  all  or  any  of  the 
lisks  of  lake,  river,  canal  and  inland  navigation  and  transportation. 
{Revised  Statutes,  1871,  _p.  950,  §  1.) 

4.  Any  companies  organized  under  this  act  shall  have  power 
to  efi'ect  reinsurance  of  any  risks  taken  by  them  respectively. 
{Ibid,  §  2.) 

5.  Such  persons  shall  file  in  the  ofiQce  of  the  Secretary  of  State 
a  declaration  signed  by  all  the  corjjorators,  expressing  their  inten- 
tention  to  form  a  company  for  the  puri)ose  of  transacting  the  busi- 
ness of  insurance,  as  expressed  in  the  first  section  of  this  act,  which 
declaration  shall  also  comprise  a  copy  of  the  charter  proposed  to 
be  adopted  by  them,  and  shall  publish  a  notice  of  such,  their  inten- 
tion, once  in  each  week  for  at  least  four  weeks  in  all  public  news- 
papers published  in  the  county  where  such  insurance  company  is 
proposed  to  be  located.     {Ibid,  §  3.) 

6.  The  charter  comprised  in  such  declaration  shall  set  forth 
the  name  of  the  company  ;  the  place  where  the  principal  ofQce  for 


WISCONSIN.  837 

the  transaction  of  its  business  shall  be  located ;  the  manner  and 
mode  in  which  the  cori)orate  powers  granted  by  tliis  act  shall  be 
exercised  5  the  manner  and  mode  of  electing  directors  or  trustees,  a 
majority  of  whom  shall  be  citizens  of  this  State,  and  of  filling 
vacancies  (but  each  director  or  trustee  of  a  stock  company  shall  be 
the  owner  of  at  least  five  hundred  dollars'  worth  of  the  stock  of  the 
company,  in  his  own  right,  at  its  par  value) ;  the  period  for  the 
commencement  or  termination  of  its  fiscal  year,  and  the  amount  of 
capital  to  be  employed  in  the  transaction  of  its  business.  And 
the  Secretary  of  State  shall  have  the  right  to  reject  any  name  or 
title  of  any  company  applied  for,  when  he  shall  deem  the  name  too 
similar  to  one  already  ai)propriated,  or  likely  to  mislead  the  public 
in  any  respect.  {Ibid,  §  4.) 

7.  Any  fire  insurance  company  organized  or  created  by  general 
or  special  law  of  this  State,  is  hereby  authorized  at  any  general  or 
special  meeting  of  its  members  or  stockholders,  duly  called  or  con- 
vened, to  amend  its  charter  or  articles  of  association  so  as  to  pro- 
vide for  the  election  of  a  board  of  managers,  consisting  of  the  presi- 
dent, secretary,  and  not  more  than  five  nor  less  than  three  other 
members  or  stockholders,  in  lieu  of  its  board  of  directors  or  trus- 
tees, as  now  provided  for  by  law.  The  mode  and  manner  of  elect- 
ing such  board  of  managers  shall  be  regulated  by  the  by-laws,  and 
said  board  when  duly  elected,  shall  exercise  the  corporate  powers  of 
that  company,  and  manage  the  affairs  and  business  of  the  same  and 
be  vested  with  the  same  powers  now  exercised  by  and  subject  to 
the  same  duties  now  imposed  upon  the  directors  and  executive  com- 
mittee of  such  insurance  company,  unless  the  stockholders  in  their 
articles  of  association  or  by-laws  see  fit  differently  to  direct  or  pro- 
vide.    {Laws  of  1815, p.  284,  §  I.) 

8.  No  company  formed  under  this  act  shall,  directly  or  in- 
directly, deal  or  trade  in  buying  or  selling  any  goods,  wares,  mer- 
chandise or  other  commodities  whatever,  excepting  such  goods  or 
articles  as  may  have  been  insured  by  such  company,  and  are 
claimed  to  be  damaged  by  fire  or  water.  {Revised  Statutes,  1871,  p. 
951,  §  a.) 

5>,  No  joint  stock  company  shall  be  incorporated  under  this 
act  in  any  incorporated  city,  nor  shall  any  company  incorporated 
under  tiiis  act  establish  an  agency  for  the  transaction  of  business  in 
any  city  with  a  smaller  capital  than  one  hundred  thousand  dollars 
actually  paid  in  in  cash,  nor  elsewhere  outside  of  an  incorporated 
city  in  the  State,  with  a  less  capital  than  fifty  thousand  dollars 
actually  paid  in  in  cash  ;  nor  shall  any  company  for  the  purpose  of 
doing  business  of  fire  and  inland  navigation  insurance  on  the  plan 
of  mutual  insurance,  commence  business  until  agreements  have 
been  entered  into  for  insurance  with  at  least  three  hundred  appli- 
cants, the  premiums  on  which  shall  amount  to  not  less  than  one 
hundred  and  fifty  thousand  dollars,  of  which  at  least  thirty  thou- 
sand dollars  shall  have  been  paid  in  in  cash,  and  notes  of  solvent 
parties  founded  on  actual  and  bona  fide  applications  for  insurance 
shall  have  been  received  for  the  remainder;  nor  shall  any  company 
formed  for  the  purpose  of  doing  business  of  fire  insurance  only,  on 
the  plan  of  mutual  insurance,  commence  business  until  at  least  one 
hundred  and  fifty  applicants  have  entered  into  agreements  for  in- 
surance, the  premiums  on  which  shall  amount  to  not  less  than  one 
hundred  thousand  dollars,  of  which  twenty  thousand  dollars  at  least 
shall  have  been  paid  in  in  cash,  and  notes  of  solvent  parties  founded 


838  HIKERS  INSURANCE  STATUTES. 

on  actual  and  hona  fide  applications  for  insurance  for  the  remainder, 
shall  have  been  received.  !No  one  ot  the  notes  received  as  above 
shall  amount  to  more  than  five  hundred  dollars  ;  and  no  two  shall 
be  given  for  the  same  risk  or  be  made  by  the  same  person  or  firm, 
except  where  the  whole  amount  of  such  notes  shall  not  exceed  five 
hundred  dollars,  nor  shall  any  such  note  be  represented  as  capital 
stock  unless  a  policy  be  received  upon  the  same  within  thirty  days 
after  the  organization  of  the  company,  upon  a  risk  which  shall  be 
for  no  shorter  period  than  twelve  months.  Each  of  said  notes  shall 
be  payable,  in  parts  or  in  whole,  at  any  time  when  the  directors 
shall  deem  the  same  requisite  for  the  payment  of  losses  by  fire  or  in- 
land navigation,  and  such  incidental  expenses  as  may  be  necessary 
for  the  transaction  of  the  business  of  the  company  ;  and  no  note 
shall  be  excepted  as  part  of  such  capital  stock  unless  the  same  shall 
be  accompanied  by  a  certificate  of  the  County  Judge  in  the  county 
where  the  person  iuaking  vSuch  note  shall  reside,  that  the  person 
making  the  same  is,  in  his  opinion,  pecuniarily  good  and  responsible 
for  the  same ;  and  no  such  note  shall  be  surrendered  during  the 
life  of  the  policy  for  which  it  was  given.  No  joint-stock  fire  insur- 
ance companj",  organized  under  this  act  or  transacting  business  in 
this  State,  shall  expose  itself  to  any  loss  on  any  fire  or  inland  navi- 
gation risk  or  hazard,  to  an  amount  exceeding  ten  per  cent,  of  its 
paid  up  capital.     {Ihid,  §  6.) 

10.  It  shall  and  may  be  lawful  for  the  individuals  associated 
for  the  purpose  of  organizing  any  company  under  this  act,  after 
having  published  the  notice  and  filed  the  declaration  and  charter  as 
required  by  the  third  section  of  this  act,  and  also  on  filing  in  the 
office  of  the  Secretary  of  State  proof  of  such  publication,  by  the  affi- 
davit of  the  publisher  of  such  newspaper,  to  open  books  for  subscrip- 
tion to  the  capital  stock  of  the  company  so  intended  to  be  organized, 
and  to  lieep  the  same  open  until  the  whole  amount  specified  in  the 
charter  is  subscribed ;  or  in  case  the  business  is  proposed  to  be 
conducted  on  the  plan  of  mutual  insurance,  then  to  open  books  to 
receive  propositions  and  enter  into  agTcements  in  the  manner  and  to 
the  extent  specified  in  the  sixth  section  of  this  act.  {Ibid,  p.  951.', 
§7.) 

11.  It  shall  be  lawful  for  any  insurance  company  organized 
under  this  act  or  incorporated  under  the  laws  of  this  State,  to  invest 
its  capital  and  the  funds  accumulated  in  the  course  of  its  business 
or  any  part  thereof,  in  bonds  and  mortgages  or  improved  unincum- 
bered real  estate  within  the  State  of  Wisconsin,  worth  at  least  fifty 
per  cent,  more  than  the  sum  loaned  thereon,  exclusive  of  buildings, 
unless  such  buildings  are  insured  and  the  policy  transferred  to  said 
company,  and  also  in  the  stocks  of  this  State  or  those  of  any  city, 
county  or  town  authorized  to  be  issued  by  tlie  legislature  ;  also  in  the 
stocks  and  treasury  notes  of  the  United  States,  and  to  lend  the  same 
or  any  part  thereof  on  the  security  of  such  stock,  bonds  or  treasury 
notes,  or  upon  bonds  and  mortgages  as  aforesaid,  and  to  change  and 
reinvest  tlje  same  as  occasion  from  time  to  time  may  require,  but 
any  surplus  money  over  and  above  the  capital  stock  of  such  fire  and 
inland  navigation  insurance  companies,  or  any  insurance  company 
incorporated  under  the  laws  of  this  State,  may  be  invested  in  or 
loaned  upon  the  pledge  of  the  public  stock  or  bonds  of  the  United 
States,  or  any  one  of  the  States,  or  on  the  stock,  bonds  or  other 
e\ideuces  of  indebtedness  of  any  solvent  dividend  paying  institutions 
incorporated  under  the  laws  of  this  State  or  the  United  States^ 


WISCONSIN.  839 

except  their  own  stock  ;  ProvUed,  always,  That  the  market  vaUie  of 
such  stock,  bonds  or  other  evidences  of  debt  shall  be  at  all  times 
daring  the  continuance  of  such  loans  at  least  ten  per  cent,  above  or 
more  than  the  sum  loaned  thereon.     {Ibid,  §  8.) 

12.  No  company  organized  by  or  under  this  act  shall  purchase, 
hold  or  convey  real  estate,  excepting  for  the  purposes  and  in  the 
manner  herein  set  forth,  to  wit :  such  as  shall  be  necessary  for  its 
convenient  accommodation  in  the  transaction  of  its  business,  or  such 
as  may  have  been  mortgaged  to  it  in  good  faith  by  way  of  security 
for  loans  previously  contracted  or  for  money  due,  or  such  as  shall 
have  been  conveyed  to  it  for  debts  previously  contracted  in  its 
legitimata  business,  or  for  money  due,  or  such  as  has  been  purchased 
at  sales  upon  judgments,  decrees  or  mortgages  obtained  or  made  for 
such  debts ;  and  all  such  other  real  estate  as  may  be  acquired  as  afore- 
said, and  shall  not  be  necessary  for  the  accommodation  of  such  com- 
pany in  the  transaction  of  its  business,  shall  be  sold  and  disposed  of 
withiu  four  years  after  such  company  shall  have  acquired  title  there- 
to, unless  such  company  shall  procure  a  certificate  from  the  Secretary 
of  State  that  such  company  will  suffer  materially  from  a  forced  sale 
thereof,  in  which  event  the  sale  may  be  postponed  for  such  period  as 
the  Secretary  ot  State  may  direct  in  the  certificate.  And  the  said 
Secretary  of  State  mny  also  give  such  certificate,  and  extend  the 
time  for  holding  real  estate  in  the  like  circumstances,  on  the  appli- 
cation of  anv  insurance  company  heretofore  incorporated.  {Ibid, 
p.  953,  §  9.) 

1 3.  The  charter  and  proof  of  publication  herein  required  to  bo 
filed  by  every  such  company,  shall  be  examined  by  tbe  Attorney- 
General,  and  if  found  consistent  with  this  act,  and  conformable  to 
the  constitution  or  laws  of  this  State,  shall  be  certified  by  him 
to  the  Secretary  of  State,  who  shall  thereupon  cause  an  ex- 
amination to  be  made,  either  by  himself  or  by  a  disinterested  per- 
son specially  appointed  by  him  for  that  purpose,  who  shall  certify 
under  oath  that  the  capital  herein  required  of  the  company  named 
in  the  charter,  according  to  the  nature  of  the  business  proposed  to  be 
transacted  by  such  company  has  been  paid  in  and  is  possessed  by  it 
in  money,  or  in  such  stock,  bonds  and  mortgages  as  are  required  by 
the  8th  section  of  this  act,  or  if  a  mutual  company,  that  it  has  recxived 
and  is  in  actual  possession  of  the  capital,  premiums  or  bona  fide  en- 
gagements of  insurance  or  securities  to  the  full  extent  and  of  the 
value  required  by  the  sixth  section  of  this  act,  and  the  name  and 
residence  of  the  maker  of  each  premium  note  forming  part  of  the 
capital,  and  the  amount  of  such  note  shall  be  returned  to  the  Secre- 
tary of  State;  and  the  corporators  or  officers  of  such  company  shall 
be  required  to  certify  under  oath  that  the  capital  exhibited  to  this 
person,  is  6o7ia /ir/e  the  property  of  the  company.  Such  certificate 
shall  be  filed  in  the  office  of  the  Secretary  of  State,  who  thereupon 
shall  deliver  to  such  company  a  certified  copy  of  the  charter  and  of 
said  certificate,  which  on  being  filed  in  the  office  of  the  Clerk  of  the 
Circuit  [Court]  of  the  county  where  the  company  is  located,  shall 
be  their  authority  to  commence  business  and  issue  policies.  And 
such  certified  copy  of  charter  and  certificate  may  be  used  in  evidence 
for  or  against  the  company  with  the  same  eiiect  as  the  originals. 
{Ibid,  §  10.) 

14.  The  corporators,  trustees  or  directors  of  any  company  or 
ganized  under  this  act  shall  have  a  corporate  seal,  and  they  or  their 
successors  may  alter  or  change  the  design  of  the  same  at  pleasure ; 


840  HINE'S  mSUPwANCE  STATUTES. 

they  shall  also  have  the  power  to  make  such  by-laws  as  will  not 
conflict  with  this  act  or  the  constitution  or  laws  of  this  State.  (I  bid. 
p.  954,  §  11.) 

15.  It  shall  not  be  lawful  for  the  directors,  trustees  or  manag- 
ers of  any  fire  insurance  company  to  make  any  dividends  except 
from  surplus  profits  arising  from  their  business,  and  in  estimating 
such  profits  there  shall  be  reserved  therefrom,  a  sum  equal  to  the 
whole  amount  of  premiums  on  unexpired  risks  and  policies  which 
are  hereby  declared  to  be  unearned  premiums,  and  also  there  shall 
be  reserved,  all  sums  due  the  corporation  on  bonds  and  mortgages, 
stocks  and  book  accounts,  of  which  no  part  of  the  interest  or  princi- 
I)al  thereon  has  been  paid  during  the  last  year,  and  for  which  no  suit 
or  foreclosure  has  been  commenced  for  collection,  or  which,  after 
judgment  thereon  obtained,  shall  have  remained  more  than  two 
years  unsatisfied,  and  on  which  interest  shall  not  have  been  paid ; 
and  also,  there  shall  be  reserved,  all  interest  due  or  accrued  and 
remaining  unpaid ;  Provided,  always,  That  any  company  may  declare 
dividends  not  exceeding  ten  per  cent,  on  its  capital  stock  in  any  one 
year  that  shall  have  accumulated  and  be  in  possession  of  a  lund,  in 
addition  to  the  amount  of  its  capital  stock  and  of  such  dividends, 
and  all  actual  outstanding  liabilities  equal  to  one-half  of  all  premi- 
ums on  risks  not  terminated  at  the  time  of  making  such  dividends. 
Any  company  making  dividends  contrary  to  the  foregoing  provisions 
shall  be  liable  to  a  forfeiture  of  its  charter,  and  each  stockholder  re- 
ceiving it  shall  be  liable  to  the  creditors  of  such  compimy,  to  the 
extent  of  the  dividend  received,  as  well  as  to  the  penalties  in  such 
cases  made  and  provided.  This  section  shall  not  apply  to  the  dec- 
laration of  scrip  dividends  by  participating  companies,  but  no  such 
scrip  dividends  shall  be  paid  except  from  surplus  profits  after  re- 
serving all  sums  as  above  provided,  including  the  whole  amount  of 
premiums  on  unexpired  risks.  The  word,  '^year,"  wherever  used  in 
this  section  shall  mean  the  calendar  year.     {Ibid,  §  12.) 

1 6,  All  notes  deposited  with  any  mutual  insurance  company 
at  the  time  of  its  organization,  as  provided  in  section  six  of  this  act, 
shall  remain  as  security  for  all  losses  and  claims  until  the  accumula- 
tion of  profits  invested  as  required  by  the  eighth  section  of  this  act 
shall  equal  the  amount  of  cash  capital  required  to  be  possessed  by 
stock  companies  organized  under  this  act,  the  liability  of  each  note 
decreasing  proportionately  as  the  profits  are  accumulated ;  but  any 
note  which  may  have  been  deposited  with  any  mutual  insurance 
company,  subsequent  to  its  organization,  in  addition  to  the  cash 
premium  on  any  insurance  effected  with  such  company,  may  at  the 
expiration  of  the  time  of  such  insurance  be  relinquished  and  returned 
to  the  maker  thereof  or  his  representative,  upon  his  paying  his  pro- 
portion of  all  losses  and  expenses  which  may  have  accrued  thereon 
during  the  term.  The  directors  or  trustees  of  any  such  company 
may  or  shall  have  the  right  to  determine  the  amount  of  the  note  to 
be  given,  in  addition  to  the  cash  premium  by  any  person  insuied  in 
such  company,  but  in  no  case  shall  the  note  be  more  than  twice  the 
whole  amount  of  the  cash  preminm.  And  any  person  effecting  in- 
surance in  a  mutual  insurance  company,  and  their  heirs,  executors, 
administrators  or  assigns,  continuing  to  be  so  insured,  shall  thereby 
become  members  of  said  corporation  during  the  period  of  insurance, 
and  shall  be  bound  to  pay  for  all  losses  and  necessary  expenses  as 
aforesaid,  accruing  in  and  to  said  company,  in  proportion  to  the 
amount  of  his  deposit  note  or  notes.     The  directors  shall  as  often  as 


WISCONSIN.  841 

they  deem  necessary,  after  receiving  notice  of  any  loss  or  damage 
by  lire,  sustained  by  any  member,  and  ascertaining  the  same,  and 
after  the  rendition  of  any  judgment  against  said  company  for  any 
loss  or  damage,  settle  and  determine  the  sums  to  be  j^aid  by  the 
several  members  thereof,  as  their  respective  portion  of  such  loss  or 
damage,  and  published  as  they  may  deem  best,  or  as  the  by-laws 
may  require,  and  the  sum  to  be  paid  by  each  member  shall  always 
be  in  proportion  to  the  original  amount  of  his  deposit  note  or  notes, 
and  shall  be  paid  to  the  officers  of  the  company,  within  thirty  days 
after  the  publication  of  such  notice ;  and  if  any  member  shall  for 
the  space  of  thirty  days,  after  the  publication  of  such  notice,  and 
after  demand  for  payment  shall  have  been  made,  neglect  or  refuse 
to  pay  the  sum  assessed  upon  him  as  his  proportion  of  any  loss,  in 
such  case  the  directors  may  sue  for  and  recover  the  whole  amount 
of  his  deposit  note  or  notes,  with  costs  of  suit,  but  execution  shall 
issue  only  for  assessments  and  costs  as  they  accrue,  and  every  such 
execution  shall  be  accompanied  by  a  list  of  the  losses  for  which  the 
assessment  is  made.  If  the  whole  amount  of  deposit  notes  shall  be 
insuflBcient  to  pay  the  loss  occasioned  by  any  lire  or  fires,  in  such 
case  the  sufferers  insured  by  the  said  company  shall  receive  towards 
making  good  their  respective  loss  or  losses,  a  proportional  share  of 
the  whole  amounts  of  said  notes,  according  to  the  sums  by  them 
respectively  insured.     {Ibid,  §  13.) 

1 7.  Every  fire  and  inland  navigation  insurance  company  here- 
tofore or  hereafter  organized,  shall,  if  it  be  a  mutual  company, 
embody  the  word  "  mutual "  in  its  title,  which  shall  appear  on  the 
first  page  of  every  policy  or  renewal  receipt ;  and  every  company 
doing  business  as  a  cash  stock  company  shall  upon  the  face  of  its 
policy  in  some  suitable  manner,  exj)ress  that  such  policy  is  a  stock 
policy;  Provided^  however,  That  companies  now  organized  m;iy,  for 
the  year  1870,  use  their  present  form,  with  the  words  "mutual" 
and  "  stock"  omitted.     {Ibid,  p.  955,  §  14.) 

1  8.  Suits  at  law  may  be  maintained  by  any  corporation  formed 
under  this  act,  against  any  of  its  members  or  stockholders  for  any 
cause  relating  to  the  business  of  the  company;  also  suits  at  law 
may  be  maintained  by  any  member  or  stockholder  against  such 
corporation  for  any  losses  which  may  have  accrued  if  payment  is 
withheld  more  than  thirty  days  after  such  losses  have  become  due, 
and  any  member  or  stockholder  not  a  party  to  such  suit  may  be  a 
witness  therein.     (Ibid,  §  15.) 

19.  The  trustees  and  corporators  of  any  company  organized 
under  this  act,  and  those  entitled  to  a  participation  in  the  i)rotits  of 
such  com])any,  shall  be  jointly  and  severally  liable  for  all  debts  and 
responsibilities  of  such  company  until  the  whole  amount  of  the  cap- 
ital shall  have  been  paid  in,  and  a  certificate  thereof  recorded  or 
filed  as  hereinbefore  provided.  Notes  taken  in  advance  under  this 
act  are  not  to  be  regarded  as  debts  of  the  company  in  determining 
its  solvency,  but  are  considered  as  assets  of  the  company.  {Ibid, 
p.  956,  §  16.) 

20.  Any  existing  fire  insurance  company,  and  any  company 
formed  under  this  law,  may  at  any  time  increase  its  capital  stock 
after  notice  given  once  a  week  for  four  weeks,  in  some  newsi)aper 
published  in  the  county  where  such  company  is  located,  of  such  in- 
tention, with  the  written  consent  of  three-fourths  in  amount  of  its 
stockholders,  unless  otherwise  provided  in  its  charter;  if  a  mutual 
company,  with  the  unanimous  consent  of  its  trustees,  unless  other- 


842  hine's  insurance  statutes. 

wise  provided  in  its  charter,  by  filing  a  copy  of  their  charter  so  al- 
tered or  amended  in  this  respect,  together  with  a  certificate  under 
its  corporate  seal,  signed  by  its  president,  directors  or  trustees,  of 
their  desires  so  to  do,  in  the  office  of  the  Secretary  of  State,  and 
upon  the  same  proceeding  had  as  required  by  the  tenth  section  of 
this  act.  It  shall  be  lawful  also  for  any  existing  joint  stock  fire  in- 
surance company,  or  any  company  organized  under  this  act,  without 
increasing  its  capital  stock,  ])rovided  its  actual  paid-up  in  cash  cap- 
ital is  not  less  than  fifty  thousand  dollars,  at  any  time  within  two 
years  previous  to  the  termination  of  its  charter,  and  after  giving 
notice  once  once  a  week  for  four  weeks  in  some  newspaper  published 
in  the  county  where  such  company  is  located,  of  such  intention, 
and  with  a  declaration  under  its  corporate  seal,  signed  by  its  presi- 
dent and  directors,  of  their  desire  for  such  extension,  to  extend  the 
term  of  its  original  charter  to  the  time  specified  in  section  twenty- 
five  of  this  act,  by  altering  and  amending  the  same  so  as  to  accord 
with  the  provisions  of  this  act,  and  filing  a  copy  of  the  same  in  the 
office  of  the  Secretary  of  State,  whereupon  the  same  proceeding 
shall  be  had  as  required  in  the  tenth  section  of  this  act.  (i  bid, 
§17.) 

21.  All  insurance  companies  heretofore  organized  in  the  State 
of  Wisconsin,  and  now  doing  business  in  this  State,  are  hereby 
brought  under  all  the  provisions  of  this  act,  except  that  their  capi- 
tals may  continue  of  the  amounts  and  character  named  in  and  au- 
thorized by  their  respective  charters,  during  the  existing  term  of 
such  charters,  and  the  investments  of  the  capital  and  assets  of  such 
companies  may  remain  the  same  as  prescribed  by  their  charters, 
anything  in  this  act  to  the  contrary  notwithstanding;  and  such 
companies  shall  also  be  entitled  to  all  the  privileges  and  powers 
granted  by  said  charters.     {Ibid,  §  18.) 

93.  All  companies  incorporated  or  extended  under  this  act 
shall  be  deemed  and  taken  to  be  bodies  corporate  and  politic,  in  fact 
and  in  name,  and  shall  be  subject  to  all  the  provisions  of  law  in  re- 
lation to  corporations,  so  far  as  the  same  are  applicable.  {Ibid, 
p.  957,  §  19.) 

93.  It  shall  be  the  duty  of  the  president  or  vice  president  and 
secretary  of  each  company  organized  under  this  act,  or  incorporated 
under  any  law  of  this  State,  annually  on  the  first  day  of  January  of 
each  year,  or  within  one  month  thereafter,  to  prepare  under  their 
own  oath,  and  deposit  in  the  office  of  the  Secretary  of  State,  a  state- 
ment of  the  condition  of  such  company  on  the  thirty -first  day  of 
December  then  next  preceding,  exhibiting  the  following  facts  and 
items  in  the  following  form,  namely : 

First— The  amount  of  the  capital  stock  of  the  company. 

iSecond.— The  property  or  assets  of  the  company,  specifying: 

1.  The  value,  as  near  as  may  be,  of  the  real  estate  held  by 
such  company. 

2.  The  amount  of  cash  on  hand  and  in  such  company's  office, 
and  also  the  amount  deposited  in  bank  to  the  credit  of  such 
company,  and  specifying  in  what  bank  or  banks  the  same  is 
deposited. 

3.  The  amount  of  loans  secured  by  bonds  and  mortgages 
constituting  the  first  lien  on  real  estate,  on  which  there  shall 
be  less  than  one  year's  interest  due  or  owing. 

4.  The  amount  of  loans  on  which  interest  shall  not  have  been 
paid  within  one  year  previous  to  such  statement. 


WISCONSIN.  843 

5.  The  amount  due  the  company,  on  which  judgments  have 
been  obtained. 

6.  Tlie  amount  of  stocks  of  this  State,  of  tlie  United  States, 
of  any  incorporated  city  of  this  State,  aTid  of  any  other  stocks 
owned  by  the  company,  specifying  the  amount,  number  of 
shares,  and  the  par  and  market  value  of  each  kind  of  stock  so 
held. 

7.  The  amount  of  stocks  held  thereby  as  collateral  security 
for  loans,  with  the  amount  loaned  on  each  kind  of  stock,  its  par 
value  and  market  value. 

8.  The  amount  of  the  assessments  on  stock  or  premium  notes, 
paid  and  unpaid. 

9.  The  amount  of  interest  actually  due  and  unpaid. 

10.  Tlie  amount  of  premium  notes  on  hand  on  which  policies 
are  in  force. 

Third. — The  liabilities  of  such  company,  specifying  : 

1.  The  amount  of  losses  due  and  unpaid. 

2.  The  amount  of  claims  for  losses  resisted  by  the  company. 

3.  The  amount  of  losses  incurred  during  the  year,  including 
those  claimed  and  not  yet  due,  and  those  reported  to  the  com- 
pany upon  which  no  action  has  been  taken. 

4.  The  amount  of  dividends  declared  due  and  unpaid. 

5.  The  amount  of  dividends,  either  cash  or  scrip,  declared 
but  not  yet  due. 

6.  The  amount  of  money  borrowed  and  security  given  for  the 
payment  thereof. 

7.  The  amount  required  to  reinsure  all  outstanding  risks. 

8.  The  amount  of  all  other  existing  claims  against  the  com- 
pany. 

Fourth. — The  income  of  the  company  during  the  preceding  year, 
specifying : 

1.  The  amount  of  interest  money  received. 

2.  The  amount  of  cash  premiums  received 

3.  The  amount  of  notes  received  for  premiums. 

4.  The  amount  of  income  received  from  other  sources. 
Fifth. — The  expenditure  during  the  preceding  year,  specifying: 

1.  The  amount  of  losses  paid  during  the  year,  stating  how 
much  accrued  prior,  and  how  much  subsequent  to  the  date  of 
the  preceding  statement. 

2.  The  amount  of  dividends  paid  during  the  year. 

3.  The  amount  of  expenses  during  the  year,  stating  the 
amount  ])aid  officers'  salary  and  fees;  the  amount  paid  agents^ 
commission  and  fees,  and  the  amount  paid  for  office  expenses 
and  rents,  the  amount  for  taxes,  and  tlie  amount  of  all  other 
payments  and  expenditures.     {Ibid,  §  20.) 

S4.  The  Secretary  of  State  is  hereby  authorized  and  empow- 
ered to  address  inquiries  to  any  insurance  company  or  any  officer 
thereof,  in  relation  to  the  doings  or  conditions  or  any  other  matter 
connected  with  its  transactions ;  and  it  shall  be  the  duty  of  any 
company  or  officer  so  addressed,  to  promptly  rei)ly  in  writing  to  any 
such  inquiries.  The  statement  of  any  company,  the  capital  of  which 
is  composed  in  whole  or  in  part  of  notes,  shall,  in  addition  to  the 
provisions  of  the  foregoing  section,  exhibit  the  amount  of  notes 
originally  forming  the  capital,  and  also  what  proportion  of  said 
notes  is  still  held  by  such  company  and  considered  capital.  The 
statements  herein  provided  for  shall  be  in  lieu  of  any  and  all  state- 


844  hine's  insurance  statutes. 

menta  now  required  by  any  existing  laws.  Every  fire  insurance 
company  organized  under  any  law  of  this  State,  failiug  to  make  and 
deposit  sucli  statements,  or  to  reply  to  any  inquiry  of  the  said  Sec- 
retary of  State,  shall  be  subject  to  the  penalty  of  five  hundred  dol- 
lars, and  an  additional  five  hundred  dollars  for  every  mouth  that 
such  company  shall  continue  thereafter  to  transact  any  business  of 
insurance.  It  shall  be  the  duty  of  the  Secretary  of  State  to  cause 
to  be  prepared  and  furnished  to  each  of  the  companies  and  to  the 
attorneys  of  companies  incorporated  by  other  States  and  foreign 
governments,  printed  forms  of  the  statements  required  by  this  act, 
and  he  may  from  time  to  time  make  changes  in  the  form  of  such 
statements  as  shall  seem  to  him  best  adapted  to  elicit  from  the  com- 
panies a  true  exhibit  of  their  condition  in  respect  to  the  several 
points  hereinbefore  mentioned.  It  shall  be  the  duty  of  the  Secre- 
tary of  State  to  cause  the  information  contained  in  the  statements 
required  by  this  section  to  be  arranged  in  tabular  form,  and  publish 
the  same  on  or  before  the  first  day  of  May  next  succeeding.  (Ibid, 
p.  958,  §  21.) 

25.  It  shall  not  be  lawful  for  any  fire  insurance  company,  asso- 
ciation or  partnership  incorporated  by  or  organized  under  the  laws 
of  any  other  State  of  the  United  States,  or  any  foreign  government, 
for  any  of  the  purposes  specified  in  this  act,  directly  or  indirectly,  to 
take  risks  or  transact  any  business  of  insurance  in  this  State,  unless 
possessed  of  the  amount  of  actual  capital  required  of  similar  com- 
panies formed  under  the  provisions  of  this  act,  and  any  such  com- 
pany desiring  to  transact  any  such  business  as  aforesaid  by  any 
agent  or  agents  in  this  State,  shall  first  apjioint  an  attorney  in  this 
State  on  whom  process  of  law  can  be  served,  containing  an  agree- 
ment that  such  company  will  not  remove  tlie  suit  for  trial  into  the 
United  States  Circuit  Court  or  federal  courts,  and  file  in  the  office  of 
the  Secretary  of  State  a  written  instrument,  duly  signed  and  sealed, 
certifying  such  appointment,  which  shall  continue  until  another  At- 
torney be  substituted;  and  any  process  issued  by  any  Court  of  Eec- 
ord  in  this  State,  and  served  upon  anj^  such  Attorney  by  the  proper 
officer  of  the  county  in  which  such  attorney  may  reside  or  may  be  found, 
shall  be  deemed  a  sufficient  service  of  process  uj)on  such  company, 
but  service  of  process  upon  such  company  may  also  be  made  in  any 
other  manner  now  provided  by  law.  In  case  any  insurance  company 
not  incorporated  in  the  State,  shall  cease  to  transact  business  in  this 
State  according  to  the  laws  thereof,  the  agents  last  designated  or 
acting  as  such  for  such  corporation,  shall  be  deemed  to  continue 
agents  for  such  corporation  for  the  purpose  of  serving  process,  for 
commencing  action  upon  any  policy  or  liability  incurred  or  con- 
tracted while  such  corporation  transacted  business  iu  this  State,  and 
services  of  such  process  for  the  (;auses  aforesaid,  upon  any  such 
agent,  shall  be  deemed  a  valid  personal  service  upon  such  corpora- 
tion, and  every  such  company,  association  or  partnership,  shall  also 
file  a  certified  copy  of  their  charter  or  deed  of  settlements,  together 
with  a  statement,  under  oath  of  the  president  or  vice-president  or 
other  chief  officer  and  secretary  of  the  company  for  which  he  or  they 
may  act,  stating  the  name  of  the  company  and  place  where  located, 
the  amount  of  its  capital,  with  a  detailed  statement  of  its  assets, 
showing  the  amount  of  cash  on  hand,  in  bank,  the  amount  of 
real  estate  and  how  much  the  same  is  encumbered  by  mortgage, 
the  number  of  shares  of  stock  of  every  kind  owned  by  the  company, 
the  par  and  market  value  of  the  same,  amount  loaned  on  bond  and 


WISCONSIN.  845 

mortgage,  the  amount  loaned  on  other  security,  stating-  the  kind 
and  amount  loaned  on  each  and  the  estimated  value  of  the  whole 
amount  of  such  securities,  any  other  assets  or  property  of  the 
company,  also  stating  the  indebtedness  of  the  company,  the 
amount  of  losses  adjusted  and  unpaid,  the  amount  incurred  and  in 
process  of  adjustment,  the  amount  resisted  by  the  company  as  ille- 
gal and  fraudulent,  and  all  other  claims  existing  against  the  com- 
pany, also  a  copy  of  the  last  rei)ort,  if  any  made  under  any  law  of 
the  State  by  which  such  company  was  incorporated ;  and  no  agent 
shall  be  allowed  to  transact  any  business  for  any  such  company, 
whose  capital  is  impaired  to  the  extent  of  twenty  per  cent,  thereof, 
while  such  deficiency  shall  continue,  and  any  company  incorporated 
by  or  organized  under  any  foreign  government,  shall  in  addition  to 
the  foregoing,  tile  in  the  office  of  the  Secretary  of  State  a  statement 
verified  by  the  oath  of  the  president,  secretary,  or  manager  of  such 
company,  resident  in  the  United  States,  showing  to  the  satisfaction 
of  the  Secretary  of  State,  that  such  company  has  invested  in  the 
stocks  or  bonds  of  the  United  States,  of  the  State  of  ^ew  York  or 
Wisconsin  ;  such  stocks  or  bonds  to  be  in  all  cases  equal  to  a  stock 
producing  six  per  cent,  per  annum,  or  in  bonds  and  mortgages  on 
unincumbered  real  estate  worth  fifty  per  cent,  more  than  the  amount 
loaned  thereon,  the  sum  of  at  least  two  hundred  thousand  dollars, 
and  that  such  stocks  or  bonds  are  dei^osited  with  the  Superintend- 
ent of  the  Insurance  Department,  State  Treasurer,  or  other  proper 
State  officer  of  some  one  of  the  States  of  the  United  States,  or  are 
held  by  a  citizen  or  citizens  of  the  United  States,  as  a  trustee  or 
trustees  and  that  such  securities  are  not  pledged  or  incumbered,  but 
are  held  and  remain  for  the  benefit  and  security  of  the  policy-hold- 
ers of  such  company,  residing  in  the  United  States,  or  in  default  of 
such  statement,  shall  deposit  with  the  State  Treasurer  for  the  benefit 
and  security  of  policy-holders  residing  in  the  United  States,  a  sum 
not  less  than  fifty  thousand  dollars,  in  stocks  of  the  United  States 
or  of  the  State  of  Wisconsin,  in  all  of  the  cases  to  be  equal  to  a 
stock  producing  six  per  cent,  per  annum,  said  stocks  not  to  be  re- 
ceived bj^  said  Treasurer  at  a  rate  above  their  par  value,  or  above 
their  current  market  value,  or  in  bonds  and  mortgages  on  imi)roved 
unincumbered  real  estate  in  the  State  of  Wisconsin,  worth  fifty  per 
cent,  more  than  the  amount  loaned  thereon.  The  stocks  and  secur- 
ities so  deposited  may  be  exchanged  from  time  to  time  for  other 
securities  receivable  as  aforesaid ;  and  so  long  as  the  company  so 
depositing  shall  continue  solvent  and  comply  with  the  laws  of  this 
State,  such  company  or  association  may  be  permitted  by  the  said 
Treasurer  to  collect  the  interest  or  dividends  on  said  deposit,  and 
where  deposit  is  made  of  bonds  and  mortgages,  accompanied  by  full 
abstracts  of  titles  and  searches,  the  fees  for  an  examination  of  title 
by  counsel  to  be  paid  by  the  party  making  the  deposit,  shall  not 
exceed  twenty  dollars  for  each  mortgage,  and  the  fees  for  an  ap- 
praisal of  property  shall  be  five  dollars  to  each  appraiser,  not  ex- 
ceeding two,  besides  expenses  for  each  mortgage,  nor  shall  it  be 
lawful  for  any  agent  or  agents,  or  other  persons,  to  act  for  any  com- 
pany or  companies  referred  to  in  this  section,  directly  or  indirectly, 
in  taking  risks  or  transacting  the  business  of  fire  or  inland  naviga- 
tion Insurance  in  this  State,  without  procuring  from  the  State 
Treasurer  a  certificate  for  the  deposit  so  made,  and  from  the  Secre- 
tary of  State  a  certificate  of  authority,  stating  that  such  comi)any 
has  complied  with  all  the  provisions  of  this  act  which  apply  to  such 


846  hine's  insurance  statutes. 

companies,  and  tbe  name  of  the  attorney  appointed  to  act  for  such 
company.  Th<}  statements  and  evidence  of  investments  and  deposits 
required  by  this  section  shall  be  renewed  from  year  to  year,  in 
manner  and  form  as  may  be  required  by  the  Secretary  of  State,  with 
an  additional  statement  of  the  amount  of  i)remiums  received  and 
losses  incurred  in  the  State  during  the  preceding  year,  so  long  as 
such  agency  continues,  and  the  Secretary  of  State,  on  being  satis- 
fied that  the  capital,  securities,  and  investments  remain  secure,  as 
hereinbefore  provided,  shall  furnish  a  renewal  of  the  certificate  as 
aforesaid.     Any  violation  of  any  of  the  provisions  of  this  act,  shall 
subject  the  party  violating  the  same  to  a  jienalty  of  five  hundred 
dollars  for  each  violation,  and  of  the  additional  sum  of  one  hundred 
dollars  for  each  month  during  which  any  such  agent  shall  neglect  to 
file  affidavits,  statements,  and  certificates  as  are  herein  required. 
The  term  agent  or  agents  used  in  this  section  shall  include  an 
acknowledged  agent,  surveyor,  broker,,  or  any  other  person  who 
shall  receive  any  application  or  make  any  contract  for  insurance,  or 
collect  or  receive  any  premium  or  deliver  anj-  policy,  or  in  any 
manner  assist  or  aid  in  the  transaction  of  the  business  of  any  insur- 
ance company  not  incorporated  by  the  laws  of  this  State.     The  pro- 
visions of  this  section  shall  apply  to  all  foreign  companies,  partner- 
ships, cori)orations,  or  individuals,  whether  incorporated  or  not. 
All  insurance  companies,  associations,  or  corporations  incorporated 
by  or  organized  under  the  laws  of  any  other  State  of  the  United 
States,  or  any  foreign  government,  transacting  tbe  business  of  fire 
or  inland  insurance,  or  other  kind  of  insurance  in  this  State,  shall 
make  annual  statements  of  their  condition  and  affairs  to  the  Secre- 
tary of  State,  in  the  same  manner  and  in  the  same  form  as  similar 
companies  organized  under  the  laws  of  this  State.   In  case  of  neglect 
or  refusal  to  make  such  annual  statements  of  their  condition  and 
affairs  as  aforesaid,  all  persons  acting  in  this  State  as  agents  or 
otherwise  in  transacting  the  business  of  insurance  for  such  com- 
panies, corporations  or  associations,  partnership  or  individuals,  shall 
be  subject  to  the  same  penalties  provided  by  this  act  in  cases  of 
failure  of  any  insurance  company  organized  under  the  laws  of  this 
State,  herein  provided.    Foreign  insurance  companies  shall  be  re- 
quired to  make  out  and  file  their  statements  as  provided  in  this  act 
on  the  first  day  of  January  of  each  year,  or  within  thirty  days 
thereafter,  made  out  for  the  year  ending  December  thirty-first,  im- 
mediately preceding  such  statement,  shall  set  forth  their  business 
and  affairs  in  the  United  States,  duly  verified  by  the  resident  man- 
ager of  such  company  for  the  United  States.    Whenever  any  such 
foreign  insurance  company  or  corporation  shall  elect  to  discontinue 
business  within  the  State,  and  shall  have  risks  unexpired  on  prop- 
erty insured  within  the  State,  such  company  shall,  before  withdraw- 
ing its  bonds  and  other  securities  deposited  with  the  State  Treas- 
urer, as  hereinbefore  provided,  reinsure  in  some  good  and  solvent 
company  authorized  by  this  act  to  transact  business  within  the 
State,  all  such  unexpired  risks,  to  the  satisfaction  of  the  insured 
and  the  Secretary  of  State.    When  such  risks  are  so  reinsured,  it 
shall  be  the  duty  of  the  Secretary  of  State  to  certify  the  same  to 
the  State  Treasurer,  who  shall  forthwith  surrender  and  deliver  up" 
to  the  said  company  its  bonds  and  other  securities  in  his  custody ; 
but  no  surrender  or  delivery  of  such  bonds  or  securities  shall  be 
made  by  said  Treasurer,  except  on  the  certificate  of  the  Secretary 
of  State  that  there  are  no  unexpired  risks  within  the  State  which 


WISCONSEDf.  847 

have  not  been  reinsured   by  such  company^  as  herein  required. 
{Ibid,  §  22.) 

26.  It  shall  be  the  duty  of  the  Secretary  of  State,  whenever  he 
shall  deem  it  expedient  so  to  do,  or  when  any  respousible  party 
shall  file  with  such  ofiicer  written  charges  against  any  insurance 
company,  alleging  that  any  return  or  statement  filed  by  such 
company  with  said  Secretary  of  State  is  false,  or  that  the  aflairs 
of  such  company  are  in  an  unsound  condition,  in  person,  or  by 
one  or  more  persons,  to  be  appointed  by  him  for  that  purpose, 
not  officers  or  agents  of,  or  in  any  manner  interested  in  any  insur- 
ance company  doing  business  in  this  State,  except  as  policy-holders, 
to  examine  into  the  affairs  of  any  insurance  company  incorporated 
in  this  State,  or  doing  business  by  its  agents  in  this  State  ;  and  it 
shall  be  the  duty  of  the  officers  or  agents  of  any  such  company  do- 
ing business  in  this  State,  to  cause  their  books  to  be  opened  for  the 
inspection  of  the  Secretary  of  State,  or  the  person  or  persons  so 
appointed,  and  otherwise  to  facilitate  such  examination  so  far  as  it 
may  be  in  Iheir  power  to  do,  and  to  pay  all  reasonable  expenses  in- 
curred therein  ;  and  for  that  purpose,  the  said  Secretary  of  State  or 
person  or  persons  so  appointed  by  him,  shall  have  the  j)ower  to  ex- 
amine under  oath,  the  officers  and  agents  of  any  company,  relative 
to  the  business  of  said  company ;  and  whenever  the  said  Secretary 
of  State  shall  deem  it  for  the  best  interest  of  the  public  so  to  do,  he 
shall  publish  the  results  of  said  investigation  in  one  or  more  papers 
in  this  State ;  and  whenever  it  shall  appear  to  the  said  Secretary  of 
State  from  such  examination,  that  the  assets  of  any  company  in- 
corporated in  this  State  are  insufficient  to  justify  the  continuance  in 
business  of  any  such  company,  he  may  direct  the  officers  thereof 
to  require  the  stockholders  to  pay  in  the  amount  of  such  deficiency 
within  such  period  as  he  may  designate  in  such  requisition,  or  he 
shall  communicate  the  fact  to  the  Attorney-General,  whose  duty  it 
shall  then  become  to  apply  to  the  Circuit  Court  of  the  county  in 
which  the  principal  office  of  said  company  shall  be  located,  for  an 
order  requiring  them  to  show  cause  why  the  business  of  said  com- 
pany should  not  be  closed,  and  the  court  shall  thereupon  proceed  to 
hear  the  allegations  and  proofs  of  the  respective  parties;  and  in 
case  it  shall  appear  to  the  satisfaction  of  said  court,  that  the  assets 
and  funds  of  said  company  are  not  sufficient,  as  aforesaid,  or  that 
the  interests  of  the  public  so  require,  the  said  court  shall  decree  a 
dissolution  of  said  company,  and  a  distribution  of  its  effects.  The 
said  Circuit  Court  shall  have  jjower  to  refer  the  application  of  tlie 
Attorney-General  to  a  referee,  to  inquire  into  and  report  upon  the 
facts  stated  therein.  Any  company  receiving  the  aforesaid  requisi- 
tion from  the  Secretary  of  State,  shall  forthwith  call  upon  its  stock- 
holders for  such  amount  as  will  make  its  capital  equal  to  the  amount 
fixed  by  the  charter  of  said  company,  and  in  case  any  stockholder 
of  such  company  shall  refuse  or  neglect  to  pay  the  amount  so  called 
for,  after  notice  personally  given,  or  by  advertisement,  in  such  time 
and  manner  as  the  Secretary  of  State  shall  approve,  it  shall  be  law- 
ful for  the  said  company  to  require  the  return  of  the  original  certifi- 
cate of  stock  held  by  such  stockholder,  and  in  lieu  thereof  to  issue 
new  certificates  for  such  number  of  shares  as  the  said  stockholder 
may  be  entitled  to,  in  the  proportion  that  the  ascertained  value  of 
the  funds  of  the  said  company  may  be  found  to  bear  to  the  original 
capital  of  the  said  company ;  the  value  of  such  shares  for  which 
new  certificates  shall  be  issued,  to  be  ascertained  under  the  direction 


848  bine's  insurance  statutes. 

of  said  Secretary  of  State,  and  the  company  paying  for  tlie  frac- 
tional parts  of  shares ;  and  it  shall  be  lawful  for  the  directors  of 
such  company  to  create  new  stock  and  dispose  of  the  same  and  to 
issue  new  certificates  therefor  to  an  amount  sufQcient  to  make  up 
the  original  capital  of  the  company  ;  and  it  is  hereby  declared  that 
in  the  event  of  any  additional  losses  accruing  upon  new  risks  taken 
after  the  expiration  of  the  period  limited  by  said  Secretary  of  State 
in  the  aforesaid  requisition,  for  the  tilling  up  of  the  deficiency  in 
the  capital  of  such  company,  and  before  said  deficiency  shall  have 
been  made  u^),  the  directors  shall  be  individually  liable  to  the  ex- 
tent thereof;  and  if  upon  such  examination  it  shall  appear  to  the 
said  Secretary  of  State  that  the  assets  of  any  company  chartered 
on  the  plan  of  mutual  insurance  under  this  act,  are  insufficient  to 
justify  the  continuance  of  such  company  in  business,  it  shall  be  his 
duty  to  proceed  in  relation  to  such  company  in  the  same  manner  as 
herein  required  in  regard  to  joint-stock  companies  ;  and  the  trustees 
or  directors  of  such  company  are  hereby  made  personally  liable  for 
any  loss  which  may  be  sustained  upon  risks  taken  after  the  expir- 
ation of  the  period  limited  by  said  Secretary  of  State  for  filling  up 
the  deficiency  in  the  capital,  and  before  euch  deficiency  shall  have 
been  made  up.  Any  transfer  of  the  stock  of  any  company  organized 
under  this  act,  made  during  the  pending  of  such  investigation,  shall 
not  release  the  party  making  the  transfer  from  his  liability  for  losses 
which  may  have  occurred  previous  to  the  transfer.  And  whenever 
it  shall  appear  to  the  said  Secretary  of  State,  from  the  report  of  the 
person  or  persons  appointed  by  him,  that  the  affairs  of  any  company 
not  incorporated  by  the  laws  of  this  State,  are  in  an  unsound  con- 
dition, he  shall  revoke  the  certificates  granted  in  behalf  of  such 
company,  and  shall  cause  a  notification  thereof  to  be  published  in 
the  otiicial  State  paper,  mail  a  copy  thereof  to  each  agent  of  the 
company,  and  the  agent  or  agents  of  such  company,  after  such 
notice,  shall  be  required  to  discontinue  the  issuing  of  any  new 
policy  and  the  renewal  of  any  previously  issued.    [Ibid,  p.  962,  §  23.) 

SI'.  Every  penalty  provided  for  by  this  act  shall  be  sued  for 
and  recovered  in  the  name  of  the  State,  by  the  District  Attorney 
of  the  county  in  which  the  company  or  the  agent  or  agents  so  vio- 
lating shall  be  situated,  and  one-half  of  said  penalty  when  recovered, 
shall  be  paid  into  the  treasury  of  said  county,  and  the  other  half  to 
the  informer  of  such  violation,  and  in  case  of  the  non-payment  of 
such  penalty,  the  party  so  offending  shall  be  liable  to  imprisonment 
for  a  period  not  exceeding  six  months,  in  the  discretion  of  any  court 
having  cognizance  thereof;  such  penalties  may  also  be  sued  for  and 
recovered  in  the  name  of  the  State  by  the  Attorney -General,  and 
when  sued  for  and  collected  by  him,  shall  be  paid  into  the  State 
treasury.     {1  bid,  p.  963,  §  24.) 

S^.  All  companies  incorporated  or  extended  under  this  act 
may  provide  in  their  charters  for  not  more  than  fifty  years'  duration, 
but  the  legislature  may,  at  any  time,  alter  or  amend  this  act,  and 
provide  for  the  closing  up  of  the  business  and  affairs  of  any  com- 
pany formed  under  it.  Nothing  herein  contained  shall  be  construed 
to  prevent  subsequent  extension  of  the  charters  of  companies  or- 
ganized or  extended  under  this  act.     {Ibid,  p.  964,  §  25.) 

SH.  Companies  other  than  those  organized  under  the  laws  of 
this  State,  which  may  have  received  certificates  of  authority  for  the 
year  1870,  prior  to  the  passage  of  this  act,  shall  be  permitted  to 
transact  the  business  of  insurance,  without  further  statement,  until 


WISCONSIN.  849 

the  thirty-first  day  of  January,  1871.  Any  fire  or  fire  and  inland 
navigation  insurance  company  charteretl  by  this  State,  may  have  a 
lien,  by  passing  a  by-law  to  that  effect,  upon  the  stock  or  certificate 
of  profits  owned  by  any  member  for  any  debt  hereafter  to  become 
due  the  said  company  for  premiums,  by  stating  that  the  said  stock 
is  subject  to  any  such  lien  upon  the  certificates  of  stock  or  juofitsj 
and  such  lien  may  be  waived  in  writing  by  the  consent  of  the])resi- 
dent  of  said  company  upon  the  transfer  of  any  such  stock.  {Ibid^ 
§  26.) 

3^.  Whenever  it  shall  appear  to  the  Secretary  of  State,  from 
an  examination  made  by  him  in  the  manner  prescribed  by  law, 
that  the  capital  stock  of  any  joint-stock  company,  organized  pur- 
suant to  law,  is  impaired  to  an  amount  exceeding  twenty-five  per 
cent,  of  such  capital,  and  he  shall  be  of  the  opinion  that  the  inter- 
ests of  the  public  will  not  be  prejudiced  by  permitting  such  com- 
pany to  continue  business  with  a  reduced  capital,  it  shall  be  lawful 
for  such  company,  with  the  permission  of  the  Secretary  of  State,  to 
reduce  its  capital  stock  and  the  par  value  of  the  shares  thereof  to 
such  amount  as  the  said  Secretary  of  State,  under  his  hand  and  offi- 
cial seal,  shall  certify  to  be  proper,  and  as  shall,  in  his  opinion,  be 
justified  by  the  assets  and  property  of  such  company ;  Provided, 
That  no  part  of  such  assets  and  property  shall  be  distributed  to  the 
stockholders;  and  Provided^  further,  That  the  capital  stock  of  such 
company  shall  not  be  reduced  to  an  amount  less  than  the  sum  now 
required  by  law  for  the  organization  of  a  new  company  under  this 
act,  for  the  transaction  of  business  at  the  place  where  such  com})any 
is  located,  and  of  the  kind  which  such  company  is  authorized  to 
transact.  No  reduction  of  the  capital  of  any  such  comi^any  shall 
be  made,  except  upon  a  resolution  of  its  directors,  approved  by  at 
least  two-thirds  of  the  directors,  certified  under  its  corporate  seal, 
signed  by  the  president  and  at  least  two-thirds  of  the  directors, 
and  proved  or  acknowledged  in  the  manner  required  by  law  for  the 
proof  or  acknowledgment  of  conveyances,  which  certificate  shall  be 
filed  in  the  office  of  said  Secretary  of  State  before  any  action  shall 
be  had  by  him  thereon.  The  Secretary  of  State,  in  case  lie  shall 
permit  any  such  company  to  reduce  its  capital  in  the  manner  pro- 
vided in  this  act,  shall  execute  the  certificate  required  by  this  act 
in  duplicate,  and  deliver  one  of  such  certificates  to  the  officers  of 
such  company,  who  shall  forthwith  file  the  same  with  the  Clerk  of 
the  Circuit  Court  of  the  county  in  which  such  company  is  located, 
and  the  other  such  certificate  shall  be  filed  in  the  office  of  the  said 
Secretary  of  State.  Such  company,  upon  filing  the  certificate  with 
the  Clerk  of  the  Circuit  Court  as  required  by  this  act,  shall  with 
such  reduced  capital,  possess  the  same  rights  and  be  subject  to  the 
same  liabilities  that  it  possessed  or  was  subject  to  at  the  time  of 
the  reduction  of  its  capital.  And  the  charter  of  such  company  shall 
be  deemed  to  be  amended  in  respect  to  the  amount  of  capital,  and 
the  par  value  of  the  shares  so  as  to  conform  to  such  reduction.  It 
shall  be  lawful  for  the  said  company  to  require  the  return  of  the 
original  certificate  of  stock  held  bj/  each  stockholder,  and  in  lieu 
thereof  to  issue  new  certificates  for  such  number  of  shares  as  each 
stockholder  may  be  entitled  to  in  the  proportion  that  the  reduced 
capital  may  be  found  to  bear  to  the  original  capital  of  the  company 
It  shall  be  lawful  for  any  such  company,  after  its  capital  shall  be  so 
reduced  as  aforesaid,  to"^  increase  its  capital  stock  in  the  mode  pre- 
scribed by  this  law.  It  shall  be  the  duty  of  all  receivers  and 
54 


850  hine's  insurance  statutes. 

trustees  of  insurance  companies  during  the  month  of  January  in 
each  year,  and  at  any  other  time  when  required  by  the  Secretary  of 
State,  to  make  and  tile  annual  and  other  statements  of  their  assets 
and  liabilities  and  of  their  income  and  expenditures,  in  the  same 
manner  and  form  and  under  the  same  penalties,  as  the  oflEicers  of 
such  companies  are  now  required  by  law  to  make  annual  and  other 
statements  to  the  Secretary  of  State's  office.  Every  lire  or  fire  and 
inland  navigation  insurance  company  doing  business  in  this  State, 
shall  cause  its  annual  statement  by  this  act  required  to  be  filed,  to 
be  published  in  the  official  State  paper  for  two  weeks,  and  in  one 
daily  paper  of  general  circulation,  i)ublished  in  the  city  of  Mil- 
waukee.    {Ibid,  §  27.) 

31.  It  shall  not  be  lawful  for  any  agent  or  agents  to  act  for 
any  insurance  company  or  companies,  directly  or  indirectly,  in  taking 
risks  or  transacting  business  of  insurance  in  this  State,  without  pro- 
curing from  the  Secretary  of  State  a  certificate  of  authority,  setting 
forth  that  such  company  has  complied  with  ail  the  conditions  of  this 
act.  Agents  appointed  by  any  company  doing  business  in  this  State, 
shall  be  held  personally  responsible  to  such  company  for  all  moneys 
received  by  them  for  such  company,  and  in  case  any  such  agent 
shall  embezzle  or  fraudulently  convert  to  his  own  use  any  money 
belonging  to  such  company  which  may  have  come  into  his  posses- 
sion or  be  under  his  care  by  virtue  of  his  agency,  shall  be  deemed 
by  so  doing  to  have  committed  the  crime  of  larceny,  and  on  convic- 
tion shall  be  subject  to  the  fines  and  penalties  provided  by  the  Stat- 
utes in  such  cases.     {Ibid,  p.  905,  §  28.) 

33.  Whenever  the  existing  or  futiu'e  laws  of  any  other  State 
of  the  United  States  shall  require  of  insurance  companies,  incorpor- 
ated by  or  organized  under  the  laws  of  this  State,  having  agencies 
in  such  other  States,  or  of  the  agents  thereof,  any  deposit  of  securi- 
ties in  such  State  for  the  protection  of  policy-holders  or  otherwise, 
or  any  payment  of  taxes,  fines,  penalties,  certificates  of  authority, 
license  fees  or  otherwise,  greater  than  the  amounts  required  for 
such  purposes  from  similar  companies  of  other  States  by  then  exist- 
ing laws  of  this  State,  then,  and  in  every  such  case  all  companies 
of  such  States  having  or  establishing  an  agency  or  agencies  in 
this  State,  shall  be  and  are  hereby  required  to  make  the  same  de- 
posit with,  pay  the  same  taxes,  fines,  i)enalties  and  fees,  for  like 
purposes  unto  the  Secretary  of  State,  imi^osed  upon  or  required  by 
the  laws  of  such  State  of  the  companies  of  this  State  or  agents 
thereof     {Ibid,  §  29.) 

33.  The  necessary  expenditure  of  any  examination  made  or 
ordered  to  be  made  by  the  Secretary  of  State  under  this  act,  shall 
be  certified  to  by  him  and  paid  on  his  requisition  by  the  company 
which  is  the  subject  of  such  examination ;  Provided,  Such  examina- 
tion be  not  required  of  such  comijanies  organized  outside  of  this 
State,  in  States  where  under  the  laws  thereof  they  are  similarly 
supervised  by  and  under  the  proper  officer,  as  in  such  laws  pro- 
vided, and  such  officer  shall  furnish,  whenever  required  to  do  so  by 
the  Secretary  of  State,  a  certificate  and  statement  exhibiting  the 
solvency  of  such  company.    {Ibid,  p.  966,  §  30.) 

34.  There  shall  be  paid  by  every  company,  association,  person 
or  persons  or  agent,  to  whom  this  act  shall  apply,  the  following 
fees  :  For  filing  the  declaration  or  certified  copy  of  charter  herein 
required,  the  sum  of  twenty -five  dollars;  for  filing  the  annual  state- 
ment required^  ten  dollars ;    for  each  certificate  of  authority  to 


WISCONSIN.  851 

agents  of  all  companies,  doing  business  within  this  State,  one  dol- 
lar ;  for  every  copy  of  paper  filed  in  his  office,  fifteen  cents  per  folio, 
and  for  affixing  tlie  seal  of  said  office  and  certifying  to  the  same, 
fifty  cents.  In  case  two  or  more  companies  shall  combine  to  effect 
insurance  under  a  joint  policy  or  jjolicies,  each  and  every  company 
thus  combinmg  shall  pay  the  fees  provided  herein,  the  same  as 
if  each  and  every  one  wrote  sei)arate  policv  or  policies.  {Ibid. 
§  31.) 

35.  It  shall  be  the  duty  of  the  Secretary  of  State,  for  the  pur- 
pose of  carrying  into  effect  a  more  thorough  supervision  and  exam- 
ination of  the  affairs  of  all  insurance  companies  doing  business  in 
this  State,  and  enabling  the  Secretary  of  State  to  exercise  control 
over  the  same,  as  may  be  required  by  law,  to  establish  in  his  office 
a  department  to  be  called  the  Department  of  Insurance,  and  to  em- 
ploy such  clerical  and  other  assistance  as  he  shall  deem  necessary, 
and  at  such  expense  as  he  shall  determine,  to  maintain  and  keep 
such  department,  and  to  enable  him  to  take  charge  of  and  conduct, 
or  cause  to  be  conducted,  all  examinations  of  the  business  and  affairs 
of  such  insurance  companies  that  are  or  may  be  required  by  law, 
and  generally  to  exercise  such  supervision  and  control  over  insur- 
ance companies  doing  business  in  this  State  as  the  law  may  re- 
quire ;  Provided,  That  the  whole  amount  of  the  expenses  of  such  de- 
partment in  any  year  shall  not  exceed  the  amount  of  fees  paid  by 
insurance  companies  during  that  year;  and  Frovided,  That  such  ex- 
penses, in  no  one  year  shall  exceed  the  sum  of  five  thousand  dol- 
lars; and  Provided,  That  the  amount  of  all  fees  over  and  above  five 
thousand  dollars,  paid  by  insurance  companies  under  section  31  of 
this  act,  shall  be  paid  over  by  the  Secretary  of  State  to  the  State 
Treasurer  and  go  to  the  general  fund ;  and  for  all  such  purposes, 
and  to  that  extent,  the  Secretary  of  State  shall  be  called  and  held 
to  be  the  Commissioner  of  Insurance.     {Ibid,  §  32.) 

;I0.  It  shall  be  the  duty  of  every  company  transacting  the 
business  of  insurance  under  this  act,  to  include  in  its  annual  state- 
ment, a  statement  showing  the  amount  received  in  this  State  during 
the  year  for  which  such  statement  is  made,  in  cash  for  premiums, 
in  premium  notes,  in  cash  notes,  and  the  amount  received  from 
other  sources  ;  and  showing  also  the  amount  paid  in  this  State  for 
salaries,  commissions  to  agents,  and  for  losses  during  the  same 
period.  And  each  such  company,  before  receiving  a  license  to  trans- 
act business  for  the  current  year,  shall  pay  to  the  State  Treasurer 
a  sum  equal  to  two  per  centum  of  the  gross  cash  receipts  of  sucli 
company  in  this  State,  including  all  notes  taken  for  premiums,  dur- 
ing the  year  for  which  such  statement  is  made ;  Provided,  All  com^ 
panics  chartered  or  organized  under  the  laws  of  this  State  may  be 
allowed  to  deduct  from  such  gross  receipts,  their  office  expenditures 
and  officers' salaries ;  and  Provided,  further,  Thsbt  when  application 
for  license  is  made  by  any  company  not  organized  under  the  laws 
of  this  State,  and  that  shall  not  have  transacted  business  within  the 
State  within  one  year  prior  to  such  application,  the  sum  of  five 
hundred  dollars  shall  be  paid  by  such  company  as  a  license  for  the 
first  year ;  such  sum  to  be  computed  by  or  under  the  direction  of 
the  Secretary  of  State,  and  in  order  to  ascertain  the  truth  of  such 
statements,  the  Secretary  of  State  may  require  such  additional  evi- 
dence as  he  shall  deem  necessary.  The  amount  paid  by  the  several 
insurance  companies,  as  provided  above,  shall  be  in  lieu  of  all  State, 
county  and  municipal  taxes  and  licenses,  except  taxes  on  real  estate. 


852  hine's  insurance  statutes. 

owned  by  any  insurance  company  and  exempt  as  provided  in  this 
act;  Provided,  That  this  act  shall  not  be  construed  to  prohibit  cities 
and  villages,  having  an  organized  Fire  Department,  from  collecting 
the  two  per  cent,  now  allowed  by  law  on  the  recei^Jts  of  each  insur- 
ance company  within  their  respective  limits,  to  be  applied  to  the 
support  of  the  Fire  Department  of  such  cities  and  villages.  {Ibid, 
p.  967,  §  33,  as  amended  by  laics  of  1873,  })■  649,  §  1.) 

37 „  There  shall  be  paid  to  the  Treasurer  of  the  Fire  Depart- 
ment of  any  city  or  village  in  this  State,  in  which  there  may  be  a 
regularly  organized  Fire  Department,  for  the  use  and  benefit  of  said 
Fire  Department,  on  the  first  day  of  February  in  each  year,  by 
every  person  who  shall  act  in  said  city  or  village  as  agent  for  or  in 
behalf  of  any  individual  or  association,  or  association  of  indi\iduals, 
whether  incorporated  by  the  laws  of  this  State  or  by  the  laws  of 
any  other  State,  territory  or  country,  to  effect  insurance  against 
losses  or  injury  by  fire,  the  sum  of  two  dollars  u])on  the  hundred 
dollars,  and  at  that  rate  upon  the  amount  of  all  premiums,  which, 
during  the  year  or  part  of  a  year  ending  on  the  next  preceding  first 
day  of  January,  shall  have  been  received  by  such  agent  or  jierson, 
or  received  by  any  other  person  or  persons  for  him,  or  shall  have 
been  agreed  to  be  paid  for  any  insurance  effected  or  agreed  to  be 
effected  or  promised  by  him  as  such  agent  or  otherwise  against  loss 
or  injury  by  fire,  in  any  such  city  or  village.  No  person  shall  in 
such  city  or  village,  as  agent  or  otherwise  for  any  individual,  indi- 
viduals or  association,  effect  or  agree  to  effect  any  insurance  u[)on 
which  the  duty  above  mentioned  is  required  to  be  paid,  or  as  agent 
or  otherwise  procure  such  insurance  to  be  effected,  until  he  shall 
have  executed  and  delivered  to  the  said  Treasurer  a  bond  to  the 
Fire  Department  of  any  such  city  or  village,  in  the  penal  sum  of 
one  thousand  dollars,  with  such  sureties  as  the  said  Treasurer  shall 
approve,  with  a  condition  that  he  will  annually  render  to  the  said 
Treasurer,  on  the  first  day  of  February  in  each  year,  a  just  and  true 
account,  verified  by  his  oath  that  the  same  is  just  and  true,  of  all 
premiums  which,  during  the  year  ending  on  the  first  day  of  Janu- 
ary preceding  such  report,  shall  have  been  received  by  him  or  any 
other  person  for  him,  or  agreed  to  be  paid  for  any  insurance  against 
loss  or  injury  by  fire  in  any  such  city  or  village,  which  shall  have 
been  effected  or  promised  by  him,  or  agreed  to  be  effected  or  prom- 
ised by  him  to  be  effected,  from  any  individual  or  individuals,  or 
association,  incorporated  as  provided  in  the  first  section  of  this  act 
and  that  he  will  annually,  on  the  first  day  of  February  in  each  year, 
pay  to  the  said  Treasurer  two  dollars  upon  every  hundred,  and  at 
that  rate  upon  the  amount  of  such  premiums.  Every  person  who 
shall  effect,  agree  to  effect,  promise  or  procure  any  insurance  speci- 
fied in  the  preceding  sections  of  this  chapter,  without  having  exe- 
cuted and  delivered  the  bond  required  by  the  i>receding  section, 
shall  for  each  offense  forfeit  one  hundred  dollars  for  the  use  of  said 
Fire  Department ;  such  penalty  of  one  hundred  dollars  shall  be  col- 
lected in  the  name  of  the  Fire  Department  of  any  such  city  or  vil- 
lage.    {Ibid,  §  34,  as  amended  by  laws  of  1873, 2>.  650,  §  2.) 

38.  Every  person  who,  at  any  time  hereafter,  as  agent  or  oth- 
erwise for  any  individual  or  individuals  or  association,  may  in  the 
city  of  Milwaukee,  effect  or  agree  to  effect  any  insurance  specified 
in  the  preceding  sections  of  this  chapter,  shall  on  the  first  day 
of  February  in  each  year,  or  within  ten  days  thereafter,  and  as 
.often  in  each  year  as  he  shall  alter  or  change  his  place  of  doing 


WISCONSIN.  853 

business  in  said  city,  report  in  writing  under  his  proper  signature, 
to  the  Treasurer  of  the  Fire  Department  iu  the  city  of  Milwaukee, 
the  street  and  number  thereof  in  the  said  city,  of  his  place  of  doing 
business  as  such  agent  or  otherwise,  designating  in  such  report  the 
individual  or  individuals  and  association  or  associations  for  which 
he  may  be  such  agent  or  otlierwise ;  and  in  case  of  default  in  any 
of  these  j)articulars,  such  person  shall  forfeit  for  every  offense  the 
sum  of  one  hundred  dollars,  to  be  recovered  and  collected  in  the 
name  of  this  State,  for  the  use  of  the  Fire  Department  iu  the  city 
of  Milwaukee.     {Ibid,  p.  968,  §  35.) 

S59„  In  case  the  Fire  Department  of  any  such  city  or  village 
shall  have  no  such  officer  as  Treasurer,  the  provisions  of  this  act,  so 
far  as  they  are  applicable  to  him,  shall  apply  to  the  Treasurer  of 
such  city,  village  or  town,  iu  which  such  village  may  be  located, 
having  no  Treasurer,  and  the  Treasurer  of  such  city,  village  or 
town  shall,  under  the  direction  of  the  proper  authorities  thereof, 
pay  over  all  moneys  received  or  recovered  by  Mm  under  the  provi- 
sions of  this  act,  to  the  Fire  Department  of  such  city  or  village. 
{Ibid,  p.  909,  §  38,  as  amended  by  laics  of  1873,  ^j.  G51,  §  3.) 

40,  The  term  "Fire  Department,"  as  used  in  section  one, 
chapter  65,  of  the  revised  statutes,  1858  [»I7],  shall  be  construed 
to  mean  a  Fire  Department  consisting  of  at  least  one  fire  company 
consisting  of  not  less  than  thirty  members,  and  one  hook  and  ladder 
company,  consisting  of  not  less  than  fifteen  members,  which  shall 
be  organized  as  provided  for  in  chapter  176  of  the  general  laws  of 
1861,  entitled  an  act  to  incorporate  fire  companies,  and  shall  have  at 
least  one  good  fire  engine,  with  not  less  than  five  hundred  feet  of 
sound  rubber  or  leather  hose,  which  shall  be  kept  in  an  engine- 
house,  and  to  be  fit  and  ready  at  all  times  for  actual  service,  and 
any  Fire  Department  so  equipped  and  organized  as  hereinbefore 
described,  and  meeting  at  least  once  a  month,  and  none  other,  shall 
be  entitled  to  the  benefits  granted  b3'  section  one,  chapter  Qb  of  the 
revised  statutes  of  1858;  Provided,  however^  That  nothing  in  this 
act  shall  be  construed  as  relating  to  the  Fire  Department  of  the 
cities  of  Milwaukee,  Fond  du  Lac,  La  Crosse,  Jauesville,  Madison 
and  Oshkosh.     {General  Laws,  1870,  j:*.  193,  §  1.) 

41,  It  shall  be  unlawful  for  any  insurance  company  against 
which  a  final  judgment  has  heretofore  been  recovered  or  shall  here- 
after be  recovered,  in  any  court  of  competent  jiu-isdiction  in  this 
State,  after  sixty  days  from  the  rendition  of  such  judgment,  and 
while  the  same  remains  unpahl,  to  issue  any  new  polic3'  of  insur- 
ance ;  and  in  case  any  insurance  company,  by  its  officers  or  agent 
or  agents  shall  ^^olate  the  pro\isions  of  this  section,  such  insurance 
comi)any  shall  forfeit  tne  sum  of  one  thousand  dollars,  which  may  be 
recovered  in  the  name  of  the  State  of  Wisconsin  in  an  action  of  debt, 
and  when  collected  shall  be  paid  over  to  the  common  school  fund  ; 
and  any  agent  of  such  company  who  shall  knowingly  violate  the 
provisions  of  this  section,  shall  be  deemed  guilty  of  a  misdemeanor, 
and  upon  conviction  thereof,  shall  be  punished  by  fine,  not  exceed- 
ing five  hundred  dollars,  nor  less  than  one  hundred  dollars,  or  by 
imprisonment  in  the  county  jail  of  the  proper  county,  for  a  term  not 
more  than  three  months  nor  less  than  thu-ty  days,  {Revised  Statutes, 
1871,  p.  969,  §  37.) 

42,  In  all  cases  where  any  individual  or  insurance  company 
or  companies,  authorized  by  laws  of  this  State  to  take  risks  and  is- 
sue policies  of  insurance  against  fires,  and  transact  the  business  of 


854  hike's  insurance  statutes. 

insurance  in  this  State,  whether  incorporated  by  this  or  any  other 
State,  shall  insure  or  issue  a  policy  of  insurance  against  loss  by 
fire,  upon  the  real  property  of  any  individual  or  incorporation  in 
this  State,  and  the  property  so  insured  shall  be  wholly  destroyed, 
without  criminal  fault  on  the  part  of  the  assured,  the  amount  of  insur- 
ance written  in  said  policy  or  policies  shall  be  taken  and  deemed  the 
true  value  of  the  property  at  the  time  of  such  loss,  and  the  amount 
of  the  loss  sustained  by  the  individual  or  corporation  in  whose  favor 
the  said  policy  was  issued,  and  such  amount  shall  be  taken  and 
deemed  the  measure  of  damages.     {Laws  o/1874,  j)-  7G4,  §  1.) 


LIENS  UPON  BOATS  AND  VESSELS  FOR  PREMIUMS  FOR 
FIRE  OR  MARINE  INSURANCE. 

43.  Every  boat  or  vessel  used  in  navigating  or  running  upon 
any  of  the  navigable  waters  of  this  State,  shall  be  liable  for  all 
debts  contracted  by  the  master,  owner,  agent,  manager  or  consignee 
thereof,  on  account  of  any  insurance  effected  upon  such  boat  or 
vessel,  the  engines,  machinery,  sails,  rigging,  tackle,  apparel  or  fur- 
niture thereof  against  any  fire  or  marine  risk,  and  any  such  indebt- 
edness, whether  remaining  in  open  account  or  secured  by  the  note 
or  other  evidence  of  indebtedness,  of  the  owner,  master,  agent,  man- 
ager or  consignee  of  such  boat  or  vessel  or  any  other  person,  shall  be 
and  remain  a  lien  upon  such  boat  or  vessel  for  one  year  from  the  time 
such  indebtedness  shall  be  contracted  and  such  insurance  effected, 
unless  sooner  discharged  by  payment,  or  unless  such  lien  shall  be 
released  in  writting  by  the  insurance  company,  individual,  associa- 
tion or  person  to  whom  such  debt  may  be  due  or  owing.  [General 
Laics,  1872,  p.  109,  §  1.) 

44.  Any  insurance  company,  association  or  person  lawfully 
authorized  to  transact  the  business  of  fire  or  marine  insurance  in 
tbis  State,  having  a  demand  for  fire  or  marine  insurance  on  any 
such  boat  or  vessel  as  aforesaid,  and  which  shall  be  a  lien  thereon 
pursuant  to  the  first  section  of  this  act,  may  institute  an  action  for 
the  recovery  thereof,  and  the  enforcement  of  such  lien  in  the  circuit 
court  of  the  county  in  which  said  vessel  may  lie,  pursuant  to  the 
provisions  of  chapter  one  hundred  and  fifty  of  the  Revised  Statutes 
of  this  State,  entitled  "  of  proceedings  for  the  collection  of  demands 
against  boats  and  vessels,"  and  the  several  acts  amendatory  thereof, 
and  the  lien  hereby  created  may  be  enforced  in  the  same  manner  as 
liens  are  now,  or  may  be  enforced  by  law  in  this  State,  against 
boats  and  vessels  for  materials  and  supplies  ;  and  all  the  provisions  of 
said  chapter  one  hundred  and  fifty  of  the  Revised  Statutes,  and  the 
several  acts  amendatory  thereof,  not  inconsistent  with  the  provi- 
sions of  this  act,  are  hereby  declared  to  apply  to  the  lien  created  by 
this  act  and  the  enforcement  thereof.     {I  hid,  §  2.) 

45.  No  insurance  company,  insurer  or  other  person  shall  be 
allowed  to  enforce  the  lien  created  under  the  provisions  of  this  act, 
as  against  or  to  the  prejudice  of  any  other  creditor  or  subsequent 
incumbrance  of  bona  fide  j)urchaser,  unless  suit  be  instituted  to  en- 
force such  lien  with  six  months  after  the  indebtedness  accrues. 
Any  such  debt  shall  cease  to  be  a  lien  unless  a  notice  thereof,  stat- 
ing the  name  of  the  vessel,  the  amount  of  the  debt  and  the  date 
when  contracted,  shall  be  filed  in  the  oftice  of  the  Clerk  of  the  Court 
of  the  county  where  such  insurance  shall  be  effected,  or  where  the 


wiscoKsm.  855 

insurance  company  or  insurers  shall  hold  the  principal  office,  within 
twenty  days  after  such  insurance  shall  be  effected.     {I bid,  j).  l\0, 

§3.) 


AN  ACT  TO  PROVIDE  AGAINST  EXTRAORDINARY  CON- 
FLAGRATIONS, a:nd  for  the  creation  of  safety 

FUNDS  BY  FIRE  INSURANCE  COMPANIES. 

46.  Thereafter  [hereafter]  it  shall  be  lawful  for  any  fire  insur- 
ance company  organized  under  the  laws  of  this  State  to  create  the 
funds  herein  pro^ided  for,  to  be  known  and  designated  as  the  quar- 
terly [guaranty]  surplus  fund  and  the  special  reserAc  fund,  and  to 
avail  itself  of  the  provisions  of  this  act,  upon  complying  with  the  re- 
quirements thereof.     {Laws  of  1875,  p.  606,  §  1.) 

47.  Any  fire  insurance  com})any  desiring  to  create  such  funds 
shall,  and  it  is  hereby  authorized  to  do  so  upon  the  adoption  of  a 
resolution  by  its  board  of  directors,  at  a  regular  meeting  thereof, 
and  filing  with  the  Secretary  of  State  a  copj'  thereof,  declaring  the 
desire  and  intention  of  such  comj)any  to  create  such  funds  and 
to  do  business  under  the  provisions  of  this  act ;  and  as  soon  after 
the  filing  of  such  copy  of  the  resolution  as  convenient,  the  Secretary 
of  State  shall  make,  or  cause  to  b,e  made,  an  examination  of  such 
company,  and  he  shall  make  a  certificate  of  the  result  thereof,  which 
shall  particularly  set  forth  the  amount  of  surplus  funds  held  by  such 
company  at  the  date  of  examination,  which  under  the  provisions  of 
this  act  are  to,  and  may  be  equally  di\ided  between  and  be  set 
apart  to,  constitute  said  guaranty  surplus  and  special  reserve  funds, 
which  certificate  shall  be  recorded  in  the  Insurance  Department; 
and  from  and  after  the  date  of  the  recording  of  said  certificate,  all 
the  policies  and  renewals  of  policies  issued  by  said  company  shall 
have  printed  ihereon  by  said  company  a  notice  that  the  same  are 
issued  under  and  in  pursuance  of  this  act,  referring  to  the  same  by 
its  chapter,  date,  and  title,  and  such  i)olicies  and  renewals  shall  be 
deemed  to  have  been  issued  and  received  subject  to  the  provisions 
of  this  act.     {Ibid,  ^2.) 

48.  After  the  date  mentioned  in  any  such  resolution  so  passed 
and  filed,  it  shall  not  be  lawful  for  such  company  to  make,  declare 
or  pay  in  any  form,  any  dividend  upon  its  capital  stock  exceeding 
seven' (7)  per  cent,  per  annum  thereupon  and  upon  the  surplus  funds 
to  be  formed  hereunder,  until  after  its  guaranty  surplus  fund  and  its 
special  reserve  fund  shall  [have]  together  accumulated  to  an  amount 
equal  to  its  said  capital  stock  ;  and  the  entire  surplus  profits  of  such 
company  above  such  annual  dividend  of  seven  (7)  per  cent,  shall  be 
equally  divided  between,  and  be  set  apart  to  constitute  the  guaranty 
surplus  fund  and  the  said  special  reserve  fund,  which  said  funds 
shall  be  held  and  used  as  hereinafter  provided,  and  not  otherwise; 
and  any  company  doing  business  under  this  act,  whidi  shall  declare 
or  pay  auv  dividend  contrary  to  the  provisions  herein  contained 
shall  be  liable  to  be  proceeded  against  by  the  Attorney-General  for 
the  [its]  dissolution.     {Ibid,  §  3.) 

49.  Said  guaranty  surplus  fund  shall  be  held  and  invested  by 
such  company  the  same  as  its  capital  stock  and  suri)lus  accumula- 
tion, and  shall  be  liable  and  applicable  in  the  same  manner  as  the 
capital  stock  to  the  payment  generally  of  the  losses  of  such  com- 
pany.    {Ibid,  p.  607,  ^  4:.) 


856  hine's  insueance  statutes. 

5J>.  Said  special  reserve  fund  shall  be  invested  according  to 
existing  laws  relating  to  investments  of  capital  by  lire  insurance 
companies,  and  shall  be  deposited  from  time  to  time  as  the  same 
shall  accumulate,  and  be  invested,  with  the  State  Treasurer,  who 
shall  permit  the  company  depositing  the  same  to  change  such  de- 
posits by  substituting  for  those  withdrawn  others  of  equal  amount 
and  value  to,  and  collect  and  receive  the  interests  or  dividends 
upon  such  securities  as  the  same  may  accrue ;  and  such  special  re- 
serve fund  shall  be  deemed  a  fund  contributed  by  the  stockholders 
to  protect  such  company  and  its  policy-holders  other  than  claim- 
ants for  losses  already  existing,  or  then  incurred,  in  case  of  such 
extraordinary  conflagration  or  conflagrations  as  hereinafter  men- 
tioned; and  said  fund  shall  not  be  regarded  as  any  part  or  portion 
of  the  assets  in  possession  of  said  company  so  as  to  be  or  render 
the  same  liable  for  any  claim  or  claims  for  loss  by  fire  or  otherwise 
except  as  herein  provided.     {Ibid,  §  5.) 

51.  In  estimating  the  profit  of  any  such  company  for  the  pur- 
pose of  making  a  division  thereof  between  said  guaranty  surplus 
fund  and  such  special  reserve  fund,  there  shall  be  deducted  from 
the  gross  assets  of  the  company,  including  for  this  purpose  the 
amount  of  the  special  reserve  fund,  the  sum  of  the  following  items  : 
First,  the  amount  of  all  outstanding  claims ;  second,  an  amount 
sufficient  to  meet  the  liability  of  such  company  for  the  unearned 
premiums  received  on  policies  having  less  than  one  year  to  run 
from  date  of  policy,  and  a  pro  rata  proportion  of  the  premiums 
received  on  the  policies  having  more  than  one  year  to  run  from 
date  of  policy,  and  shall  be  known  as  the  reinsurance  liability; 
third,  the  amount  of  its  guaranty  surplus  fund  and  of  its  special 
reserve  fund ;  fourth,  the  amount  of  the  caijital  of  the  com- 
pany, and  fifth,  interest  at  the  rate  of  seven  iier  cent,  per  annum 
upon  the  amount  of  the  capital  and  of  the  said  funds  for  whatever 
time  shall  have  elapsed  since  the  last  preceding  cash  dividend ; 
and  the  balance  shall  constitute  the  net  surplus  of  the  company 
subject  to  an  equal  diAision  between  the  said  funds  as  herein  pro- 
vided.    {Ibid,  §  6.) 

5^.  In  the  event  of  any  extensive  conflagration  or  .conflagra- 
tions, whereby  the  claims  upon  such  company  shall  exceed  the 
amount  of  its  capital  stock  and  the  guaranty  surplus  fund  provided 
for  by  this  act,  the  said  company  shall  notify  the  Secretary  of  State 
of  the  fact,  who  shall  then  make,  or  cause  to  be  made,  an  examina- 
tion of  said  company,  and  shall  issue  his  certificate  of  the  result, 
showing  the  amount  of  capital,  of  guaranty  surplus  fund,  of  special 
reserve  fund,  of  reinsurance  liability,  and  of  other  assets,  and 
upon  his  issuing  such  certificate  and  duplicate,  one  copy  to  be  given 
to  the  company  and  one  to  be  recorded  in  the  Insurance  Depart- 
ment, tlie  said  special  reserve  fund  shall  be  immediately  held  to  pro- 
tect all  policy-holders  of  said  company  other  than  such  as  are 
claimants  upon  it  at  the  time  or  such  as  became  such  claimants  in 
consequence  of  such  conflagration,  or  conflagrations ;  and  the 
amount  of  said  special  reserve  fund  and  an  amount  equal  to  the 
unearned  premiums  of  such  comf)any,  to  be  ascertained  as  herein- 
before provided,  shall  constitute  the  capital  and  assets  of  such 
company  for  the  protection  of  policy-holders  other  than  such  claim- 
ants, and  for  the  fiu'ther  conduct  of  its  business  ;  and  such  official 
certificate  of  the  Secretary  of  State  shall  be  binding  and  conclusive 
upon  all  parties  interested  in  such  company,  whether  as  stockhold- 


V 


WISCONSIN.  J  857 

ers,  creditors  or  policy-holders,  and  upon  the  payment  to  the  claim- 
ants, for  losses  or  otherwise,  existing  at  the  time  of  or  caused  by 
such  general  conflagTation  or  conflagrations,  of  the  amount  to  which 
they  are  respectively  entitled  in  proportion  to  their  several  claims, 
of  the  full  sum  of  the  capital  of  such  company,  and  of  its  guaranty 
surplus  fund,  and  of  its  assets,  excepting  only  such  special  reserve 
fund  and  an  amount  of  its  assets  equal  to  the  liability  of  the  com- 
pany for  unearned  premiums  as  so  certified  by  the  Secretary  of 
State,  such  company  shall  be  forever  discharged  from  any  and  all 
further  liability  to  such  claimants  and  to  each  of  them ;  and  the 
said  Superintendent  shall,  after  issuing  his  said  certificate,  upon  the 
demand  of  such  company,  transfer  to  it  all  such  securities  as  shall 
have  been  deposited  with  him  by  such  company  as  such  special  re- 
serve fund ;  and  if  the  amount  of  such  special  reserve  fund  be 
less  than  fifty  per  cent,  of  the  full  amount  of  the  capital  of 
the  company,  a  requsition  shall  be  issued  by  the  said  Secretary 
of  State  upon  the  stockholders  to  make  up  such  capital  to  that 
T)roportion  of  its  full  amount,  in  a  manner  now  provided  by  law 
in  the  case  of  companies  with  impaired  capitals ;  and  Provided^ 
further,  That  any  capital  so  impaired  shall  be  made  up  to  at  least 
the  sum  of  two  hundred  thousand  dollars  ($200,000) ;  and  in  case 
said  company,  after  such  requisition,  shall  fail  to  make  its  capital 
to  at  least  said  amount  of  $200,000,  as  therein  directed,  said  special 
reserve  fund  shall  still  be  held  as  security  and  liable  for  any  and  all 
losses  occurring  upon  policies  of  such  company  after  such  conflag- 
ration or  conflagrations.  Such  company  shall,  in  its  annual  state- 
ment to  'the  Insurance  Department  of  this  State,  set  forth  the 
amount  of  such  special  reserve  fund  and  of  its  guaranty  sui'plus 
fund.     [Ibid,  p.  608,  §  7.) 

53.  If  at  any  time  after  said  special  reserve  fund  shall  have 
been  accumulated  by  any  company,  it  shall  appear,  upon  examina- 
tion by  the  said  Secretary  of  State,  that  the  capital  of  such  com- 
pany has  in  the  absence  of  any  such  extensive  conflagration,  be- 
come impaired  so  as  to  cause  him  to  order  a  call  upon  the  stock- 
holders to  make  up  such  impairment,  the  board  of  directors  of  such 
company  may  either  comply  with  such  order  and  require  the  neces- 
sary payment  by  the  stockholders,  or,  at  their  option,  they  may 
a])ply  for  that  purpose  so  much  of  said  special  reserve  fund  as  will 
make  such  imj)airment  good.  No  company  doing  business  under 
this  act  shall  insure  any  larger  amount  upon  any  single  risk  than 
is  permitted  by  law  to  a  company  possessing  the  same  amount  of 
capital  irrespective  of  the  funds  hereby  provided  for.  {Ibidj 
p.  609,  §  8.) 


LIFE  AND  ACCIDENT  INSIIEANCE  COMPANIES. 

54.  Before  any  life  or  accident  insurance  company  shall  do 
business  in  this  State,  it  shall  have  a  guaranty  capital  of  at  least 
one  hundred  thousand  dollars  paid  in  money,  invested  as  hereinafter 
provided,  or  actual  assets  to  the  like  amount  invested  in  stocks  of 
the  United  States  or  of  this  State,  estimated  at  their  market  value, 
or  in  such  other  stocks  and  securities  as  may  be  approved  by  the 
Secretary  of  State,  or  in  mortgages  being  first  liens  upon  real  estate, 
the  said  real  estate  being  worth  at  least  twice  the  amount  of  money- 
loaned  thereon,  with  abstract  showing  a  good  and  sufiicient  title 


858  hene's  insurance  statutes. 

and  the  certificate  of  two  reputable  land-holders,  under  oath,  certi- 
fying to  the  value  of  said  property.  {Revised  Statutes,  1871,  p.  973, 
§56.) 

55.  No  policy  shall  be  issued  until  a  certificate  from  the  Sec- 
retary of  State  has  been  obtained,  authorizing  such  companies  to 
issue  such  policies.  The  Secretary  of  State  or  some  person  or  per- 
sons authorized  by  him,  shall  examine  the  capital  and  assets  of  any 
company  ai)plying  for  such  certificate,  and  the  Secretary  of  State 
shall  issue  the  same  only  when  satisfied  that  the  company  applying 
therefor  has  complied  with  the  provisions  of  the  first  section  of  this 
act.  Every  insurance  company  incorporated  in  this  State  shall  pay 
to  the  Secretary  of  State  for  the  examination  required  by  this  sec- 
tion, when  made,  the  sum  of  thirty  dollars.     {Ibid,  §  57.) 

56.  It  shall  not  be  lawful  for  any  person  to  act  within  this 
State,  as  agent  or  otherwise,  in  receiving  or  procuring  applications 
for  life  insurance,  or  in  any  manner  to  aid  in  transacting  the  busi- 
ness of  life  insurance,  referred  to  in  the  first  section  of  this  act,  for 
any  company  or  association  incorporated  by  or  organized  under  the 
laws  of  any  other  State  government,  unless  such  comi)any  has  con- 
formed in  such  State,  or  in  this  State  to  the  same  requirements  in 
regard  to  capital  that  are  imposed  by  section  one  of  this  act,  upon 
companies  doing  business  in  this  State,  or  in  lieu  thereof,  has  actual 
assets  to  the  amount  of  at  least  one  hundred  thousand  dollars  in- 
vested in  the  same  manner  as  is  prescribed  in  regard  to  capital  in 
section  one  of  this  act.     {Ibid,  p.  974,  §  58.) 

57.  Every  life  or  accident  insurance  company  incorporated  in 
this  State,  or  doing  business  in  the  State,  shall,  on  or  before  the 
first  day  of  March  in  each  year,  transmit  to  the  Secretary  of  State 
and  file  in  his  office,  a  statement  of  the  business,  standing  and 
affairs,  in  the  form  described  or  authorized  by  law,  and  adapted  to 
the  business  done  by  such  company,  signed  and  sworn  to  by  the 
president  or  vice-president  and  secretary,  and  made  out  for  the 
year  ending  on  the  preceding  thirtv-first  day  of  December.  {Ibid, 
§  59.) 

58.  All  life  or  accident  insurance  companies  chartered  or  or- 
ganized in  any  other  State  of  the  United  States,  or  beyond  the 
limits  of  the  United  States,  and  doing  business  in  this  State,  shall 
make  an  annual  statement  of  their  condition  and  affairs  to  the  Sec- 
retary of  State,  in  the  same  manner  and  in  the  same  form  as  sim- 
ilar companies  organized  under  the  laws  of  this  State.  The  Secre- 
tary of  State  shall  have  authority  to  extend  the  time  for  filing  such 
statement,  for  reasons  which  he  shall  deem  good  and  sufficient, 
whether  the  company  is  organized  in  this  State  or  elsewhere.  The 
statements  herein  provided  for  shall  be  in  lieu  of  any  and  all  state- 
ments now  required  by  any  existing  law.     {Ibid,  §  60.) 

59.  Life  or  accident  insurance  companies,  chartered  beyond  the 
limits  of  the  United  States  and  doing  business  in  this  State,  shall 
make  a  return  of  their  standing  on  the  thirty-first  day  of  December 
in  each  year,  agreeable  to'  the  form  required  by  this  act  of  other 
companies  doing  a  similar  business  in  this  State,  said  return  to  be 
made  to  the  Secretary  of  State,  on  or  before  the  first  day  of  March 
annually,  and  verified  and  sworn  to  by  the  president,  secretary  or 
resident  managing  officer  of  such  company  in  the  United  States. 
{Ibid,  §  61.) 

60.  The  form  for  life  or  accident  insurance  companies  shall  be 
as  follows : 


WISCONSIN.  859 

1.  Name  of  company. 

2.  When  chartered. 

3.  For  what  period. 

4.  Where  located. 

5.  State  in  fall  the  assets  of  the  company. 

6.  Number  of  shares  owned  in  any  bank ;  state  par  value, 
cost,  and  the  market  value  per  share. 

7.  Number  of  shares  owned  in  any  railroad  ;  stating  the  cor- 
porate name  of  each,  and  money  invested  in  each,  at  cost,  on 
its  books  5  state  the  par  value  and  market  value  of  each  share. 

8.  Amount  owned  in  railroad  bonds ;  state  par  value,  cost, 
and  market  value  per  share. 

9.  Amount  invested  in  real  estate  at  cost,  on  the  books  of  the 
company. 

10.  Amount  loaned  on  mortgages  of  real  estate,  and  estimated 
value  of  said  real  estate. 

11.  Amount  loaned  on  notes  secured  by  collaterals  of  personal 
property. 

12.  Amount  loaned  on  notes  without  collaterals. 

13.  State  in  full  other  investments. 

14.  How  much,  included  in  the  foregoing  statement  of  as- 
sets, consists  of  premium  notes  on  policies  not  returned  as  now 
in  force. 

15.  Number,  date,  kind  and  amount  of  each  outstanding 
policy,  and  age  of  the  insured,  excepting  in  case  of  companies 
whose  policies  have  been  valued  by  the  proper  officer  in  some 
other  State,  which  valuation  shall  be  shown  hy  certificate  from 
the  Insurance  Department  of  such  State. 

16.  Number  and  amount  of  each  class  or  kind  of  policies 
which  have,  within  the  year,  ceased  to  be  in  force ;  how  termi- 
nated ;  what  has  been  paid  to  the  legal  holders  of  the  policies. 

17.  Amount  of  losses  ascertained  and  unpaid. 

18.  Amount  of  losses  claimed  against  the  company,  whether 
acknowledged  as  due  or  not  by  the  company. 

19.  Amount  due  from  the  comi)any  on  its  declared,  promised, 
or  acknowledged  indebtedness  or  other  claims,  including  divi- 
dends, bonuses  on  distribution  of  surplus,  or  as  profits. 

20.  Amount  received  for  premiums  the  past  year. 

21.  Amount  received  for  premiums  in  cash. 

22.  Amount  received  for  premiums  in  promissory  notes  or 
securities. 

23.  Amount  received  for  interest  the  past  year. 

24.  Amount  paid  for  interest  the  past  year. 

25.  Amount  of  guaranty  funds;  and  state  particularly 
whether  the  same  are  in  cash  or  subscription  notes. 

26.  How  are  dividends,  distributions  of  surplus  funds,  bonus- 
es, or  estimated  profits,  paid?  Whether  in  cash,  scrip,  or 
otherwise,  on  credit,  and  whether  on  demand ;  or  if  on  credit, 
for  what  length  of  time,  and  whether  payable  at  a  specific  time, 
or  indefinitely,  at  the  discretion  of  the  comi)any. 

27.  Amount  paid  for  expenses,  taxes  and  commissions  the 
past  year,  classified. 

28.  Amount  of  dividends  paid,  specifying  the  amount  paid 
to  stockholders  and  the  amount  i)aid  to  policy-holders.  {Ibid, 
p.  975,  §  62.) 

61.    The  Secretary  of  State  is  hereby  authorized  to  amend  and 


860  hine's  insurance  statutes. 

revise  the  forms  of  annual  statements  hereinbefore  prescribed,  and 
to  propose  such  additional  inquiries  as  are  necessary  to  elicit  a  full 
exhibit  of  the  business  and  standing  of  the  various  insurance  com- 
panies doing-  business  in  this  State.     {Ibid,  p.  976,  §  63.) 

6'3.  Any  company  doing  business  in  this  State,  neglecting  to 
make  returns  in  the  manner  and  within  the  time  hereinbefore  au- 
thorized and  prescribed,  shall  forfeit  one  hundred  dollars  for  each 
day's  neglect;  and  every  company  that  willfully  makes  false  state- 
ments, shall  be  liable  to  a  fine  of  not  less  than  five  hundred  dollars, 
nor  more  than  one  thousand  dollars.  Any  new  business  done  by 
any  company  or  its  agents  in  this  State,  that  has  neglected  to  make 
true  returns  in  the  prescribed  form,  shall  be  deemed  to  be  done  in 
violation  of  law.     [Ibid,  §  64.) 

6tl,  When  the  actual  funds  of  any  life  insurance  company 
doing  business  in  this  State,  are  not  of  a  net  value  equal  to  the  net 
valne  of  its  policies,  according  to  the  American  Experience  Table  of 
Mortality,  with  interest  at  four  and  one-half  per  cent,  per  annum, 
it  shall  be  the  duty  of  the  Secretary  of  State  to  give  notice  to  such 
company  and  its  agents,  to  discontinue  issuing  new  policies  within 
this  State,  until  such  time  as  its  funds  have  become  equal  to  its  lia- 
bilities, valuing  its  policies  as  aforesaid.  Any  officer  or  agent  who, 
after  such  notice  has  been  given,  issues  or  delivers  a  new  policy  from 
and  on  behalf  of  such  company,  before  its  funds  have  become  equal 
to  its  liabilities  as  aforesaid,  shall  forfeit  for  each  offense,  a  sum  not 
exceeding  one  thousand  dollars.     {Ibid,  §  65.) 

64.  It  shall  be  lawful  for  any  company  organized  in  this  State 
to  invest  its  funds  or  accumulations  in  the  stocks  of  the  United 
States  or  of  this  State,  or  of  any  incorporated  city  or  town  in  this 
State,  or  in  mortgages  (being  first  liens)  on  real  estate,  being  worth 
at  least  twice  the  amount  of  the  money  loaned  thereon,  and  any 
company  may  loan  to  policy-holders  in  such  company,  from  time  to 
time,  sums  not  exceeding  one-half  the  annual  premiums  on  their 
policies,  upon  notes  to  be  secured  by  the  policy  of  the  person  to 
whom  the  loans  may  be  made.     {Ibid,  §  66.) 

65.  When  any  life  or  accident  insurance  company,  organized 
under  the  laws  of  this  State,  shall  transact  business  in  any  other 
State,  it  may  invest  its  surplus  funds  in  such  State,  in  like  security, 
and  under  the  same  restrictions  as  in  this  State.     {Ibid,  p.  977,  §  67.) 

66.  The  Secretary  of  State  is  hereby  authorized  and  empowered 
to  address  any  inquiries  to  any  life  or  accident  insurance  company, 
or  to  the  Secretary  thereof  in  relation  to  its  doings  or  conditions  or 
any  other  matter  connected  with  its  transactions,  and  it  shall  be  the 
duty  of  any  such  company  so  addressed  to  reply  promptly  in  writing 
to  any  such  inquiries ;  and  all  such  companies,  not  incorporated  under 
the  laws  of  this  State,  failing  to  answer  all  such  inquiries,  shall  not 
be  authorized  to  transact  any  business  in  this  State,  and  their  cer- 
tificates of  authority  may  be  revoked  and  canceled.  It  shall  be  the 
duty  of  the  Secretary  of  State  to  make  or  cause  to  be  made,  an 
examination  of  the  condition  and  affairs  of  any  life  or  accident 
insurance  company  doing  business  in  this  State,  whenever  he  shall 
deem  it  expedient  to  do  so,  and  also  whenever  he  shall  have  good 
reason  to  suspect  the  correctness  of  any  annual  slatement,  or  that 
the  affairs  of  any  company  making  such  statements  are  in  an  un- 
sound condition.     {Ibid,  §  68.) 

<57.  Life  or  accident  insurance  companies  doing  business  in 
this  State,  which  do  business  upon  the  principle  of  mutual  insur- 


WISCONSIN.  861 

ance,  or  the  members  of  which  are  entitled  to  share  in  the  surplus 
fund  thereof,  may  make  distribution  of  such  surplus  as  they  may 
have  accumulated,  annually,  or  once  in  two,  three,  four  or  five  years, 
as  the  directors  thereof  may  from  time  to  time  determine.  In 
determining  the  amount  of  the  surplus  to  be  distributed,  there 
shall  be  reserved  an  amount  not  less  than  the  aggregate  net  value 
of  all  the  outstanding  policies ;  said  value  to  be  computed  by  the 
American  Experience  Table  of  Mortality,  with  interest  not  exceed- 
ing four  and  one-half  per  cent.     {Ibid,  §  69.) 

68.  Every  life  or  accident  insurance  company  not  organized  in 
this  State,  before  doing  business  in  this  State,  shall  aj)i)oint  an  attor- 
ney, resident  in  this  State,  upon  whom  all  lawful  processes  against 
the  company  may  be  served  with  like  effect  as  if  the  company  existed 
in  this  State  ;  and  said  ijower  of  attorney  shall  stipulate  and  agree, 
on  the  part  of  the  company  making  the  same,  that  any  lawful  pro- 
cess against  said  company,  which  is  served  on  said  attorney,  shall 
be  of  the  same  legal  force  and  validity  as  if  served  on  said  company. 
A  copy  of  said  power  of  attorney,  duly  certified  and  authenticated, 
shall  be  filed  in  the  office  of  the  Secretary  of  State,  and  copies  cer- 
tified by  him  shall  be  sufficient  evidence.  This  agency  shall  be  con- 
tinued while  any  liability  remains  outstanding  against  the  company 
in  this  State,  and  the  power  shall  not  be  revoked  until  the  same 
power  is  given  to  another,  and  a  like  copy  filed  as  aforesaid.  Ser- 
vice upon  said  attorney  shall  be  deemed  sufficient  service  upon  the 
company,     {Ibid,  §  70.) 

.  69,  The  Treasurer  of  the  State,  in  his  official  capacity,  shall 
take  and  hold  on  deposit,  the  securities  of  any  life  insurance  com- 
pany incorporated  under  the  laws  of  this  State,  which  are  deposited 
by  any  such  company  for  the  purpose  of  securing  policy-holders  and 
comi)lying  with  the  law  of  any  State,  in  order  to  enable  such  com- 
pany to  transact  business  in  such  State.  The  companies  depositing 
such  securities  shall  have  the  right  to  receive  the  income  thereof, 
and  at  any  time  to  exchange  the  same,  according  to  the  laws  of  the 
State  in  which  they  may  be  doing  business.     {Ibid,  p.  978,  §  71.) 

70.  If  any  life  insurance  company  organized  in  this  State,  or 
in  any  other  State  of  the  United  States,  or  in  any  foreign  country, 
whose  policies  are  not  valued  by  the  Insurance  Department  or  proper 
officers  of  any  other  State,  shall  transact  business  in  this  State,  it 
shall  be  the  duty  of  the  Secretary  of  State  to  calculate  the  existing 
value  of  all  outstanding  i)olicies  of  such  company  ;  and  every  such 
company  shall  pay,  annually,  to  the  Secretary  of  State,  by  way  of 
compensation,  one  cent  on  every  thousand  dollars  for  the  valuation 
of  its  policies  is3ued  by  it  on  lives.  A  certified  copy  of  the  valu- 
ations of  the  policies  of  any  company  organized  in  this  State, 
or  any  other  State,  made  by  the  Insurance  Department  or  other 
proper  officers  of  the  States  of  Massachusetts  or  New  York,  tiled 
in  the  office  of  the  Secretary  of  State,  shall  be  a  comi)liance  with 
this  section.     {Ibid,  §  72.) 

71.  No  life  insurance  company  organized  under  the  laws  of 
this  State  shall  issue  i)olicies  insuring  fire,  or  marine,  or  accident, 
or  live  stock  risks,  nor  do  any  banking  business.     {Ibid,  §  73.) 

72.  Whenever  the  existing  or  future  laws  of  any  other  State 
of  the  United  States  shall  require  of  life  insurance  companies,  in- 
corporated by  or  organized  under  the  laws  of  this  State,  or  of  the 
agents  thereof,  any  deposits  or  securities  in  such  State  for  the  pro- 
tection of  policy-holders  or  otherwise,  or  any  payment  for  taxes. 


862  hike's  insurance  statutes. 

fines,  penalties,  certificates  of  authority,  license  fees  or  otherwise, 
greater  than  the  amount  required  for  such  purposes  from  similar 
companies  of  other  States,  by  the  then  existing  laws  of  this  State, 
then,  and  in  every  such  case,  all  life  or  accident  insurance  companies 
of  such  States  establishing  or  having  heretofore  established  an 
agency  or  agencies  in  this  State,  shall  be  and  are  hereby  required 
to  make  the  same  deposit  for  a  like  purpose  with  the  State  Treasurer 
of  this  State,  and  to  pay  to  the  Secretary  of  State  for  taxes,  fines, 
penalties,  certificates  of  authority,  license  fees  or  any  other  obliga- 
tion, an  amount  equal  to  the  amount  of  such  charges  and  payments 
imposed  by  the  laws  of  such  other  State  upon  the  companies  of  this 
State,  and  the  agents  thereof.     {Ibid,  p.  979,  §  75.) 

7^.  Every  life  or  accident  insurance  company  not  organized 
under  the  laws  of  this  State,  shall  before  doing  business  in  this  State, 
deposit  with  the  Secretary  of  State  a  copy  of  the  charter  of  the 
company,  and  a  statement  signed  and  sworn  to  by  the  president  or 
vice-president  and  secretarj^,  in  the  form  prescribed  or  authorized 
for  the  annual  statement  adapted  to  the  business  done  by  such  com- 
pany.    {I hid,  §  76.) 

/4.  Whoever  solicits  insurance  on  behalf  of  any  life  or  accident 
insurance  company  not  chartered  by  and  not  established  within  this 
State,  or  transmits,  for  any  person  other  than  himself,  an  applica- 
tion for  life  or  accident  insurance,  or  a  policy  of  life  or  accident  in- 
surance, to  or  from  such  company,  or  advertises  that  he  will  receive 
or  transmit  the  same,  shall  be  held  to  be  an  agent  of  such  company 
to  all  intents  and  purposes,  and  subject  to  all  the  duties,  requisi- 
tions, liabilities  and  penalties  set  forth  in  the  laws  of  this  State,  re- 
lating to  life  or  accident  insurance  companies  not  incorporated  by 
the  legislatm^e  thereof.     {Ibid,  §  77.) 

75.  Any  agent  making  insurance  in  violation  of  any  law  of 
this  State  regulating  life  insurance  companies,  shall  forfeit  for  each 
offense,  a  sum  not  exceeding  five  hundred  dollars.  {Ibid,  p.  980, 
§  78.) 

76.  For  filing  the  annual  statement  required  in  the  office  of 
the  Secretary  of  State,  the  said  Secretary  shall  be  paid  twenty-five 
dollars;  for  each  agent's  certificate  of  authority,  one  dollar;  for 
every  copy  of  a  paper  filed  in  the  Secretary's  office,  twenty  cents  per 
folio,  and  for  affixing  the  seal  of  said  office  to  such  copy  and  certify- 
ing the  same,  one  dollar;  and  for  examining  the  affairs  of  any  com- 
pany, when  deemed  necessary,  the  expenses  incurred  therein  shall 
be  paid  to  said  Secretary  of  State  by  the  company.     {Ibid,  §  79.) 

77.  The  Secretary  of  State  shall  annually,  on  or  before  the  first 
day  of  May,  prepare  and  print  in  a  single  document,  the  information 
contained  in  the  statements  made  under  this  act,  and  shall  com- 
municate the  same  to  the  legislature.  He  shall  also  cause  the  an- 
nual statements  required  to  be  tiled  by  this  act,  to  be  published  in 
the  official  State  paper  for  one  week,  and  for  the  like  period  in  a 
newspaper  i)ublished  in  the  city  of  Milwaukee,  at  the  exj)ense  of 
such  companies  respectively.     {Ibid,  §  80.) 

78.  It  shall  be  unlawful  for  any  life  or  accident  insurance  com- 
pany against  which  a  final  judgment  has  heretofore  been  recovered 
or  shall  hereafter  be  recovered  in  any  court  of  competent  jurisdic- 
tion in  this  State,  after  sixty  days  from  the  rendition  of  such  judg- 
ment and  while  the  same  shall  remain  unpaid,  unless  execution  bo 
stayed  by  appeal  according  to  law,  to  issue  any  new  policy  of  insur- 
ance, and  in  case  any  life  insurance  or  accident  company  by  its 


WISCONSTN.  863 

officers  or  agent  or  agents  sliall  violate  the  provisions  of  this  section, 
such  life  or  accident  insurance  company  shall  forfeit  the  sum  of  one 
thousand  dollars,  which  may  be  recovered  in  the  name  of  the  State 
of  Wisconsin  in  an  action  of  debt,  and  when  collected  shall  be  paid 
over  to  the  common  school  fund.  And  any  agent  of  such  company 
who  shall  knowingly  violate  the  provisions  of  this  section  shall  be 
deemed  guilty  of  a  misdemeanor,  and  upon  conviction  thereof,  shall 
be  punished  by  fine  not  exceeding  five  hundred  dollars,  nor  less 
than  one  hundred  dollars,  or  by  imprisonment  in  the  county  jail  of 
the  proijer  county  for  a  term  not  more  than  three  months,  nor  less 
than  thirty  days ;  and  Provided,  That  the  Provident  Life  Insurance 
Company  of  Chicago,  State  of  Illinois,  and  the  Eagle  Insurance 
Company  of  Chicago,  State  of  Illinois,  shall  not  be  permitted  to 
issue  any  policy  of  insurance  in  this  State,  and  shaU  not  have  any 
right  or  privileges  whatever  under  or  by  virtue  of  this  act.  (Ibid, 
§81). 

79.  No  life  or  life  and  accidental  insurance  company  shall 
transact  business  in  this  State  without  first  having  obtained  a  license 
therefor  from  the  Secretary  of  State,  which  license  when  issued  shall 
authorize  the  insurance  company  named  therein  and  the  agents 
thereof,  to  transact  business  in  this  State  until  the  last  day  of 
February  following  the  date  thereof.  No  such  license  shall  be  issued 
by  the  Secretary  of  State  to  any  life,  or  life  and  accidental  insur- 
ance company  until  such  company  shall  have  filed  in  the  office  of 
the  Secretary  of  State,  the  reports  and  statements  in  this  act  re- 
quired, and  shall  have  i)aid  to  the  State  Treasurer  in  addition  to  the 
fees  m  this  act  prescribed,  an  annual  license  fee  of  three  hundred 
dollars,  and  all  life  and  life  and  accident  companies  organized  in  this 
State  under  special  charters  granted  for  that  purpose,  or  under  gen- 
eral laws,  shall  pay  into  the  State  treasury  one  per  cent,  on  the  cash 
receii)ts  for  premiums  recei^  ed  by  such  company  in  the  State  of 
Wisconsin  for  the  year  preceding  the  making  of  the  annual  report 
as  hereinbefore  ju-ovided,  which  sum  shall  be  paid  to  the  State 
Treasurer  at  the  time  such  report  is  filed  with  the  Secretary,  for 
which  sum  so  i^aid  the  State  Treasurer  shall  execute  duplicate  re- 
ceipts. The  payment  of  the  sum  provided  in  this  section,  shall  be 
in  lieu  of  all  taxes  for  any  purpose  authorized  by  the  laws  of  this 
State,  excepting  taxes  upon  such  real  estate  as  may  be  owned  by 
such  company ;  Provided,  That  nothing  in  this  act  shall  be  construed 
to  relieve  any  company  from  the  payment  of  any  license  fees  or 
taxes  now  due  under  existing  laws  upon  business  transacted  prior 
to  January  first,  1870.     {Ibid,  p.  981,  §  .82. ) 


DEPOSIT  OF   SECURITIES   WITH  STATE   TREASUEEE. 

80.  It  shall  be  the  duty  of  the  State  Treasurer  to  receive  and 
hold  in  trust  for  the  policy-holders  of  any  insurance  comi)any  incor- 
porated by  the  laws  of  this  State,  such  bonds,  stocks  or  other  secur- 
ities as  may  be  offered  by  such  comjiany ;  and  upon  application  of 
said  company,  to  give  such  a  certificate  from  year  to  year  of  such  a 
deposit,  as  may  be  required  by  the  laws  of  other  States,  in  order  to 
the  transaction  of  the  business  of  insurance  therein.  Nothing  herein 
contained  shall  be  so  construed  as  to  prevent  such  companies  from 
collecting  or  receiving  the  interest  accruing  upon  such  securities,  or 
from  withdrawing  such  deposit,  or  from  changing  such  securities 


864  hine's  insueance  statutes. 

from  time  to  time  as  may  be  desired  by  said  company  so  depositing. 
{Revised  Statutes,  1871,  ja  973,  §  55.) 


AGENTS  OF  IKSUEANCE  COxMPANIES. 

81.  Whoever  solicits  insurance  on  behalf  of  any  fire,  marine, 
inland,  life  or  accident  insurance  company,  or  transmits  for  any 
person  other  than  himself  an  application  for  insurance,  or  a  x>olicy 
of  insurance,  to  or  from  said  company,  or  advertises  that  he  will  re- 
ceive or  transmit  the  same,  shall  be  held  to  be  an  agent  of  such 
company  to  all  intents  and  purposes,  unless  it  can  be  shown  that  he 
receives  no  commission  or  other  compensation  or  consideration  for 
such  service.     {Revised  Statutes,  1871,^.  981a,  §  84.) 

8S.  No  corporation,  association,  partnership  or  individual, 
doing  business  in  this  State  under  any  charter,  compact  or  agTee- 
ment  involving  any  insurance,  guaranty,  contract  pledge  for  the 
payment  of  annuities  or  endowments,  or  for  the  payment  of  moneys 
to  the  families  or  representatives  of  i>olicy  or  certificate  holders  or 
members,  shall  make  such  insurauce,  guaranty  or  contract  therein 
or  with  any  resident  of  this  State,  except  in  accordance  with  and 
under  the  conditions  and  restrictions  of  the  statutes  now  or  here- 
after regulating  the  business  of  life  insurance.     {Ibid,  §  85.) 

83.  No  officer,  agent  or  sub-agent  of  any  insurance  company 
shall  act  or  aid  in  any  manner  in  transacting  the  business  of  insur- 
ance of  or  with  such  company,  or  placing  risks,  or  effecting  insur- 
ance therein,  without  first  procuring  from  the  Secretary  of  State  a 
certificate  of  authority  so  to  do  for  each  company  for  which  he  pro- 
poses to  act,  which  shall  state  in  substance  that  such  company  is 
duly  authorized  to  do  business  in  this  State  under  the  laws  thereof, 
and  that  such  agent  or  other  person  has  duly  comjjlied  with  the 
laws  relating  to  the  agents  of  such  companies.  The  Secretary  of 
State,  upon  being  satisiied  of  the  facts  to  be  stated  therein  shall 
grant  such  certificate,  which  in  case  of  fire,  marine  or  inland  com- 
panies shall  continue  in  force  until  the  thirty-first  day  of  January 
next  after  the  date  thereof,  and  in  case  of  life  or  accident  comi)anies, 
until  the  first  day  of  March  next  after  the  date  thereof,  unless 
sooner  revoked  by  the  Secretary  of  State  for  non-compliance  with 
the  laws  aforesaid,  and  shall  be  renewed  on  said  days  and  annually 
thereafter,  so  long  as  the  company  and  its  agents  continue  to  com- 
ply with  said  laws.     {Ibid,  §  SQ.) 

84.  Every  agent  soliciting  insurance  shall  exhibit  his  certifi- 
cate of  authority,  when  requested  to  by  any  person,  and  a  refusal 
or  failure  so  to  do  shall  be  presumptive  evidence  that  such  agent  is 
doing  business  contrary  to  law.     {Ibid,  p.  9SVj,  §  87.) 

85.  Whoever  violates  the  provisions  of  this  chapter  shall  be 
punished  by  a  fine  not  exceeding  five  hundred  dollars,  nor  less  than 
fifty  dollars  for  each  offense,  which  shall  be  sued  for  and  recovered 
in  the  name  of  the  State  by  the  District  Attorney  of  the  county  in 
which  the  company  or  the  agent  or  agents  so  violating  shall  be 
located  or  doing  business,  and  one-half  of  said  penalty  when  re- 
covered shall  be  paid  into  the  treasury  of  the  said  county,  and  the 
other  half  to  the  informer  of  such  violation.  In  .case  of  the  non- 
payment of  such  penalty,  the  party  so  offending  shall  be  liable  to 
imprisonment  for  a  period  not  exceeding  six  months,  in  the  discre- 
tion of  any  court  having  cognizance  thereof;  such  penalties  may 


WISCONSIN.  •         8G5 

also  be  sued  for  and  recovered  in  the  name  of  the  State  by  the 
Attorney-General,  and  when  sued  for  anti  collected  by  him,  shall  be 
paid  into  the  State  treasury.     [Ibid,  §  88.) 


CHANGmG    SUITS    FROM    STATE    TO    UNITED    STATES 

COURTS. 

86.  If  any  insurance  company  or  association  shall  make  ap- 
plication to  change  the  venue  or  remove  any  suit  or  action  hereto- 
fore commenced  or  which  shall  be  hereafter  commenced  in  any  court 
of  the  State  of  Wisconsin,  to  the  United  States  circuit  or  district 
court,  or  to  the  federal  court,  contrary  to  the  provisions  of  any  law 
of  the  State  of  Wisconsin,  or  contrary  to  any  agreement  it  has  made 
and  filed,  or  may  make  and  file  as  provided  and  required  by  section 
number  twenty -two  (22)  of  chapter  fifty-six  (56)  of  the  general  laws 
of  Wisconsin,  for  the  year  A.  D.  1870,  or  any  other  provision  of  law 
now  in  force  in  said  State,  or  may  hereafter  be  enacted  therein,  it 
shall  be  the  imperative  duty  of  the  Secretary  of  State,  or  other 
proper  State  officer,  to  revoke  and  recall  any  authority  or  license  or 
certificate  to  such  company,  to  do  and  transact  any  business  in  the 
State  of  Wisconsin,  and  no  renewal  or  new  license  or  certificate 
shall  be  granted  to  such  company  for  three  years  after  such  revoca- 
tion, and  such  company  shall  therefore  [thereafter]  be  prohibited 
from  transacting  any  business  in  the  State  of  Wisconsin  until 
again  duly  licensed.    {General  Laws,  1872,^.  67,  §  1.) 

87.  In  case  any  insurance  comi)any  or  association  incorporated 
by,  or  organized  under  the  laws  of  any  other  State  of  the  United 
States,  or  any  foreign  government,  shall  have  previous  to  the  passage 
of  this  act,  made  application  to  any  court  of  this  State  to  change 
the  venue  or  place  of  trial  to  the  federal  courts  or  United  States 
circuit  or  district  courts  in  any  suit  commenced  or  pending  in  such 
State  court  contrary  to  the  provisions  of  said  chapter  fifty-six  (56) 
of  the  General  Laws  of  Wisconsin  for  the  year  A.  D.  1870,  or  any 
other  law  of  said  State,  or  contrary  to  any  agreement  which  si^ch 
company  or  association  may  have  made  and  filed  according  to  sec- 
ion  twenty-two  (22)  of  chapter  fifty-six  (56)  of  the  General  Laws  of 
Wisconsin  for  1870,  or  any  other  law  of  said  State,  and  an  order 
has  not  been  made  by  such  State  court  or  the  judge  thereof,  chang- 
ing the  venue  or  place  of  trial  to  the  said  United  States  or  federal 
court  or  courts,  unless  such  company  or  association  shall,  within 
sixty  days  after  the  passage  and  publication  of  this  act,  make  and 
file  in  such  action  in  whatever  court  the  same  may  then  be  pending, 
a  stipulation  withdrawing  such  application,  and  wholly  abandoning 
the  same,  the  Secretary  of  State  or  other  i)roi)er  State  officer,  shall 
recall  and  revoke  any  license,  certificate  or  authority  to  such  com- 
pany or  association  to  do  or  carry  on  business  in  the  State  of  Wis- 
consin. And  in  case  any  such  company  or  association  shall  refuse 
or  neglect  to  make  and  file  such  stipulation  as  above  provided,  such 
company  or  association  shall  be  prohibited  from  doing  or  carrying 
on  business  in  the  State  until  again  duly  licensed  as  hereinafter 
provided,  and  no  new  license  or  renewal  of  license  or  certificate 
shall  be  granted  to  such  comi)auy  or  association  to  do  or  transact 
any  business  in  the  State  of  Wisconsin  for  three  years  next  after  its 
neglecting  to  make  and  file  such  a  stipulation.     {Ibid,  §  2.) 

88.  If  any  insurance  company  or  association  shall  make  appli- 
55 


r 


806  niNE'S  INSURANCE  STATUTES. 

cation  to  remove  any  case  from  the  State  Court  into  the  United 
States  Circuit  or  District  Court  or  Federal  Court,  contrary  to  the 
provisions  of  chapter  fifty-six  (56)  of  the  General  Laws  of  Wisconsin, 
for  the  year  A.  D.  1870,  or  any  other  State  law,  or  contrary  to  any 
agreement  which  such  company  may  have  filed  in  pursuance  of  said 
chapter  fifty-six  (56)  of  the  General  Laws  of  Wisconsin  for  the  year 
A.  D.  1870,  or  any  other  law  of  the  State  of  Wisconsin,  it  shall  be 
liable,  in  addition  to  a  penalty  of  not  less  than  one  hundred  dollars 
or  more  than  five  hundred  dollars,  for  each  application  so  made,  or 
for  each  offense  so  committed  for  making  such  application,  the  same 
to  be  recovered  by  suit  in  the  name  of  the  State  of  Wisconsin  ;  and 
it  shall  be  the  imperative  duty  of  the  Attorney-General  of  the  State 
of  Wisconsin  to  see  and  attend,  that  all  the  provisions  of  said  chap- 
ter fifty-six  (56)  of  the  General  Laws  of  1870,  and  the  provisions  of 
this  act  are  duly  enforced.     {Ibid,  p.  6S,  §  3.) 


CONDITIONS  IN  POLICIES. 

8S.  No  person,  company,  association  or  corporation,  shall  in- 
sert or  incorporate  in  any  contract,  mortgage,  note,  bond,  obligation, 
or  policy  of  insurance,  any  condition,  or  provisions,  providing  or 
prescribing  in  what  court  or  courts  any  suit  or  action  may  be  brought 
thereon,  or  providing  that  no  action  or  suit  shall  be  brought  there- 
on, or  for  the  breach  of  any  of  the  provisions  or  conditions  thereof 
in  any  of  the  courts  in  this  State,  and  all  and  any  such  conditions 
or  provisions,  that  may  be  inserted  or  incorporated  in  any  such  con- 
tract, mortgage,  note,  bond,  obligation,  or  policy  of  insurance,  shall  be 
null  and  void  and  of  no  effect ;  and  any  renewal  of  any  policy  of  in- 
surance, containing  any  such  provisions  or  conditions,  shall  not  be 
a  renewal  of  any  such  conditions  or  provisions  therein,  but  shall  be 
deemed  a  renewal  thereof,  except  such  conditions  and  provisions. 
{Laivs  0/1874,  p.  117,  §  1.) 

90.  If  any  insurance  company,  association  or  corporation,  or- 
ganized under  any  laws,  other  than  those  of  the  State  of  Wisconsin, 
shall  violate  any  of  the  provisions  of  this  act,  their  license  to  do 
business  in  this  State  shall  be  forfeited;  Provided,  That  no  such  for- 
feiture shall  take  place,  for  any  violations  of  the  i)rovisions  of  this 
act,  within  sixty  days  after  this  act  shall  go  in  effect-.  {Ibid,  p.  118, 
§.2.) 

SERVICE    OF   PROCESS   ON   FOREIGN  INSURANCE  COM- 
PANIES. 

91.  Any  and  all  summons  or  process  in  any  action  or  proceed- 
ing in  any  court,  or  hereafter  to  be  begun  or  had  in  any  court  in 
this  State,  against  any  insurance  company  doing  business  in  this 
State  but  not  incorporated  by  or  under  the  laws  of  this  State,  may 
be  served  on  any  agent  or  agents  of  any  such  insurance  company  in 
this  State,  and  any  and  every  such  service  shall  be  deemed  a  valid 
personal  service  upon  any  such  insurance  company.  {Laics  o/1875, 
j9.  333,  §].) 

9S.  The  term  agent  or  agents  used  in  the  foregoing  section 
shall  include  an  agent,  surveyor,  broker  or  any  person  who  shall 
receive  any  application  or  make  any  contract  for  insurance,  or  coUect 
or  receive  any  premium  or  deliver  any  policy.     {1  hid,  p.  334,  §  2.) 


WTSCONSIN.  867 


APPLICATIONS  FOR  INSURANCE. 

93.  It  is  hereby  made  the  duty  of  every  insurance  company 
doing  business  in  this  State  to  deliver  to  each  and  ev^ery  person 
insured  at  the  time  of  delivering  the  policy  of  insurance,  a  duplicate 
copy  of  the  application  for  insurance ;  and  if  any  insurance  company 
shall  for  any  cause  fail  or  omit  to  deliver  such  dui)licate  copy  of  such 
application  to  the  person  insured,  at  the  time  of  delivering  the  policy 
of  insurance,  then  such  application  shall  not  be  evidence  for  such 
insurance  company  in  any  court,  anj-thing  in  the  policy  to  the  con- 
trary notwithstanding ;  Provided,  ahcays,  That  the  provisions  of  this 
section  shall  not  apply  to  such  cases  where  all  the  material  facts 
contained  in  the  application  are  stated  at  length  in  the  policy. 
{Revised  Statutes,  1871,  jj.  973,  §  54.) 


TOWN  MUTUAL  FIRE  INSURANCE   COMPANIES. 

94.  It  shall  be  lawful  for  any  number  of  persons  not  less  than 
twenty-five,  residing  in  adjoining  towns  in  this  State,  who  shall  own 
collectively  property  of  not  less  than  twenty-five  thousand  dollars  in 
value,  which  they  desire  to  have  insured,  to  form  themselves  into  a 
company  for  mutual  insurance  against  loss  or  damage  by  fire  or 
lightning,  which  corporation  shall  possess  the  usual  powers  and 
be  subject  to  the  usual  duties  of  corporations,  and  the  corporate 
name  thereof  shall  embrace  the  name  of  the  town  in  which  the  busi- 
ness office  of  said  company  shall  be  located  ;  Provided,  hoicever.  That 
the  adjoining  towns  in  which  the  said  persons  reside  and  in  which 
they  shall  have  authority  to  do  a  business  of  mutual  insurance,  shall 
not  exceed  fifteen  in  number.     {Laws  of  1875,  p.  371,  §  1.) 

95.  Every  company  so  formed  shall  choose  of  their  number  not 
less  than  five  nor  more  than  nine  directors,  to  manage  the  affairs  of 
stich  company,  who  shall  hold  their  office  for  one  year,  and  until 
others  are  elected;  and  such  directors  shall  choose  one  of  their  num- 
ber president,  and  one  as  secretary,  {General  Laics  of  1872,^.  117, 
§2.) 

96.  The  directors  of  such  company  shall  file  their  articles  of 
association,  together  with  a  copy  of  their  by-laws  and  the  names  of 
the  officers  of  such  company,  in  the  Clerk's  office  of  the  town  in  which 
the  office  of  such  company  is  located,  and  shall  keep  a  record  of 
their  proceedings  in  a  book  to  be  kept  for  that  purpose,  together 
with  the  names  of  all  persons  insured  and  the  amount  each  person 
is  insurer ;  which  record  shall  be  kept  open  for  the  inspection  of  all 
the  members  of  such  company,  from  the  hours  of  nine  o'cilock  A.  M. , 
to  four  o'clock  P.  M.,  of  each  secular  day,  the  established  holidays 
excepted.     {Ibid,  §  3.) 

97.  The  directors  of  such  company  may  issue  such  policies, 
signed  by  the  president  and  secretary,  agreeing  in  the  name  of  the 
company  to  pay  all  loss  or  damages  which  may  be  sustained  by  fire 
or  lightning  for  a  term  not  exceeding  five  years,  by  the  holders  of 
such  policies,  and  not  exceeding  the  sum  named  in  such  policy. 
(Ibid,  §  4.) 

98.  Every  person  so  insured  shall  give  his  undertakng,  bearing 
even  date  with  the  policy  so  issued  to  him,  binding  himself,  his  heirs 
and  assi^is,  to  pay  his  pro  rata  share  to  the  company  of  all  losses 


868  hine's  insurance  statutes. 

or  damages  by  Mre  or  lightning,  which  may  be  sustained  by  any 
member  thereof;  and  every  such  undertaking  shall,  within  ten  days 
after  the  acceptance  by  the  said  company  of  said  undertaking,  be 
filed  in  the  ofdce  of  the  secretary  of  such  company,  and  shall  remain 
on  file  in  such  office  except  when  required  to  be  produced  in  court 
as  evidence.  He  shall  also  at  the  time  of  effecting  such  insurance, 
pay  such  percentage  in  cash,  and  such  reasonable  sums  for  a  policy 
as  may  be  required  by  the  rules  or  by-laws  of  the  comijauy.  ( J6td, 
§  5,  as  amended  by  laws  of  1875,  j?.  448,  §  1.) 

S>®.  Every  member  of  such  company  who  may  sustain  loss  or 
damage  by  fire  or  lightning,  shall  immediately  notify  the  president 
of  such  company,  or  in  case  of  his  absence,  the  secretary  thereof, 
who  shall  forthwith  convene  the  directors  of  such  company,  whose 
duty  it  shall  be,  when  so  convened,  to  appoint  a  committee  of  not 
less  than  three  nor  more  than  five  members  of  such  company,  to 
ascertain  the  amount  of  such  loss  ;  and  in  case  of  the  inability  of 
the  parties  to  agree  upon  the  amount  of  such  damages,  the  claimant 
may  appeal  to  the  Judge  of  the  County  Court  of  such  county, 
whose  duty  it  shall  be  to  appoint  three  disinterested  persons  as  a 
committee  of  reference,  who  shall  have  full  authority  to  examine 
witnesses  and  to  determine  all  matters  in  dispute,  w^ho  shall  make 
their  award  in  writing  to  the  president,  or,  in  his  absence,  to  the 
secretary  of  such  company,  which  award  thereon  shall  be  final.  The 
said  committee  of  reference  shall  each  be  allowed  the  sum  of  two 
dollars  per  day  for  each  day's  service  so  rendered,  and  the  sum  of 
five  cents  per  mile  for  every  mile  necessarily  traveled  in  the  dis- 
charge of  such  duties,  which  shall  be  paid  by  the  claimant,  unless 
the  award  of  said  committee  shall  exceed  the  sum  offered  by  the 
company  in  liquidation  of  such  loss  or  damage,  in  which  case  said 
expenses  shall  be  paid  by  the  company.     {Ihid^  §  6.) 

10®.  The  companies  formed  under  the  provisions  of  this  act 
may  classify  the  property  insured  at  the  time  of  issuing  policies 
thereon,  under  different  rates,  corresponding  as  nearly  as  may  be  to 
the  greater  or  less  risk  from  fire  and  loss  which  may  attach  to  each 
several  buildings  or  personal  property  insured.  Whenever  the 
amount  of  any  loss  shall  be  ascertained,  which  exceeds  in  amount 
the  cash  funds  of  'the  company,  the  president  shall  convene  the 
directors  of  said  company,  who  shall  make  an  assessment  upon  all 
X)roperty  insured  to  the  amount  for  which  each  several  piece  of  prop- 
erty is  insured,  taken  in  connection  with  the  rate  of  premium  under 
which  it  may  have  been  classified.     (Ibid,  p.  118,  §  7.) 

lOl.  it  shall  be  the  duty  of  the  Secretary,  whenever  such  as- 
sessment shall  have  been  completed,  to  immediately  notify  every  per- 
son composing  such  company,  by  letter  sent  to  his  usual  post-office 
address,  of  the  amount  of  such  loss,  and  the  sum  due  from  him  as 
his  share  thereof,  and  of  the  time  when  and  to  whom  such  payment 
is  to  be  made,  but  such  time  shall  not  be  less  than  sixty  nor  more 
than  ninety  days  from  the  date  of  such  notice,  and  every  person  des- 
ignated to  receive  such  money  may  demand  and  receive  two  per 
cent,  in  addition  to  the  amount  due  on  such  assessment  as  afore- 
said, for  his  fees  in  receiving  and  paying  over  the  same.  {Ibid,  §  8, 
as  amended  by  laics  of  1873,  p.  467,  §  2.) 

lOS.  Suits  at  law  may  be  brought  against  any  member  of 
such  company,  who  shall  refuse  or  neglect  to  pay  any  assessment 
made  upon  them  by  the  provisions  of  this  act,  and  the  directors  of 
any  company  so  formed,  who  shall  willfully  neglect  or  refuse  to  per- 


WISCONSIN.  869 

form  the  duties  imposed  upon  them  by  the  foregoing  sections  of  this 
act,  shall  be  liable  in  their  individual  capacity  to  the  person  sustain- 
ing such  loss.     {Ibid,  p.  119,  §  9.) 

103.  No  company  founded  under  this  act  shall  insure  any 
property  out  of  the  town  or  towns  in  which  the  said  company  is 
located,  nor  shall  they  insure  any  property  other  than  detached 
dwellings  and  their  contents,  and  farm  buildings  and  their  contents, 
and  live  stock  while  on  the  premises,  or  running  at  large,  and  hay 
and  grain  in  the  bin  or  stack ;  Provided,  hoioever.  That  if  tlio  major- 
ity of  the  directors  of  such  company  deem  it  proper  to  insure  school- 
houses  and  churches,  and  the  furniture  in  said  school-houses  and 
cliurches,  it  shall  be  lawful  for  them  to  insure  the  same,  not  to  ex- 
ceed fifteen  hundred  dollars  ($1,500)  in  any  one  risk,  but  they  shall 
not  insiu-e  any  property  within  the  limits  of  any  incorporated  village 
or  city  in  this  State.     {Ibid,  §  10,  as  amended  by  laws  oflSlo, }).  653, 

1 04.  The  directors  of  each  company  so  formed  shall  be  chosen 
by  ballot,  at  the  annual  meeting  thereof,  which  shall  be  held  on  the 
first  Tuesday  of  January  in  each  year,  unless  otherwise  determined 
by  a  majority  of  the  voters  in  such  company,  and  every  person  shall 
have  one  vote  for  each  two  hundred  dollars  for  which  he  may  be 
insured,  but  no  person  shall  be  allowed  to  vote  by  proxy  at  such 
election.     {Ibid,  §  11,  as  amended  by  laics  o/1873,  jx  467,  §  4.) 

105.  It  shall  be  the  duty  of  the  secretary  of  every  company 
as  aforesaid,  to  prepare  a  statement  showing  the  condition  of  such 
company  on  the  day  preceding  their  annual  meeting,  which  state- 
ment shall  contain  the  amount  insured,  the  number  of  ijolicies  issued, 
and  to  whom,  and  the  amount  insured  by  each  policy,  and  all  other 
matters  pertaining  to  the  interests  of  such  company,  which  state- 
ment shall  be  filed  in  the  ofiice  of  the  town  clerk,  in  which  said  com- 
pany may  be  located,  on  or  before  the  fifteenth  day  of  January  in 
each  year,  and  which  statement  shall  also  be  read  to  the  members 
of  said  company  at  their  annual  meeting.     {Hid,  §  12.) 

i06.  Any  member  of  such  company  may  withdraw  there- 
from at  any  time,  by  giving  notice  in  writing  to  the  president,  or  in 
his  absence,  to  the  secretary  thei-eof,  and  paying  his  share  of  all 
claims  then  existing  against  said  company  ;  and  the  directors,  or  a 
majority  thereof,  shall  have  power  to  annul  any  policy  by  giving 
notice  in  writing  to  that  efiect  to  the  holder  thereof,     {Ibid,  §  13.) 

107.  Non-residents  of  any  town  in  this  State,  owning  prop- 
erty therein,  may  become  members  of  any  company  founded  under 
this  act,  and  shall  be  entitled  to  all  rights  and  privileges  appertain- 
ing thereto,  except  that  it  shall  not  be  lawful  for  such  non-resident 
to  become  a  director  of  said  company,  unless  he  be  at  the  time  of 
such  membership  a  resident  of  a  town  adjoining  the  town  or  towns 
in  which  said  company  has  been  formed  under  the  provisions  of  this 
act.     {Ibid,  p.  120,  §  14.) 

liM.  The  company  so  formed  may  adoi)t  such  by-law^s  for  its 
regulation  as  are  not  inconsistent  with  the  i^rovisions  of  this  act, 
and  may  therein  prescribe  the  compensation  of  its  oflicers.  {Ibid, 
§  15.) 

109.  No  company  formed  under  this  act  shall  continue  for  a 
longer  term  than  thirty  years.     {Ibid,  §  16.) 

110.  This  act  shall  apply  to  all  companies  heretofore  organ- 
ized in  compliance  with  the  provisions  of  chapter  forty-six  of  the 
general  laws  of  1859,  and  the  amendments  thereto.    {Ibid,  §  17.) 


870  HINE'S  mSUEANCE  STATUTES. 

111.  It  shall  be  lawful  for  any  organized  town  Insurance  com- 
panies in  this  State,  without  reorganization,  to  insure  the  real  and 
personal  property  of  the  inhabitants  of  any  adjoining  towns  in  the 
same  county  where  such  town  insurance  company  may  be  located, 
in  the  same  manner  and  at  the  same  rates  of  insurance  as  said  town 
insurance  companies  are  now  or  may  be  hereafter  permitted  to  do 
under  the  present  town  insurance  laws,  and  their  corporate  by-laws. 
{Laws  of  1875,  p.  599,  §  1.) 

119.  It  shall  be  lawful  for  such  organized  town  insurance 
companies,  from  time  to  time,  as  occasion  requires,  to  choose  any  of 
their  officers  from  such  adjoining  towns,  as  they  would  be  permitted 
to  do  if  such  adjoining  towns  had  been  embraced  in  their  territory 
at  its  organization.     {Ibid,  §  2.) 


LIFE     INSURANCE    FOR    THE    BENEFIT    OF    MARRIED 
WOMEN  AND  CHILDREN  AND  OTHERS. 

113,     It  shall  be  lawful  for  any  married  woman,  by  herself  and 
in  her  own  name,  or  in  the  name  of  any  third  person,  with  his  as- 
sent as  her  trustee,  to  cause  to  be  insured  for  her  sole  use,  the  life 
of  her  husband,  son,  or  other  person  for  any  definite  period,  or  for 
the  term  of  the  natural  life  of  such  person  ;  and  it  shall  be  lawful 
for  any  person  effecting  or  causing  to  be  procui'ed  or  effected  any 
policy  of  insurance  of  the  life  of  any  person,  to  assign,  transfer  or 
cause  the  same  to  be  made  payable  to  any  married  woman  or  to  any 
person  in  trust,  for  her  or  her  benefit,  whether  the  person  effecting 
or  procuring  such  insurance  or  making  such  assignment  or  transfer 
be  the  husband  of  such  married  woman  or  not,  and  such  policy  of 
insurance,  when  expressed  to  be  for  the  benefit  of  or  assigned, 
transferred  or  made  payable  to  any  married  woman,  shall  inure  to 
her  separate  use  and  benefit  and  that  of  her  children,  and  in  case 
of  her  surviving  such  period  or  term,  the  sum  or  net  amount  of  the 
insurance  becoming  due  and  payable  by  the  terms  of  the  insurance, 
shall  be  payable  to  her,  to  and  for  her  own  use  and  benefit,  free  from 
the  claims  of  her  husband,  his  rei^resentatives  or  creditors,  and  free 
from  the  claims  of  the  person  effecting,  assigning  or  transferring 
such  insurance,  his  representatives  or  creditors;   Provided,  however, 
That  if  the  premium  on  such  policy  is  paid  by  any  person  with  the 
intent  to  defraud  his  creditors,  an  amount  equal  to  the  premium  so 
paid,  with  the  interest  thereon,  shall  inure  to  the  benefit  of  said 
creditors,    subject,  however,    to  the  statute  of   limitations.    The 
amount  of  the  insurance  may  be  made  payable,  in  case  of  the  death 
of  the  wife,  before  the  period  at  which  it  becomes  due,  to  his,  her  or 
their  children  for  their  use,  as  shall  be  provided  in  the  policy  of  in- 
surance, and  to  their  guardian,  if  under  age,  and  the  receipt  of  such 
married  woman  or  of  such  children,  or  of  their  guardian,  if  minors, 
in  the  cases  in  which  such  insurance  is  payable  to  them  or  either  of 
them,  pursuant  to  the  terms  of  the  policy  and  the  provisions  of  this 
act,  shall  relieve  the  insurance  company  from  all  further  liability 
therefor.   The  pro\'isions  of  this  section  shall  apply  to  all  insurances 
on  lives  effected  before  the  passage  of  this  act.     {Revised  Statutes, 
1871,  i). 978,  §74.) 

114.  On  the  death  of  any  minor,  who  shall  have  insured  his 
or  her  life  for  the  benefit  of  his  or  her  legal  heirs,  and  such  legal 
heirs  shall  be  a  father  or  mother,  the  sum  so  insured  and  become 


WISCONSIN,  871 

payable,  except  so  mucli  of  the  same  as  shall  be  necessary  to  pay 
the  debts  of  such  deceased  minor,  shall  vest  in  and  become  the 
property  of  such  legal  heirs,  and  shall  be  exempt  from  seizure  or 
sale  on  any  j^rocess  of  attachment,  execution  or  garnisbeo,  issued 
out  of  any  court  in  this  State,  at  the  suit  of  the  creditors  of  such 
legal  heirs.     {Ihid,p.  981,  §  83.) 


ARSO]^  AND  INCENDIARISM. 

115.  Every  person  who  shall  willfully  and  maliciously  burn, 
in  the  night-time,  the  dwelling-house  of  another,  whereby  the  life  of 
any  person  shall  be  destroyed,  or  shall  in  the  night-time  willfully 
and  maliciously  set  tire  to  any  other  building,  owued  by  himself  or 
another,  by  the  burning  whereof  such  dwelling-house  shall  be  burnt 
in  the  night-time  whereby  the  life  of  any  person  shall  be  destroyed, 
shall  suffer  the  same  punishment  as  provided  for  the  crime  of  mur- 
der in  the  second  degree ;  but  if  the  life  of  no  person  shall  have 
been  destroyed,  he  shall  be  punished  by  imprisonment  in  the  State 
prison,  not  more  than  fourteen  years  nor  less  than  seven  years ;  and 
if  at  the  time  of  committing  the  offense  there  was  no  person  lawfully 
in  the  dwelling-house  so  burnt,  heshall  be  punished  by  imprisonment 
in  the  State  prison,  not  more  than  ten  nor  less  than  three  years. 
[Ibid,  p.  1838,  §  1.) 

11<$,  Every  person  who  shall  willfully  and  maliciously  burn, 
in  the  day-time,  the  dwelling-house  of  another,  or  any  building  ad- 
joining such  dwelling-house,  and  shall  willfully  and  maliciously  set 
fire  to  any  building  owned  by  himself  or  another,  by  the  burning 
whereof  such  dwelling-house  shall  be  burnt  in  theday-time,  or  shall 
in  the  day-time  willfully  and  maliciously  set  tire  to  any  building 
owned  by  himself  or  another,  by  the  burning  whereof  such  dwelling- 
house  shall  be  burnt  in  the  night-time,  shall  be  punished  by  impris- 
onment in  the  State  prison,  not  more  than  fifteen  years  nor  less  than 
five  years.     {Ibid,  §  2.) 

117.  Every  person  who  shall  willfully  and  maliciously  burn 
in  the  night-time,  any  meeting-house,  church,  court-house,  town- 
house,  college,  academy,  jail,  or  other  building  erected  for  public 
uses,  or  any  ship,  steamboat,  or  other  vessel,  or  any  banking-house, 
warehouse,  store,  manufactory,  or  mill  of  another,  or  any  barn, 
stable,  shop,  or  office  of  another,  within  the  curtilage  of  any  dwell- 
ing-house or  any  other  building,  by  the  burning  whereof  any  build- 
ing mentioned  in  this  section  shall  be  burnt  in  the  night-time,  shall 
be  punished  by  imprisonment  in  the  State  prison,  not  more  than 
fifteen  years  nor  less  than  five  years.     (Ibid,  §  3.) 

118.  Every  person  who  shall  willfully  and  maliciously  burn, 
in  the  day-time,  any  building  mentioned  in  the  next  preceding  sec- 
tion, the  punishment  for  which,  if  burnt  in  the  night-time,  would  be 
imprisonment  in  the  State  prison  not  more  than  fifteen  years  nor 
less  than  five  years,  shall  be  punished  by  imprisonment  in  the  State 
prison,  not  more  than  eight  years  nor  less  than  four  years.  (I  bid, 
p.  1839,  §  4.) 

119.  Every  person  who  shall  willfully  and  maliciously  burn, 
either  in  the  night-time  or  day-time,  any  banking-house,  warehouse, 
store,  manufactory,  mill,  barn,  stable,  shop,  otiice,  out-house,  or 
other  building  whatsoever  of  another,  other  than  is  mentioned  in 
the  third  section  of  this  chapter,  or  any  bridge,  lock,  dam,  or  flume, 


872  hine's  insurance  statutes. 

shall  be  punished  by  iraprisoniDent  in  the  State  prison,  not  more 
than  eight  years  nor  less  than  four  years.  (i&M,  §  5.) 

ISO.  Every  person  who  shall  willfully  burn  any  building,  or 
any  goods,  wares,  merchandise,  or  other  chattels,  which  shall  be 
at  the  time  insured  against  loss  or  damage  by  fire,  with  intent  to 
injure  the  insui^er,  whether  such  person  be  the  owner  of  the  prop- 
erty or  not,  shall  be  punished  by  imprisonment  in  the  State  prison, 
not  more  than  ten  years  nor  less  than  three  years.     {Ibid,  §  8.) 

121.  For  General  Provisions  relating  to  Corporations  see  Ee- 
vised  Statutes,  1871,  pp.  1026-1033,  1728-1736;  Laws  of  1872,  pp. 
132,  133;  Laws  of  1874,  pp.  33,  34,  173-177,  709,  710;  Laws  of 
1875,  pp.  039-641, 


INSURANCE  STATUTES  OF  ARIZONA  TERRITORY. 


TAX  ON  INSURANCE  COMPANIES. 

1 .  Each  and  every  insurance  company  incorporated  under  the 
hiws  of  any  other  State  or  Territory  shall  pay  an  annual  tax  of  two 
hundred  dollars  to  the  Treasurer  of  the  county  in  which  their  busi- 
ness office  is  situated,  and  take  his  receipt  therefor,  specifying  the 
kind  of  business  to  be  done,  and  which  shall  be  a  sufficient  license  ; 
Provided,  That  no  license  under  the  provisions  of  this  section  shall 
be  issued  .for  less  than  one  year.  {Compiled  Laws  of  Arizona,  1871, 
chap.  49,  §5,i?2).  526,  527.) 


LIFE  INSURANCE  FOR  THE   BENEFIT  OF   MARRIED 
WOMEN  AND  CHILDREN. 

Q.  It  shall  be  lawful  for  any  married  woman  by  herself,  or  in  her 
name,  or  in  the  name  of  any  third  person  with  his  assent  as  her 
trustee,  to  cause  to  be  insured  for  her  sole  use  the  life  of  her  hus- 
band for  any  definite  period,  or  for  the  term  of  his  natural  life ;  and 
in  case  of  her  surviving  her  husband,  the  sum  or  net  amount  of  the 
insurance  becoming  due  and  payable  by  the  terms  of  the  insurance 
shall  be  payable  to  her,  to  and  for  her  own  us:e,  free  from  the  claims 
of  the  representatives  of  her  husband  or  his  creditors  ;  but  such  ex- 
emption shall  not  apply  as  against  creditors  only  where  the  amount 
of  the  premium  annually  paid  shall  exceed  three  hundred  dollars, 
such  surplus  shall  be  applied  to  the  payment  of  the  debts  of  the  de- 
ceased.    {Act  approved  December  30,  1865,  §  32.) 

3.  In  case  of  the  death  of  the  wife  before  the  decease  of  her  hus- 
band the  amount  of  the  insurance  may  be  made  payable  to  her  chil- 
dren, and  shall  be  received  by  them,  or,  if  under  age,  by  their  legal 
guardian  for  their  use.     {Ibid,  §  33.) 


ARSON  AND  INCENDIARISM. 

4,  Every  person  who  shall  willfully  and  maliciously  burn,  or 
cause  to  be  burned,  any  dwelling-house,  kitchen,  office,  shop,  bam, 
stable,  store-house,  warehouse  or  other  building,  the  property  of  any 
other  person,  or  any  church,  meeting-house,  school-house,  State- 
house,  court-house,  work-house,  jail  or  other  public  building,  or  any 
ship,  vessel,  boat,  or  other  water-craft,  or  any  bridge  of  the  value  of 
fifty  dollars  or  more,  erected  across  any  of  the  waters  of  this  Ter- 
ritory, such  person  so  offending  shall  be  deemed  guilty  of  arson,  and 
upon  conviction  thereof,  shall  be  punished  by  imprisonment  in  the 
Territorial  prison  for  a  term  not  less  than  one  year  nor  more  than 
ten  years ;  and  should  the  life  or  lives  of  any  person  or  persons  be  lost 
in  consequence  of  any  such  burning  as  aforesaid,  such  offender  shall 


874  hine's  insurance  statutes. 

be  deemed  guilty  of  murder,  and  shall  be  indicted  and  punished  ac- 
cordingly.    {Compiled  Laws,  1864-1871,  p.  78,  §§  10  and  56.) 

5.  Every  person  who  shall  willfully  and  maliciously  set  fire  to 
any  of  the  buildings  or  other  property  described  in  the  foregoing  sec- 
tion, with  the  intent  to  burn  and  destroy  the  same,  upon  conviction 
thereof  shall  be  punished  by  imprisonment  in  the  Territorial  prison 
for  any  term  not  exceeding  two  years.     {Ihid,  §§  10  and  57.) 

EMBEZZLEMENT. 

6.  Every  servant,  officer  or  person  employed  in  any  public  de- 
partment, station  or  office  of  the  government  of  this  Territory,  or  of 
any  county  of  this  Territory,  or  in  any  office  of  a  corporate  body, 
who  shall  embezzle,  steal,  secrete  or  fraudulently  take  and  carry 
away  any  money,  goods,  chattels,  effects,  book  or  books,  of  record, 
or  of  account,  bond  or  bonds,  promissory  note  or  notes,  bank  bills 
or  notes,  or  any  other  writing  or  security  for  the  payment  of  money 
or  property  of  whatever  description  it  may  be,  being  the  property  of 
said  Territory,  county  or  corporate  body,  shall,  on  con\ictiou  thereof, 
be  punished  by  imprisonment  in  the  Territorial  prison  for  a  term 
not  less  than  one  year  nor  more  than  ten  years.  (Ibid,  chap.  10, 
p.  79,  §  66.) 

7.  For  General  Provisions  relating  to  Corporations  see  Com* 
piled  Laws,  1864-1871,  pp.  483-488. 


INSURANCE  STATUTES  OF  COLORADO  TERRITORY. 


1,  All  agents  of  foreign  insurance  companies  shall,  upon  their 
acceptance  of  such  agencies,  signify  the  same  in  writing,  to  the  Clerk 
of  their  respective  counties,  which  notice  shall  be  filed  by  the  Clerk 
in  his  office,  which  shall  entitle  the  agent  to  grant  policies  of  insur- 
ance, according  to  the  laws  governing  the  company  of  such  agency. 
{Revised  Statutes,  1868,  p.  426,  §  16.) 

2.  If  any  person  carry  on  or  transact  any  business,  or  occupa- 
tion, without  license  therefor,  when  such  license  is  required  by  any 
law  of  this  territory,  he  shall,  on  conviction  thereof,  be  fined  in  a 
sum  not  exceeding  three  hundred  dollars,  or  imprisonment  in  the 
county  jail  not  exceeding  six  months,  or  by  both  such  fine  and  im- 
prisonment.    {Ibid,  §  17.) 

;{.  Insurance  companies  of  every  description,  existing  in  other 
States  or  Territories,  and  operating  in  this,  shall  be  taxed  one  per 
cent,  for  territorial  purposes,  upon  the  amount  of  the  premiums 
taken  by  them  during  the  year  previous  to  the  listing  in  the  county 
where  the  agent  conducts  that  business ;  and  the  agent  shall  render 
the  list,  and  shall  be  personally  liable  for  the  tax ;  and  if  he  refuses 
to  render  the  list,  or  to  swear  as  herein  required,  the  amount  may 
be  assessed  according  to  the  best  knowledge  and  discretion  of  the 
assessor,     {Act  Approved  Feb.  11,  1870,  §  15.) 

4.    Every  incorporated  company  incorporated  under  the  laws 


COLORADO   TERRITOEY.  875 

of  any  foreign  state  or  kingdom,  or  of  any  State  or  Territory  of  the 
United  States,  beyond  the  limits  of  this  Territory,  and  now  or 
hereafter  doing  business  within  this  Territory,  shall,  within  thirty 
days  after  commencing  so  to  do  business,  file  in  the  office  of  the 
Clerk  of  the  county  within  which  their  business  is  conducted,  a  copy 
of  their  charter  of  incorporation ;  or  in  case  such  company  is  incor- 
porated by  certificate  under  any  general  incorporation  law,  a  copy 
of  such  certificate  and  of  such  general  incorporation  law,  duly  cer- 
tified and  authenticated  by  the  proper  authority  of  such  foreign 
state,  kingdom  or  territory.     {Revised  Statutes,  1868,  ^p.  150,  §  1.) 

5.  A  failui-e  to  comply  with  the  provisions  of  this  article  shall 
render  each  and  every  officer,  agent  and  stockholder  of  any  such 
corporation  so  failing  herein,  jointly  and  severally  personally  liable 
on  any  and  all  contracts  of  such  company  made  within  this  Terri- 
tory, during  the  time  that  such  corporation  is  so  in  default.  {Ibid, 
§2.) 

6.  The  several  certificates,  statutes  and  charters  mentioned  in 
section  first  of  this  article,  shall  be  by  the  County  Clerk  filed  and 
preserved  in  his  office,  as  a  part  of  the  records  thereof;  and  he 
shall  be  entitled  to  receive  a  fee  of  fifty  cents  for  receiving  and  filing 
every  such  certificate  and  statute.  Copies  of  such  charters,  statutes 
and  certificates,  duly  certified  by  such  County  Clerk,  under  his  seal 
of  office,  shall  be  received  in  all  courts  of  this  Territory  as  sufficient 
evidence  of  the  corporate  character  of  such  incorporations,  and  of 
all  their  powers,  duties  and  liabilities,  and  the  originals  thereof  may 
in  like  manner  be  used  in  evidence  of  these  matters  with  like  effect. 
{Ibid,  §  3.) 

ARSON  AND  INCENDIARISM. 

7.  Every  person  who  shall  willfully  and  maliciously  burn,  or 
cause  to  be  burned,  any  dwelling-house,  kitchen,  office,  shop,  barn, 
stable,  store-house,  warehouse,  factory,  mill,  j)ottery,  or  other  build- 
ing, the  property  of  any  other  person,  or  any  church,  meeting-house, 
school-house,  state-house,  court-house,  work-house,  jail,  or  other 
public  building;  or  any  boat  or  other  water-craft;  or  any  bridge,  of 
the  value  of  fifty  dollars,  erected  across  any  of  the  waters  of  this 
Territory;  such  persons  so  offending  shall  be  deemed  guilty  of  ar- 
son, and  upon  conviction  thereof,  shall  be  punished  by  imprison- 
ment in  the  penitentiary  for  a  term  not  less  than  one  year  nor  more 
than  ten  years ;  and  should  the  life  or  lives  of  any  person  or  persons 
be  lost  in  consequence  of  any  such  burning  as  aforesaid,  such  of- 
fender shall  be  deemed  guilty  of  murder,  and  shall  be  indicted  and 
punished  accordingly.     {Revised  Statutes,  1868,  p.  204,  §  53.) 

8.  Every  person  who  shall  willfully  and  maliciously  set  fire  to 
any  of  the  buildings  or  other  property  described  in  the  foregoing 
section,  with  the  intent  to  burn  or  destroy  the  same,  shall  be  deemed 
guilty  of  a  high  misdemeanor,  and  upon  conviction  thereof,  shall  be 
imprisoned  in  the  penitentiary  for  a  term  not  exceeding  two  years, 
and  be  fined  in  a  sum  not  exceeding  one  thousand  dollars.  {Ibid, 
§54.) 

EMBEZZLEMENT. 

9.  Every  servant,  officer  or  person  employed  in  any  public  de- 
partment, station  or  office  of  the  Government  in  this  Territory,  or 


876  HmE-S   INSURANCE   STATUTES. 

any  county  of  this  Territory,  or  in  any  office  of  a  corporate  body, 
who  shall  embezzle,  steal,  secrete,  or  fraudulently  take  and  carry 
away  any  money,  goods,  chattels,  effects,  book  or  books  of  record 
or  of  account,  bond  or  bonds,  promissory  note  or  notes,  bank  bills 
or  notes,  or  any  other  writing  or  security  for  the  payment  of  money 
or  property  of  whatever  description  it  may  be,  being  the  property 
of  said  Territory,  county  or  corporate  body,  shall,  on  conviction,  be 
punished  by  confinement  in  the  penitentiary  for  a  term  not  less 
than  one  year  nor  more  than  ten  years,  {Revised  Statutes,  1868, 
p.  206,  §  61.) 

lO.    For  General  Provisions  relating  to  Corporations  see  Re- 
vised Statutes,  1868,  pp.  150-152. 


INSURANCE  STATUTES  OF  DAKOTA  TERRITORY. 


1 .  No  corporation  created  or  organized  under  the  laws  of  any 
other  State  or  Territory  shall  be  allowed  to  establish  an  office,  and 
transact  business  within  this  Territory,  or  acquire,  hold  and  dispose 
of  property,  real,  personal  or  mixed,  within  the  Territory  of  Dakota, 
until  such  corporation  shall  have  filed  in  the  office  of  the  Secretary 
of  the  Territory  of  this  Territory,  a  duly  authenticated  copy  of  its 
charter  or  articles  of  incorporation ;  Provided,  That  the  j)rovisions 
of  this  act  shall  not  apply  to  corporations  or  associations  created 
for  religious  or  charitable  purposes  solely.  {Act  approved  January 
16,  1875.) 

2.  Such  charter  or  articles  of  incorporation  shall  be  recorded  in 
a  book  to  be  kept  by  the  Secretary  of  this  Territory  for  that  purpose. 
That  said  Secretary  shall  be  entitled  to  charge  a  fee  of  one  dollar 
for  filing,  and  fifteen  cents  per  folio  for  recording  such  charter  or 
articles  of  incorporation.     {Ibid.) 

3.  Such  corporation  shall  appoint  an  agent,  who  shall  reside 
at  some  accessible  point  in  the  Territory,  in  the  vicinity  of  where 
the  principal  business  of  said  cori^oration  in  this  Territory  shall  be 
carried  on,  duly  authorized  to  accept  service  of  process,  and  upon 
whom  service  of  process  may  be  made  in  any  action  in  which  said 
corporation  may  be  a  party  ;  and  service  upon  such  agent  shall  be 
taken  and  held  as  due  service  upon  such  corporation.  A  duly  au- 
thenticated copy  of  the  appointment  or  commission  of  such  agent 
shall  be  filed  in  the  office  of  the  Secretary  of  this  Territory.    {Ibid.) 

4.  Corporations  having  complied  with  all  the  provisions  of  this 
act  shall  have  the  same  rights  and  privileges,  and  be  subject  to  the 
same  rules  and  regulations  as  corporations  created  under  and  by 
virtue  of  the  laws  of  this  Territory ;  Provided,  however,  That  no 
rights  or  franchises  shall  be  acquired  under  this  act  except  the  right 
of  ownership  to  real  or  personal  property,  which  may  not  be  affected 
by  the  ainendment  or  repeal  of  this  act.     {Ibid.) 


INSURANCE  STATUTES  OF  WASHINGTON  TER- 
RITORY. 


FOREIGN  CORPORATIONS. 

1,  All  corporations  now  existing  or  hereafter  formed  under 
the  laws  of  the  States  or  other  Territories  of  the  United  States,  shall 
have  full  power  and  authority  to  sue  and  be  sued,  hold,  purchase 
and  acquire,  sell,  lease  and  dispose  of  real  and  personal  property, 
and  generally  to  do  and  perform  any  and  every  act,  and  transact 
business  within  this  Territory,  in  the  same  manner  and  to  the  same 
extent  as  though  said  corporation  had  been  organized  under  the 
laws  of  this  Territory ;  Provided,,  That  any  such  corporation  here- 
after acquiring  property  or  commencing  to  transact  business  in  the 
Territory,  shall  first  comply  with  the  provisions  of  section  two  of 
this  act ;  and  Provided,  further.  That  all  the  real  estate  of  such  cor- 
poration within  this  Territory,  and  all  the  personal  property  of  such 
corporation  in  this  territory,  including  steamboats,  all  other  vessels 
navigating  the  waters-  of  said  Territory,  and  all  other  personal  prop- 
erty used  in  prosecuting  the  business  of  said  corporation  within  this 
Territory,  shall  be  liable  to  taxation  in  this  Territory,  any  provisions 
in  this  act  incorporating  said  company  to  the  contrary  notwith- 
standing.    {Act  approved  November  23,  1871,  §  1.) 

2.  Said  corporation  shall  file  or  cause  to  be  filed  in  the  office  of 
the  Secretary  of  the  Territoiy,  an  authenticated  copy  of  its  acts  or 
articles  of  incorporation,  and  shall  constitute  and  appoint  an  agent, 
who  shall  reside  at  the  i)lac3  in  the  Territory  where  the  principal 
place  of  business  of  said  corporation  in  the  Territory  shall  be  carried 
on,  duly  authorized  to  accept  service  of  process,  and  upon  whom 
service  of  process  may  be  made  in  any  action  or  suit  pertaining  to 
the  property,  business  or  transaction  of  said  corporation  within  this 
Territory,  in  which  said  corporation  may  be  a  party,  and  shall  file  in 
the  office  of  the  Secretary  of  the  Territory  a  duly  executed  appoint- 
ment of  such  agent,  naming  his  place  of  residence,  and  shall  con- 
tinually have  and  keep  some  resident  agent  so  as  aforesaid  empow- 
ered ;  and  service  upon  such  agent  shall  be  taken  and  held  as  due 
service  on  said  corporation ;  Provided,  further,  That  said  agent,  or 
his  place  of  residence,  may  from  time  to  time  be  changed  upon  fil 
ing  a  new  ai)pointment  or  notice  of  the  change  in  the  place  of  resi- 
dence.    (Ibid,  §  2.) 

3.  Nothing  in  this  act  shall  be  so  construed  as  to  render  void 
anything  heretofore  done  by  any  corporation  of  any  other  Territory 
or  a  State  of  the  United  States,  not  inconsistent  with  the  organic 
law  of  this  Territory,  but  such  acts  and  things  shall  remain  valid  as 
if  the  same  had  been  done  by  corporations  formed  under  the  laws 
of  this  Territory.     {Ibid,  §  3.) 

4,  Any  corporation  incorporated  under  the  laws  of  any  State 
in  the  United  States,  or  of  aiiy  foreign  country,  State  or  colony, 
may  acquire,  hold,  use  and  dispose  of  in  the  corporate  name  all 
real  estate  necessary  or  convenient  .to  carry  into  effect  the  objects 


878  hine's  insurance  statutes. 

of  its  incorporation,  and  the  transaction  of  its  business,  and  also 
any  interest  in  real  estate  by  mortgage  or  otherwise,  as  security 
for  moneys  due  to,  or  loans  made  by  such  foreign  corporation  in 
this  Territory,  either  prior  to,  or  after  the  passage  of  this  act ;  Pro- 
vided, Such  corporation  shall  file  in  the  office  of  the  Secretary  of 
the  Territory  a  certified  copy  of  its  charter,  or  certificate  of  incor- 
poration.    {Act  approved  Nov.  5,  1875,  §  1.) 

si.  So  much  of  section  two  (2)  of  the  act  entitled  "  an  act  in 
relation  to  foreign  corporations  holding  property  or  doing  business 
in  this  Territory,"  approved  November  29th,  1871,  as  requires  cor- 
porations to  appoint  an  agent  who  shall  reside  in  the  Territory, 
shall  not  apply  to  corporations  provided  for  in  section  (1)  of  this 
act.     {lUd,  §  2.) 

6.  All  corporations  now  existing  or  hereafter  formed  under  the 
laws  of  other  States  and  Territories  for  the  conducting  and  trans- 
actions of  marine,  life,  or  fire  insurance  business  with  an  author- 
ized agent  residing  in  and  having  an  office  in  this  Territory,  shall 
have  ample  power  to  do  and  transact  su(;h  insurance  business 
within  this  Territory,  not  inconsistent  with  the  organic  act  of  this 
Territory,  with  ample  power  by  their  corporate  name  and  style  to 
enjoy  all  such  rights  not  inconsistent  with  the  organic  act  as  afore- 
said, and  to  maintain  and  defend  the  same  in  any  court  or  place 
within  this  Territory  as  fully  as  though  said  companies  were  do- 
mestic corporations,  incorporated  by  and  in  accordance  with  the 
laws  of  this  Territory.     {Act  approved  Nov.  13, 1873,  §  23.) 


INSURANCE  STATUTES  OF  WYOMING  TERRITORY. 


FOREIGN  CORPORATIONS. 

1 .  Every  incorporated  company,  incorporated  under  the  laws 
of  any  foreign  State  or  kingdom,  or  of  any  State  or  Territory 
of  the  United  States,  beyond  the  limits  of  this  Territory,  and  now 
or  hereafter  doing  business  within  this  Territory,  shall  within  thirty 
days  after  commencing  so  to  do  business,  file  in  office  of  the  Regis- 
ter of  Deeds  of  the  county  within  which  its  business  is  conducted, 
a  copy  of  its  charter  of  incorporation ;  or  in  case  such  company  is 
incorjiorated  by  certificate  under  any  general  incorporation  law,  a 
copy  of  such  certificate  and  of  such  general  incorporation  law,  duly 
certified  and  authenticated  by  the  proper  authority  of  such  foreign 
State,  kingdom  or  territory.     {Laws  of  1869,  p.  204,  §  1.) 

2.  A  failure  to  comply  with  the  provisions  of  this  article  shall 
render  each  and  every  officer,  agent  and  stockholder  of  any  such 
corporation  so  failing  herein,  jointly  and  severally,  personally  liable 
on  any  and  all  contracts  of  such  company,  made  or  to  be  performed 
within  this  Territory.     {Ibid,  §  2.) 

3.  The  several  certificates,  statutes  and  charters  mentioned  in 
section  first  of  this  article,  shall  be  by  the  Register  of  Deeds  filed 


WYOMING  TERRrTORY.  879 

and  preserved  in  his  office,  as  a  part  of  tlie  records  thereof;  and  he 
shall  be  entitled  to  receive  a  fee  of  one  dollar  for  receiving  and  tiling 
every  such  certificate  and  statute.  Copies  of  such  charters,  statutes 
and  certificates,  duly  certified  by  such  liegister  of  Deeds,  under  his 
seal  of  office,  shall  be  received  in  all  courts  of  this  Territory  as 
sufficient  evidence  of  the  existence  and  corporate  character  of  such 
incorporations,  and  of  all  their  powers,  duties  and  liabilities,  and 
the  originals  thereof,  may  in  like  manner  be  used  in  evidence  of 
these  matters  with  like  effect.     {Ihid,  §  3.) 

4,  When  the  defendant  is  an  incorporated  insurance  company, 
and  the  action  is  brought  in  a  county  in  which  there  is  an  agency 
thereof,  the  service  may  be  upon  the  chief  officer  of  such  agency. 
{Laics  of  lS13,p.  33,  §  63.) 

5.  Insurance  comjmnies  of  every  description,  transacting  busi- 
ness in  this  Territory,  either  by  agents  or  other  officers  or  persons, 
whether  such  company  be  incorporated  or  organized  in  this  Terri- 
tory or  not,  shall  be  assessed  and  taxed  for  territorial,  and  county 
purposes  in  the  same  amount  and  at  the  same  rate  that  all  other 
property  is  taxed,  upon  the  amount  of  the  premiums  taken  by  them 
during  the  year  previous  to  the  listing,  in  the  county  where  the 
agent  conducts  that  business,  and  the  agent  shall  render  the  list, 
and  shall  be  personally  liable  for  the  tax,  and  if  he  refuses  to  render 
^the  list,  or  to  swear  as  herein  required,  the  amount  may  be  ascer- 
'tained  and  assessed  as  provided  in  this  act,  in  the  case  of  railroads 
and  other  corporations.     {Laws  of  1869,^.  346,  §  15.) 


AKSON  AKD   INCENDIARISM. 

6.  Every  person  who  shall  willfully  and  maliciously  burn  or 
cause  to  be  burned  any  dwelling-house,  kitchen,  office,  shop,  barn, 
stable,  store-house,  warehouse,  factory,  mill,  pottery  or  other  build- 
ing, the  property  of  any  other  person,  or  any  church,  meeting-house, 
school-house,  state-house,  court-house,  work-house,  jail,  or  other  pub- 
lic building ;  or  any  boat  or  other  water-craft ;  or  any  bridge  of  the 
value  of  fifty  dollars,  erected  across  any  of  the  waters  of  this  Terri- 
tory. Such  persons  so  offending  shall  be  deemed  guilty  of  arson, 
and  upon  conviction  thereof  shall  be  punished  by  imprisonment  in 
the  penitentiary  for  a  term  not  less  than  one  year  nor  more  than  ten 
years ;  and  should  the  life  or  lives  of  any  person  be  lost  in  conse- 
quence of  any  such  burning  as  aforesaid,  such  offender  shall  be 
deemed  guilty  of  murder,  and  shall  be  indicted  and  punished  accord- 
ingly.    {Laws  of  1869,  p.  107,  §  36.) 

7.  Every  person  who  shall  willfully  and  maliciously  set  fire  to 
any  of  the  buildings  or  other  property  described  in  the  foregoing  sec- 
tion with  the  intent  to  burn  or  destroy  the  same,  shall  be  deemed 
guilty  of  a  high  misdemeanor,  and  upon  conviction  thereof  shall 
be  imprisoned  in  the  penitentiary  for  a  term  not  exceeding  two  years, 
and  be  fined  in  a  sum  not  exceeding  one  thousand  dollars.  {Ibid, 
§37.) 

EMBEZZLEMENT. 

8.  Every  servant,  officer  or  person  employed  in  any  office  of  a 
corporate  body,  who  shall  embezzle,  steal,  secrete  or  fraudulently 
take,  carry  away  any  money,  goods,  chattels,  effects,  book  or  books 


880 


niNE'S  INSURANCE   STATUTES. 


of  record  or  of  account,  bond  or  bonds,  promissory  note  or  notes, 
bank  bills  or  notes,  or  any  other  writing  or  security  for  the  payment 
of  money  or  property  of  whatever  description  it  may  be,  being  the 
prox^erty  of  said  corporate  body,  shall,  on  conviction,  be  punished 
by  confinement  in  the  penitentiary  for  a  term  not  less  than  one  year, 
nor  more  than  two  years.     {Laws  of  1869,  p.  110,  §  46.) 


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